The state government's shoring up of its promised prohibition on open cut mining at Dartbrook coal mine in the Upper Hunter was welcome news to farmers and the region's thoroughbred breeders at the weekend, but it came in the shadow of more significant developments in the local mining industry over recent months.
Upper Hunter farmer Michael White, who spent 13 years at BHP's Mount Arthur coal mine near Muswellbrook - including eight as operations and general manger - said that he was pleased the state government and Upper Hunter MP Dave Layzell had made good on a by-election commitment to prohibit open cut mining at Dartbrook, but said the move needed to be placed in the context of broader mining operations in the region.
On Saturday, Mr Layzell announced that the government would amend a state environmental planning policy which deals with mining, petroleum production and extractive industry to legally cement its ban on open cut operations at the Aberdeen mine, though the state would not stand in the way of further underground activity proposed to commence there in 2023.
"Being able to see this crystallise into law is something that is extremely highly desirable," Mr White said, "We've all seen where certain things have been promised during election campaigns, or even committed to from a community perspective, and then not delivered. So to see this, I think, is good news.
"But at the same time, the same government has just recently approved an expansion and extension of Mount Pleasant to 2048 and I think that was a terrible decision. So, it is a small piece of comfort, but we are seeing the current Mount Pleasant effectively double in size ... and at the same time, literally over the hill from our property, Mangoola is in the process of establishing its approved mine expansion as well."
Mr White lives to the west of Muswellbrook on his property of around 100 acres and operates a resources consultancy business which has advised, among other entities at different times, Muswellbrook Shire Council and the Upper Hunter Thoroughbred Breeders Association. He has also been a member of the Upper Hunter Air Quality Advisory Committee, which includes representatives from the mining industry, the region's thoroughbred breeders, and community members, and advises government, the state's EPA, and other bodies on the management of regional air quality.
"I don't think that this Dartbrook announcement, and the action by the government, has moved the dial in terms of future certainty at all," he said. "It has really just confirmed a commitment that was already made."
He added that, in broader context of the Hunter's mining industry, a committed plan to transition toward renewable energy was critical.
"It's pleasing to see that there's more discussion across sections of the community about transition," he said, "But having a government-sponsored transition plan - even if we're a little bit unclear about timing - is what is really required.
"One of the things that I think we should be looking at in order to build some capacity for this is the extraordinary profits that have been made because of the dislocation in the global energy market."
In July, the Newcastle Herald reported thermal coal - the bedrock of Newcastle's coal exports - was selling at record levels of $587 a tonne or more. In October, prices were still more than four times higher than the previous year.
"There would be nobody in a mining company currently that could have entertained the kind of profit margins per tonne that are currently being experienced," Mr White said, "Anybody that would have suggested that there was a case for modelling at $400 to $500 a tonne out of Newcastle, I suggest, would have been shown the door; no one would have believed them. But that is what is currently happening.
"I think that NSW should be reviewing their royalty levy and bringing in some form of super-profits royalty. Why shouldn't the community benefit rather than just the company shareholders, so that we could be putting some of those super-profits away to build a war chest for transition?"
Mr White insisted that, on its face, the weekend's announcement was welcome news to the region, but said that in light of other mining extensions in the area, further commitment towards a renewable energy economy was needed.
"I'm not saying that we should be shutting mines tomorrow and kicking people out of jobs," he said, "(But) there's a lot more work that needs to be done."
