AN INDEPENDENT body is recommending the development of a land management plan to return much of the Cobbora Coal Project site to productive agriculture while its future is determined.
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The NSW Planning Assessment Commission has produced a 209-page report after reviewing the project that would cost NSW taxpayers $1.5 billion to take to production because of contractual arrangements approved by the former state government.
The current government has inherited an "obligation" to provide power generators in the Upper Hunter Valley and on the Central Coast with what has been described as "high volumes" of coal at "low prices" from the start of the 2015-16 financial year.
Expert advice prompted its announcement late last year of an intention to sell or lease the project.
Currently the government is searching for alternate sources of coal to "minimise risks and liabilities".
At the same time the state-owned Cobbora Holding Company has been pursuing planning approval for the proposed coal mine, with the review one of the steps in the process.
The commission's report based on the review has found that the project has merit and is able to be approved, but "uncertainties around the timing of the project have already had, and may continue to have social, economic and land management impacts locally".
"Consequently, the commission has recommended that work to prepare and implement an integrated land management plan, for the proponent's landholdings, should commence immediately," it states.
"With appropriate funding and resources it should be possible to reinstate productive agricultural management of much of the land, along with rehabilitation works for areas of strategic biodiversity value. Both have the potential to provide a sustainable social and economic return to the local community."
The report also recommends the creation of a fund to provide for the preparation and implementation of the plan and the appointment of an experienced land manager.
A public hearing was held in Dunedoo in December as part of the review.
The Daily Liberal understands NSW Treasurer Mike Baird will provide an update on the Cobbora Coal Project around the time of the state budget on June 18.
Last week his spokeswoman reiterated that the mine would "remain a priority unless and until a superior alternate source of coal is established".
But she said the "current weakness" in the coal market had the government considering "whether a delay in the project will provide a better outcome for taxpayers".
"The government understands local communities in the central west are keen to know more about future plans for the mine proposal and how economic development can be supported in the region," the spokeswoman said.
"This is one of many factors to be considered when the government determines the future of the mine, including whether it will be sold or leased, and if the mine should be developed in the medium or longer term.
"In the meantime, the government understands the Cobbora Holding Company is considering the recommendations of the Planning Assessment Commission, which include the development of a land management plan to return the mine site to productive agricultural use in the interim."
