A report warning of the risks Powys County Council faces if a major economic development near Ystradgynlais fails is set to go before councillors next week.

On Thursday, May 8, the Governance and Audit Committee will consider the report, which outlines potential risks arising from the proposed Global Centre of Railway Excellence (GCRE) at the former Nant Helen coal drift mine.

The £150 million GCRE project, if successful, could create hundreds of jobs and inject up to £300 million into the local economy.

Head of economy and climate Daniel Burgess said: “The site has an outstanding planning requirement with the council for the restoration of the open cast mine to a natural state, which is not yet satisfied.

“The site is partially restored and understood to be at a satisfactory level of safety at present, although restoration is incomplete.”

The report states that £500,000 is needed for immediate restoration work, with a further £4 million required to complete the work.

GCRE has scheduled works worth just over £500,000 between May and the end of August, though full restoration is expected to be integrated with the development of the rail track scheme.

As part of its planning obligations during mining operations, former site owner Celtic Energy was required to pay into a restoration bond.

An initial £19.5 million was paid into the bond, and the report notes that a further £1.46 million was received from Celtic Energy in April 2024.

The council has repaid £16.677 million to fund the work and with interest on the account, the remaining balance at the end of March was £5.415 million.

Mr Burgess said: “The bond funding from Celtic Energy and the partially restored state of the site mean that the final restoration costs are unlikely to be prohibitive - officials are in the process of clarifying these costs.

“The most significant risk relating to the success of the GCRE is the ability of the project to attract sufficient investment.

“Initial capital costs for the establishment of the test tracks are substantial and the project includes a diverse range of future revenue streams, but this depends on the initial capital investment.”

He believes that this risk is “compounded” by the need to construct full test tracks before the site can become operational and begin making money.

Mr Burgess stressed: “This is a direct risk to GCRE Ltd, and not the council.”

The report says that the economic risk for the site is that the demand for its use may not be there.

Mr Burgess said: “Although it should be noted there have been substantial expressions of interest.”

Mr Burgess concluded: “The site does carry reputational risk, but provided the council meets its obligations under planning and relevant economic development support, any risk is diffuse across public actors and not significant.”

In March, GCRE asked county planners whether detailed proposals are needed to amend the approved restoration scheme, citing a funding shortfall. Planners have yet to make a decision on this request.