The CEO of Anglo American's Coal business, Mr Seamus French, today described the New South Wales Planning Assessment Commission's (PAC) determination that the Drayton South project should not be approved as a shattering blow to the local community threatening the continuation of mining in the state of NSW.
"This has gutted our 500 strong workforce and their families. The PAC's decision will have serious detrimental implications for the Hunter Valley and for NSW," Mr French said.
"It is devastating for our employees, it is devastating for our suppliers, it is devastating for the local community and it is devastating for the people of NSW who would have benefited from the annual $35 million in State Government Royalties from the project.
"Unemployment in the Hunter Valley is eight per cent. To reject a project which would continue to provide 500 full-time jobs for a period of 20 years is incomprehensible. For local families, local suppliers and local communities to suffer for the sake of two horse studs, particularly given we could easily coexist, is unfathomable," Mr French said.
Mr French said the PAC determination flew in the face of the NSW Planning and Environment Department’s report on the project, which stated Drayton South was in the public interest.
"The government's own experts have been overruled by an eight week exercise," Mr French said.
"The current planning process, which deals with perception above scientific fact, is damaging communities and threatening NSW's investment potential. This process, through which decision making is delegated to a small group of representatives rather than the elected government, is a serious concern.
"Right from the start we were committed to coexistence. In the mine plan approved by the Department, Anglo American made billions of dollars worth of compromises, and most recently reduced the mining area and total tonnes from 119 million to 97 million. We moved the mine behind the natural ridge to eliminate visual impacts and address concerns raised by the studs during the first PAC," Mr French said.
"Only one side has been willing to compromise and the other has made it abundantly clear of their intent to put a stop to mining. When the horse studs came into the Hunter Valley it was completely transparent that this was already a mining area with plans for an extension, and they have since invested millions and grown on the back of infrastructure made possible due to the mining industry. We find it difficult to accept it is now an 'us or them' situation.
"All the compromise and commitment to coexistence has been ignored in this process. The PAC's decision will wipe an annual $35 million from State Government Royalties and will have a dire impact on local communities, with the $70 million we spend a year with local businesses taken away.
"We are extremely disappointed with the way this whole process has been handled and the way we were notified about the result. The PAC has completely disregarded the livelihoods and wellbeing of 500 hardworking people and their families and throws the future of mining in NSW into serious question.
"How would you like to hear on the radio on your way to work that you don't have a job?"
"There is no doubt that if Drayton South does not proceed, the void in coal production left will be picked up by other international producers with poorer quality coal and less stringent mining conditions which will have a detrimental impact on the environment and take income, royalties and jobs from Australia.
"Our immediate attention will now be given to our employees, providing them with support and working through what this means for them," Mr French said.
Mr French said Anglo American would now work through the PAC's report to better understand the implications and consider their options moving forward.
ENDS
Media contact: Jacqui Strambi: 0439 774 526
Notes to editors:
Anglo American is one of the world's largest mining companies, is headquartered in the UK and listed on the London and Johannesburg stock exchanges. Our portfolio of mining businesses meets our customers' changing needs and spans bulk commodities – iron ore and manganese, metallurgical coal and thermal coal; base metals and minerals – copper, nickel, niobium and phosphates; and precious metals and minerals – in which we are a global leader in both platinum and diamonds. At Anglo American, we are committed to working together with our stakeholders – our investors, our partners and our employees – to create sustainable value that makes a real difference, while upholding the highest standards of safety and responsibility across all our businesses and geographies. The company's mining operations, pipeline of growth projects and exploration activities span southern Africa, South America, Australia, North America, Asia and Europe.
www.angloamerican.com.au