BHP is narrowing its search for coal on the Liverpool Plains, citing environmental concerns as the main reason.
The mining giant is limiting its exploration to ridge county surrounding the area, north-west of Quirindi in NSW.
The news comes as comfort to nearly 300 farmers who have maintained a blockade against BHP prospectors since 18 July 2008.
They believe drilling will contaminate underground aquifers that make the region’s alluvial soil particularly rich.
BHP Billiton paid the government nearly $100m in 2006 for rights to search for coal, and will decide whether to proceed with large-scale mining by 2011.
The government is currently considering another coal exploration licence on the region. It has received a bid of $600m from China-based Shenhua Energy [www.csec.com], which has been followed by offers from a number of competing companies.
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