Millions for environmental project in landmark agreement with coal mine

Illawarra Coal Holdings Pty Ltd will contribute almost $2.9 million to a community project under an enforceable undertaking (EU) with the Natural Resources Access Regulator (NRAR) after the company allegedly took surface water without a licence at its Dendrobium mine.

The monetary contribution is the largest and most significant secured under an EU with NRAR since the agency was formed and will fund a project related to wetland or waterway restoration.

The underground coal mine is at Kembla Heights west of Wollongong. NRAR alleges that the mine’s operations caused the incidental take of surface water without a licence over five years from 2018 to 2023.

Under the terms of the EU, Illawarra Coal will:

• Acknowledge the alleged breaches occurred during the 2018-2019, 2019-2020, 2020-2021, 2021-2022 and 2022-2023 water years.
• Provide a monetary contribution of $2,878,138 for a community project that will improve the health of waterways and/or restore wetlands. The community project proposal must be put to NRAR for consideration by 30 September 2023.
• Start delivering the community project within 3 months of NRAR accepting the community project proposal.
• Consult with local Aboriginal communities and groups connected to the area where the community project will be undertaken.
• Commit to improved surface water management by investing in and using an array of new and emerging technology and report the results back to NRAR annually.
• Commit to regular reporting to NRAR about consultation, community project progress, and other aspects of the agreement.
• Pay NRAR $70,000 to cover investigation, legal and monitoring costs, with the option to increase these costs after the community project proposal is received.
• Place an agreed media notice in certain agreed publications detailing the undertakings in the EU.

NRAR Chief Regulatory Officer Grant Barnes welcomed the landmark agreement with Illawarra Coal and said it would result in significant tangible benefits for the local community.

“In this EU, NRAR considers that we have achieved the most effective outcome for the people of NSW which redresses the alleged breaches that occurred, delivers benefits to the local community, and puts in place much improved processes to better manage water at this mine in the future,” Mr Barnes said.

“This enforceable undertaking also takes into account the impact of the alleged breaches on the local Aboriginal community and puts in place a commitment to dialogue between the company and that community,” he said.

“Recognising the importance of Aboriginal cultural connections to water is an enduring priority of NRAR.”

Mr Barnes said EUs are one of the enforcement tools available to NRAR when alleged breaches of NSW water laws occur.

“Companies sometimes propose an enforceable undertaking to remedy significant breaches of these laws as an alternative to court action,” he said.

“Before we consider accepting a proposed enforceable undertaking, it must contain actions to address the alleged rule-breaking and to acknowledge the breach.

"NRAR also considers what happened, how serious it was and whether there is a history of rule breaking.”

Mr Barnes said that an EU would not be accepted unless NRAR considered it would deliver positive outcomes in the public interest in accordance with its guidelines. NRAR has entered into a total of 9 EUs with a range of different conditions.

Water monitoring in mining and extractive industries has been a priority focus area for NRAR over the last 12 months.

View the details of other enforceable undertakings on NRAR’s website.