For years Anglo American fought to develop an open cut mine at its Drayton South tenement near Muswellbrook, now the new owners, Malabar Coal may be seeking to extract the coal resource by underground methods.
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That news may be welcomed by everyone in the mining industry but for the neighbours of Drayton South, two of the worlds leading thoroughbred studs Coolmore and Godolphin (Darley), it could well lead to their decision to exit the Hunter.
The studs supported by the entire thoroughbred industry are calling on the State Government to act decisively and finally protect them from this never ending mine application process that divides the community and helps no one.
The reason for the thoroughbred industry’s renewed concern was the announcement last week that Malabar Coal has acquired Anglo American's controlling interest in the Drayton mine assets which includes the Drayton South project area.
Malabar Coal is developing the Spur Hill underground coking coal mine which adjoins Drayton South. Drayton's infrastructure is expected to complement Malabar Coal's Spur Hill underground project.
Malabar Coal chairman Wayne Seabrook said that by using Drayton’s existing infrastructure the company can realise efficiencies and environmental benefits for Malabar’s Spur Hill operation, there may also be an opportunity in future to develop an underground mine within EL 5460 (Drayton South).
Malabar stated last week they were committed to investigating solely an underground mine for Drayton South and to reinforce that commitment they would accept conditions imposed on EL5460 that prevents any open-cut development.
“We are also willing to relinquish that portion of the EL that is south of the Golden Highway.”
So the push is well and truly on for an underground mine with a spokesperson for the NSW Department of Planning saying the Hunter Valley is the biggest coal field in the state, so ensuring the continuation of responsible mining is vital for the NSW economy.
“At the same time, the equine industry has a long and important history in the Hunter Valley, and across NSW, “ they said.
“It’s important to find a way that both industries can co-exist and offer benefits to the people of NSW.
“As part of any potential transfer of exploration licence 5460, Malabar Coal has indicated that they are willing to relinquish land on the exploration licence.
“Underground mines generate significantly less noise impacts than open cut operations. Additionally, as blasting is not involved in underground operations, dust impacts are also significantly reduced.”
At this stage, the Department of Planning and Environment has not received any proposed transfer of exploration licence 5460.
Any project proposed for exploration licence 5460 would have to go back through the planning system.
Commenting on the future of the Drayton South tenement local member for Upper Hunter Michael Johnsen appeared to agree with the Department of Planning’s view that underground extraction methods posed far less problems for the horse studs than the development of an open cut mine.
“The main arguments presented by the equine industry in their submissions against Drayton South have been their concerns with blasting, dust, noise and visual impacts,” he said.
“Theses issues are significantly reduced or removed with underground mining.”
Mr Johnsen strongly believes the two industries can live and work together and rejects the need for arbitrary buffers zones .
Agricultural industries reliant on the Hunter River and underground water supplies may hold a completely different opinion arguing underground mining poses a huge threat to those water supplies.
The next fight will no doubt revolve around water supplies as the mining licences are located adjacent to the Hunter River.
Locally the mines with the highest outbreaks of spontaneous combustion according to a thesis undertaken by Kiera Shiels (‘Fugitive Emissions from Open Cut Mines in NSW”, University of Sydney, 2011, ) in consultation with staff from the NSW Office of Environment and Heritage are Anglo American ‘s Drayton and it neighbour BHP Billiton’s Mt Arthur.
This is put down to the fact they mined Greta Coal Measures.
It will be interesting to see once all the drilling is undertaken by Malabar Coal if gas poses additional problems in developing an underground operation at Drayton South.