BORAL has been granted a lifeline in its attempt to expand mining operations at Berrima Colliery, despite the company already laying off about 30 employees.
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Earlier this year, two Land and Environment Court Commission-ers revoked Boral's earlier approval for continued operation of the mine.
Boral appealed the decision and this was upheld last Friday.
The Judge found the Commissioners had made errors in their decision related to the process of how they made their written judgment and also that the parties were not provided the opportunity to address certain issues such as traffic.
The Judge ordered the matter go back to different Commiss-ioners for a second determination.
However, it was possible that, upon review, the new Commiss-ioners could reach the same conclusion and refuse the project.
A Boral spokesman said the decision confirmed its position that the company should have been granted a Project Approval for Berrima Colliery.
"Given that the original decision followed a lengthy process of consultation, we are disappointed Southern highlands Coal Action Group commenced the merits appeal and the subsequent significant costs their decision then incurred for Boral and the uncertainty it created unnecessarily for the mine and its workers," he said.
"As previously announced, Berrima Colliery has been placed into 'care and maintenance' due to a number of reasons, including regulatory uncertainty.
"Boral will consider the implications of the Court's decision in due course."
BETWEEN 2009 and 2012, Boral sought to expand the mine and increase its coal production.
As part of the process, it was required to obtain an updated approval for continued operation in line with new environmental legislation.
In early 2012, the NSW Planning Assessment Commission approved Boral's application, however, the Environmental Defender's Office, on behalf of the Southern Highlands Coal Action Group, lodged an appeal of this decision.
This appeal was heard by the two court Commissioners in February who revoked the approval.
Boral then appealed this decision and in the meantime, it stopped output at the mine and moved into Care and Maintenance operations.
About 30 employees were laid off as a result.
Deputy Mayor Larry Whipper said it would be interesting to see how Boral would react to the court decision, given that it laid off the employees before getting the court decision.
"If it works out in their favour I'd be interested to see if they give those people their jobs back," he said.
Some of those workers have moved on to other jobs while the majority were still looking for employment.