Shenhua to explore coal in Australia

GUNNEDAH, Australia, Aug. 15 (UPI) -- The government of Australia's New South Wales state granted the China Shenhua Energy Co. coal exploration rights.

The country's Green party and area farmers are upset over the decision, The Age reported.

Shenhua Energy will be given a five-year exploration license by the government of the New South Wales state to look for coal in the Watermark area near the town of Gunnedah.

The license is for an area of about 190 square kilometers, according to Mineral Resources Minister Ian Macdonald. The license deal is worth about $670 million, he said.

There is concern that if additional coal resources are found, the area would be opened up to more exploration and mining and would negatively impact the environment.