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KCCG Says Moreton Statement Misleading

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John Dalton on a part of the proposed mine site which Moreton Resources believes is abundant in pests and weeds (Photo: KCCG)

May 22, 2017

The Kingaroy Concerned Citizens Group says a recent statement submitted to the ASX by Moreton Resources about its Kingaroy coal mine contains “errors and generalisations” that could mislead investors.

The ASX statement, which was issued by Moreton Resources last Monday, says a selection of land the company has studied contains pest species, is abundant in weeds and highly eroded.

It also says its sample is “reflective of the quality of land and the potential impact such a project is expected to have”.

However, local residents and farmers who have farmed the land for decades believe the assessment is flawed and misleading and, if unchallenged, could undermine the community’s opposition to the mine being built just a few kilometres from the edge of town.

The KCCG says the roadside area sampled by the company is not high in weeds, pests and erosion, nor is it reflective of the area to be mined.

At a recent meeting, the KCCG identified several statements which they think contain errors of judgment and “unsubstantiated generalisations” that are potentially misleading.

The KCCG believes that:

  • The roadside sample area is not high in weeds, pests or erosion – most of it is eucalypt woodland containing a koala habit along Kingaroy-Cooyar Road
  • The sample area is not reflective of the area to be mined, which is 95 per cent open and productive farmland
  • The impact of the mine cannot be established by use of a small roadside study
  • It is premature to make statements about the impact of the mine until an Environmental Impact Study (EIS) is completed, has been reviewed by the State Government, and checked for validity by the Kingaroy community
  • The Moreton statement notes a buffer zone of 2.5km on either side of the proposed transport corridor (rail or pipeline), but marks a corridor of only 500m either side of the route on the accompanying map
  • The map accompanying the statement includes a rail line to Goodger, which has not existed for 56 years
  • The company’s recent study of “wet season ecology and water quality” does not represent a typical summer wet season because it was completed during an usually dry summer in which creeks and contours did not flow

KCCG spokesperson John Dalton said while the group cannot speculate on the reasons for the errors, they believe the statement could mislead investors by suggesting the mine would replace an area degraded by weeds, pests and erosion.

Mr Dalton said the statement also added to local fears Moreton Resources did not respect the area’s social, economic, environmental and cultural values when it painted such an adverse picture of the land to be mined.

“The proposed mine would be located on some of the most carefully farmed and productive farmland imaginable,” Mr Dalton said.

“It is of such beauty that it will soon be the subject of a major art and photography project aimed at capturing its character in the event the mine is approved.”

He added the group was confident the State Government, the Co-ordinator General, and the Kingaroy community was up to the task of evaluating the quality of information from the company.

The KCCG has referred its concerns to the ASX and to the Australian Security and Investments Commission.

[UPDATED with correction]

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