Local farmers and The Greens have demanded the state government investigate the circumstances behind the awarding of an exploration licence to Shenua Watermark covering parts of the Liverpool Plains.
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The controversial coalmine proposal was granted almost five years ago.
Disgraced former mineral resources Labor minister Ian Macdonald gave the nod for the exploration licence in October 2008, before the Chinese-owned and operated mining giant transferred more than $300 million to the state government.
The former state Labor MP is now the subject of an ICAC corruption investigation into claims he allegedly awarded an exploration licence in the Hunter Valley to business associates.
Caroona Coal Action Group spokesman Tim Duddy says Shenhua’s approval smells of corruption.
“I don’t think there is any question that the way this licence was granted stinks,” Mr Duddy said yesterday
“It did go to public tender but there is certainly some relations in that tender process and some of the introductions that were done that are questionable.”
It was a sentiment echoed by the Australian leader of The Greens, Senator Christine Milne on her first visit to the Liverpool Plains yesterday.
“I would love to see a proper investigation into how it was that that licence was approved and granted in the first place and who was involved, and the circumstances surrounding it, absolutely,” Ms Milne said.
She told farmers the exploration licence raised more questions than answers, given the current
revelations at ICAC. “Clearly they [the state government] knew at the time that there had been big studies on water in the Namoi Valley. They knew at least some of the issues on water and they allowed that company to pay around $300 million for the exploration licence,” she said.
Shenhua Watermark plans to extract up to 10 million tonnes of a coal a year over 30 years once approval is given.
Mr Duddy claimed calls for papers and freedom of information requests on the Shenhua coal project were rejected last month in State Parliament, and he’s assuming “someone is hiding something.”
“Well I certainly think that there is considerable evidence that appears to be emerging that due process was not followed,” he said.
“Once ICAC has completed its finding into the matter, and what actually comes of that, I think they should look at all the projects through those glasses and see what has gone on because there are to many things that point to the fact that these projects were untoward.”
The mining giant anticipates to get approval for the open cut coal mine to start construction late next year before it can begin extracting coal in 2015.
“If they’re given by due process then they’re given by due process, but the day the Minister gave this project he knew that there were issues with the water in the Namoi Valley and he certainly didn’t inform the Chinese of that,” Mr Duddy said.
That was music to the ears of Greens mining spokesperson Jeremy Buckingham, who went one stop further in calls for a royal commission into the issue.
“We’ve seen the most shonky processes involved in the matters that are before ICAC and I think how Shenhua were granted their licence over the Liverpool Plains absolutely stinks. It defies commonsense to think that you can pay $300 million for the right to explore without there being some expectation that there will be a right to mine. This whole process is utterly corrupt and needs a royal commission.
