Anglo American’s Drayton expansion plans are dead in the water. Or are they?
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On Tuesday, the NSW Planning Assessment Commission rejected the company’s Drayton South open-cut coal project, saying it posed a threat to the Coolmore and Darley Horse Studs and was not in the public interest.
But buried in the PAC’s detailed report is a more complex story that raises concern about rehabilitation at the existing Drayton site and the possibility that a much smaller mine expansion could be contemplated.
The Final Report notes a visit by the Commissioners to Anglo American’s Drayton operation.
“It was apparent to the Commission that limited rehabilitation had been carried out on the existing Drayton mine site … it is a significant concern to the Commission at the lack of progress with rehabilitation of the existing mine when mine operation is expected to cease in December 2017," the Final Report stated.
The Final Report noted it was inappropriate to take the alleged lack of rehabilitation at the existing Drayton mine into consideration in determining Drayton South.
This notwithstanding, Anglo American’s rehabilitation efforts were put under the microscope in the Final Report.
"The Commission is not confident that the Rehabilitation Strategy will be implemented and the disturbed areas will be progressively rehabilitated regardless of whether the proposed mine goes ahead or is put in caretaker mode.”
Anglo American wants to extract a further 97 million tonnes from the Drayton South expansion after its existing Drayton mine runs out of coal in 2017.
It argued the 20 year-long operation would sustain employment for 500 workers, providing $70 million of economic support to 140 businesses in the LGAs of Muswellbrook and Singleton.
Surprisingly, the PAC hasn’t closed the door completely on a smaller mine.
“There is no reason why further exploration work on the site could not proceed without the Drayton South mine," the Report added provided more information was obtained from Anglo American “including revised modellings for the Department’s assessment of potential impacts before a decision can be made.”
“The coal resource will remain in-situ if the project is not approved [and] extraction of the resource could be carried out in the future with development of new technology that would not negatively impact the studs,” the Report said.
On Wednesday, Anglo American’s Head of Open-Cut Operations, Mark Heaton, and Drayton South’s Project Director, Rick Fairhurst, met employees to talk about the PAC decision.
Anglo American said no announcements were made and a request by The Chronicle to attend Wednesday's talk was declined.
“I am personally disappointed in this result that completely ignores all of the scientific research.”
- Mark Heaton, Anglo American’s Head of Open-Cut Operations
However, in a statement, Mr Heaton said his Drayton mine workforce is “justifiably devastated” by the PAC’s report on Drayton South.
“I am personally disappointed in this result, which completely ignores all of the scientific research we have completed that has demonstrated we could continue to co-exist with other industries while securing a positive future for our 500 people and the local community.
“We are working closely with our employees and providing them with all the support they need as they come to terms with this unexpected outcome,” Mark Heaton said.
On Thursday, a Facebook posting using a return email address attached to the NSW Minerals Council, encouraged volunteers who work at Drayton to front a media briefing wearing their hi-vis clothing to “help us get the story out there.”
There is no disputing that “story” is complex, but it is being felt most painfully in the local government areas of Muswellbrook and Singleton.
Thirty-six per cent of employees at the mine live in Muswellbrook; 24 per cent in Singleton; 13 per cent travel from other parts of the Upper Hunter; and the remainder are from the Lower Hunter.
The Mayor of Muswellbrook Shire Council, Martin Rush, said he is troubled by the situation, believing the state government must look long and hard at a planning regime that is in deep trouble.
“Although this is a one-in-a-generation fight, more needs to be done to bring forward decision-making in the planning process so both the coal industry and other industries can have greater investment certainty and so the community can be brought along with the decisions being made.
“There should be a logical and orderly staging plan for the release of coal in NSW which ensures that the most productive mining projects with the least land use conflict are identified for development first.
“This will not only ensure greater capital certainty and quicker approval time frames, but also ensure that our coal industry is the most productive in a very competitive and challenging global market.
“I never want this community to have to go through another Drayton South again,” Cr Martin Rush concluded.