Mining giant Rio Tinto has scored a major victory in its bid to extend its controversial Mount Thorley-Warkworth coal mine in the Upper Hunter, with the Planning Assessment Commission recommending it proceeds.
The commission, in its review report, noted that the Warkworth mine "will undoubtedly have a range of adverse impacts on [the nearby] Bulga village and its community", adding that Rio Tinto should give "serious consideration" to compensation being paid to residents.
Despite that caveat, the commission's panel said "the project is consistent with government policy and legislation and is capable of being approved".
The mine expansion had been knocked back twice in the courts. The Land and Environment Court rejected the commission's initial verdict that its economic benefits outweighed the environment damage, a decision that was upheld last April by the Supreme Court on appeal.
Michael Johnsen, Nationals candidate for the Upper Hunter, welcomed the PAC decision on his Facebook page about two hours before the verdict was made public on the commission's website.
"More wonderful news for Upper Hunter today as The Planning Assessment Commission has recommended approval for the Mt Thorley & Mt Warkworth continuation projects," Mr Johnsen posted. "This is yet another step in the right direction and will be a great boost of confidence for Upper Hunter jobs and the economy."
Rio Tinto welcomed the PAC's recommendation. "This is a very encouraging outcome and a vital step towards securing a strong future for Mount Thorley Warkworth mine, which provides work for 1300 people and supports hundreds of Hunter Valley businesses and community groups," Mark Rodgers, general manager for Mount Thorley Warkworth, said.
A spokesman for Planning, said the department "will consider these recommendations before the PAC assesses the project and a determination is made".
The PAC will now set up a panel to make a final decision on whether the mine can proceed.
'Direct action'
Bulga residents have led opposition to the mine over the past five years.
The area to be cleared by the extension includes part of the endangered Warkworth Sands woodland ecosystem that the miner had pledged to protect as an offset when it obtained approval for the original mine in 2003.
John Krey, spokesman for the Bulga Milbrodale Progress Association, said Thursday's PAC approval "is confirmation that the legal and regulatory system that governs mining is broken and that NSW residents cannot count on it to serve the public interest or protect our precious land, water and heritage".
Mr Krey indicated his group would have to resort to "peaceful direct action" to stop the extension of the mine proceeding.
"With every other avenue to protect our homes and peaceful valley from this massive open cut coal mine exhausted, we are left with no choice but to draw a line in the sand," he said.
"We have fought this project in court, and won twice, but despite this the NSW government changed the rules to push it through, quashed our rights to appeal in court, and worked behind closed doors with mining giant Rio Tinto to ensure it proceeds."
Mr Krey told Fairfax Media his group would review the PAC report and explore any remaining legal options.
"We are in desperate straits here," he said, adding that residents may end up "locking ourselves to bulldozers" if all other steps to block the mine fail.
'Jumping the gun'
The commission's own report notes that Rio's application was "very similar" to its previous project rejected by the court but noted that "significant legislative and policy changes have occurred since that time".
The PAC also conceded that "impacts are likely to include impacts on property values and on the ability of residents to be able to sell the properties in the future".
Greens mining spokesman Jeremy Buckingham said the Nationals had "nailed their pro-coal colours to the mast by supporting this irresponsible and unnecessary expansion of coal mining in the Hunter".
"It is outrageous that they couldn't even wait for the PAC to make a public announcement before rushing to embrace this massively destructive coal mine which has been fought tooth and nail by locals and environmentalists," Mr Buckingham said.
"Labor also needs to make their position on this project clear and should not be allowed to walk both sides of the street on coal mining before the election," he said.
Steve Whan, shadow minister for resources, backed the PAC's decision.
"Job security is a huge worry in the Upper Hunter – particularly Singleton – and this decision will provide welcome certainty to the existing workforce," Mr Whan said.
"Under the Abbott and Baird governments, unemployment has soared to 11.4 per cent in the Hunter Valley – up from 7.1 per cent a year ago. The region has lost 14,000 jobs over the past year," he said, adding that mining remains vital to the region's industry base.
Mr Whan also criticised the early release of details of the PAC's decision to the Nationals.
"The government seems to have leaked news about a mine approval to its local candidate hours before the community was told," Mr Whan said. "The candidate has bizarrely jumped the gun and this raises very serious questions of propriety."
Close ties
Fairfax Media last month reported on emails showing the NSW government had worked closely with Rio Tinto to overturn the courts' decision.
The Newcastle Herald also reported last month that Rio Tinto was sticking to forecasts for the mine's operations based on $85 a tonne despite requests from the Department of Planning for a review. Global prices are closer to the $62 a tonne used in the federal budget.
Major coal miners have been cutting back production in the Hunter Valley because of the slump in coal prices. Glencore announced last month that it would reduce annual coal output in Australia by 15 million tonnes.
The NSW Minerals Council said the Mount Thorley-Warkworth mine spent $188 million last year on 270 suppliers in the Upper Hunter.
"Hundreds of Upper Hunter residents employed by the local businesses who supply Mount Thorley Warkworth, will also now breathe a sigh of relief that their jobs are also looking more secure," Stephen Galilee, chief executive of the council, said.
Offset 'betrayal'
The Nature Conservation Council said the PAC's recommendation to approve the mine would result in Rio destroying 611 hectares of native bushland, including the Warkworth Sands and Central Hunter grey box–ironbark woodlands, both of which are endangered ecological communities.
"The woodlands that would be destroyed include areas that Rio Tinto promised in 2003 to protect in perpetuity to offset the losses caused by the existing mine," Kate Smolski, chief executive of the council, said.
"Releasing the company from its offset obligations under the original approval would be a betrayal of the residents of Bulga and the broader community," Ms Smolski said.
"It would also set a dangerous precedent that will allow the destruction of other offset areas across the state that the community had every right to believe were set aside forever," she said.
