INTERNATIONAL COAL NEWS

Economic benefits of Wallarah 2 are high: Heywood

THE economic and other benefits of Kores' proposed Wallarah mine in the New South Wales Central C...

Lou Caruana

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He said as part of the renewed Wallarah 2 project application, a strong emphasis would be put on informing the community that the project’s economic benefits could be delivered without compromising the environment or water security.

“During the community consultation we’ll be keen to point out that once fully operational, Wallarah 2 will provide 300 direct jobs for over 40 years and a further 700 indirect jobs supporting the project and the workforce,” Heywood said.

“More than 5000 job years will be created during the first year of construction alone in an area where unemployment is currently around 8.5 per cent and even higher among young people.

“Importantly, these jobs will be well paid and provide opportunities for ongoing training and advancement, giving young people the opportunity to live and work on the Central Coast.”

The Wallarah 2 coal project, which is situated 5km northeast of Wyong, would be an underground mining operation to extract up to 5 million tonnes of coal a year for 28 years.

Its development application includes constructing and operating a range of associated infrastructure including a rail spur, coal stockpiles, ventilation shafts and a gas drainage and capture system; transporting coal from the mine by rail; and rehabilitating the site.

The NSW government’s Coal Industry Profile 2010 reports average wages in the underground coal sector were around $115,000 in 2009.

By contrast, Wyong had an average wage of $41,000 in 2008-09 and many locals were forced to commute to other areas for work, according to Heywood.

“Our current target is for 70 per cent of the workforce to be drawn from the Wyong/Lake Macquarie region,” he said.

Heywood said the total of all government revenue was estimated at approximately $4 billion over the life of the project including approximately $1 billion of NSW government royalties.

“Opponents of this project claim that this is a contest between economic and environmental interests, particularly water security but it is not an either/or choice,” he said.

“The Department of Planning and Infrastructure’s report during the last application said the risk to the Central Coast water supply was minimal and manageable and this judgement was based on the advice of an independent expert panel, including water and subsidence experts.”

NSW Planning director general Sam Haddad issued his additional requirements for the revised project application last month.

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