EPA REPORT ON CENTRAL WEST COAL
Aviva Corporation Limited (ASX:AVA, BSE:AVIVA) (“Aviva”) confirms that the Environmental Protection Authority (EPA) has released its Report and Recommendations (EPA Report) on the Central West Coal Project (CWC). The EPA has found that the proposed Central West Coal Project is environmentally unacceptable.
The EPA Report referred to supporting advice provided to the EPA by government agencies, that Aviva had not previously been shown.
After considering the EPA Report and now having reviewed the supporting advice, Aviva has confirmed that it intends to lodge an appeal to the Appeals Convenor.
Aviva is aware of other parties with economic and social interests in the Mid-West of Western Australia that are intending to, or are likely to, also lodge appeals. CWC is considered a critical energy fuel asset for the Mid-West region.
Since November 2009, Aviva has no longer held an option over the Coal Rights for CWC and has written down its investment in the project. However, after consultation at that time with Sword Nominees Pty Ltd (Sword), the holder of the Coal Rights, Aviva as the proponent of the environmental approval has continued to pursue EPA approval for the CWC project.
It should be noted that Aviva received approval from the EPA on 10 March 2010, for the gas and coal fired Coolimba Power Project, followed by Ministerial Approval on 17 September 2010. Aviva has entered into an Exclusivity Period with Sigiriya Capital (Sigiriya) under which Sigiriya can acquire Aviva’s interest in this approved Coolimba Power Project. Sigiriya was aware that the EPA decision for CWC was outstanding and at this time has not withdrawn its interest in the Coolimba Power Project.
It is Aviva’s understanding that Sigiriya Capital has held discussions with Sword with respect to the CWC rights but Aviva is not a party to those discussions.