The NSW Government's $500,000 feasibility study into re-opening the line began late last year. Even though it was to look at operational options including freight and passenger rail, the primary use would be for Mt Piper.

At the EnergyAustralia Lithgow Community Consultative Committee's March meeting, the Kandos-Gulgong line was spoken about.

But it was indicated that the option of using existing line, "a longer way around through Dubbo", could be favourable.

The company has approval to build a rail coal unloader at Mt Piper. The station is fed by conveyor belts from Centennial's Springvale Mine, which will close in 2024 and has had supply issues.

In 2019 approval was given to modify the Lidsdale Siding rail facility, to receive and unload coal from the Airly mine, when Mt Piper stockpiles are forecast to drop. Modification 3, which is being prepared for the DPIE, will seek the removal of the shortfall criteria and allow unloading to be undertaken permanently.

An EnergyAustralia spokesperson said, "at the end of the day, the objective is to provide Mt Piper power station with a secure, diverse and cost-competitive coal supply for the duration of its operational life.".

"In the past, there were six mines able to supply coal to Mt Piper. Now it's just one, the nearby Springvale mine," the spokesperson said.

"We faced significant disruptions to our operations due to coal supply issues in 2019, which directly impacted our ability to generate into the electricity market. Mt Piper generated around 40 per cent less in 2019 than the previous year.

"Mt Piper is critical to the reliability of the state's electricity system, supplying up to 15 percent of New South Wales' electricity. Continuing to source coal from the Lithgow region is our preferred option to meet Mt Piper's operating life to 2042.

"But with current coal supply difficulties, we need to consider alternatives to mitigate the risks to Mt Piper from single-mine supply. Our customers depend on it.

"In December 2019, the NSW Government approved receiving coal from Airly colliery in emergency situations, a local Centennial Coal mine. We are grateful for the government's support at this time.

"We are continuing to work with key stakeholders, including Centennial Coal, to actively investigate all coal supply options for Mt Piper. We are also exploring long-term approaches, including a rail uploader at Mt Piper to enable transporting coal from other regions in NSW."

A Transport for NSW spokesperson, said, "the Kandos to Gulgong Feasibility Study is currently being finalised".

"The Executive Summary will be published at transport.nsw.gov.au/operations/freight-hub once it has been considered by Government," the spokesperson said.

"The Feasibility Study will determine the viability of re-opening the line. Transport for NSW supports the most efficient and effective freight movements, to reduce cost to market."

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