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- 7 June 2007
Upper Hunter Valley Mining Proposals
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Page: 1049
Mr ROBERT COOMBS: My question is addressed to the Minister for Planning. Will the Minister update the House on mining proposals in the Upper Hunter Valley?
Mr FRANK SARTOR: I thank the member for Swansea for his strong interest and understanding of the mining industry in this State and I acknowledge that his interest relates to issues not solely concerning his electorate. The coal industry is at the heart of the international debate on climate change. The Iemma Government has led the fight to address climate change in Australia. Now our Federal Labor colleagues have forced climate change onto the national agenda, despite the consistent failure of the Federal Coalition to acknowledge the issue. The fight must go on at a national and international level to drive real, long-term global change.
However, in the meantime the New South Wales Government must consider coalmine applications rigorously and individually. The Government understands that the coal industry remains vital to the State's economy and to our power supplies. Unilateral action on climate change in the form of a black ban on new coalmine applications in New South Wales alone would devastate the economy, but, worse still, would achieve zero net benefit to climate change because our coal would be substituted with coal from elsewhere. For that reason, coalmine applications must be considered on their merits in accordance with the Environmental Planning and Assessment Act.
But a further difficulty with all extractive industries is that industry has to go where the resources are located. In the case of other development applications, at times we may be able to refuse them or consider alternative sites to mitigate the potential impact on the local community and the local environment. But with extractive industries, we cannot decide to move the mine down the road or 10 kilometres away. Applications for mines, including coalmines, of course can be refused, and sometimes they are. But the lack of flexibility in the location of potential mines adds another burden to the assessment of any such proposal. When mining proposals are approved, appropriate and onerous conditions and safeguards are placed on them to mitigate impacts.
That leads me to the Anvil Hill coalmine proposal at Wybong, which is 20 kilometres west of Muswellbrook. I inform the House that after nearly one year of assessment, including extensive public consultation and public hearings, I have approved the Anvil Hill coalmine proposal. The mine will produce up to 10.5 million tonnes of coal per annum over 21 years for domestic and export markets, including local power supplies. The project will involve four mining pits and construction of a coal handling and preparation plant. It will have a capital investment value of $240 million and will support approximately 250 construction jobs and approximately 240 operational jobs. The total value of the coal resource at the site is estimated to be approximately $9.6 billion at current prices.
This decision was not taken lightly. The Department of Planning and I went to significant lengths to subject the proposal to a rigorous examination. I personally visited the site twice and have met with stakeholders including environmental groups, stud farm owners and vignerons. More recently, I met with representatives of about 13 of the most affected landowners to hear their concerns at first hand, together with representatives from Muswellbrook Shire Council and Centennial Coal. We set up an independent expert panel, which heard oral submissions from about 30 individuals or groups and considered about 2,040 written submissions.
The assessment process was also considered by the Land and Environment Court. It was time to resolve the issue and give certainty to affected landowners and others potentially affected by that mine. This week the Department of Planning submitted its final report to me recommending approval for the project, subject to more than 80 stringent conditions. After carefully considering the department's advice, I agreed to approve the project and apply those conditions. The conditions include requiring the company to secure and conserve at least 2,800 hectares of land in the surrounding area, including land of high conservation significance—significant land that will be upgraded—and to extensively rehabilitate the mine site to current best practice standard. When that offset is added to the mine rehabilitation there will be at least 4,100 hectares of land conserved and enhanced in the area.
The company must also work with more than 30 significantly affected landowners to resolve outstanding issues. The company is expected to have done everything possible to acquire those properties or reach agreement with those landowners before actual mining operations begin, which is expected to be within two years. There is, of course, an arbitration process available to the landowners. Further, other less significantly affected properties in the vicinity of the mine can request that insulation, double-glazing, or other noise-abatement measures be installed in their home. Centennial Coal must purchase existing water licences under the Water Management Act to supply the mine during dry periods, meaning that total consumption from the river will remain within existing sustainable limits. All coal will be transported from the site by rail.
Finally, the company must contribute $4.5 million, through a voluntary planning agreement with Muswellbrook council, to community projects and infrastructure. I inform members further that I have approved the Abel underground coalmine proposal, 23 kilometres west of Newcastle. That project will provide up to 4.5 million tonnes of coal per annum for 21 years. It is expected to have a capital investment of about $83.5 million and the coal resource is estimated to be worth about $4 billion. Notwithstanding the fact that this is an underground mine, Donaldson Coal must set aside 20 hectares of vegetation to offset the 12.3 hectares that will be disturbed by the mining operations.
More than 55 strict conditions of consent have been imposed on the Abel project, including, first, measures to address the potential risk of substance on homesteads, which significantly exceed those required under the Mining Subsidence Act. Secondly, there will be strict noise and dust control measures and ongoing monitoring. Donaldson must also contribute $2 million for local projects including a $1 million conservation trust and $250,000 to the Black Hill Public School Parents and Citizens Association. I thank everyone involved in the public consultation process for these mine proposals, including residence, other aspect of stakeholder groups, local councils and the Anvil Hill independent panel. I commend the projects to the House.
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