THE village of Bulga and its future took centre stage at this week’s Planning and Assessment Commission (PAC) meeting held over two days at the Diggers Alroy complex.
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This was an interesting fact because the meeting was about Rio Tinto’s expansion plans for their Mount Thorley and Warkworth mines - known as MTW; the complex is the third largest coal mine in the state.
But the recurring question posed to PAC during the meeting was how, if the expansion plans were approved, will the village of Bulga survive?
And, this village is certainly not going quietly, as sadly some of our other villages like Ravensworth, Warkworth and even Camberwell have gone in the past.
Bulga residents and their supporters have waged a tremendous battle to save their community from becoming another Hunter Valley “ghost town”.
Although many of them were disappointed to be back at PAC pleading their case yet again, they still did so with gusto and a steely determination.
This time, unlike their previous appearances, speakers were armed with facts that show the world is starting to view the coal industry as being in structural decline.
This did not deter those in support of the expansion plans from voicing their opinion that the survival of the MTW complex equates to the economic survival of Singleton.
In his opening address to PAC, the mine’s general manager Mark Rodgers said “I speak on behalf of Coal & Allied and the1300 people employed at the Mount Thorley Warkworth mine and put to you why our proposal should be approved”.
For more than 30 years this mine has been part of the Singleton community providing jobs, supporting local industry, and playing a valuable role in the Singleton Local Government Area as well as being an important and valuable asset for the State, Mr Rodgers told the commissioners.
“An independent economic assessment has found that the mine’s continued operation will provide significant benefits including $1.5 billion that will flow into the NSW’s economy through salaries, wages, taxes and royalties over the next 20 years,” he said.
Mr Rodgers was supported at PAC by MTW employees, contractors and associated businesses who fear for the future of the region should the expansion plans fail to gain approval.
Earlier, but very similar plans, were rejected in the NSW Land and Environment Court (2013); a judgement upheld in the Court of Appeal (2014). This has been a five-year process, something everyone at PAC found difficult.
Since the first plans were submitted in 2010, coal prices have spiralled downwards and are now sitting at about a third of their boom time value.
This fact was repeated again and again by those opposed to the expansion plans with Land Water Future spokesperson Holly Creenaune saying the coal from MTW is destined for two markets Japan and Korea who both are actively transitioning away from coal.
“The market for coal in Japan is in structural decline. Their energy market has dropped by 12 per cent during the past four years and the country is embarking on a $US30billion year renewable energy boom,” she said.
“On this basis the ‘significance of the resource’ MTW coal does not really exist and the local economy should be immediately looking to diversify and move away from its dependence on coal.”
She also told PAC it was incumbent on them to consider the impact of the mines on Australia’s climate policy because they would make a substantial contribution to our greenhouse gas emissions.
Countering the economic argument against approving the mine, Mr Rodgers said coal prices used in their independent economics assessment of the Warkworth Continuation reflect long-term forecasts from a range of leading analysts and brokers.
“The economic assessment of the proposal was prepared by pre-eminent economist Brian Fisher, who was previously the Executive Director of the Australian Bureau of Agricultural and Resource Economics (ABARE),” he said.
“He found the mine’s continued operation will provide significant benefits for NSW including $1.5billion (in present day terms) that will flow into the state’s economy through salaries and wages, taxes and royalties over the next 20 years.”
One of the other main issues to be raised at PAC was the final void estimated to be 300m in depth and cover 950 hectares.
Many speakers said this outcome was totally unacceptable and the void should be backfilled once mining operations ceased.
Bulga resident and long-time opponent to MTW operations Ian Hedley said the void would have a big impact on surrounding groundwater.
“The void’s depth means it’s below the level of the Wollombi Brook and below our natural springs and wells – let’s be honest, water can’t run uphill, so what impact will the void have on our water supplies and what cost to the community of turning the Hunter River saline,” he said.
Mr Rodgers answered: “Our proposals reduce the number and size of the final voids compared to our current consents.”
“Under our existing development consents there will be two final voids, however if the planning applications currently before you are approved there will only be a single final void which will be more than 40ha smaller.
“This reduction will be achieved by using material from ongoing mining in the Warkworth part of our operation to fill in the existing void at Mount Thorley.
“The final void will be largely hidden from view due to the surrounding landscape and extensive rehabilitation works planned after mining.”