Mining company that extracted two Olympic pools of drinking water from Sydney’s watershed every day for five years was fined a record $2.9 million
- Water discharged by Dendrobium coal mine
- Mining company pays $2.9 million
A mining company will have to spend nearly $2.9 million after indirectly extracting two Olympic size swimming pools of water from the Sydney watershed every day for five years.
From 2018 to 2023, five megalitres of water was discharged each day from 2018 to 2023 from the Dendrobium coal mine at Mount Kembla, on the NSW south coast.
A subsidiary of the South32 company, Illawarra Coal Holdings Pty Ltd, which carries out work at the mine, was not licensed to extract surface water through mining operations.
The Natural Resources Access Regulator (NARA) received a complaint in 2018 and began an investigation.
South32 has agreed to pay the record amount, as well as $70,000 to cover the investigation and legal fees.
From 2018 to 2023, five megalitres of water was discharged each day from 2018 to 2023 from the Dendrobium coal mine (pictured) on Mount Kembla, on the south coast of NSW
The $2.8 million will be used to fund the rehabilitation of waterways in the Sydney watershed.
The highest fine imposed by the NARA was previously $360,000.
Grant Barnes, NRAR’s chief regulator, said the company will be closely watched in the wake of the breach.
“These alleged breaches are very serious and involve significant amounts of water, water being lost from an ecologically sensitive area, both in surface creeks and wetlands above the Dendrobium coal mine,” he told the ABC.
“It’s also important to note that this is within Sydney’s drinking water catchment area, so any surface water losses are water losses that could be used to meet Sydney’s drinking water needs.”
Mr Barnes also said the agreement was an alternative to legal action.
South32 said they welcomed the surface water licensing scheme introduced earlier this year.
“Since 2014, South32 Illawarra Metallurgical Coal has paid A$5.6 million to account for the passive reduction of water due to underground activities at the Dendrobium mine,” a spokesman said.
“We understand that water is a critical resource and recognize our obligation to pay for all water used by our operations in the same way as all water users.
“In lieu of an approved regime for surface water permits, the New South Wales Natural Resources Access Regulator (NRAR) contacted us in 2019 regarding past surface water use at the Dendrobium mine.
“We cooperated with NRAR’s request and after consultation with NRAR, we have committed to an enforceable venture providing funding for a community project.
The Natural Resources Access Regulator (NARA) received a complaint about the Dendrobium coal mine in 2018 and began an investigation
“In the coming months, we will work with NRAR and other stakeholders to develop an appropriate water-related community project.”
Greens MP Cate Faehrmann said the public has a right to know how much water is being taken up by mining activities in the Sydney watershed.
“Mining companies are actually withdrawing more water from Sydney’s catchment area than anyone realized,” she said.
“Investigations like this only show how vigilant we need to be to ensure mining companies act in accordance with the law and responsibilities under their approval.”
Ms. Faehrmann called for Illawarra Coal’s application for a surface water permit to be rejected, especially as the state enters an El Nino period and associated droughts.