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Planning Commission rejects Bylong Valley coal mine

Devastated residents of the Bylong Valley have erupted in fury at Planning Minister Rob Stokes for telling them the decision to axe a $300 million coal mine has given them “finality”.

Govt ‘has to lead’ on coal and ‘pull people along’

Devastated residents of the Bylong Valley have erupted in fury at Planning Minister Rob Stokes for telling them the decision to axe a $300 million coal mine has given them “finality”.

“What a load of crap,” erupted Mid-West Regional Council mayor Des Kennedy.

“People are on their knees out there waiting for this to happen.”

The Independent Planning Commission yesterday rejected the application for the Bylong Valley coal mine to go ahead because of “long-lasting environmental” impacts.

If it had gone ahead it would have pumped almost $300 million into the NSW economy, created 650 jobs during construction and a further 450 during its 25-year lifespan.

Planning Minister Rob Stokes. Picture: Adam Yip
Planning Minister Rob Stokes. Picture: Adam Yip

Today Mr Stokes said: “The Independent Planning Commission in relation to this project determined the long-term environmental costs outweighed the shorter term economic benefits.

“Certainly for the residents of the Bylong Valley and also the broader community this decision now provides some finality on a process that has been going on for far too long,” he said.

Mr Kennedy said of the almost eight-year planning process for the mine: “Well he is right – it has gone on too long.

“And we have got finality,” he said. “Finality for the people of Rylstone and Kandos who were relying on that mine for jobs and who will now have to be supported on welfare by the people of NSW.”

South Korean electricity generator KEPCO invested $700 million into buying the land and going through the tortuous NSW Government planning system.

“Now they have got a lot of cattle out there,” Mr Kennedy said.

The development application was refused by the NSW Independent Planning Commission. Picture: Tracey Nearmy
The development application was refused by the NSW Independent Planning Commission. Picture: Tracey Nearmy

“We are urgently seeking a meeting with Minister Stokes to see if we can get this decision overturned,” Mr Kennedy said.

“His department gave it the go-ahead before the IPC rejected it.

“Our question is: ‘where is the leadership?’”

The future of the $2 billion NSW coal industry has been put at risk by bureaucratic pen pushers who yesterday knocked back the new coal mine.

Green groups hailed the “game changing decision” on coal while local businesses relying on the multimillion-dollar Bylong Valley coal mine to generate badly needed jobs have vowed to shut up shop.

Asked whether it sent the message the state was closed for business, Mr Stokes said: “Not at all”.

“The message is very clear NSW is open for business in relation to resources,” he said.

Furious Deputy Premier John Barilaro said: “This ­latest decision presents an ­opportunity to reform the ­Independent Planning Commission’s decision-making process.”

The Bylong Valley near Mudgee
The Bylong Valley near Mudgee

Among the decisions the Commission gave for rejecting the coal mine, an hour from Mudgee, was that the mine was responsible for the “Scope 3” greenhouse gas emissions that would come from burning the coal in South Korea.

The IPC said that even though the coal was burnt in South Korea, the mine should be rejected because those emissions overseas “will ­adversely impact the NSW environment”.

“The IPC’s idea of telling companies which countries they can and cannot sell coal to creates a sovereign risk for investment in NSW,” Mr Barilaro said.

Mr Stokes yesterday said: “I share the Deputy Premier’s concerns about Scope 3 emissions and we are reviewing how major resource projects can continue to go ahead in NSW and be assessed more quickly.”

The decision also puts in jeopardy the 25 coal projects stuck in the planning pipeline which the government hoped would maintain mining ­royalty revenue which is ­expected to hit $2 billion in the next financial year.

The Climate Council’s chief executive Amanda McKenzie welcomed the decision. “Coal is the new asbestos, nobody should touch it,” she said.

But locals in the towns of Rylstone and Kandos felt very differently. “The arrogance of those opposed to the mine is ridiculous, they have no regard or empathy for the hurt, heartache and emotional pain families will go through because of a lack of work in these towns,” Mid-Western Regional councillor Peter Shelley said.

Bylong valley coal mine rejected
Bylong valley coal mine rejected

The council last night passed an urgent motion calling for NSW Premier Gladys Berejiklian to overturn the IPC’s decision.

“In half-an-hour after the decision was published I had three business owners contact me saying they were going to have to close,” he said.

“Other businesses like Maceco Engineering closed because they couldn’t keep waiting for the IPC to make its decision.”

Earthworks business operator Chris Pilley said the mine had offered hope in the face of devastating drought.

“For the younger generation in rural NSW, that have already had a hard enough time after years of drought, there aren’t many opportunities for them to want to make the local area home,” he said.

The proposal has undergone seven years of assessment. Picture: Tracey Nearmy
The proposal has undergone seven years of assessment. Picture: Tracey Nearmy

Mudgee Chamber of Commerce president Andrew Palmer said the decision was an “indictment” on the NSW planning process.

“This project was app­roved by the department and then rejected by the IPC, which is an indictment on the NSW Planning process that has taken the best part of eight years to come to this ­decision,” he said.

NSW Minerals Council CEO Stephen Galilee said the decision “represents everything that is wrong” with the NSW planning system and made NSW an international investment laughing stock.

The Minerals Council of NSW slammed the rejection today. Picture: Tracey Nearmy
The Minerals Council of NSW slammed the rejection today. Picture: Tracey Nearmy

“The role of the IPC demonstrates how the NSW Government has allowed the economic future of regional NSW, and regional communities like Kandos and Rylstone, to be left at the mercy of an unelected and unaccountable body,” he said.

The Department of Planning, Industry and Environment referred the state significant development application to the IPC for determination in October last year claiming there was “significant” opposition to the mine.

That was disputed by Lori Turk, whose husband And­rew works in the industry.

“I can see the benefits for the region,” she said.

Korean coal miner Kepco, which spent $700 million ­developing the project, said it was “disappointed with the decision and is reviewing the statement of reasons”.

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Original URL: https://www.dailytelegraph.com.au/news/nsw/planning-commission-rejects-2b-bylong-valley-coal-mine/news-story/0d0e9a667e711bdf77a281d435b5a4bf