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The company pleaded guilty in the Land and Environment Court for failing to comply with the project approval, specifically for constructing a coal truck haul road outside of the approved location.
A sentencing hearing for the matter has been listed for August 2016.
A Department spokesperson said the company has cooperated with the compliance investigation.
Separately, the Department’s compliance team has also fined Charbon Coal.
A $3000 penalty has been issued to the company for stockpiling waste rock outside of the approved area, which is a breach of the company’s approval conditions.
“Strict conditions are placed on all approved major projects and companies must follow these rules,” a spokesperson said.
“Our compliance officers work with communities across NSW to monitor major projects across industry, infrastructure, mining and quarries.
“The team conducts audits and spot checks without warning, as well as works with companies to ensure they are complying.”
Centennial Coal said in a statement: "In March the Department of Planning and Environment filed a Summons in the Land and Environment Court claiming Charbon Coal Pty Limited, a subsidiary of Centennial Coal, did not comply with a condition to which an approval was given.
"More specifically that a Run of Mine (ROM) coal haul road was constructed in a location different to the location approved in the Project Approval.
"Charbon Coal Pty Ltd acknowledges that the ROM coal haul road was constructed in a different location and that this discrepancy constitutes a non-compliance with the condition of the Project Approval.
"In the Land and Environment Court, it entered a plea of guilty to the charged offence.
"Charbon Coal Pty Ltd and Centennial Coal regret and apologise for the breach of the Project Approval condition."
Charbon Colliery was an underground (bord and pillar) and open-cut coal mine located in the Western Coalfields of NSW and adjacent to Charbon village.
After more than 90 years of mining Charbon has depleted its coal reserves and closed in 2015.
Charbon is progressing, with the appropriate state agencies, the plans required for mine closure and rehabilitation, Centennial said.
