THE NSW Government's "Strategic Statement on Coal Exploration and Mining in NSW" has been labelled a small step in the right direction.
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While the NSW Minerals Council identified the report as a "generally reasonable and balanced approach" to the future of the industry, the Lock the Gate Alliance said it was a missed opportunity to decisively address land use conflict and diversification.
The strategy's accompanying map (below) also recognised broad areas where there will be "no proactive releases for coal exploration" but where mining companies will still be allowed to expand their existing exploration activities, including on strategic farmland.
The statement foreshadows new measures to strengthen mine rehabilitation requirements, improve protections for air quality and water resources, and to work with coal mining regions to diversify their economies.
NSW Deputy Premier John Barilaro outlined the government's forthcoming plans during a visit to Yancoal Mine, Mount Thorley, on Wednesday, stating it would act on four key areas.
They included: improving certainty about where coal mining should not occur; supporting responsible coal production in areas deemed suitable for mining; addressing community concerns about the impacts of coal mining; and supporting diversification of coal-reliant regional economies to assist with the phase-out of thermal coal mining.
"We recognise that even as global economies transition to new energy sources, demand for coal in our part of the world will remain strong," he said.
"And, NSW is well-placed to take advantage of this.
"In the wake of the worst drought on record, devastating bushfires and the ongoing coronavirus (COVID-19) crisis, the job security, economic growth and prosperity provided by the coal industry to our state, especially regional communities, has never been more important.
"At the same time, we are working to reduce emissions in the mining sector, support responsible coal production, address community concerns and deliver $50 million worth of new infrastructure projects and community programs to mining-affected towns under the Resources for Regions program.
"We are determined to set a clear and consistent policy framework that supports investment certainty in NSW as the coal sector responds to global demand.
"But, I understand, there will be people and groups who aren't happy with it either."
Although the "strategic statement" produced no surprises, Upper Hunter MP Michael Johnsen said it was about striking the right balance.
"We need to give the coal industry and regional communities the time they require to adapt and diversify their economies as the world transitions to a lower carbon future," he explained.
"NSW coal is high-quality due to its high temperature burn, low ash, low moisture and low sulphur content.
"About 85 per cent of thermal coal mined in NSW is exported, mainly to Japan, China, South Korea and Taiwan, where it is used to generate electricity."
NSW Minerals Council CEO Stephen Galilee admitted the release of the report was a welcome "whole of government" attempt to deliver certainty and consistency for the coal industry, mining communities and families in the state.
"It provides a high-level policy framework for supporting current operations, a process for potential for new development, and an understanding that changes in global coal markets are happening in different ways in different parts of the world, with different impacts on the coal producing regions of NSW," he explained.
"The strategy also includes forecasts that current levels of global coal demand will remain relatively flat for the next three decades to 2050, with falls in some markets at least partially offset by increases in others.
"This is consistent with most conventional views on the global coal demand trajectory, although as the report acknowledges, there are a range of possible scenarios, and the impact of COVID-19 on medium term energy demand trends is also yet to be seen.
"The strategy highlights the need to support mining communities impacted by planned closures of domestic coal-fired power plant plants gradually through to 2042.
"However, the NSW Government is yet to provide a convincing energy policy roadmap that guarantees adequate replacement energy capacity for NSW when these power plants close.
"The strategy clearly differentiates domestic thermal coal production from production for export markets, and notes different changes and potential opportunities for regions that produce thermal coal for export into key markets where demand is likely to be strong for several decades or more.
"This is consistent with the NSW Minerals Council's ongoing support for policies that foster economic diversification in mining regions, given that changes in commodity markets affect different producer regions in different ways and over differing timeframes."
But, Lock the Gate Alliance spokesperson Georgina Woods said the report lacked substance because it failed to provide specific policies or a timeline for these measures, even while new and expanding coal mining projects were under consideration by the government.
"Reform of land use planning and mining conflict is long overdue so this is a step in the right direction, but the Berejiklian government is still leaving land use conflict in farming areas in the too hard basket and putting water resources at risk of long-term damage and depletion," she added.
"If we are going to manage the strategic challenges ahead for regional communities, we have to make sure core industries like farming are safe from further encroachment by coal mining.
"We need to make sure coal mining is not depleting water resources and leaving future generations with an environmental debt, too.
"Unfortunately, the government seems content to base its economic strategy on global failure to meet the goals of the Paris climate agreement, which means a catastrophic global heating scenario.
"It is particularly distressing that Deputy Premier John Barilaro has sought to tie the economic recovery needed in response to the recent devastating bushfires to the coal industry, given the role coal plays in the changing climatic conditions that made the fires so severe in the first place.
"People and communities in coal mining regions will be affected by climate change just as much as everyone else in NSW and the world as rainfall patterns change and heat intensifies.
"Mr Barilaro isn't doing regional communities a favour by pretending otherwise."
Hunter Renewal spokesperson Danielle Coleman added: "The Hunter region has contributed to the prosperity of NSW for many decades and now needs practical and financial support from the Berejiklian government to get investment flowing into new industries that can replace jobs that will be lost in coal mining and exports.
"Experiences around the world have shown that the work of adjusting to coal market decline takes a generation.
"The Hunter region has the leadership and the skills to make that adjustment while honouring our proud industrial history and protecting our environment.
"We just need the government to back us with money and policy."