Eve Jeffery
In a much-hoped-for move, the NSW Government and the China Shenhua Energy Company Limited have reached a $100 million agreement in which Shenhua will withdraw its mining lease application and surrender its development consent for the Shenhua Watermark Coal project at Breeza on the Liverpool Plains.
Rumours about the deal were leaked on Tuesday morning and the documents were signed on Tuesday afternoon. It was officially announced yesterday by Deputy Premier John Barilaro, that the NSW Government will cancel Exploration Licence (EL) 7223, releasing Shenhua from its obligations under the exploration licence.
‘The NSW Government is committed to making NSW the number one investment destination for mining in Australia, but we need to find a balance, and this decision will deliver certainty to farmers and the Liverpool Plains community while guaranteeing protection to parcels of land with high-value biodiversity.
Farmers ecstatic about Shenhua exit
NSW Farmers has welcomed the news that the project will not go ahead in the fertile Liverpool Plains.
NSW Farmers Vice President and Liverpool Plains farmer Xavier Martin said the agreement ends 13 years of uncertainty for the region’s farmers. ‘It was the wrong mine in the wrong place,’ said Mr Martin.
“This area has some of the best soils and water in Australia and as a nation, short term energy extraction gains should never compromise long term food and fibre production goals.”
Mr Martin said the Shenhua project also had an unmanageable risk factor on the quality and quantity of groundwater resources.
CWA happy about ‘nationally significant decision’
The CWA of NSW is very happy about what they say is a nationally significant decision by the State Government to end the prospect of a large open-cut coal mine in the middle of the Liverpool Plains in North-West NSW.
CWA of NSW State President Stephanie Stanhope said that after 13 years of uncertainty, The CWA is so relieved to see the prospect of the Shenhua Watermark project finally put to bed. ‘Our members have always strongly believed that this highly damaging and highly controversial project was clearly the wrong mine, in the wrong place.
‘The Liverpool Plains is one of the country’s most significant agricultural food bowls and also hosts the single largest underground water resource in the Murray Darling Basin.
‘It’s absolutely clear there should never have been consideration given to the granting of a mining exploration licence in this region, much less full approval for a three-pit open cut coal mine.’
Government need to prove they are truly serious
Ms Stanhope said the NSW government now need to prove that they are truly serious about the protection of important agricultural areas, and overhaul the planning system so that certain special areas of the state, such as the Liverpool Plains, are off-limits to extractive fossil fuel industries that damage land and water.
‘The fact that the Shenhua Watermark approvals took place is one of the strongest illustrations yet that the planning system in NSW for major projects has been, and clearly remains, broken.
‘We hope today marks a new day for the state, a day where the importance of the protection of agricultural land and water is finally being understood by decision-makers, and a day also when the results of people power are realised.
‘We sincerely thank the communities of the Liverpool Plains, and all their supporters, for their significant advocacy on this issue. The collective and unrelenting work of many, but most importantly the local community, has led to an outcome that will secure the future of this vital agricultural region and the generations to come.’
NSW Farmers not opposed to mining
NSW Farmers said they are not opposed to mining projects, but protecting both soil and water resources is the first priority. ‘That is the policy of NSW Farmers and why we have opposed other projects such as the Narrabri Coal Seam Gas Project,’ said Xavier Martin. ‘We now look forward to the NSW Government moving ahead with cancelling the eleven expired Petroleum Exploration Licenses.’
NSW Treasurer Dominic Perrottet said the NSW Government is committed to supporting the common sense, responsible development of our high-quality coal resources, however, we are a balanced government, and we also need to protect prime agricultural land.
‘The cancellation of this project will mean that no open cut coal mining can occur in the area. Coal will of course continue to be an important part of our economy and is essential to supporting jobs, and the NSW Government continues to support coal exploration in areas where it makes sense,’ said Mr Perrottet.
The agreement includes:
•certainty for local landholders and communities
•prime agricultural farmland to be preserved through the relinquishment of the Shenhua Watermark development consent and exploration licence, and the prohibition of future coal mining projects on this site
•the acquisition of more than 6000 hectares of high biodiversity land to be managed by Local Land Services including the protection of habitat for koalas and other endangered species
•protecting significant Indigenous cultural sites and artefacts
•ensuring that water that would have been taken by the mine can continue to be used for agriculture and other productive uses.
A balanced approach to deliver certainty
Mr Barilaro said this is about a balanced approach to deliver certainty to both the mining industry and farmers. ‘From the strategic release of land to support coal exploration in the right areas, to unlocking investment opportunities for high tech metals and critical minerals, mining remains a key priority for the state.
‘The NSW Government thanks Shenhua for its cooperation in reaching this agreement.’
Breeza farmer John Hamparsum was ecstatic about the news that has seen the NSW government hold the Liverpool Plains on a chopping block for 13 years.
‘The deal includes taking possession of over 6,000 hectares of land to be managed by the local LLS (local land services) for koala regeneration habitat and indigenous heritage. The govt are in talks with local indigenous people to hand their sacred sites back to them. The remaining land is still owned by Shenhua however they are required to sell the land back for agriculture.’
Protected forever from coal and gas mining
Hampo says the EL is now protected forever from coal and gas mining, the Government are currently in negotiations with Santos to fully retract the entire gas PEL in the area. ‘The Caroona Coal Action Group (CCAG) and the local community have been tirelessly fighting the development of this mine, to hear this announcement after so many false horizons before was jaw-dropping.
Hampo says the bittersweet win has provoked in him a time of reflection on the toll the fight has taken on his life, his family and his community. ‘I remembered the people that have passed away since the start of the fight, local indigenous elders and farmers that had put everything into stopping the mine.
‘The rest of the day was a blur and I kept thinking that this can’t be true, there will be some kicker – but there isn’t.
‘Nearly everything I hoped for had happened – we got rid of the mine, the koalas had a protected breeding habitat, the local Indigenous people had their sacred sites back and protected and the productive fertile Plains could go back to agriculture.
Hampo says the only thing he wished for that he didn’t get was an announcement of a renewable energy area to be a monument to past mistakes and hope for our future generations.
‘We have stopped a new coal mine from destroying our Liverpool Plains and adding more greenhouse gases.
‘I was so happy that tears of joy came to me and a smile that couldn’t be wiped from my face.’
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