The Federal Environment Minister, Susan Ley has granted final approval for Wollongong Coal’s Russell Vale Colliery extension. 

The colliery has been in care and maintenance since 2015 with the company revealing in its 2020 annual financial report its total debt has ballooned to $1,089,243,000.

Wollongong Coal Limited (WCL) wants to extract an additional 3.7 million tonnes of metallurgical coal from the colliery 8 kilometres north of Wollongong over the next five years.

It said the project could provide up to 200 jobs and create a $200 million boost to the economy.

The plan received approval from the New South Wales Independent Planning Commission in December last year with 118 conditions.

On Friday, Minister Ley also supplied her support for the mine under the Environment Protection and Conservation Act.

The Minister found:

"The proposed conditions of approval place restrictions on the extent of impacts the action can have on biodiversity and water resources, and how they are managed in the longterm.

"The proposed conditions also require ongoing monitoring of potential impacts and obligations for the person taking the action to implement mitigation and corrective actions, and to offset significant residual impacts."

'Suitable' to be granted approval

In her determination, the Minister acknowledged community concerns about the company's compliance history, environmental management record and its financial situation.

However, she found previous fines for environmental harm included penalties that did not exceed $15,000 and accepted WCL's commitment to take responsibility for incidents that result in environmental harm.

"On that basis of the analysis in the recommendation report discussed above, I found that the proponent is a suitable person to be granted an approval."

Lock the Gate has long campaigned against the project and spokesman Nic Clyde said it was a 'terrible' decision.

"It has debts exceeding $1 billion, and last year applied to be delisted from the ASX because it couldn't pay the fees."

"Fears are also held over how this coal mine will impact fragile coastal upland swamp ecosystems within the catchment area, several of which have suffered tremendously from underground mining beneath the Illawarra escarpment."

Ludicrous' decision

Tim Buckley from the Institute for Energy Economics and Financial Analysis said the company's financial situation was dire.

"They are insolvent, unable to pay any creditors, any debtors, and they are unable to fund their rehabilitation," he said.

WCL and Minister Ley have been contacted for comment.