A Tasmanian mining company is warning uncertainty surrounding the forest peace deal legislation could stall $40 million worth of investment. Source: ABC News
Grange Resources said the company needs a briefing on mining access to native forests marked for protection so it can finalise its budget.
The State Government has split proposed reserve areas into five categories, but it’s not clear what activity will be allowed in the areas.
An Upper House inquiry into the deal’s enacting legislation has been given maps defining the proposed native forest reserves. The Government cannot say when it will make a decision on what activities will be allowed in the protected areas.
Grange runs the Savage River mine in the state’s north-west. Executive director Wayne Bould says the uncertainty is likely to delay the company’s $40 million capital investment plans.
He said he needs more information to convince his board to approve the company’s capital works budget at the annual general meeting next month.
“[It’s] going to be difficult for me to answer those questions if we haven’t got some clarity on what it actually means to the way we operate,” he said.
“If we delay projects that means we don’t spend money in the local community. We need to construct a new tails dam over the next couple of years, we need to start work on that by mid-this year.
“We’ve got equipment to replace and we’ve also got some major capital projects and the board is likely to defer that and say, until we’re sure what all of this means, we’re not going to take the risk on letting you spend that capital.”
The Opposition’s forestry spokesman Peter Gutwein says he is not surprised the deal could affect mining investment.
“It’s very disappointing, but it’s understandable,” he said. “What this Government are doing is creating uncertainty right across the economy, we need every industry sector to be working as best it possibly can.”
The mining industry is also concerned about the planned extension of Tasmania’s World Heritage Area.
