Coalpac: Invincible and Cullen Valley modifications

by Rod Campbell

In September 2014 the Australia Institute made a written submission and in-person presentation to the NSW Planning and Assessment Commission on the proposal to extend the Invincible and Cullen Valley mines, owned by Coalpac. The mines are in a sensitive environmental area near the Blue Mountains World Heritage Area.

The key points of our submission and presentation:

The proponents assume electricity generators will pass savings to consumers by expanding electricity supply if modifications are approved.

  • The generator, Energy Australia, says electricity market is already “grossly oversupplied” and is reducing supply.
  • Economic modelling in favour of the project is based on electricity price forecasts three times higher than current forecasts.
  • Any savings from the project will be kept as profits, accruing to Energy Australia’s foreign owners, giving no benefit to NSW.
  • Discounted coal to Energy Australia means less royalties are paid – a loss to NSW.
  • Energy Australia already has approval for access to competitive coal supplies. 

Full report