PLANS for the Dubbo Zirconia Project appear to have cleared a final hurdle, with the NSW Planning Assessment Commission (PAC) approving Alkane Resources' application to build and operate the mine at a site near Toongi.
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The development application was approved subject to conditions that would protect the community and the environment, according to the PAC report released this week.
Alkane Resources was granted a trading halt on Friday pending an announcement about the project's approvals process, the reason why managing director Ian Chalmers was not yet able to comment.
The application for the project sought approval to mine 19.5 million tonnes of ore over 20 years, producing 75,000 tonnes of concentrate a year, and to build associated processing facilities.
Rare earth and metal concentrates including zirconium, hafnium, tantalum, yttrium, europium, dysprosium and neodymium would be produced.
Public hearings regarding the project were held in November and in February a PAC review found the project could be approved subject to 26 recommendations relating to air quality, water management, transport, long-term land use and land form, hazards and risks.
It also considered impacts on Taronga Western Plains Zoo, a known fossil site and the pink-tailed worm lizard, a threatened species known to be found at the site, which Alkane Resources had to address in a further response.
The PAC noted the proposal would have "several significant social and economic benefits, in the form of investment and employment for the Dubbo region".
"Air, noise and radiation impacts are able to be controlled within accepted limits," the report read.
"Impacts to the threatened pink-tailed worm lizard would be offset satisfactorily."
The mine site was also required to be rehabilitated.
Dubbo Mayor Mathew Dickerson described the approval as "fantastic".
"The Dubbo economy is going well at the moment but this will be the icing on the cake," he said.
He said he understood between 200 to 400 jobs would be created, varying between construction and operation, and many more indirect jobs would result from mine activity.
"The good thing about this project is it's more than just a mine - they're not just digging stuff out of the ground there's a processing plant as well."
Dubbo MP Troy Grant said he was pleased "the long journey of approval has come to an end".
"Obviously it's a welcome new industry, there'll be jobs, jobs, jobs and massive new economic benefits to the region. Congratulations to all involved."