June 24, 2019 - The New South Wales government last Friday issued a mining lease for the Wallarah 2 Coal Project, Kallanish Energy learns.

It involves the construction and operation of an underground coal mine and associated facilities for 28 years, to extract up to 5 million tons per annum (Mtpa) of thermal coal for export. It's expected to generate $600 million of economic impact on the region.

The project is led by Wyong Areas Coal Joint Venture, formed by South Korean firms Kores Australia (82.25%), Kyungdong Australia (4.25%), SK Networks Resources (4.25%) and its subsidiary SK Networks Resources Australia (4.25%), and Australian company Sojitz Coal Resources (5%).

“Wallarah 2 has been one of the most scrutinized mining projects in NSW history, subjected to repeated assessment over a ridiculous 16-year period,” said Stephen Galilee, CEO of the NSW Minerals Council, in a release.

Residents have been protesting against the project as it will be constructed in the area of a drinking water catchment which supplies more than 300,000 people. Environmental groups say the project will take millions of gallons of water each year out of the catchment and pollute local waterways.

Earlier this month, the government of Queensland approved the Carmichael Project, a coal mine operated by Indian multinational conglomerate Adani.

The project has been heavily criticized by several groups, as it will be the biggest coal mine in the country's history and is built inland of the Great Barrier Reef.