The NSW Legislative Council has passed a motion requesting any future application for DND be declared SSI while the company pursues a judicial review of the Independent Planning Commission's refusal of its initial application in Q3 FY2021 in the Land and Environment Court.
"An assessment of options is underway to determine the optimal pathway for the [South32 subsidiary] Illawarra Metallurgical Coal complex, to ensure its competitiveness and sustainability," the company said.
Under a revised and optimised DND mine plan approved under SSI guidelines, South32 would spend up to US$800 million between FY2023-27 to implement the project with modifications requested by the IPC.
It would focus on delivering the highest quality coal.
This compares with its original DND mine plan that would have cost between $700 million and $900 million between FY 2022-25 to produce approximately 7.6Mtpa.
If no successful pathway forward for DND is found and the mine closes, the company will have to rely solely on its Appin mine and produce only 4.5Mtpa beyond FY2025.
"Appin's optimised plan incorporates a dual longwall configuration until FY24, before transitioning to a single longwall with longer panels to realise operating and capital efficiencies," South32 said.
"We are upgrading coal clearance and ventilation infrastructure in support of this plan."
