The NSW Government has rejected Hunter Ports’ proposed Terminal 5 coal loading point.
This latest rejection is the fifth for Nathan Tinkler’s coal loader in Mayfied.
An assessment by the government stated that the proposal’s benefits were outweighed by its potentially adverse effects.
It went on to say that the creation of the coal loader created uncertainty in the industry as it could potentially jeopardise existing coal agreements at Port Waratah Coal Services (PWCS) new port.
Coal magnate Nathan Tinkler put forward the proposal for its $2.5 billion coal loader in November last year.
Situated on the former BHP steelworks site, the coal loader will create a new rail link and reportedly remove around 90% of coal trains from residential areas, Hunter Ports claims.
Hunter Ports managing director Steve van Barneveld explained that "a highlight of our plan is to create a new rail corridor through the industrial land adjacent to the Hunter River.
"This will remove an estimated 90% of coal trains from the main north-south line, permitting the closure of the Mayfield rail corridor and transforming the surrounding communities."
Tinkler stated that the government’s assessment relied on advice from parties with existing infrastructure, the Newcastle Herald reports.
Port Waratah Coal Services said the decision of the O’Farrell Government to reject Tinkler’s Hunter Ports’ Terminal 5 (T5) provides certainty for the region, adding that its PWCS’s proposed Terminal 4 (T4) will provide the Hunter Valley with enough coal loading capacity.
As part of the Hunter Valley Coal Chain plan "the industry very clearly asked PWCS to deliver T4 to provide the next tranches of coal loading capacity," Port Waratah said.
It went on to attack Tinkler’s proposal, stating that T5 "was an incomplete concept from outside the industry framework, and did not appear to have been costed or modelled against the overall coal chain.
However, Tinkler said his development would divert the coal trains away from the middle of Newcastle, adding that Hunter Ports is considering its options for a coal terminal at Mayfield.