Coal news and updates

Labor grants new coal exploration licences in Victoria

Four new licences to explore for coal in Victoria have been approved by the Andrews government, the first since it came to power.

And the government has also granted a separate coal "retention licence", which extends an expired exploration permit.

The new coal licences come as the state government has heavily promoted its climate change credentials since winning the 2014 election, launching a wholesale review of climate change laws and programs and saying it wants to re-establish a state renewable energy target.

The four new exploration licences were granted to West Australian-based Mantle Mining, which already hold coal exploration rights  in four areas in Victoria, around Gippsland and Bacchus Marsh.

The new coal licences were first applied for in 2011 and 2012 and cover an area of 425 square kilometres across the Latrobe Valley and South Gippsland. According to its mining licence database, which was updated this week, the Andrews government signed off on two in late April and another two at the start of this month.

The new retention licence, given to Gelliondale Resources - a company owned by Ignite Energy Resources - was granted in May and covers a 70 square kilometre area between Yarram and Port Welshpool.

The four new coal licences expire in three to five years, while Gelliondale's retention licences lasts eight years.

In an interview with The Age in May Energy Minister Lily D'Ambrosio would not rule out backing future coal projects in Victoria, but said she would proceed cautiously.

A spokeswoman for Ms D'Ambrosio said on Wednesday the granting of exploration licences did not commit the government to any future course of action, and the licences covered only "low impact" activities and no mining could take place.

"We are committed to transitioning our energy mix through a deliberate and jobs focused agenda," she said.

Mantle Mining managing director, Ian Kraemer, said the company would make a statement about its plans to the stock exchange once it received formal written notification of the approval for all four licences, and could not comment further until then.

Local residents in and around the South Gippsland town of Mirboo North, near where one of the new licences has been granted, say the decision goes against the wishes of the local community. The town has declared itself "coal and gas free".

Phil Piper, who is involved in Coal and Gas Free Mirboo North and is on the board of the South Gippsland Landcare network, said: "There is no social licence for this."

Environment Victoria campaigner Nicholas Aberle called for an "urgent and permanent" moratorium on new coal mines and said there needed to be a comprehensive plan to "decarbonise" the economy and phase out coal.

"The Andrews government has not yet articulated a clear direction on coal in Victoria, so it's no surprise that bureaucrats are still rubber-stamping licences for speculative coal companies," Dr Aberle said.

Greens energy spokeswoman Ellen Sandell said by encouraging more coal exploration, the government had staked Victoria's future on a polluting, toxic industry that communities didn't want.

"We should protect our pristine farmland and keep our towns clean and healthy, not create giant new coal mines in the most beautiful parts of our state like South Gippsland," she said.

source: http://www.theage.com.au