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Mining compo inequity

11 May, 2011 04:00 AM
A HUNTER council has secured at least $12 million in compensation commitments from three coalmines, while other NSW councils are receiving little under a system labelled a ‘‘mess’’ by the NSW Minerals Council.

Muswellbrook Council will receive $1.4 million a year for community infrastructure and $465,000 a year for roads for the life of the mines under voluntary planning agreements reached with owners of Mount Arthur, Mount Pleasant and Bengalla mines in the past year.

The figures are based on the local community receiving about 6¢ a tonne of coal removed.

The commitments followed ‘‘forceful’’ negotiations between the council and mine owners , Muswellbrook mayor Martin Rush said.

‘‘Council negotiates on mine proposals to ensure the community does not subsidise coal mining companies,’’ Mr Rush said.

The council has also set a target of 60 local people being employed as mine and power apprentices each year. By 2012/13 there will be 28 local apprentices employed under the target program each year.

A Newcastle Herald poll of NSW councils with mines found Muswellbrook has negotiated substantially greater community contributions from mines than other councils.

No other council had received, or had commitments for, a cents-a-tonne figure for a coalmine project.

Singleton Council, with many more mines, received just $56,700 from three mines for roadworks, and one-off payments totalling less than $400,000 for community projects in the past two years.

Cessnock Council has received one-off payments totalling about $200,000 for community projects in the past two years and nothing for roads.

NSW Minerals Council chief executive Dr Nikki Williams said it was unfortunate that the current planning system required councils to negotiate with mines for infrastructure funds during the mine approval process.

‘‘The current system is a mess,’’ Dr Williams said.

A Department of Planning spokesman said the department was ‘‘carefully analysing the issue of community contributions from coalmines and working on a comprehensive and consistent approach to the issue across each region’’.

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comments


Date: Newest first | Oldest first
sounds like the councils are being asked to do what the state government(s) fail to do, and that is actualy get some of the money to stay where it's made.
Posted by just a thought, 11/05/2011 9:31:01 AM, on The Herald
Strange how Lake Macquarie has soooo much coal infastructure (including mines, washeries, transit rail links as well as base load power stations) yet we hear very little of returns, nor commitment to the community. I wonder why?
Posted by LakeMuck, 11/05/2011 1:02:10 PM, on The Herald
I don't believe Gloucester has received much money from coalmining either. The odd sponsoring and small amounts but not much for compensating Gloucester Council for fixing up The Bucketts Way potholes.


Posted by Lifestyle, 11/05/2011 1:25:38 PM, on The Herald
we must keep pushing our wheelbarrow about benefits to our communities. we cannot rely on anyone but ourselves. keep making comments, keep pushing local representaives, both state and council.

don't let them think we will give up. power in numbers, we deserve better outcomes and more say in what happens in our region

Posted by ollie, 11/05/2011 6:33:29 PM, on The Herald
Newcastle coal is exported at around $123 a tonne with an increasing price trend for the next 4 years. Muswellbrook community must be happy for receiving 6 cents a tonne from mining companies via infrastructure, road works and 60 apprentices a year! At least, they look to be in a better position than Singleton and Cessnock where socio economic conditions aren't any better. Those are 3 areas where the residents are preached to support expansion of coal mines to save their jobs. Trade strategy between the councils and the mining companies is based on short term benefits as the communities still remain dependent on coal mines in the long run. Education and skills should be diversified in the communities for better job opportunities; social infrastructure should be upgraded for the benefit of next generation.
Posted by FG, 12/05/2011 1:05:12 PM, on The Herald

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WINNER: Muswellbrook is getting money, but other towns are not.
WINNER: Muswellbrook is getting money, but other towns are not.

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