Interesting Council tactic to coerce the NWC to provide funding ...

The minutes of the Council meetings on 15-16 November show an interesting twist in the tactics of the Toowoomba City Council in its attempts to get funding for its controversial recycled water for drinking proposal.

The Council now claims it is "receiving strong pressure from Acland Coal to sign a contract guaranteeing water supply and timelines. The guarantees are essential to enable the board of New Hope Coal to make a decision on expansion of Acland Mine."

This was the justification for yet another visit to Canberra to coerce the NWC into funding the proposed project.

The Mayor's rationale now seems to be "give us money so we can make our residents drink recycled sewage because we have to provide some of the water to a coal mine".

New Hope Coal, the owner of the New Acland Coal Pty Ltd which operates the mine, is planning to expand current mining operations from 4.7 million tonnes per annum (Mtpa) of run of mine (ROM) coal to up to 7.5 Mtpa of ROM coal for up to 13 years. The mine is actually situated in Rosalie Shire.

The Initial Advice Statement in relation to the Stage 2 production dated 2 March 2005 submitted to the Qld EPA stated:

"New Acland Coal Pty Ltd is researching the possibility of using treated wastewater from the Wetalla Treatment Plant (i.e. as part of Wetalla's future plan to pipe treated wastewater from Toowoomba to various locations on the Darling Downs). This water source will increase reliability of supply, help "drought proof" the Mine, accommodate the increased water requirements of the proposed expansion and reduce the current reliance on the groundwater bores."

"New Acland Coal is investigating other potential water supply options and the economic and environmental implications of these options."

Also, see - Chairman's address:

"Planning for Acland Stage 2 production expansion to 3.75 million tonnes per annum in 2007 is well in hand. Preliminary planning for a future Acland Stage 3 expansion has commenced so as to be activated when coal markets and infrastructure are available."

Also, see New Hope's presentation to Brokers and Institutional Investors on 9 November 2005 (accessible via the ASX).

Also, see details on the Acland Coal Mine expansion.

If the Council's claims are in fact true, a listed ASX company is trying to bully a regional Council to sign contracts guaranteeing wastewater supply on a project which the House of Reps "Sustainable Cities" Inquiry report says should be subject to an independent review.

It's interesting that in neither New Hope's press releases nor its Initial Advice Statement to the Qld EPA does it say that using the recycled water from Toowoomba is crucial to the expansion and its decision to proceed.