Controversial $1bn Dendrobium coalmine expansion plan abandoned by mining company

South 32’s Dendrobium coalmine, near Wollongong will no longer be extended, as the company says the expected financial returns do not justify the $1bn investment. Photograph: Brook Mitchell/Getty Images

The Australian mining company South32 has abandoned plans to expand its Dendrobium metallurgical coalmine in the New South Wales Illawarra region.

In an announcement to the ASX, the mining company said the expected financial returns were not enough to justify the $1bn investment the extension would require.