“This has gutted our 500 strong workforce and their families. The PAC’s decision will have serious detrimental implications for the Hunter Valley and for NSW,” Anglo American coal business CEO Seamus French said.
“It is devastating for our employees, it is devastating for our suppliers, it is devastating for the local community and it is devastating for the people of NSW who would have benefited from the annual $35 million in state government royalties from the project.”
The non-elected PAC, which has final planning approval power for eligible projects under planning reforms made since the last state election, rejected the Drayton project on Friday even though the NSW’s Department of Planning and Environment had recommended its conditional approval in July.
Among its reasons, the PAC said the project did not provide a sufficient environmental buffer to the nearby Coolmore and Darley horse studs or demonstrate that these businesses would not be adversely impacted.
“The approach of monitoring the response 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,” PAC said.
“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 flowâ€on impacts on the viticultural tourism industries.”
The PAC, lastly, said that the Drayton South project “was not in the public interest” – a contentious claim given the level of community support for it over recent months.
French said the PAC determination also flew in the face of the NSW DPE report which found the project was in the public interest.
“The government’s own experts have been overruled by an eight-week exercise,” he said.
“The current planning process, which deals with perception above scientific fact, is damaging communities and threatening NSW’s investment potential. This process, through which decision making is delegated to a small group of representatives rather than the elected government, is a serious concern.
“Right from the start we were committed to coexistence. In the mine plan approved by the department, Anglo American made billions of dollars’ worth of compromises, and most recently reduced the mining area and total tonnes from 119 million to 97 million. We moved the mine behind the natural ridge to eliminate visual impacts and address concerns raised by the studs during the first PAC.”
He also delved into the important consideration that the coal industry predated the equine industry in the Hunter Valley and in the Drayton project area.
“Only one side has been willing to compromise and the other has made it abundantly clear of their intent to put a stop to mining. When the horse studs came into the Hunter Valley it was completely transparent that this was already a mining area with plans for an extension, and they have since invested millions and grown on the back of infrastructure made possible due to the mining industry.
“We find it difficult to accept it is now an ‘us or them’ situation.
“All the compromise and commitment to coexistence has been ignored in this process. The PAC’s decision will wipe an annual $35 million from state government royalties and will have a dire impact on local communities, with the $70 million we spend a year with local businesses taken away.”
The way the project rejection news emerged was also criticised.
“We are extremely disappointed with the way this whole process has been handled and the way we were notified about the result,” French said.
“The PAC has completely disregarded the livelihoods and wellbeing of 500 hardworking people and their families and throws the future of mining in NSW into serious question.
“How would you like to hear on the radio on your way to work that you don’t have a job?”
“There is no doubt that if Drayton South does not proceed, the void in coal production left will be picked up by other international producers with poorer quality coal and less stringent mining conditions which will have a detrimental impact on the environment and take income, royalties and jobs from Australia.
“Our immediate attention will now be given to our employees, providing them with support and working through what this means for them.”
NSW Minerals Council CEO Stephen Galilee called the Drayton project rejection a devastating blow for the Upper Hunter economy.
“Over 4000 jobs have been lost at NSW mining operations over the last two years, with over 2500 coal jobs lost in the Hunter alone,” he said.
“This decision will add hundreds more people to the growing ranks of Hunter jobless, at a time when unemployment in the region is rising and more jobs are needed, not less.”
The Hunter Thoroughbred Breeders Association said the PAC determination recognised that once damage was done to key international studs it was irreversible.
"This is an important milestone,” HTBA said on Tuesday.
“Without Coolmore and Darley the entire Hunter Thoroughbred Breeding Industry would be at risk. The PAC’s determination has averted that threat.”
Darley managing director Henry Plumptre also believed there were economic merits to the decision.
“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,” he said.
French said Anglo would work through the PAC’s report to better understand the implications and to consider the company’s options going forward.
The Drayton South project aimed to mine 97 million tonnes over a 20-year mine life.
