BHP Billiton today released an interim report to stakeholders and identified areas within the Caroona exploration licence area (ELA) for further targeted exploration.

The exploration area contains extensive underground water systems and coal deposits.

The targeted exploration area was about 126 square kilometres out of the initial 350 square-kilometre exploration area.

Caroona Coal Project general manager Stephen David said the area identified for further exploration was generally located under the ridge country of Doona Point, Nicholas Ridge and George’s Island.

“We’re not considering mining under the aquifer and we’re not considering open cut mining,” Mr David told The Leader yesterday.

The areas excluded from further exploration were generally the floodplain and areas where the deep alluvial aquifers were located, the company said.

“While there are significant coal deposits under the floodplain, due to the sensitivity of the floodplain and associated agriculture to subsidence, these coal deposits cannot be efficiently extracted with

current longwall technology,” Mr David said in the report.

“Exploration drilling to date, and other survey work, suggests the surface topography and land use on the ridge country have potential to co-exist with some level of subsidence associated with longwall mining.

“As part of BHP Billiton’s commitment to not bring

forward a mining proposal that would negatively impact the deep alluvial irrigation aquifer or significantly impact agriculture on the floodplain, BHP Billiton will not pursue a longwall mining proposal in these areas.”

Targeted exploration areas “represent a significant coal resource that has the potential to be efficiently extracted by underground longwall mining,” he said.

BHP Billiton was not considering open cut mining in the Caroona area.

The Mooki River and Quirindi Creek are outside the area targeted for further exploration.

The company said the targeted exploration phase would enable BHP Billiton to understand the geology and hydrogeology of the targeted area.

Caroona area landholders have maintained a blockade on one of the properties in the licence area for the past few weeks.

Their concerns have revolved around the potential impact of any mining activities on underground water sources which make the Liverpool Plains among the most productive farming land in the country.

“I hope this puts to rest many of the concerns of the landowners,” Mr David said.

BHP would consult with landholders, local government and state agencies before further exploration, the report said.