With a decision from the State Government on BHP's application to extend the current licence at Mt Arthur Coal until 2030 looming, Muswellbrook Council says it is frustrated by a lack of certainty around future funding from planning agreements and the NSW government.
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Muswellbrook Shire Mayor Steve Reynolds said that while approval of the extension will allow more time for transition and diversification planning for the mine's eventual closure in 2030, decisions on voluntary agreements with mining companies and State Government royalty payments must be determined now.
decisions on voluntary agreements with mining companies and State Government royalty payments must be determined now
- Mayor Steve Reynolds
"We know the decision by BHP to close Mt Arthur Coal is significant for our region which is why Council made a comprehensive submission to the Department of Planning and Environment on the Modification 2 application," he said.
In its lengthy submission Council requested amendments to the existing Mt Arthur Coal Voluntary Planning Agreement (VPA) reasoning that current contributions are inadequate, that BHP s direct contribution to the community is unclear and more clarification around site rehabilitation and potential site diversification is required.
"Existing infrastructure, such as buildings, carparks, roads and utilities could all be used as an economic incentive to attract new industry to the site. Planning and funding to counter the social impact must form part of the modification approval."
"It is unbelievable that allowances have not been made for the foreseeable adverse socio- economic consequences of the closure. Around 2,200 workers are employed at Mt Arthur, but the social impact of the closure has not been factored into the application" Cr Reynolds said.
Council also has the State Government in its sights in light of minimal support received following the scrapping of funding programs after the last election.
"The mining industry continues to inject billions into the state's coffers, but historic funding pools, such as Resources for Regions, provided to areas impacted by mining for community projects, groups and programs have been scrapped. These programs successfully delivered a fair return to our community for the daily impacts of mining, helping to provide improved local infrastructure and services.
"We are calling on the State Government to provide certainty and guidelines around the $350 million Regional Development Trust Fund, announced in their first budget in September last year, along with a commitment to engage with communities and - according to the Treasurer - better deliver on its objectives of fostering economic and social growth".
"To date, we have not received any decisions or funds and minimal support from the NSW Government. Given the significant amount of royalties generated from our region, and that government intend to raise coal royalties by more than $2 billion over the next three years, it is only fair that communities like ours, who are so affected by this industry, be adequately compensated."
