Sussan Ley helps Whitehaven dodge climate ruling for Vickery coal mine expansion
Environment Minister Sussan Ley has approved an extension of Whitehaven Coal’s Vickery mine in NSW, despite a contentious climate ‘duty of care’ court ruling.
Federal Environment Minister Sussan Ley has approved an extension of Whitehaven Coal’s Vickery mine in NSW, despite a court judgment that ruled harm to children from carbon emissions must be taken into account when coal mine expansions are considered.
The decision on Vickery has been closely watched after the July court ruling, which the federal government immediately vowed to appeal.
The action, brought by Catholic nun Sister Brigid Arthur on behalf of a group of eight schoolchildren, argued that the Federal Court should intervene to prevent the extension of the Vickery mine because coal produced at the mine would exacerbate climate change and cause them serious harm if it were approved.
Judge Mordy Bromberg refused to issue an injunction preventing approval, but found Ms Ley had a “duty of care” not to cause the children personal injury when exercising her power under the Environment Protection and Biodiversity Conservation Act.
Ms Ley attached 37 conditions to the $700m expansion that gives Whitehaven the green light to proceed with the 10 million-tonne-a-year mine amid near record coal prices.
“Against the current backdrop of record high coal prices and strong demand in seaborne markets, the company sees a continuing role for high-quality coal of the type Vickery will produce in contributing to global CO2 emissions reduction and containment efforts while simultaneously supporting economic development in our near region,” Whitehaven said in a statement.
Environment group Lock The Gate Alliance called the decision a climate catastrophe.
“This government is not just passively failing to protect Australians from climate change, its ministers are actively slamming the door on every opportunity they are given to address it,” Lock The Gate said, adding the coal mine would be responsible for 370 million tonnes of carbon emissions.
Whitehaven has previously put Vickery on hold until at least 2022 as it looks to pay down debt and get on top of operational issues elsewhere in its portfolio.
Still, spiralling coal prices at decade highs provide an attractive platform for the coal miner to push ahead with the extension project.
With the price of Newcastle coal hitting a record $US182 a tonne and metallurgical coal 150 per cent above earlier year lows, two of Australia’s biggest export spinners are helping offset a dramatic fall in iron ore prices from high levels.
However, coal producers remain vulnerable as the finance industry clamps down on its exposure to the fossil fuel and its high carbon emissions.
Ratings agency S&P weighed in on Wednesday, saying the pool of money available to fund the coal sector was shrinking, increasing the cost of that capital.
Whitehaven shares rose 2.7 per cent to $3.10 on Thursday.
The conditions imposed by Ms Ley include a water management plan, groundwater monitoring bores and minimising impacts on threatened species.
Whitehaven has approval to mine 4.5 million tonnes a year from Vickery, which is yet to be built, but now has permission for output of up to 10 million tonnes a year. It forecasts the expansion will create 500 construction jobs and 450 ongoing operations roles when it is complete.