Cost Benefit Analysis of Invincible Project

Cadence Economics, working in conjunction with Umwelt Australia, estimated the net economic benefits of the Invincible Southern Extension Project. The mine development proposal by Castlereagh Coal Pty Ltd will breathe life back into the Invincible Colliery, an open cut coal mine located approximately 25 kilometres north-west of Lithgow in NSW, which is currently in care and maintenance.

Significantly, our analysis is based on the recently released economic assessment framework for mining and coal seam gas proposals released by the NSW Government.

The CBA shows that the Project will confer net benefits to New South Wales estimated to be in the order of $80 million dollars (in today's terms).

Importantly, regional NSW is shown to benefit from the Project. The township of Cullen Bullen is located approximately 3 kilometres north-west of the Invincible mine infrastructure area and the mine operators expect to source 80 per cent of the workforce from the local region which is currently experiencing relatively high levels of unemployment.

Castlereagh Coal is part of the Manildra Group (Manildra), an integrated and diverse agribusiness that is 100 per cent NSW owned. The business purchased Invincible in 2015 to secure a continued supply of specialty nut coal for Manildra's Shoalhaven Starches Plant at Bomaderry on the NSW south coast. This nut coal is critical in securing the energy supply to what is the largest wheat starch and gluten plant of its kind in the world. Manildra directly employs approximately 600 full-time equivalent workers in New South Wales, across regional centres in Nowra, Manildra, Narrandera and Gunnedah.

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