A noisy, visually intrusive marine industrial zone on flood prone Palmers Island was never going to be a good idea

This was never going to be good idea. Applying to rezone rural land in order to create a noisy, visual intrusive marine industrial precinct so near to residences, on flood prone land on an island with known riverbank instability, in order to build vessels ranging from 6 metres to 35 metres in length and refit/maintain other vessels.

Something Mayor Jim Simmons, Deputy-Mayor Jason Kingsley, along with Cllrs. Andrew Baker, Arthur Lysaught, Richie Williamson and Karen Toms, failed to fully appreciate when it came before Clarence Valley Council for a second time in November 2016.

The Daily Examiner, 25 November 2017, p.5:

The NSW Government’s planning Gateway has again knocked back Yamba Welding and Engineering’s proposed marine industrial precinct at Palmers Island.

This has been the second time in three years the plans have been denied by the government, and while Yamba Welding and Engineering managing director Bill Collingburn said he would continue to negotiate with the State Government, he would not rule out the potential that the company would “vote with their feet” and move interstate.

In the Gateway’s decision made on November 10, the Department of Planning and Environment deputy secretary of planning services Marcus Ray said the plan should not proceed due to a lack of demonstrated need for additional zoned land at the location, its inconsistencies with Clarence Valley Industrial Lands Policy and the North Coast Regional Plan 2036.

“The potential for noise and visual impacts on the amenity of the surrounding locality are considered unacceptable,” Mr Ray’s decision said.

Mr Collingburn said the latest decision was not the end of the project.

“We have got other avenues to explore, and we will be doing that, so this is not the end of it,” Mr Collingburn said.

“We spend more than $2 million a year in the Valley, and that’s a lot of money.

“We’ve been here 43 years and employ 32 people, we’ve got 10 young apprentices who would otherwise have gone to Sydney, and with this plan we have the potential to triple it.

“This plan has been well received by Clarence Valley Council and the community at large who want to see more jobs in the area.

“We want to stay here, and the government has left the door open, but if they decree we can’t expand then we will vote with our feet.”

Clarence Valley Council decides to open its door wide to the cruise ship industry

On 21 November 2017 at Clarence Valley Council’s ordinary monthly meeting Mayor Jim Simmons, Deputy Mayor Jason Kingsley and Crs. Richie Williamson, Arthur Lysaught, and Andrew Baker voted in effect to open council’s doors to the cruise ship industry by indicating in principal support for the Port of Yamba to be a designated cruise ship destination, with the possibility of establishing an international cruise ship terminal within the Clarence River estuary.

The debate in the chamber indicated that councillors received a number of emails on this subject from valley residents and that the majority of these expressed concerns about this Berejiklian Government proposal.

However, community concern was virtually ignored by both council administration and this group of five councillors hell-bent on doing Sydney's bidding after Nationals MP for Clarence Chris Gulaptis had reportedly lobbied on behalf of the proposal.

As usual Cr. Baker excelled himself when it came to the number of inaccurate statements he could pack into his participation in debate.

Concerned Iluka and Yamba residents now await this…….

Facebook, ABC North Coast, 21 November 2017:

Billy Walker The Yaegl Traditional Owners Aboriginal Corporation held a meeting last week where this issue was raised. Keep an eye out for our response in the local papers in the next week or so.

FACT CHECK: Size comparison - cargo vessel Island Trader and cruise ship Caledonian Sky

The debate concerning the Sydney-driven proposal to make the Port of Yamba a cruise ship destination continues.

I have noticed there has been some comment on social media that the small cruise ships Yamba could expect to have ‘visit’ would be same size or smaller than the Island Trader which used Yamba as its home port for around 17 years.

The phrase “small cruise ship” is being taken literally and the conclusion invited is that these cruise ships are so small there is nothing to be concerned about.

To assist with a more accurate size comparison I have laid out the dimensions of the cargo vessel MV Island Trader and the passenger ship MV Caledonian Sky below.

The comparison indicates that if the proposal goes ahead the average small cruise ship entering the Clarence River estuary is likely to be at least twice the size of the Island Trader.

# This is MV Island Trader

The Island Trader was built in 1981, has 485 gross tonnage, dead weight of 242t*, is 38.8m long, 9m wide and has a maximum draft of 2.8m.

[http://www.marinetraffic.com/en/ais/details/ships/shipid:695558/mmsi:503465000/imo:8017267/vessel:ISLAND_TRADER]

This cargo vessel is owned by Lord Howe Island Sea Freight Pty Ltd and since 2009 has called Port Macquarie its home port.

[https://www.dailyexaminer.com.au/news/island-trader-to-set-sail-for-new-waters/353909/]

# This is the small cruise ship MV Caledonian Sky due to enter Port of Yamba on or about 24 October 2018

The Caledonian Sky was built in 1991, has 4,200 gross tonnage, dead weight of 645t*, is 90.6m long, 15.3m wide and has a maximum draft of 4.25m.

[http://www.marinetraffic.com/en/ais/details/ships/shipid:373834/mmsi:311061100/imo:8802870/vessel:CALEDONIAN_SKY & http://www.shipsreviews.com/caledonian-sky/]

This passenger ship is reportedly owned by Noble Caledonia Limited and is currently sailing under the flag of Bahamas.

* Dead Weight is the maximum weight of the cargo, crew, passengers, stores and bunkers that it can safely carry when loaded so that it settles in the water to the Plimsoll line.

It is being suggested to Lower Clarence communities that inviting the cruise ship industry into the Clarence River estuary will bring financial gain to their towns - but will it?

At this month’s ordinary monthly meeting Clarence Valley Council will be considering whether or not to give in principle support to the NSW Government’s proposal to designate the Port of Yamba as a cruise ship destination and possibly build a cruise ship terminal in the Clarence River estuary.

The Berejiklian Government appears to be presenting this proposal as a way to increase the annual regional income of the Clarence Valley. But is it and will it?

Nowhere have I found any mention of the business model employed by the global cruise ship industry. An industry which seeks to create demand through the judicious use of political donations and paid lobbyists.

According to  Professor Ross Klein, Associate Dean for Graduate Programs and Research, Memorial University of Newfoundland; “Standing up to a cruise line can sometimes be difficult, especially given the industry’s generous contributions to political campaigns, their active lobbying efforts, and their degree of influence with mass media” [Klein, R. (2013) The Cruise Industry’s Business Model: Implications for Ports]

As an example, between 1997-2007 Cruise Line International Association spent US$10 million on lobbying the U.S Congress. 

In the first instance the business model used by cruise ship operators seeks to have passengers spend most of their money on-board the ship.

So many of the traditional services supplied on a cruise are no longer covered by the upfront cost of the fare and attract an additional charge per use.

Any land-based tours or shopping trips are organised by the cruise operator and not infrequently the cost is not absorbed by the cruise line so a fee for participation is paid by passengers directly to this shipping company.

The fee paid by the cruise operator to a land-based tour business contracted to supply the actual service usually ranges from as little as 10% up to an est. 50% of the fee paid by passengers.

Even when passengers leave the ship to wander around coastal zone towns you can bet that the cruise ship operator will have approached local businesses requesting a fee to include these businesses on a list of recommended shops/cafes/hotels/clubs - because that is part of the business model.

The business model is rapacious because it also seeks concessions and subsidies from the ports a cruise line visits.

From state government a cruise line expects and often receives reduced harbour fees & charges and from state and local government it expects upgrades in infrastructure worth literally millions of dollars, without giving a firm guarantee that it will continue to use a particular port as a genuine destination rather than as a short "technical call".

What is worse is that once the cruise industry becomes established in a small port there is evidence to suggest that the regular incursion of up to 350 passengers at a time into coastal towns sees a decrease in the number of land-based tourists, who now see these towns as crowded and impersonal - no longer offering an intimate holiday experience.

It is these land-based tourists who fill Yamba and Iluka’s camping grounds, motels, hotels and holiday units and, are more likely to patronise the full range of dining/entertainment/sporting experiences on offer. So to see a significant proportion of them replaced by cruise passengers over time is not likely to compensate for the risk of economic loss during peak holiday periods in the Lower Clarence.

The first small cruise ship is due in Yamba on or about 24 October 2018 and this is it’s published itinerary: arrive during breakfast, disembark to visit “Flinders Well, Yamba Lighthouse, and the Yamba Historical Museum” or “alternatively walk in the nearby Iluka Nature Reserve”, return to ship for lunch and depart in the afternoon.

Now I'm no economist but even I know that this itinerary doesn’t exactly ring the till in a big way for businesses in Yamba or Iluka.

This cruise ship, which is a repeat offender when it comes to reef and coral damage, is probably coming in on the high tide but as it expects to leave in the afternoon it is not going out with maximum water depth under its keel  -  which should ring some alarm bells.

Through the prism of this industry business model the Port of Yamba will not be seen as a boutique destination but merely as one more excuse to extend the number of nights passengers spend on a floating hotel being milked by the hotelier for as much money as possible before they finally leave the cruise at a major city port.

What Australian lobbyists for the cruise industry are not telling the regional ports they are currently attempting to smoodge is that when it comes to Australian east coast cruise destinations Sydney, Brisbane and Melbourne accounted for 65% of total passenger onshore visit days and 90% of the home port passenger onshore visit days. [Cruise Lines International Association (CLIA), 2016 & 2017]

Which means most of the spending money cruise ship passengers have in their wallets is more likely to be spent at large ports.

One cannot escape the suspicion that the health of the Clarence River estuary, existing coastal tourism revenue and safety of the Native Title reef Dirrangun are being placed at risk by this proposal, for what is essentially a dream of financial return for Lower Clarence communities rather than a solid reality.

Interested readers can find more information in the presentations included in the report of an international symposium held in 2013 which can be found at http://www.jbna.org/IS%20-%20Charleston-Report.pdf. For an idea of how many of these not-so-small cruise ships come into a regional harbour once berthing facilities are established see https://www.portauthoritynsw.com.au/port-of-eden/port-services-facilities/eden-cruise-schedule/.

Are the NSW Berejiklian Government & local Nationals preparing to trash the Clarence River Estuary?

If there’s one thing the NSW Nationals can be relied on to do it is to run with any short-sighted idea which involves the threat of environmental degradation and risk to regional water catchments.

Here we have them joining the Liberals in touting what appears to be a deal done in Sydney (with no genuine local community consultation) to bring international cruise ships into the environmentally sensitive Clarence River estuary – an act which would require a significant degree of initial and ongoing dredging to maintain access, with perhaps the partial dismantling of one of the internal training walls which were built to direct flood water flows.

Even cruise operators with smaller vessels will demand a guarantee of risk free access and some form of terminal – demands which would see existing local tourism along with commercial and recreational fishing disrupted and perhaps diminished.

It seems that Nationals MP for Clarence Chris Gulaptis has all but forgotten that just last year he was not in favour of the last attempt to co-opt the Lower Clarence River for the personal gain of outside financial interests.

Perhaps he needs reminding that ships that meet his specifications such as this one pictured below would still require estuary modification and shoreline development which is also unlikely to “tick any of the social or environmental boxes he once thought important.

As the average small cruise ship would exceed length overall LOA 30 metres they would all require compulsory pilotage to and from the river entrance to their berth.

Tonnage: 4,591 tons, Length: 103.7 m, Beam: 16.0 m. Draft 4.5 m, All Berths: 302.

Local residents are aware that Mr. Gulaptis has been lobbying Clarence Valley Council on the matter of cruise ships having access to and use of the river estuary. Perhaps he might like to inform us all exactly on whose behalf he has been doing this lobbying? And declare if he is receiving some form of consideration or financial benefit from such lobbying?

The Daily Examiner, 25 October 2017:

THE FIRST cruise ship that could test the Port of Yamba's passenger facilities could arrive before the end of the year, says Member for Clarence Chris Gulaptis.

"I've heard there could be a cruise ship coming this year,” Mr Gulaptis said.

But he was unsure of the any details of the size or type of vessel that could be coming.

Mr Gulaptis was with the NSW Minister for Roads, Maritime and Freight, Melinda Pavey, and Minister for Transport and Infrastructure, Andrew Constance, yesterday when they announced Yamba and Coffs Harbour were being considered as potential international cruise ship terminals for the NSW Mid North Coast.

Mrs Pavey announced the start of investigations as part of the launch of the government's Future Transport 2056 strategy.

"This is a major step, with the need for a facility being recognised in the 10 to 20-year horizon, so early investigations can begin now,” Mrs Pavey said.

The new facility has the potential to link in with North Coast tourist hotspots and part of the process will look at how to integrate the proposed port with the wider area.

"The cruise industry is booming and is set to get bigger in coming years.

"A cruise terminal would give the region a share of that industry,” Mr Constance said.

Despite the minister's optimism, Mr Gulaptis said there were lot of obstacles to overcome.

"Just where passengers would embark and disembark is not known,” he said.

"Goodwood Island could handle the size of the vessels, but its facilities have been used for live cattle exports and it's well away from Yamba.

"The only other place I can think of is at the marina on the other side of the wall, where the fishing boats moor.”

He said any use of the river would need approval of its owners, the Yaegl People, and the ships could not impact the Dirrangun reef, which was sacred to them.

He said the vessels would be much smaller than the big cruise liners.

"I think the maximum draught at Yamba is about five metres, so that should limit the size of the vessels to no bigger than 5000 tonnes,” he said.

The prospect of cruising liners coming to Yamba alarmed environmentalists such as Iluka's Ian Gaillard, who was a vocal opponent of a proposal that emerged last year to build a megaport in the Clarence Estuary.

He said people may think cruise liners coming to Yamba could represent progress, but in reality, it would be a retrograde step.

"Cruise ships bring with them some of the worst excesses of modern life,” he said.

”The danger for the local populace is that once these things are established, they change the amenity of the place forever.”

NSW Minister for Roads, Maritime and Freight Melinda Pavey is obviously confident that she and her cronies will be able to expand Port of Yamba by stealth.

Perhaps someone should remind her that Northern Rivers communities tend to jealously guard the existing aesthetic, environmental, cultural, social and economic values of their waterways and lands.

Like Chris Gulaptis, last year Cr. Jim Simmons was mindful of the environmental and cultural issues associated with dredging the entrance to the river and estuary.

Look at him now..... 

Clarence valley mayor Jim Simmons reckons Yamba would be a great cruise ship destination.

Clarence Valley’s new mayor Jim Simmons was quick to jump on board the idea to support Yamba and Grafton's tourist credentials. “Oh yeh, we’d give it  a go at Grafton.  We’ve got the best beaches up here and I think Coffs Harbour has had its fair share of things and it’s time other places got a go,” he says.

Update on the proposed 140 lot community title residential subdivision in Hickey Street, Iluka, NSW

Hickey Street and environs in Iluka at the mouth of the Clarence River

The proposed 140 lot community title residential subdivision in Hickey Street, Iluka, NSW was declared a controlled action on 6 October 2017 and, as such, requires assessment under the Environment Protection and Biodiversity Conservation Act 1999 and ministerial approval before it can proceed.

According to Australian Government Dept. of  Environment and Energy the relevant controlling provisions are:

World Heritage properties (sections 12 & 15A)

National Heritage places (sections 15B & 15C)

Listed threatened species and communities (sections 18 & 18A)

There are five levels of controlled action assessment provided under the Act and the development proposal assessment for this subdivision will be by preliminary documentation, due to it being considered a proposal where the impacts are localised, easily predicted or where the impacts have already been adequately assessed under other legislation.

It is the responsibility of the development applicant, Stevens Holdings Pty Limited, to prepare documentation to support the assessment process.

Preliminary documentation assessment is one of the four levels requiring a public comment phase as part of the process. The availability of assessment documentation for public comment will be advertised in the relevant press and on the Department's website.

Iluka Real Estate decided to tout a proposed development and instead stirred up the local community

Perhaps thinking to further his own commercial interests and apply a little pressure to the Northern Joint Regional Planning Panel (NJRPP) currently considering a proposed 140 lot development on environmentally sensitive land, Iluka Real Estate owner Graeme Lynn took to the airwaves on 26 September 2017 spruiking this development which he has been advertising online since  2015.

Unfortunately for Mr. Lynn all he did was demonstrate that the Iluka community is not happy with the scale and design of this development application, as well as concerned with loss of biodiversity and habitat – particularly destruction of a Coastal Cypress Pine Endangered Ecological Community (EEC), loss of local koala habitat and fragmentation of a known wildlife corridor.

Up to the point that Mr. Lynn rose to his feet at the NJRPP Public Briefing Meeting on 20 September, the community debate on this planning issue had remained civil and constructive. Most Iluka residents are obviously trying to ensure it stays that way.

Here is how the online response to Mr. Lynn's on-air statements played out:

ABC North Coast

27 September 2017 

DEVELOPMENT PLAN DIVIDES ILUKA

Opponents of a major residential subdivision planned for Iluka say it puts the village's unique charm at risk.

The Birrigan Gargle Local Aboriginal Land Council has been working with the Stevens Group on a 140-lot development on Hickey Street.

The state's Joint Regional Planning Panel hosted a public briefing on the issue last week.

Tony Belton, from the Association of Iluka Residents, said it was a huge project which threatened the character of the village.

"Iluka has so far avoided the over-commercialised coastal development that now characterises many seaside destinations," he said.

"And I think that sort of sums it up, people come here for that unique coastal experience that sadly has largely been lost due to over development.

"One speaker at the meeting the other day said this kind of development would be more suitable for a place like Mount Druitt. 

"And indeed that's the issue, it's a huge development with little consideration for the world-heritage status next door or for the feel of Iluka as it is now."

But not everyone is opposed.

The President of the Iluka Ratepayers Association, Graeme Lynn, said residents could see benefits in the proposal.

The shops here need more customers," he said.

"The golf club is right next door and it definitely needs more customers and it'll give better access to the golf club ... coming all the way through. 

"And the shops in town need those extra customers."

A spokesperson for Birrigan Gargle Land Council declined to speak with the ABC until after the development application had been finalised.

Top comments

14 comments

Comments

Roslyn Woodward Grahame Lynne is not only from Iluka real estate, he is also the president of the Iluka golf club, president of the association of Iluka residents and president of the Iluka Rotary. He spoke at the judicial panel meeting but did not declare he had an obvious financial interest. This map clearly shows the proximity to the World Heritage Area on the other side of Iluka Rd and the important east-west wildlife corridor link to the Clarence River. There are many threatened species on the site and lots of Koala sightings. The land council may need funds we are not to question that - but this land could certainly qualify for a biodiversity off-set which would be a win for the land council, Iluka's amenity and wildlife.

6 · 19 hrs

Jill Garsden Oh, no, please, no......Iluka is the only north coast coastal town we can retreat to without feeling that it's become too overdeveloped and touristy. Its charm and attraction lies in the fact that it has withstood further development. If it becomes like every other coastal town then it will lose not only our regular visits, but also those of many others.

2 · 17 hrs

Annie Leggett Well of course Graeme Lynn thinks it's a great idea.... he is the real estate agent working with the developer to sell the land/development.... good for him sure.... lots of money in it for him.... Good for the people of Iluka ?? Now that is a better question? If you listen to others, who aren't just focused on the money .... there are many things that are not okay about the development in its current proposal.

3 · Yesterday at 04:05 · Edited

Tania Laurie What's wrong with all you Anti-development activists. The fact of the matter is that the population is growing and more housing is required. Don't you realize that there were native flora and fauna once where houses are now. As stated, heritage listed land is near so these species will move to safer habitat, not be wiped out. And it would be a disgrace to think all this opposition is because the Aboriginal land Council is involved. Eventually communities have to grow to help accommodate existing residents family as they get older and will help keep communities family orientated. Besides all that, it's a great economic injection for the town. Wake up and stop whinging.

1 · 17 hrs

2 Replies

Louise Devonforlunch No mention is made of the fact there have been four gravesites discovered. Two are located on the DA site and two opposite on the crown land. Ground Penetrating Radar undertaken during the Heritage study confirmed one of the gravesites had an 9/10 chance of containing human remains but despite this the site was excavated recently to the extent that one of the most intact gravesites has been destroyed beyond recognition!

2 · Yesterday at 01:19

1 Reply

Dave Schwarz You'd have to wonder what the Land Council is up to, seems the mighty $ is more important than the precious land? I'm no Greenie, but the argument the shops need more customers is surely crazy, surely the residents need fewer shops? 

4 · Yesterday at 00:14

Carol Watkins ILUKA CEMETERY 
Elizabeth Street 
Iluka NSW 2466
The Iluka Cemetery has been subdivided into a lot of about .3 ha and is believed to contain three bodies. The graves are thought to be located on the crest of a small sand dune about 20 metres off the northern side of Elizabeth Street. The site of the graves is covered with scrub vegetation. Only one grave is marked with a wooden cross and it bears the name of Earnest Eaton. Graves are not visible from the road. A memorial wall is located on the same side of the road about 100 metres away.
https://www.clarence.nsw.gov.au/cp_themes/metro/page.asp...

2 hrs

Peter Appleton One thing that surprised me with the original DA, listed by council on Christmas Eve 2015, is that they appeared to be unaware that this is an historic sand mining site. Seems strange to me as there are records and maps everywhere saying its been sand mined. As I understand it a Section 149 Certificate is a legal document issued by NSW councils under the EPA Act which gives detailed information about sites. The Clarence Valley Council (CVC) Section 149(2) Certificate issued for this site (as per the released DA material) does not mention the sand mining history of the site. Page 10 of the certificate says, "Council records do not have sufficient information about previous use of this land to determine if the land is contaminated." The engineering consultants engaged by the developer (Cardno Pty Ltd) then seem to run with this in their 8 August 2015 report which says on page 5, "There is no available evidence of land clearing, mining infrastructure, mining pits or dredging ponds in the aerial photography, which suggests that no mining, or on site separation processes were conducted on site." Seriously??? Cardno would then appear NOT to have undertaken any soil samples with regards to Zircon, Rutile or any of the other associated sand mining minerals.

8 hrs

Louise Devonforlunch Yes the original Cemetery was near Sid & Eileen Gill Park however the DA site was set aside as an additional cemetery between 1910 and 1928 when it was returned to Crown Land. The gravesites that were found at the South Western end of the DA site about 100m from each other. There are four in total but now since one has been destroyed only three remain. This is a part of Iluka’s history and whether they are Aboriginal or European they warrant further investigation and respectfully treated not subjected to the heavy handed approach used recently by the Police as I understand it.

1 · 27 September at 13:04

Peter Appleton As you know Louise the one that has been destroyed was mentioned at a JRPP briefing meeting at Clarence Valley Council offices on 16 August 2017. In attendance were panel members Garry West (Chair), Stephen Gow, Jim Simmons, Jason Kingsley. Apologies from Pam Westing. Also in attendance were council assessment staff Carmen Landers (Development Planner) and Nigel Sutton (Development Engineer). "Key Issues Discussed" included "Aboriginal Burial Site". 
No cultural heritage or aboriginal heritage reports were presented with either the original or amended DA, despite council being advised via submissions of the likely presence on site of at least one aboriginal gravesite. This latest round of submissions commenced before the completion of both the Extent Heritage "Aboriginal Cultural Heritage Assessment" and "Baseline Historical Archaeological Assessment" reports. These reports were released to submitters only after they complained about their absence and were then only forwarded by council to two submitters that I am aware of. 
My email to council following this incident includes, "Were the local police involved in this operation advised by council that this site is currently subject to a development application and has been referred to the commonwealth with a decision still pending as to whether it becomes a controlled action? Were police advised by council that this is likely to be an aboriginal grave that they were bulldozing or is this something that council still wishes to dispute? Were police advised that this part of the DA site was an area described by the ecological consultant for the applicant as being the best example on site of the endangered ecological community Callitris columellaris? Were police advised that this is an historic sand mining site with the potential for radioactive concentrations of mineral sands to be found beneath the surface?" 
The excavator operator (a local) was left unsupervised to backfill after the excavation, was wearing no safety equipment, face mask etc and advised that he had excavated to a depth of 2 metres.

1 · Yesterday at 02:25

WA company with Chinese & UK backing announces a desire to mine near, extract water from and potentially pollute Clarence River catchment waters

Corazon Mining Limited exploration site

The Daily Examiner, 29 September 2017, p.1:

JUST 35km north-west of Grafton is a block of private land with the potential to change the face of Clarence Valley’s industry as we know it.

Mt Gilmore, which lies between Fine Flower and The Gorge, has been revealed to be home to several deposits of high-grade cobalt.

Now Western Australia-based company Corazon Mining is trying to work out just how big that deposit is, and whether it’s worth mining.

On June 16 2016, Corazon announced it had secured the right to earn up to 80% of the Mount Gilmore Cobalt-Copper-Gold Project from private company Providence Gold and Minerals Pty Ltd.

Their project tenure included one granted Exploration Licence covering an area of approximately 25km by 15km, and over the past couple of months they have been drilling to in an effort to find precious metals.

Corazon managing director Brett Smith said so far, things were looking good.

“We’ve been saying that this is one of the highest- grade cobalt deposits in Australia, we just don’t know how big it is,” he said. “There was a lot of gold and copper prospecting there back in the late 1800s, early 1900s, and so it’s amazing where it’s located how little modern exploration has gone on there.”

The reason they have their eye on cobalt, rather than gold or copper, is that the element’s value has risen exponentially in recent years due to its use in lithium-ion batteries.

Mr Smith said demand from the battery sector had tripled in the past five years and was projected to double again by 2020.

It is most commonly used in smartphones, laptops, and electric vehicles.

“Cobalt is the most expensive raw material used for building lithium-ion batteries, paying about $61,000 per tonne,” Mr Smith said.

“A lot of people have been exploring for cobalt in NSW but are looking at oxide deposits. Ours is a bit different in that it’s a sulphide deposit, and they are fairly rare to be cobalt dominant.

“It’s all in vogue at the moment so we’re pretty hopeful this can be used to produce cobalt salts for batteries.”

Mr Smith said the company was currently on its second drill program, which they hoped could be used to accurately determine the lay of the land.’

Exactly what mining exploration licence is this newspaper article talking about?

Well according to NSW Planning & Environment on 1 September 2017 it is  EL8379 granted to Mt Gilmore Resources Pty Ltd on 23 June 2015.

So who is Corazon  Mining Limited?

The company’s 2016-17 Annual Report states:

Corazon Mining Limited (ASX: CZN) (“the Company” or “Corazon”) is an Australian based company exploring and developing the Lynn Lake Nickel-Copper-Sulphide project in Canada and Mt Gilmore Cobalt-Copper-Gold project in Australia.

It has three main exploration projects -  the Lynn Lake and  Victory projects both in Manitoba Canada and the Mt Gilmore Project in NSW Australia.

This is the corporations current Board of Directors:

Clive Jones, Non-Executive Chairman - 4,235,330 fully paid ordinary shares, 5,000,000 options exercisable at $0.035 expiring 31 March 2020, total annual remuneration $154,607

Brett Smith, Executive Managing Director - 7,107,131 fully paid ordinary shares, 10,000,000 options exercisable at $0.035 expiring 31 March 2020, total annual remuneration $417,250

Adrian Byass, Non-Executive Director - 9,357,370 fully paid ordinary shares, 7,000,000 options exercisable at $0.035 expiring 31 March 2020, total annual remuneration $144,600

Jonathan Downes, Non-Executive Director - 11,154,512 fully paid Ordinary Shares, 5,000,000 options exercisable at $0.035 expiring 31 March 2020, total annual remuneration $190,557

Mark Qiu, Non-Executive Director (appointed 18 August 2017) - 1,269,300 fully paid ordinary shares, total annual remuneration unknown

Robert Orr is company secretary and Chief Financial Officer, shareholding unknown, total annual remuneration $114,360.

The last annual report indicated that the company share structure comprised 1,039,283,317 fully paid ordinary shares held by 2,135 individual shareholders and, 60,000,000 unquoted options are held by 10 individual option holders.

The largest options holders are Brett Smith with 10 million held and Zenix Nominees Pty Ltd with 20 million held.

On 1 December 2016 the Company announced the issue of 3,410,840 shares to key management personnel in lieu of cash-based salary. This strategy was implemented in order to conserve cash reserves for operational expenditure.

Corazon Mining appears to be operating at a loss and apparently paid no tax in 2016-17.

Corazon Mining Limited’s Purchase Agreement for the Mt Gilmore Cobalt-Copper-Gold joint venture project:

Under the terms of the agreement with Providence and subject to Corazon completing due diligence to its sole satisfaction on or before 30 June 2016, Corazon has the exclusive right to earn up to an 80% interest in the Project as follows:

Corazon can earn an initial 51% interest by:

* Issuing Providence 25 million Corazon Mining Limited shares

* Paying cash reimbursements of costs totalling $100,000

* Spending $200,000 on exploration within the first 12 months from the date of satisfaction of all conditions precedent (“Commencement Date).

Corazon can earn a further 29% interest (totalling 80%) by:

* Completing $2M  in exploration within 3 years of the Commencement Date

* Paying $150,000 in cash or shares upon the earlier of the commencement of the third year and Corazon spending a minimum of $500,000 on exploration

* Paying $250,000 in cash or shares upon earning 80% equity in the Project.

Corazon has the opportunity to extend this earn-in period by one year by paying $50,000 in cash or shares.

According to Corazon Mining;

The Project is located only 35km from the major centre of Grafton in north-eastern New South Wales. Project tenure includes one granted Exploration Licence (EL8379 – one year old), covering an area of approximately 25km by 15km……

On 22 August 2017 the Company issued 139,856,665 fully paid ordinary shares at an issue price of $0.014. The share issue was comprised of:

- an issue of 120,000,000 shares to Hanking Australia Investments Pty Ltd under a Subscription Agreement for a $1,680,000 investment in the Company;

- an issue of 7,356,665 to sophisticated investors to raise $102,993; and

- an issue of 12,500,000 shares to Providence Gold and Minerals Pty Ltd pursuant to the Company’s Earn-in Agreement with Providence in respect of the Mt Gilmore Project. Under this Agreement, Corazon has the exclusive right to earn up to an 80% interest in the Project. The shares have a total valuation of $175,000.

On the same date, the Company also issued 85,000,000 options to Hanking Australia Investments Pty Ltd following their investment in the Company. The options were issued with an exercise price of $0.03 and an expiry of 22 August 2019.

On 18 August 2017, Dr Mark Qiu of Hanking Australia Investments Pty Ltd was appointed to the Company’s Board of Directors.

China Hanking Holdings Limited, registered in the Cayman Islands and listed on the Hong Kong Stock Exchange, is the parent company of Hanking Australia Investments Pty Ltd.

The second largest shareholder in Corazon Mining Limited is Crescent Nominees Limited, a private equity firm registered in Northern Ireland since 2014 and owned by venture capitalist Crescent Capital NI Limited.

As part of NSW Minerals Week Corazon Mining Limited had a booth at the 14th Sydney Resources Round-Up in May 2017 where interested geologists could view their sulphide core from the 2016 Cobalt Ridge drilling program. 

Area in which the proposed cobalt mine would be situated

Satellite image of Mount Gilmore (height 372m) situated just above the Clarence River system at The Gorge

It doesn’t take a genius to look at this image and see the potential for heavy rain episodes over Mt. Gilmore leading to surface water runoff into Clarence River tributaries.

So the first question is; what happens if Corozon Mining was granted a mining licence by the NSW Berejiklian Coalition Government and one or more of its heavy metal contaminated holding ponds were breached during such a rain period? The potential exists for any such breaches to result in long-term contamination of surrounding soils and water courses, as well as higher sediment levels in surface waters.

Heavy metal and metalloid concentrations within stream-estuary sediments already occur naturally in NSW north-eastern coastal rivers and current Clarence River levels are also the result of historic mining in the upper catchment below the Dorrigo Plateau region.

This leads to a second question. Can a river system, which supplies drinking water to est.126,008 residents (Census 2016) along with water to farmers, graziers and commercial fishers in the Clarence Valley and Coffs Harbour City local government areas, safely tolerate higher heavy metal and metalloid concentrations in that water? Communities relying on the Clarence river system might not be happy with the thought of any increase in localised or overall toxicity.

Given that mining is a thirsty business and water used in its extractive processes has to come from nearby surface/groundwater sources, there is a third question which immediately springs to mind. In the face of increasing impacts from climate change can we afford to have the environmental water flow in the Clarence River system compromised further?

Then there is the question of required associated infrastructure, including transport of ore via trucks and rail – need I say more?

One has to wonder when Clarence Valley Council was going to mention this proposed mining activity to residents and ratepayers because it is highly likely that this mining company or someone acting on its behalf has approached either the Mayor or council administration.

UPDATE

NSW Planning & Environment mapping of EL8379

https://minview.geoscience.nsw.gov.au/#/?lat=152.64729140322308&lon=-29.387643207430074&z=11&bm=bm1&l=mt2%3Ay%3A100