THE Planning Assessment Commission (PAC) has recommended the application for the Drayton South open cut coal mine should not proceed.
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However, they say part of the project related to the extension of the existing operations is “approvable” to provide some short-term employment opportunities.
This is the third time PAC has rejected the Drayton South Project despite the fact owners Anglo American kept shrinking the size of the mine in each application.
In response, the company will now review the PAC’s report in detail, and carefully consider the closure plan for the mine.
Their employees were briefed on Friday morning and given the weekend off to absorb the imminent closure.
Anglo American claimed the project would provide long-term employment for 500 employees, and produce up to 6.4million tonnes of ROM coal a year for 15 years.
The decision was released on the same day that Rio Tinto’s Mount Thorley Warkworth extension has been given the green light.
In their detailed report, commissioners Lynelle Briggs AO (Chair), Ross Carter and Abigail Goldberg have acknowledged the importance of the mining industry but say “the two land uses are vastly different and are not compatible in close proximity”.
“Consequently the Commission is dealing with a land use conflict between two industries. Both industries are important to the region and the state.
“Both have long associations with the Hunter Valley and should be afforded long-term futures, not withstanding the finite nature of any one coal mining resource,” the report states.
“While mining is a far bigger sector, the mining industry is not heavily reliant on this one mine. The same cannot be said of NSW’s thoroughbred breeding industry, the standing of which is integrally connected to the quality of the stallions it stands, a significant portion of which are in the hands of Coolmore or Darley.”
PAC has also identified a number of problems with the NSW planning framework, from the need to provide certainty and clarity to the all industry’s by having clear buffer zones around sensitive agricultural areas like the Equine Critical Industry Cluster, to advice on dealing with the contentious issue of final voids.
Anglo American Coal CEO Seamus French says the devastating decision means Drayton mine, after more than 30 years of successful operation providing millions in wages, taxes, state royalties and community support, will wind down in 2016.
“This is the worst possible outcome for our workers, for the Hunter Valley community and for NSW,” Mr French says.
“Unemployment in the Hunter Valley is at eight per cent and to reject a project that would have continued to support this region for another 15 years, providing local people and their families with security, is incomprehensible.
“The PAC has ignored the detailed scientific assessments and peer-reviewed reports contained in the Project’s Environmental Impact Statement (EIS), NSW Government policy and the expert advice of 13 government agencies.”
He says their immediate focus is on our people and full support will be given to them at this extremely difficult time.
Upper Hunter MP Michael Johnsen has expressed his dissatisfaction with PAC’s recommendation in relation to the Drayton South Project but has welcomed news of the approval of Mt Thorley Warkworth.
“This is devastating blow for employment in Muswellbrook, as well as a blow to confidence in the region’s mining sector,” he says.
“I have long maintained that coexistence is the key to the region’s future economic and social sustainability.
“I appreciate and understand the thoroughbred industry’s stance on this matter, and I acknowledge their concerns.”
However, Mr Johnsen says it is disappointing that PAC had previously advised Anglo American that their proposed application would be more acceptable than previous applications, and as such they submitted their application on that basis, following PAC’s direct advice.
“PAC noted in the review that there is an absence of meaningful planning tools or provisions currently in place that would provide greater clarity and certainty for all parties on a reasonable exclusion zone or buffer beyond which open cut mining reasonably occur,” he says.