{"id":513520,"date":"2026-03-02T08:43:10","date_gmt":"2026-03-02T08:43:10","guid":{"rendered":"https:\/\/www.newsbeep.com\/au\/513520\/"},"modified":"2026-03-02T08:43:10","modified_gmt":"2026-03-02T08:43:10","slug":"nsw-government-grants-six-year-extension-to-controversial-dartbrook-coal-mine","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/au\/513520\/","title":{"rendered":"NSW government grants six-year extension to controversial Dartbrook coal mine"},"content":{"rendered":"<p class=\"paragraph_paragraph__iYReA\">The NSW government has granted a six-year extension to a controversial Hunter Valley coal mine just a month after a controversy involving potential conflicts of interest at the site.\u00a0<\/p>\n<p class=\"paragraph_paragraph__iYReA\">The Dartbrook coal mine has been plagued by problems ever since it collapsed into insolvency in mid-2025 after defaulting on a $202 million loan.<\/p>\n<p class=\"paragraph_paragraph__iYReA\">Another $5 million is owed to unsecured creditors, including local operators who say they face bankruptcy if they cannot recoup their lost funds.<\/p>\n<p class=\"paragraph_paragraph__iYReA\">The mine is operating with a skeleton staff after two-thirds of the mine&#8217;s workforce was sacked.<\/p>\n<p class=\"paragraph_paragraph__iYReA\">One of its joint venture partners has been suspended on the stock exchange since October, while receivers have <a class=\"Link_link__5eL5m ScreenReaderOnly_srLinkHint__OysWz Link_showVisited__C1Fea Link_showFocus__ALyv2\" href=\"https:\/\/www.abc.net.au\/news\/2025-10-02\/dartbrook-coal-mine-to-go-into-care-and-maintenance\/105842500\" data-component=\"Link\" rel=\"nofollow noopener\" target=\"_blank\">announced plans to place Dartbrook into care and maintenance<\/a> mode if a buyer cannot be found.\u00a0<\/p>\n<p>&#8216;Lost opportunity&#8217;<\/p>\n<p class=\"paragraph_paragraph__iYReA\">State member for Upper Hunter, the Nationals&#8217; Dave Layzell, said the decision was a &#8220;lost opportunity&#8221; for the government to use the extension as a bargaining chip.<\/p>\n<p class=\"paragraph_paragraph__iYReA\">&#8220;It&#8217;s a dreadful situation \u2026 we want to make sure that we&#8217;re getting our local operators and contractors paid,&#8221; he said.<\/p>\n<p>&#8220;Why should we give you an extension if you&#8217;re going to behave in this manner?&#8221;<img decoding=\"async\" alt=\"A man standing in front of gravel.\" class=\"Image_image__5tFYM ContentImage_image__DQ_cq\"  src=\"https:\/\/www.newsbeep.com\/au\/wp-content\/uploads\/2026\/03\/8b5cae4fd6b3768fe39161d846e1c549.jpeg\" loading=\"lazy\" data-component=\"Image\" data-lazy=\"true\"\/><\/p>\n<p class=\"Typography_base__sj2RP FigureCaption_text__zDxQ5 Typography_sizeMobile12__w_FPC Typography_lineHeightMobile20___U7Vr Typography_regular__WeIG6 Typography_colourInherit__dfnUx\" data-component=\"Typography\">Dave Layzell says the extension is encouraging for the mining sector, but the approval could have been used as a bargaining chip to see debts repaid. (Supplied)<\/p>\n<p class=\"paragraph_paragraph__iYReA\">Mr Layzell said there could be &#8220;many, many millions&#8221; of dollars made from the site in the future.\u00a0<\/p>\n<p class=\"paragraph_paragraph__iYReA\">&#8220;There&#8217;s a huge amount of coal still at Dartbrook and it&#8217;s important that as part of their social obligation to mine into the future, they look after the people of the present,&#8221; he said.<\/p>\n<p><img decoding=\"async\" alt=\"A line of coal train carriages in front of a coal washer machine which is partially covered in fog.\" class=\"Image_image__5tFYM ContentImage_image__DQ_cq\"  src=\"https:\/\/www.newsbeep.com\/au\/wp-content\/uploads\/2026\/03\/0dacda9ecdaf85e951a067b2217aab76.jpeg\" loading=\"lazy\" data-component=\"Image\" data-lazy=\"true\"\/><\/p>\n<p class=\"Typography_base__sj2RP FigureCaption_text__zDxQ5 Typography_sizeMobile12__w_FPC Typography_lineHeightMobile20___U7Vr Typography_regular__WeIG6 Typography_colourInherit__dfnUx\" data-component=\"Typography\">The coal washer facility on the Dartbrook underground coal mine site near Aberdeen. (ABC Upper Hunter: Jake Lapham)<\/p>\n<p class=\"paragraph_paragraph__iYReA\">Over the course of the six-year extension, Dartbrook will be able to extract an additional 36 million tonnes of coal.<\/p>\n<p class=\"paragraph_paragraph__iYReA\">The ABC has contacted NSW Planning Minister Paul Scully seeking an explanation as to why the extension has been granted.\u00a0<\/p>\n<p class=\"paragraph_paragraph__iYReA\">A local operator, who told the ABC he was out of pocket hundreds of thousands of dollars but did not wish to be named, said he was &#8220;disgusted&#8221; and &#8220;flabbergasted&#8221; by the decision.\u00a0<\/p>\n<p class=\"paragraph_paragraph__iYReA\">&#8220;All the bad news around and then they get granted an extension for six years,&#8221; he said.\u00a0<\/p>\n<p class=\"paragraph_paragraph__iYReA\">&#8220;It leaves a dirty taste in your mouth.\u00a0<\/p>\n<p class=\"paragraph_paragraph__iYReA\">&#8220;Who would work for a place like that ever again?&#8221;\u00a0<\/p>\n<p>Mayor welcomes news<\/p>\n<p class=\"paragraph_paragraph__iYReA\">The mine&#8217;s current licence was due to expire at the end of 2027, but the extension means it can now be operated until at least 2033.<\/p>\n<p class=\"paragraph_paragraph__iYReA\">Muswellbrook Shire Mayor Jeff Drayton said the extension could be a saviour as sale negotiations continued.<\/p>\n<p class=\"paragraph_paragraph__iYReA\">&#8220;An extension through to 2033 will make it much more saleable \u2026 hopefully they can sell it, and they can start production again, and start employing people,&#8221; he said.\u00a0<\/p>\n<p class=\"paragraph_paragraph__iYReA\">The ABC understands there are two interested parties and that a sale may be imminent.<\/p>\n<p class=\"paragraph_paragraph__iYReA\">Cr Drayton has been vocal in withdrawing council&#8217;s support for the project if creditors were not repaid.<\/p>\n<p class=\"paragraph_paragraph__iYReA\">&#8220;It&#8217;s hundreds of thousands of dollars owed to small, local businesses and that&#8217;s enough to send them to the wall,&#8221; he said.<\/p>\n<p class=\"paragraph_paragraph__iYReA\">&#8220;So hopefully we&#8217;ll get a considerable amount of that money back.&#8221;<\/p>\n<p><img decoding=\"async\" alt=\"A man in a blue suit\" class=\"Image_image__5tFYM ContentImage_image__DQ_cq\"  src=\"https:\/\/www.newsbeep.com\/au\/wp-content\/uploads\/2026\/03\/7cffc26bde321c30dd4de835a56bfe00.jpeg\" loading=\"lazy\" data-component=\"Image\" data-lazy=\"true\"\/><\/p>\n<p class=\"Typography_base__sj2RP FigureCaption_text__zDxQ5 Typography_sizeMobile12__w_FPC Typography_lineHeightMobile20___U7Vr Typography_regular__WeIG6 Typography_colourInherit__dfnUx\" data-component=\"Typography\">Jeff Drayton has said this could help sell the mine. (ABC News: Jake Lapham)<\/p>\n<p class=\"paragraph_paragraph__iYReA\">The mine&#8217;s receivers, FTI Consulting, said the sales process for Dartbrook was continuing and that they &#8220;expect to be able to provide an update on that process soon&#8221;.\u00a0<\/p>\n<p class=\"paragraph_paragraph__iYReA\">The company said the approval of the extension application was &#8220;welcome news&#8221;.<\/p>\n<p class=\"paragraph_paragraph__iYReA\">The Dartbrook mine currently has about 150,000 tonnes of coal stockpiled.<\/p>\n<p class=\"paragraph_paragraph__iYReA\">It sat empty until the end of last year, when the Tetra-Australian Pacific Coal joint venture got it up and running.<\/p>\n<p class=\"paragraph_paragraph__iYReA\">But less than a year later, the mine collapsed into insolvency.\u00a0<\/p>\n<p>Potential conflicts of interest<\/p>\n<p class=\"paragraph_paragraph__iYReA\">Earlier this year, the ABC reported the mine called in external investigators after a whistleblower raised concerns about &#8220;a number of related parties \u2026 benefiting as preferred suppliers&#8221;.<\/p>\n<p class=\"paragraph_paragraph__iYReA\">The independent investigator made <a class=\"Link_link__5eL5m ScreenReaderOnly_srLinkHint__OysWz Link_showVisited__C1Fea Link_showFocus__ALyv2\" href=\"https:\/\/www.abc.net.au\/news\/2026-01-19\/dartbrook-coal-mine-company-buries-whistleblower-report\/106136748\" data-component=\"Link\" rel=\"nofollow noopener\" target=\"_blank\">damning findings in a preliminary report,<\/a> which detailed what it suggested were apparent conflicts of interest by senior managers at Tetra Resources, one of the joint-venture partners that managed the mine.\u00a0<\/p>\n<p class=\"paragraph_paragraph__iYReA\">The report referred to Tetra&#8217;s chief executive Michael Mapp and its executive chair Brian MacDonald, whom investigators said appeared to have been involved in the decision to award a contract which would ultimately pay more than $2.3 million over 15 months to an equipment-hire company they themselves directed.<\/p>\n<p class=\"paragraph_paragraph__iYReA\">They provided a statement via their lawyer that said Tetra had &#8220;acted transparently and in good faith at all times&#8221;.<\/p>\n","protected":false},"excerpt":{"rendered":"The NSW government has granted a six-year extension to a controversial Hunter Valley coal mine just a month&hellip;\n","protected":false},"author":2,"featured_media":422095,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[5],"tags":[64,63,99,19165,168874,257024,62900,102218,257025],"class_list":["post-513520","post","type-post","status-publish","format-standard","has-post-thumbnail","category-business","tag-au","tag-australia","tag-business","tag-coal","tag-creditors","tag-dartbrook","tag-mine","tag-scandal","tag-six-year-extension"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/posts\/513520","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/comments?post=513520"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/posts\/513520\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/media\/422095"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/media?parent=513520"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/categories?post=513520"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/tags?post=513520"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}