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Coal approval at what price

07 Oct, 2011 08:08 AM
LAST July, during a visit to the Hunter Valley, senior federal opposition figure Malcolm Turnbull said what everybody knows but few will dare to say.

Suggesting that the federal government ought to have a bigger say in the assessment of mining proposals, Mr Turnbull said state governments had "a gigantic conflict of interest".

"The state governments have a massive vested financial interest in these projects going ahead. They don't get any revenue or very little revenue from prime agricultural land, but they get hundreds of millions of dollars from these coalmines and coal seam gas," Mr Turnbull said in a radio interview.

His words may be remembered by some in the wake of the NSW Department of Planning's recommendation to approve Coal and Allied's Warkworth Extension project. Recommended is the total closure of an Upper Hunter road and the complete removal of an important local landform near the village of Bulga.

Approval will also mean the loss of 764.7 hectares of woodland, impacts on 114 Aboriginal sites, significant noise and dust for 16 private residences and a significant impact on remnant populations of the nationally endangered swift parrot and regent honeyeater.

Coal and Allied, the formerly locally based coal giant now owned by Rio Tinto and Mitsubishi, wants to discard undertakings in a 2003 formal deed of agreement that it would not mine Saddleback Ridge. Its reason is simply that coal is more valuable now and it can make more money than it previously considered possible by removing the ridge.

The company expects to mine about 200 million tonnes of extra coal over the 11 years following approval. At present prices that amounts to about $24 billion in resource value.

In return for approving the project, the state government's take - at the present open-cut royalty rate of 8.2 per cent - would be just under $2 billion, or about $170 million a year.

With coal prices and royalty and approval systems as they stand, Hunter people might find themselves agreeing with Mr Turnbull about the government's "gigantic conflict of interest".

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Date: Newest first | Oldest first
Don't these selfish residents realize that there's big money involved here for Coal and Allied? There's no need for that socialist Turnbull to be encouraging these troublemaking nimbies.
Posted by digitupandsenditoverseas, 7/10/2011 9:16:45 AM, on The Herald
Now we know why. Thanks, Malcolm. So what are we going to do about it.
Posted by Kate, 7/10/2011 9:49:34 AM, on The Herald
I consider conflict of interest to polite a phrase. I feel it’s almost a sell-out to foreign interests. One must ask why the sudden increase in mining levels, where does the coal go and what is it being used for? This country has become little more than a quarry for other nations with our own manufacturing base faltering & prime agricultural resources being destroyed in the process.There are also the negative social and environmental impacts being imposed upon us & local tourism must be affected as well. What real future does this country have once the rape of mineral resources is over?
Posted by Our Future, 7/10/2011 9:51:14 AM, on The Herald
Yes, comeon Malcolm, walk the walk and cross the floor for a Greens motion on mining?
Posted by froggy, 7/10/2011 8:49:29 PM, on The Herald
To me, it seems like the same conflict of interest the Federal Government has in setting tax rates - the higher they are, the more money it gets. Naturally ministers wanting to spend spend spend will push for increased taxation. Perhaps we should take this decision away from the government and implement some discipline ?
Posted by rightwingnewtus, 10/10/2011 7:15:06 AM, on The Herald
And with massive projects like this, the coal companies then cry & moan about the forthcoming carbon tax. Yet, even with that soon to become law, they still invest millions of dollars in projects like this one at Warkworth. I think it sounds like sheer greed. The coal (& all the other) mining companies want everything for nothing.

Given these coal projects are marching towards Cessnock, is the billion dollar wine industry the next to go in the name of coal?

Posted by DMA, 10/10/2011 7:51:02 AM, on The Herald
How much more can Newcastle and our Hunter/upper Hunter valley take? I propose a march of protest against the loss of our health, clean air, farmer's rights, our clean water and the greed of a few here in OZ and the cleverness of overseas companies that are raping us.

It's way too much!!!

Posted by lu, 10/10/2011 7:00:49 PM, on The Herald

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