Xstrata spokesman James Rickards told International Longwall News that the Supreme Court action to prevent the NSW Government from granting the mining lease was “the only option” after continued communications and negotiations with Felix had failed to produce any outcome.
“A joint venture on Moolarben was certainly one of many options discussed with Felix. We discussed a range of options regarding the lease and the land’s use as well … it is a shame those discussions ultimately ended in no resolution,” he said.
Rickards said the land in question was used to meet environmental obligations at the Ulan complex, which is managed and owned by Xstrata Coal (90%) and Mitsubishi Development (10%).
“We consider the minesites, buffer zones, salinity offsets and water management areas as one site, not a series of landholdings to be carved up for competitors whom we cannot guarantee will implement the required standards of care for the community and environment," he said.
But Felix managing director Brian Flannery told the Australian yesterday that Xstrata and its Ulan partner, Mitsubishi, were trying to stop the $300 million Moolarben development.
“These companies have benefited enormously from the goodwill of Australia and its governments in giving them access to the mineral resources of this country and are now attempting to stop an Australian company from mining," he said.
Felix also said in a statement today that the court action is totally without merit and would be vigorously defended by Felix at the hearing listed for April 5, 2007.
Rickards said that although Felix had the mining lease for resources at the site, Xstrata could not guarantee that Moolarben would meet the standards already enacted at the Ulan complex.
“We’re not trying to stop the project at all. What we’re saying though is that we don’t believe it’s appropriate to hand over our land to a competitor when we will lose all environmental controls on that land,” he said.
“Really it comes down to, we have practical uses for that land, and we feel this is the only option left at this time.”
Awaiting NSW government approval, Moolarben is planned to commence construction by mid-2007 with its first production in the second half of 2008.
In late 2006, after widespread environmental opposition to its first proposal, Felix amended its mining plans for the Moolarben project, moving the longwall 500m back from "The Drip" – a sandstone rock wall, fed by underground water.
