South32 Announce Illawarra Metallurgical Coal Impairment
South32 Limited has undertaken a review as of 30 June 2021 of the carrying values of its assets in accordance with the Group’s accounting policies and the accounting standards As a result we will recognise a pre-tax impairment charge for lllawarra Metallurgical Coal of USD 728 million with our FY21 financial results This charge reflects the increased approval uncertainty created by the NSW independent Planning Commission’s decision to refuse our application for the Dendrobium Next Domain life extension project (DND project) and the resultant potential impact on the economics of the broader IMC complex
South32 said “We have scaled back activity on the DND project while we consider alternative options following the IPC decision. This includes the commencement of proceedings in the Land and Environment Court of New South Wales for a judicial review of the decision and the potential submission of an alternate mine plan to the NSW Minister for Planning and Public Spaces for determination of the project as State Significant Infrastructure. We expect to provide a further update before the end of the calendar year.”
South32 Ltd. said it will record a pretax impairment of USD 728 million against its Illawarra Metallurgical Coal business in Australia after planning officials rejected a plan to extend the life of its Dendrobium mine.