Metropolitan Collieries has pleaded guilty in the NSW Land and Environment Court to three charges relating to operations at its Helensburgh mine in 2022.
Two of the charges brought by the NSW Environment Protection Authority relate to water pollution offences and one charge relates to a failure to adequately maintain plant and equipment.
Penalties will be determined at a sentencing hearing later this year.
A spokeswoman for NSW Environment Protection Authority (EPA) confirmed the company pleaded guilty to three charges on March 15, but was unable to comment further while the matter was before the court.
The EPA announced in September 2023 it was prosecuting Metropolitan Collieries, part of the giant Peabody Energy group, following two significant pollution incidents at Camp Gully Creek, which flows into the Hacking River in the Royal National Park.
The statement said each of five alleged offences under the Protection of the Environment Operations Act 1997 carried a maximum penalty for a corporation of $1 million.
"The EPA alleges Metropolitan Collieries failed to maintain surface water facilities at the mine site near Helensburgh, which meant they were unable to cope with additional rainfall resulting in two discharges of coal contaminated water in September and October 2022," the statement said.
"During the second incident in October, it is alleged that Metropolitan Collieries breached the requirements of an EPA Prevention Notice when it failed to implement preventative actions around water management practices and monitoring, and more stringent water quality standards."
A Peabody spokesperson said last week, "Protecting the environment and maintaining the support of the community are top priorities for our steel making coal operation and our 400-strong local workforce".
"Our team at Metropolitan Coal has worked tirelessly in cooperation with the EPA to implement a comprehensive program of structural improvements to surface water management facilities and upgrades to water monitoring equipment and procedures to help improve the management of record-breaking rain events like those experienced in the past few years. That program of work continues."
Sutherland Shire Environment Centre spokeswoman Catherine Reynolds said it was unable to find out why two of the original five charges did not proceed.
"The Royal is Australia's oldest national park, recognised for its natural beauty and outstanding environmental values," she said.
"It's arguably one of the most iconic national parks in Australia. To have it subject to this sort of pollution is unacceptable.
"It's highly unlikely that the river can ever be restored to its natural pristine state.
"Our stream watch group went up to Camp Gully Creek and the Hacking River again [this month] and these waterways are still full of coal waste sediment.
"Even if the water looks clear, you only have to put your hand in the sand, swirl it around and the water turns black. The coal in the river is visible for kilometres."
In 2023, Metropolitan Coal was fined a total of $30,000 for separate water pollution offences, and new conditions were placed on its operations.
The EPA said at that time the two fines related to the cleaning of drains in November 2022, when turbid water was allegedly released into Camp Gully Creek.
The EPA said Metropolitan Coal had also been ordered to overhaul its operations following a review of the mine's licence. A "suite of strict operating conditions" had been imposed.
The EPA said the licence review was "brought forward in response to multiple alleged non-compliances resulting in significant pollution events at Camp Gully Creek".
"The tougher licence conditions will require rigorous monitoring, real-time water quality testing and a water impact discharge assessment," the statement said.
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