Glen Road Exploration Licences

5th September 2006

Gloucester Coal Ltd currently holds two exploration licences (Auth 311, Auth 315) covering an extensive area at the heart of the Gloucester Valley extending virtually all the way from Gloucester to Stroud. Within this area it holds several mining leases (ML1360, ML 1409, ML1427 and ML 1526) [check whether a new mining lease number was issued for the recently announced Duralie extension] and operates mines, at Duralie and Stratford. In April, the company announced plans to open new pits within these ELs over the next ten years.

In June of 2006, the company submitted a new Exploration Licence Application (ELA 2635) covering an area to the east and south of its existing activities and extending to the boundary of the recently gazetted The Glen Nature Reserve. The company calls this “The Glen Project”.

The area covered by ELA 2635 comprises steep, fragile and heavily forested terrain including Wards River and its tributary creeks. (Representatives have publicly stated that the company “is particularly interested in Stoney Creek”.) The water courses and surrounding forests, including significant remnant rainforest, provide habitat for a number of vulnerable and threatened species including the Glossy Black Cockatoo, Spotted Tailed Quoll and Koala. Mining in any of this area would cause significant and irreparable damage and concerned residents have written to the Minister for Primary Industries requesting that the company be required to prepare a full environmental impact statement before any decision is taken on whether to approve the ELA in any part of the area concerned.

In addition, the program of work proposed to be carried out by the company, as submitted with the ELA, is couched in very general terms that are not adequate to determine the potential impact of the works on areas that are highly dependent on integrity of the forest canopy and the natural watercourses. For instance, no information has been provided on the depth of the water table in the properties to be explored and whether the proposed bore holes will penetrate the impervious layer which supports the groundwater table. Nor has any information been provided on measures to protect areas of special environmental significance, including details of impact mitigation and remediation plans. Residents have requested that this information be made available to affected landholders before a determination on the ELA is made.