John Dalton outside the site of the proposed Kingaroy coal mine.
John Dalton outside the site of the proposed Kingaroy coal mine. Contributed

Mining development doesn't add up: KCCG

KINGAROY Concerned Citizens Group is trying to understand the advancements of a mining company planning to build a mine in Kingaroy.

Moreton Resources, which plans to build an open cut mine outside Kingaroy and a coal rail line through the South Burnett, had its administrative appeals tribunal failed on September 12.

KCCG spokesperson John Dalton said this latest development made it hard for the company.

"Anything that makes it harder is good news for people who don't want an ugly and dirty coal mine next to their farms," he said.

The mining company announced in several reports this month they will move forward on the continued advancement of the South Burnett Coal Project.

"It's difficult to explain the company is advancing as they continue to say, as in fact when you consider the operations, that seems to be far from the case," Mr Dalton said.

The failed tribunal means Moreton Resources owes the ATO $9 million.

This resulted from research and development money, from when the company was known as Cougar Energy, for the former Kingaroy UCG Trial Pilot Plant project taken out from 2012 to 2014.

Mr Dalton said it appeared the ATO was only asking for the $8.1 million for the research money, plus interest, which was due in August 2016 before the company appealed the debt from the Administrative Appeals Tribunal.

"We always thought it was amazing, of what we knew of what happened on the plant, how it'd come to $8 million," he said.

The only activity KCCG was aware of was the monitoring of the bores on the UCG plant.

"It's difficult to imagine how monitoring the bores would be $8.1 million worth of research," Mr Dalton said.

Moreton Resources said in a report they would most likely appeal the AAT decision.

"They'll be charged interest on that $9 million if they do appeal, they'd have to be pretty confident it'll be worth it," Mr Dalton said.