The project approval allows Gloucester to increase the production of the Duralie open cut mine to up to 3 million tonnes per annum.

“An objector has commenced a merit appeal challenge in the NSW Land and Environment Court against the NSW Planning Minister's grant of the environmental approvals for the Duralie Extension,” Gloucester announced.

“The company considers that the measures it has committed to and implemented as part of its environmental obligations under the approvals that it has received should position it well to successfully defend the challenge.

“During the currency of the merit appeal challenge, the company is entitled to continue to rely on the environmental approval to carry out its operations in the Duralie extension area.”

On its website, LEC revealed there was a hearing for Maloney & Ors vs the Minister administering the Environmental Planning and Assessment Act 1979, at 10am this morning (AEDT).

The Duralie mine in the Gloucester Basin produced 416,000 tonnes run-of-mine for the December quarter, down 4% year-on-year.

Gloucester shares are down 13c to $12.87 this morning.