Drayton South is a replacement for Anglo’s existing Drayton mine in the Hunter Valley, which has been in operation since 1983 and will close in 2015-16.

A group of thoroughbred horse-breeders wants to ban coal mining entirely from the Upper Hunter as the state Coalition prepares to take government and give more power to agricultural interests in land disputes.

The breeders have recommended the local council support their 10-point plan, which includes the recognition that their industry is “state significant” while all other mining activity in the shire would be assessed on its merits.

Anglo will work with the relevant government agencies and stakeholder groups to ensure the environmental impact study covers all the key issues relating to the project, the company told ILN.

“The project will also adopt best-practice dust and noise management processes,” a company spokesperson said.

“Drayton South allows for a structured and phased approach to land rehabilitation at the existing Drayton operation resulting in better final land-use outcomes.

“Anglo American is committed to being a good neighbour and it is our intention to speak to our community during the feasibility period, into construction and throughout the life of mine.

“We have been working closely with our neighbours on the project for the past 18 months and we will continue to work with them in the months ahead.”

Anglo has developed a preliminary environmental assessment for Drayton South as part of the application and is the first phase in the environmental assessment process.

This will provide the framework for a detailed Environmental Impact Study, which will be completed in the second half of this year.

Anglo said Drayton South will offer continued employment for more than 500 people who currently work at Drayton mine.

The replacement mine will use the existing Drayton mine infrastructure, including the coal handling preparation plant, rail loop and associated loadout infrastructure, workshops, bath houses and administration offices.

“Drayton South saves jobs, replenishes coal capacity and will not add to cumulative impacts in the Hunter Valley as it simply replaces the existing Drayton operation,” the company said.