IT’S now round three, in what could be described as one almighty, neighbourhood dispute between Anglo American versus the Hunter Thoroughbred Breeders Association (HTBA).
Subscribe now for unlimited access.
$0/
(min cost $0)
or signup to continue reading
The mining giant has tried repeatedly to gain approval for its Drayton South Project, arguing the mine will save the jobs of 500 employees currently working at their adjacent but soon to close Drayton mine.
But each time the company has put forward a mine plan the state’s independent Planning and Assessment Commission (PAC) have rejected it.
The basis for the rejections in 2013 and again 2014 concern the adverse impacts the mine would have on the neighbouring international thoroughbred studs Coolmore and Woodlands (Darley).
Now, the company has released a third plan this time taking out the Redbank pit, thereby reducing the coal extracted to only 75 million tonnes over a period of 15 years.
The original Drayton South Project was to extract 182mt over a period of 26 years.
In their submission on Anglo’s Drayton South Environmental Impact Statement, the HTBA argues the mine is not in the public interest.
Their reasoning is based on the following factors the mine remains too close to the studs (less than one kilometre), threatens the viability of Coolmore and Darley and the national industry they underpin and puts at risk a viable and sustainable tourism and viticulture industry.
In addition to these issues, the project will clear 151 hectares of critically endangered Grey Box Woodland.
This ecological community was formally listed as critically endangered under the Commonwealth Environment Protection and Biodiversity Conservation Act 1999 (EPBC Act) on April 30, 2015.
The association also raises serious doubts about the claimed economic benefits of the mine.
As in their past submissions, the HTBA remains vehemently opposed to this mine with president Cameron Collins writing that Anglo American has never consulted with the association on the proposed mine in direct contravention of the SEAR’s (Secretary’s Environmental Assessment Requirements) requirements.
“Anglo American’s absence of commitment to genuine consultation in preparation of this EIS reflects a disregard of the need to seek and address the genuine concerns of community groups and affected landholders in the preparation of this EIS,” he said.
“This does not bode well for the proponent’s long term relationships with land owners in the Upper Hunter community.
“Nor does it engender the underlying good will required to support any social licence to operate.”
From the HTBA viewpoint, Anglo American refuses to acknowledge their industry’s business model.
Put simply that means an open cut mining operation in such close proximity to these studs is clearly incompatible with international scale thoroughbred breeding.
HTBA is concerned Anglo have stated in their past proposals that to be viable the project must include the Redbank pit.
“This is a serious and material matter that calls into question the credibility and veracity of the proponent’s claims either with respect to their previous statements or the claims that are made in this application,” Dr Collins said.
“It also calls into question the motivation behind this application and raises the serious possibility of leaving a stranded asset and a rehabilitation liability legacy at both the Drayton mine and the proposed Drayton South mine for future generations and the taxpayers of NSW.”
The association also wants answered why there are discrepancies in “charges” for the decommissioning/rehabilitation of the Drayton mine.
“Gillespie Economics employed by Anglo states ‘Under the base case ... decommissioning and rehabilitation costs of approximately $66 million will be incurred at the end of 2015,” Dr Collins said.
“With the project, these costs will occur in 2013.”
But in the Anglo American Annual report 2014 is says: A charge of $US222 million ($US155 million after tax) has been recognised following the decision by the NSW Planning Assessment Committee (PAC) not to approve the Group’s application to proceed with the Drayton South project (Coal).
However, in view of the uncertainty caused by the PAC decision, assets associated with the project and the existing operation have been written down to their residual values, and a provision has been made for the cost of meeting contractual and other obligations beyond the life of the existing Drayton mine.
Anglo American’s Drayton South Project Director Rick Fairhurst expressed disappointment at comments made by the Hunter Thoroughbred Breeders Association’s (HTBA).
“Both the Coolmore and Darley studs have been consulted extensively over a number of years and we have made an open offer to meet and discuss the current Environmental Impact Statement (EIS) with them which so far has not been taken up,” Mr Fairhurst said.
“Anglo American has made significant changes to accommodate the horse studs, ultimately at great expense to the NSW taxpayer in the form of lost coal royalties that go toward the delivery of vital government services and infrastructure.
“This includes restricting all mining activities behind the second ridgeline nominated by the PAC, which decreases the project footprint by a further 25 per cent, doubling the buffer between the mine and neighbouring horse stud operations.
“There is ample evidence in the Hunter Valley that mining and horse breeding can continue to prosper alongside each other as they have done so for many decades.
“Anglo American is firmly resolved to doing just that, and looks forward to Drayton South being assessed on its scientific and economic merits.”