The NSW Government is calling for expressions of interest for the sale of the Cobbora Coal Mine near Dunedoo in the state’s Central West.
Treasurer Andrew Constance has announced the next stage of the process can proceed now all of the NSW and Commonwealth planning approvals are in place for the mine development.
The Cobbora Coal Mine was initiated by the previous Labor Government to provide subsidised coal to the State-owned power generators – a deal which, according to Minister Constance, “exposed taxpayers to a liability of more than $1.5 billion in development and operation costs.”
“The NSW Liberals & Nationals Government has made clear from day one that the state should not be in the business of running a coal mine”, Mr Constance said.
Potential resources at the Cobbora Mine development are significant, with reserves of at least 140 million tonnes of thermal coal. Mine development and local infrastructure plans are also in place to allow development to proceed.
“In the meantime, the mine site will continue to be improved and actively managed for agricultural use while the transaction process is underway”, Mr Constance said.
The call for expressions of interest for the proposed mine follows the allocation of $20 million for local infrastructure from the Cobbora Transition Fund. This includes $16 million announced by the Member for Dubbo Troy Grant and the Member for Barwon Kevin Humphries last week, and $4 million allocated to the Wellington, Warrumbungle, Mid-Western and Dubbo councils for building projects.
The expressions of interest phase for the Cobbora Coal Mine will be open to prospective bidders until early September 2014.
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