Springvale Colliery is an underground coal mine near Lithgow, NSW. It is owned and operated by Centennial Coal, a subsidiary of Thai energy company, Banpu. The mine is located in environmentally sensitive areas, adjacent to several state forests and near the Gardens of Stone National Park.
The Australia Institute made submissions on the Environmental Impact Statement of the proposal to expand the mine in May 2014. Key points:
- No discussion of assumptions on costs or coal prices
- Assumption that labour has no opportunity cost
- No working shown for royalty and tax calculations
- Inappropriate transfer of environmental values
ERRATUM: Note that The Australia Institute’s submission has an error relating to how deductions on royalty payments are calculated. The submission erroneously applies the deduction to the royalty payable, rather than the price that the royalty rate is applicable to. Our royalty estimates are therefore understated. We will work further on this issue through the planning process on this projects.