WA Environment Minister Bill Marmion will ultimately decide whether the 2-2.5 million tonnes per annum coal mine will go ahead, but the EPA recommended against the development on Monday.

The authority feared the mine would cause an unacceptable direct loss of a rare flora species and could draw down too much groundwater from the Lake Logue Nature Reserve to the northern and western side of the proposed site.

Aviva noted the EPA used advice provided by other government agencies that it was not privy to.

“After considering the EPA report and now having reviewed the supporting advice, Aviva has confirmed that it intends to lodge an appeal to the appeals convenor,” the company announced.

“Aviva is aware of other parties with economic and social interests in the Mid West of Western Australia that are intending to, or are likely to, also lodge appeals.

“CWC is considered a critical energy fuel asset for the Mid West region.”

Western Power’s Mid West Energy project, to provide a 330 kilovolts double-circuit transmission line from Neerabup to Three Springs, was recently approved.

While Geraldton Iron Ore Alliance chairman and Asia Iron Holdings managing director Bill Mackenzie is encouraged by this move to extend the grid, he was also supportive of the Coolimba coal and power project.

“Certainly it would be nice to have a diversity of fuel types and geographic location of WA’s generators, for everybody, not just the magnetite industry, but the whole state,” he told ILN this week.

The 450 megawatt coal-fired power station and the 360Mw natural gas-fired power plant of the Coolimba project were approved last year.

Aviva has since entered exclusive negotiations with Sigiriya Capital to sell its interests in the power project.

Sigiriya had not withdrawn its interest in the deal, Aviva said.

Sword Nominees holds the coal rights over the coal and power project, and Aviva’s “understanding” was that Sigiriya had held discussions with Sword over the rights.

Aviva could also appeal a possible ministerial rejection of the associated coal mine development of the project.

Shares in the company were down 2.5c to 25.5c this morning.