The possibility of legal challenges by conservation groups similar to that experienced by Rio Tinto’s Warkworth extension project also looms over the project.
Maules Creek, which has received all the state government approvals, is believed to have lobbied former environment minister Tony Burke and submitted its applications to the federal authorities.
But the company feels hamstrung by the slow approvals process and the danger of last-minute changes.
“Government ‘green tape’ has overtaken ‘red tape’ in the 35 months to gain approval for Maules Creek,” Whitehaven managing director Paul Flynn said in a recent presentation.
“Federal government approval has been received for Maules Creek project and secondary approvals in the form of various management plans submitted to agencies for approval prior to commencement of construction.
“The majority of these plans have been approved, with the remainder awaiting final sign-off by agencies.”
Flynn said Whitehaven’s approach to a “difficult and dynamic project approval process” was active engagement with state and federal politicians and the minister’s office to eliminate the issues on the bio-diversity plan.
The possibility of a legal challenge in the NSW Land and Environment Court or another concerted environmental protest against the project is also weighing on the project.
Rio Tinto is appealing a decision by the Land and Environment Court that has halted the planned extension of the Warkworth mine in the Hunter Valley, despite it receiving all federal and state approvals.
ASIC yesterday laid charges against activist Jonathan Moylan over a false media release in January stating that the ANZ bank had withdrawn funding for the Maules Creek project on ethical grounds.
The hoax led to $314 million being wiped off Whitehaven’s market capitalisation before it was corrected.
On the industrial front, unions are also demanding that Whitehaven employ local mine workers recently made redundant rather than recruit fly-in fly-out workers for Maules Creek mine.
The construction of a temporary workers’ camp near Boggabri made recruitment of FIFO workers an “easy option” for Whitehaven, even though there were many willing local workers who had recently lost their jobs, the Construction, Forestry, Mining, Energy Union’s Grahame Kelly said.
“Whitehaven should be giving priority to locals looking for work and the construction phase of Maules Creek is a great opportunity to start training local workers,” he said.
“A reliance on FIFO at Maules Creek should set off alarm bells throughout NSW’s coal mining belt.”
FIFO workers are expected to be recruited to work at the mine, especially during the construction phase.