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

South32 says expected financial returns on project do not justify investment as green groups welcome decision

• Follow our Australia news live blog for the latest updates
• Get our free news app, morning email briefing or daily news podcast

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.

Sign up to receive an email with the top stories from Guardian Australia every morning