1.2.3.1.4 Chain Valley Modification 1

The Chain Valley Modification 1 Project proposes to construct an underground link between the current Chain Valley Colliery (CVC) and Mannering Colliery (MC) within the Fassifern coal seam (EMGA Mitchell McLennan Pty Ltd, 2014a, p. E.1). The MC is owned by Centennial Mannering Pty Ltd, a wholly owned subsidiary of Centennial Coal Company Ltd (EMGA Mitchell McLennan Pty Ltd, 2014a, p. E.4; EMGA Mitchell McLennan Pty Ltd, 2014b, p. E.1). Mining commenced at the MC in 1960 using bord-and-pillar and longwall mining of the Great Northern and Fassifern coal seams. Since 2008, the MC has been approved to produce up to 1.1 Mt/year of ROM coal until March 2018 (EMGA Mitchell McLennan Pty Ltd, 2014a, p. E.4−E.5).

Mining operations were halted at the MC in November 2012 and it was placed on care and maintenance. However, in late 2013 the owners of CVC (LakeCoal Pty Ltd (LakeCoal)) and MC entered into an agreement enabling LakeCoal to operate the MC until 2022 (effective 17 October 2013) (EMGA Mitchell McLennan Pty Ltd, 2014a, p. 4). Work as part of the CVC modification project will include the installation and use of an underground conveyor belt system and ancillary services, enabling ROM coal to be transferred on conveyors between the CVC and MC. MC infrastructure will transport coal from CVC underground workings to the Vales Point Power Station at a rate of no more than 1.1 Mt/year (EMGA Mitchell McLennan Pty Ltd, 2014a, p. E.5).

Groundwater modelling of CVC’s approved operations predicts that median annual groundwater inflow to the Fassifern workings will increase to 3832 ML (from the current 2773 ML) once miniwall mining in Area 1 approaches its fullest lateral extent (EMGA Mitchell McLennan Pty Ltd, 2014a, p. E.7, p. 30). CVC’s licence under NSW’s Water Act 1912 allows for extraction of 4443 ML/year for the purposes of mine dewatering and industrial use (EMGA Mitchell McLennan Pty Ltd, 2014a, p. E.7). The current approval for the CVC (SSD‐5465) was granted by the NSW Minister for Planning and Infrastructure on 23 December 2013, which allows for continued mining within the Fassifern coal seam and incorporates the operations approved under MP10_0161, as modified (EMGA Mitchell McLennan Pty Ltd, 2014a, p. 7). Proposed modification does not cause changes to surface infrastructure or approved areas of surface disturbance, and mine rehabilitation plans are therefore not impacted (EMGA Mitchell McLennan Pty Ltd, 2014a, p. 36). The CVC currently operates under development consent SSG-5465, which was granted on 23 December 2013 by the NSW Minister for Planning and Infrastructure (EMGA Mitchell McLennan Pty Ltd, 2014a, p. E.1).