LANDHOLDERS locked in a Land Court battle with Bandanna Energy over its proposed Springsure Creek mine are cautiously optimistic at news the company is in voluntary administration.
Landholder consultant George Houen is representing some of the landholders affected by the proposed underground thermal coal mine, including the Golden Triangle community made up of 50 landholders within the prime cropping area.
"They are really pleased to see anything that improves the chances of this land being saved from mining," he said.
"Although it is underground, the subsidence would wreck its cropping capability and the land would have to be turned back to grass."
Bandanna has been in financial trouble since July as it tried to re-negotiate take-or-pay obligations with Aurizon and the Wiggins Island Coal Export Terminal.
The company owns 14 per cent of the new port in Gladstone and
had 4 million tonnes a allocated for its exports from Springsure Creek.
In July, the company had sought to restructure and defer this but was unsuccessful and trading on the AXS was suspended.
In a statement on Monday, Bandanna said the take-or-pay obligations and resolving landholder objections were an impediment towards the award of a mining lease.
The mining lease application is for 10,700 hectares of land that lies 47 kilometres south-east of Emerald in central Queensland and was originally protected under the Strategic Cropping Land Act.
"It's a very sensitive issue from landholder's perspective as the majority of this is prime agricultural land that was deemed strategic cropping land," Mr Houen said.
"It is protected under the new regional planning interests, but
this project is an unusual case and unprecedented, as it got an exemption from the prohibition on permanent impact."
Mr Houen said objections to this and a proposed transport corridor had been before the Land Court since July and preliminary hearings had been under way for several months.
"No date has been set for a hearing as Bandanna didn't take
up the hearing date available to it for December."
There was still uncertainty for landholders as Bandanna could sell its applications and they could be assigned to new owners, he added.
However, if the main mining lease application fell over, that would be the end of mine at Springsure as a new application would need to be under the Regional Planning Interests Act.
"It's doubtful that approval would be granted. The land that was declared strategic cropping land under the previous act is now priority agricultural land and is part of its [Bandanna's] all-important exemption," he said.
"To stay alive, it will have to be pursued by applicant - Springsure Creek/Bandanna - or by someone who acquires, like the current owners if they refinance, or another owner."
It would be up to the mining company to tell the court what they proposed from here on, he said.
"You would have to be a super optimist to believe you could get
it approved under the new legislation - it's not impossible, but very difficult."
Central Highlands Regional Council mayor Peter Maguire said there would be some disappointment with Bandanna's announcement.
