Anglo American is considering options for its Drayton and Drayton South coal mining assets in the Hunter Valley.
Subscribe now for unlimited access.
$0/
(min cost $0)
or signup to continue reading
This comes after the Planning and Assessment Commission (PAC) rejected, for a fourth time, their plans for the development of the Drayton South Coal Project located between Muswellbrook and Singleton.
PAC released their determination review last week – their second determination review to reject plans for the open cut mine capable of producing 79 million tonnes of coal over a 15-year period.
Anglo’s neighbouring mine Drayton closed in 2016 having been in operation for 30 years.
The company hoped to continue mining using Drayton’s infrastructure and employees at the new Drayton South mine.
As to the future of the two sites Drayton is currently undergoing rehabilitation and the area covered by the Drayton South Project remains in limbo.
Hunter Thoroughbred Breeders Association wants the site prevented from ever being used for a coal mine and is calling on the state government to enact exclusion and buffer zones to protect the industry from future mine development.
PAC cited for its rejection of the new mine its adverse impacts on the adjoining thoroughbred studs Coolmore and Godolphin- who are the mainstay of the Upper Hunter Critical Industry Cluster (equine).
In response to the rejection CEO of Anglo American’s Coal business, Mr Seamus French, commented that this latest PAC decision represents a severe blow to the coal industry in the Hunter Valley.
“The PAC’s rejection of a project which was significantly modified in order to conform to the first PAC recommendations is nothing less than devastating for the local community and our long serving local suppliers who have looked to this project for ongoing employment opportunities and $70 million worth of business every year,” he said.
“The direct loss to the Hunter Valley region is significant and well in excess of that generated by the neighbouring horse studs.
“There is no scientific or economic logic as to why coexistence between the industries could not have continued as has been the case for many years since the neighbouring studs moved into the valley and invested in properties adjoining the Drayton mine and its then well-defined extension mining leases,” Mr French said.
He added that in our second application for the Drayton South project, we followed all the requirements of the NSW government assessment process, consulted extensively and made multiple compromises through revised mine designs in order to reduce, manage and eliminate where possible any potential impact on the neighbouring horse studs”
“Significantly, the revised project plan sacrificed 53 million tonnes of coal resources, worth more than $5 billion in revenue, to move the mine behind ridgelines to negate the visual impacts on our neighbours. ” said Mr French.
“Our revised project submission not only obtained NSW’s government experts support but it also obtained an overwhelming number of positive submissions to the PAC”. “At the heart of the matter is the level of uncertainty faced by the natural resource industry in New South Wales.
“The final decision of the planning process lies with an organization that, in the case of our project, appeared to disregard science based evidence as well as the opinion of NSW government regulators, instead opting to provide a ruling without providing clear, fact-based reasoning. The New South Wales planning process is broken and needs urgent rectification.
“This decision is a disappointment for the people of New South Wales as the Government has set aside all the direct and indirect jobs that the project would have supported, as well as $30 million in annual State Government Royalties.”
Mr French said Anglo American would now consider its future options for the Drayton and Drayton South assets.