WORK could start on the Maxwell underground coalmine at Jerrys Plains in the coming months, Malabar Resources chairman Wayne Seabrook said yesterday after the project won state government approval.
The proposed mine is on land and mining leases bought by Malabar in 2017 from departing owner Anglo American after its proposed Drayton South open-cut was repeatedly rejected and the original Drayton open-cut ran out of coal.
The NSW government-appointed Independent Planning Commission (IPC) announced yesterday it had approved the mine to operate until 2047, attaching 169 conditions of consent. The commission said underground mining created less dust, noise and vibration than open-cut mining and described Maxwell's potential adverse impacts as "low".
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Malabar says the mine will need a permanent workforce of 350, earning wages of $55 million a year. It says the mine would provide between $1 billion and $1.2 billion in state mining royalties if operated until 2047, together with another $150 million in state taxes and council rates and levies.
Malabar has exploration rights over the Spur Hill lease west of Maxwell and says the coal in both areas is dominantly semi-soft coking or "met" (metallurgical) coal.
This coal is used in steelmaking and typically sells for at least twice the price of the Hunter's dominant product, thermal coal for power stations.
Upper Hunter state MP Michael Johnsen welcomed the approval, noting that all the mining took place under mine owned by the company, saying the conditions imposed would protect other landholders.
"History shows that mining, the equine industry and agriculture more broadly are all significantly important industries for the Hunter and Upper Hunter," Mr Johnsen said.
But the environmental and equine lobbies have reacted angrily. Lock The Gate Alliance called it "appalling", describing it as "further proof" the planning commission was nothing more than a "rubber stamp" for a pro-mining government.
The Hunter Thoroughbred Breeders Association described the approval as "a black day for our industry and the Hunter", saying it would study the IPC's determination and consider its options. Reprising a theme it used as one of at least eight racing organisations opposing the project in submissions late last year, it said the Liberal/National Coalition had promised for 10 years to "safeguard" the thoroughbred industry.
"This decision stands in stark contrast to those commitments," the association's president, Scone veterinarian Cameron Collins said.
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