PAC has rejected the proposed Drayton South project arguing it will have too greater impact on the region’s leading thoroughbred studs Coolmore and Darley.

The Commission says the mine is not in the public interest.

This is the second time a PAC has rejected the project with an earlier Commission saying in December last year the project in its current form would also have too great an impact.

Owners of the mine Anglo American developed a retracted mine plan following the PAC rejection in 2013.

The Department of Planning supported the retracted plan proposal saying its economic benefits outweighed the negative impacts of the development.

In its report on the project the Department said the two industries open cut mining and horse breeding could co-exist.

But the PAC report on the retracted mine plan totally reject’s the Departments view of the project.

The summary of the findings are:

1) The project does not provide sufficient buffer to protect Coolmore and Darley from the impacts of mining as recommended in the PAC Review Report and the Gateway Panel Report.

2) The project has not demonstrated that it will not adversely impact on equine health and the operations of the Coolmore and Darley horse studs.

3) The approach of monitoring the responses of thoroughbred horses to the mine’s operation to address uncertainty is not acceptable because once the damage to the operations of the studs occurs, it is irreversible.

4) The economic benefits of the project do not outweigh the risk of losing Coolmore and Darley and the potential demise of the equine industry in the area with flow‐on impacts on the viticultural and tourism industries.

5) The project is not in the public interest.

Commenting the decision president of the Hunter Thoroughbred Breeders Association Dr Collins said "Today’s PAC determination reinforces the state, national and international importance of the Hunter Valley’s Thoroughbred Breeding Industry and the integral importance of our industry’s two central players, Coolmore and Darley. It also recognised that once damage is done to our key international studs it is irreversible."

"This is an important milestone. Without Coolmore and Darley the entire Hunter Thoroughbred Breeding Industry would be at risk.  The PAC’s determination has averted that threat.

"Today’s decision reinforces the recommendations of two previous PACs and the Government’s Independent Gateway Panel that a mine in such close proximity to two international scale studs is an incompatible land use and not in the public interest.

“We are very relieved for our employees, their families, our clients and our community. It has shown that the process works, and for that we are very grateful” Mr Tom Magnier, Principal Coolmore Australia said

“The PAC’s determination is welcomed. It provides our employees with peace of mind and our industry with confidence to invest in the future.   At a time when the thermal coal industry is in structural decline, it is important that we protect and preserve strategic and sustainable industries that will provide long term jobs and the prospects of continued long term regional growth for generations to come,”  Mr Henry Plumptre, Darley Managing Directorsaid.

In contrast the Construction Forestry Mining and Energy Union (CFMEU) who represent the workers at the Drayton mine described the PAC decision as a blow to Hunter jobs.

CFMEU Mining and Energy Northern District President Peter Jordan said Drayton workers would be devastated at hearing the news via the media this morning. 

“It is an appalling way for this news to be delivered,” said Mr Jordan. 

“Over 500 Drayton mineworkers rely on Drayton coal for their livelihood. The extension would have given them secure employment into the future.

“This is a blow to them and their families - they deserve better than reading about it in the newspaper.” 

The Drayton South mine extension would have delivered $1 billion in workers’ wages to the Hunter region over its lifetime, said Mr Jordan.

Instead, many workers will now have to uproot their families and look for work elsewhere.

“Mining and horse breeding have co-existed in the Hunter for over 130 years and we believe that co-existence could have continued with the proposed extension,” said Mr Jordan.

“The reality is that mining sustains communities like Muswellbrook and Singleton – employing one local out of every four, compared with the one job in 50 created by the horse breeding industry.

“Mining is the industry that creates the most wealth for the Hunter – as a community we need to think about job opportunities for locals now and into the future.”