Coal mine expansion
Whitehaven and Japanese partner Idemitsu, which owns 30 per cent of the mine, have gained state approval to lift production at Tarrawonga from 2 to 3 million tonnes of coal a year and extend the project to 2030.
The Tarrawonga expansion project now awaits approval from federal Environment Minister Tony Burke, who is also set to announce a decision on Whitehaven's Maules Creek project and Idemitsu's Boggabri expansion, both nearby.
In a dramatic protest against the three projects, which will require most of the Leard State Forest to be cleared, earlier this month Front Line Action on Coal activist Jonathan Moylan grabbed national attention when he issued a fake ANZ press release purporting to withdraw a loan to Whitehaven.
The hoax sparked a run on Whitehaven shares, which fell 9 per cent within minutes but recovered after a trading halt put an end to the misinformation.
Whitehaven shares closed on Friday unchanged at $3.50.
Frequently Asked Questions about this Article…
The New South Wales government approved Whitehaven Coal’s Tarrawonga expansion to lift production from 2 million to 3 million tonnes of coal a year and to extend the project life to 2030.
Whitehaven Coal is the operator of Tarrawonga and Japanese partner Idemitsu owns a 30% stake in the mine.
Yes. After state approval, the Tarrawonga expansion now awaits federal Environment Minister Tony Burke’s approval before it can proceed.
All three are controversial projects in the Gunnedah Basin that threaten the Leard State Forest. Tony Burke is set to announce federal decisions on Whitehaven’s Maules Creek and Idemitsu’s Boggabri expansions as well as Tarrawonga.
The three expansions are contentious because they threaten the Leard State Forest; protesters say most of the forest would need to be cleared if the projects go ahead.
A Front Line Action on Coal activist issued a fake ANZ press release claiming ANZ had withdrawn a loan to Whitehaven. The hoax triggered a run on the stock, sending shares down about 9% within minutes before a trading halt; the share price later recovered and closed unchanged at $3.50.
The fake press release shows how misinformation can quickly move a stock and create sharp volatility. In Whitehaven’s case the hoax briefly pushed the share price down until a trading halt corrected the market.
Investors should watch for the federal Environment Minister Tony Burke’s approval decisions on Tarrawonga, Maules Creek and Boggabri, the potential operational impact of lifting Tarrawonga output to 3 million tonnes and the ongoing environmental and protest issues that have already contributed to short-term share volatility.
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