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Article of note:

Mine hinges on successful tests

A COAL mine could be operating in Hodgson Vale in five years if a second round of drilling is successful.

Coalworks senior consultant Chris Hagan said the mining development company had an exploration permit over 51 square kilometres in the region - which it was renewing.

“If the quantity we find is good, we could have something in the next five years,” he said.

Five test holes were drilled early last year. Two struck coal.

Mr Hagan said initial tests on the Hodgson Vale coal revealed it was among the best in Australia for gasification projects.

“We should drill five to 10 more holes in the next six to 12 months,” he said.

“At the moment, we don't even know if it is an economical coal seam.

“We haven't been able to assess quantities so that's why we need to do more drilling.”

Councillor Mike Williams, whose family is from Hodgson Vale, said the company would have a difficult task gaining Environmental Protection Agency approval.

“Significant groundwater reserves for council could be impacted,” he said.

Residents can take comfort from Mr Hagan's commitment to the existing community.

“We don't want to impinge on anybody's farming activity or be too close to existing dwellings,” he said.

“If we do find coal seam of sufficient substance then we will look at what do from that stage.”

The company is currently developing a major coal mine at Oaklands, in southern New South Wales.

“We have over 60 drill holes there,” Mr Hagan said.

http://www.thechronicle.com.au/story/2009/08/29/mine-hinges-on-successful-tests/