Anglo American gutted after Australia blocks coal-mine extension
A proposed extension of an Anglo American coal mine in New South Wales (NSW) has been deemed "not in the public interest", according to Australian authorities, because of the threat it posed to the racehorse and tourism industries.
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Two of the world's biggest horse breeders, Coolmore and Darley, have won a three-year battle against Anglo's planned Drayton South mine in the Hunter Valley.
The Drayton South expansion, a proposed replacement of the Drayton mine, was estimated to have produced 7m tonnes of coal per annum and contributed $A35m (£19m) every year to the government in royalties, Anglo American had said.
The mature Drayton mine is thought to run out of coal by 2017 and the expansion would have extended the life of mine by 20 years.
However, the estimated economic benefits "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", according to the Planning Assessment Commission (PAC) of NSW.
The head of Anglo's coal business, Seamus French, attacked the decision, saying it was "devastating" for local employess, suppliers and the wider community.
"This has gutted our 500-strong workforce and their families," French said, highlighting that unemployment in the Hunter Valley is currently 8%.
"The project does not provide sufficient buffer to protect Coolmore and Darley from the impacts of mining," PAC said, adding that the plans "[had] not demonstrated that it will not adversely impact on equine health and the operations of the Coolmore and Darley horse studs".