The suspension of a controversial coal seam drilling licence in NSW sets a damaging precedent of authorities giving in to "extreme" environmental groups, miners say.
NSW Resources and Energy Minister Anthony Roberts suspended Metgasco's licence at Bentley in northern NSW after an audit found the miner had failed to undertake proper consultation with the community.
The minister also referred information about shareholdings and interests in Metgasco to the Independent Commission Against Corruption.
The decision to suspend the licence comes only days before thousands of protesters were expected to bolster a blockade outside the Bentley drill site against up to 800 police officers.
But a peak industry body says the government's intervention reflects a lopsided view of what community consultation includes.
"Today's decision ... is of significant concern to the industry and sets a damaging precedent for resource development in that state," the Australian Petroleum Production and Exploration Association (APPEA) said in a statement.
The NSW government says the suspension will stay in place until Metgasco can prove it has met the conditions.
"Investors should be concerned about what constitutes 'genuine and effective consultation' in NSW," the APPEA said.
It said a campaign by the Greens and "extreme" environmental groups should not skew proper process.
The body also accused activists of engaging in protests that featured "illegal and threatening behaviour, including the placement of booby traps".
Share
