The Australia Institute has made a submission on the Environmental Impact Statement of the Bylong Coal Project, a proposed new thermal coal mine located south of the Hunter Valley in NSW.
The economic assessment of the Bylong Coal Project is not suitable for decision making purposes. It lacks transparency, is based on flawed methodologies and contains serious errors.
The economic assessment is based on a coal price of approximately $AUD100 per tonne. This is much higher than the current coal price and the Federal Treasury’s long term forecast, both of which are around $AUD80 per tonne.
If approved, in our opinion, the project is unlikely to be developed and risks becoming a stranded asset. This has the potential to impose significant uncertainty and costs on the local community. Exactly this situation has occurred with the Cobbora Coal Project. To avoid this same result the Bylong project should be rejected.