This week as Anglo American formally submitted its intention to develop the Drayton mine extension project, the CEO of Anglo American’s Coal business, Mr Seamus French, called on the NSW Government to uphold recent comments about planning system reform and provide certainty for the Drayton workforce.
“Anglo American will develop a new project to provide employment and operational continuity for the Drayton workforce, address the Planning Assessment Commission’s (PAC) October 2014 report and deliver world-class environmental management practices around rehabilitation, noise, dust, visual amenity, proximity to neighbours and equine health,” Mr French said.
“The new project has been reduced to the Blakefield and Whynot pits which provides a significant buffer between the Coolmore and Darley horse studs and the operation, the life of mine will be 15 years and the total tonnes produced will be 75 million.
“The direct economic loss to the state of NSW of the concessions Anglo American has made to the Drayton South reserve, will be around $7 billion of coal revenue and a reduction in the life of the operation from 27 to 15 years, wiping out the associated State Government Royalties of approximately $360 million as well as significant wages and other benefits to suppliers and the local community.
“As we make these further compromises, it is time for fair assessment that takes the broader community, economy, local business impacts and declining employment options into consideration.
“Anglo American believes the projected $900 million in regional economic benefits to the Hunter Valley and to the State of NSW has been ignored by the PAC up until this point and immediate action is required to save the jobs of our workforce.
“We will immediately begin work on an Environmental Impact Statement (EIS) for the project to lodge early in the New Year, demonstrating the considerable economic and community benefits, leading environmental management practices, innovative progressive rehabilitation methods and elimination of any visual impacts.
“We ask the PAC to complete a fair and balanced assessment of the Drayton mine extension project based on the scientific evidence we have repeatedly presented and the further significant concessions that have been provided by the company, employees and NSW taxpayers as part of the new plan.
“We have fully addressed the PAC’s specific concerns regarding proximity to the horse studs by moving operations back behind the PAC-prescribed second ridgeline, which means the mine will be more than two kilometres from both Darley and Coolmore’s main operating areas and fully complies with the PAC’s boundary requirements.” Mr French said.
“The Government must play their part and provide an efficient approvals process to protect the future of 500 families and 140 local businesses that hang in the balance,” he said.
“With the concessions made to date, the people of NSW are now essentially subsidising two horse stud operations that do not pay any taxes. This is not about Anglo American. It is the people of NSW who miss out on the significant community and state benefits that have been forgone to appease the two horse studs,” Mr French said.
Mr French said recent comments made by the Hunter Thoroughbred Breeders Association, criticising the planning system for allowing proponents to make “numerous” attempts at projects were irrelevant.
“Let’s not forget mining has been considered for this particular lease for more than seven decades, with exploration and drilling beginning in the 1940s long before the horse studs operated here,” he said.
“To be clear, we still believe we submitted the right plan for review last time and the Department of Planning agreed and concluded in July 2014 that the project was in the public interest and should be approved.
“Anglo American was obligated to develop a mine plan that maximised the true potential of this resource for all stakeholders and that’s what we did, but unfortunately the PAC disagreed.
“The Drayton mine extension project will secure at least an annual $30 million in State Government Royalties, $90 million in wages, $70 million for local business and continuing support for the community.
“This must be weighed against the significant concessions and subsidies already made to the two horse studs,” he said.
“We remain committed to our core values of continuity, coexistence and community support. We have said since the beginning we are committed to working with the horse studs and we stand by this.
“We are open and transparent, believe this mine should be developed and are totally satisfied that our operations will continue to make the Hunter Valley stronger and contribute to the taxpayers of NSW.
“All we ask is if we have to provide the facts, those who seek to oppose us must do so as well, before more economic resources of the State are sterilised at the expense of the majority for the sake of a few.
“We will progress the project proposal with urgency with the aim to secure approval in the first half of next year, and we will warmly welcome the Government’s speedy consideration of the EIS,” he said.
ENDS