Hunter horses triumph over coal

A big expansion to an existing Hunter Valley coal project, perched on the doorstep of some of Australia’s premier Thoroughbred studs, was torpedoed today by NSW’s independent approvals body.

The Planning and Assessment Commission (PAC) unequivocally rejected Anglo American’s pitch to expand its Drayton open cut coal mine.

Hunter Valley Thoroughbred Breeders Association president Cameron Collins said the industry has been recognised by NSW government as critical to the State’s economy.

"The PAC’s decision demonstrates there are just as many jobs in the thoroughbred industry as the mining industry here.

"It sends a message that a strong economy requires a range of industries.

“Our industry has been here for 150 years… we can go indefinitely.”

Mr Collins said the real benefit of the Hunter’s horse industry, despite the glitz of race day, was in everyday jobs.

“The idea of it being exclusively for wealthy people and that it’s a luxury industry is not true. It’s not about fat cats versus mining workers.

“You tell that to the guys who pick up at five in morning and they might not agree.

“There is a big range of industries involved - everything from fencing contractors to feed merchants to vets to farriers to irrigations suppliers… the same that would support any agricultural industry.”

However, Anglo was scathing about the PAC's ruling.

“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," said Anglo's chief executive of coal operations, Seamus French.

"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.”

The PAC said the mine’s environmental impacts would be too great on the studs operations, which would flow through the broader regional economy as well as damaging local wine and tourism industries.

However, NSW Planning recommended the PAC approve the project in June.

The department sided with Anglo’s argument, which said expansion was needed to extend the pit as the current operations will run out of coal by 2017 – and in the process deliver $35 million in royalties to NSW each year, spend $70m annually with local businesses and secure 500 local jobs.

But the PAC took the view of the Hunter Valley Thoroughbred industry, which argued long and loud that the premier studs, namely Darley and Coolmore, would be forced to relocate, delivering the regional economy a net loss of $457 million; $120m in annual spending and 350 local workers.

Coolmore principal Tom Magnier thanked the PAC on behalf of his workers.

“We are very relieved for our employees, their families, our clients and our community," he said.

"It has shown that the process works and for that we are very grateful."

Below is a summary of the PAC’s reason for refusing Drayton’s expansion:

1. The project does not provide sufficient buffer to protect Coolmore and Darley from the impacts of mining as recommended in the PAC Review Report and the Gateway Panel Report.

2. The project has not demonstrated that it will not adversely impact on equine health and the operations of the Coolmore and Darley horse studs.

3. The approach of monitoring the response of thoroughbred horses to the mine’s operation to address uncertainty is not acceptable because once the damage to the operations of the studs occurs, it is irreversible.

4. The economic benefits of the project do not outweigh the risk of losing Coolmore and Darley and the potential demise of the equine industry in the area with flow-on impacts on the viticultural tourism industries.

5. The project is not in the public interest.

Click here to read the PAC’s full report

Anglo said it will now focus on supporting its employees and considering it's future options.