Dendrobium Mine Extension Project

23 August 2022

We have been progressing the government approval for Dendrobium Mine Extension Project that would enable the continuation of mining activities at Dendrobium Mine in new areas within the existing mining lease.

Following consideration of recently completed studies, South32 has decided not to invest in the Dendrobium Mine Extension Project. While the Project demonstrated the potential to extend the life of the Dendrobium Mine, with the complexities involved the expected returns do not support investment by South32.   

We will now focus on optimising our Dendrobium operations within the existing mining lease. We have identified opportunities to extend mining activities until 2028 and are evaluating potential options to extend mine life beyond this time.

Activities at our Appin Mine are unaffected by this announcement. We are progressing feasibility work to extend ventilation capacity that would support mining activities until at least 2039. This investment remains subject to South32 approval.

We remain committed to supporting the regions in which we operate, currently contributing approximately $95M in royalties to the NSW Government and more than A$1M a year to support local community groups and organisations.  

While this decision provides clarity on the Dendrobium Mine Extension Project, we acknowledge it may be unexpected to our people and their families, the local community, local businesses, suppliers and our many other partners in various ways. 

We would like to thank the public and our stakeholders for their engagement on the Project to date, including those that made submissions during the Public Exhibition period. The government approval process will not continue.  

Illawarra Metallurgical Coal will continue to operate in the Illawarra and Macarthur regions, and we remain committed to supporting our local communities. 

If you would like to speak with us about our activities, please call our free Community Call Line 1800 102 210 or email [email protected] 

Further information