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Title : Shenhua coal mine lease for Liverpool Plains renewed
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Shenhua coal mine lease for Liverpool Plains renewed

The New South Wales Government has renewed part of the coal exploration licence for the controversial Shenhua Watermark project on the Liverpool Plains in the north-west of the state.

The announcement came with a promise not to release other parts of the Liverpool Plains for exploration.

Announcing the decision today, Resources Minister Don Harwin said the application to renew the exploration licence had undergone a rigorous assessment, and the company's work and environmental management plans were consistent with NSW Government policy and requirements.

In July last year Mr Harwin announced the Government would buy back 51.4 per cent of Shenhua's exploration licence at a cost of $262 million.

At the time, the Government said it was acting to protect the farming future of the Liverpool Plains, which is now in the grip of one of the worst droughts in living memory.

Mr Harwin today said the "prime agricultural land of black soil plains" had last year been protected from mining exploration after the NSW Government reached an agreement with Shenhua to scale back the exploration licence area.

That decision had "struck the right balance between protecting the area's farming future while encouraging investment in the resources sector," he said.

"We will not release other parts of the Liverpool Plains for exploration."

Before mining can begin, the company must apply for a mining production lease from the State Government and have a range of detailed management plans approved.

The Federal Government must also approve biodiversity and water management plans before production begins.

Shenhua has been contacted for comment.

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