Farmers say Whitehaven Coal鈥檚 push to expand operations at Vickery in the Gunnedah Basin of New South Wales poses serious risks to water resources and agricultural land.
The coal corporation鈥檚 application to expand its Vickery operation between Gunnedah and Boggabri in north-west NSW was recommended for approval in May. It is now with the Independent Planning Commission (IPC).
Lock the Gate Alliance spokesperson Georgina Woods said the department made the wrong decision given that the proposal is for a mine in one of Australia鈥檚 most productive agricultural area in the . The IPC held public hearings on July 2 and 3, with .
鈥淭he large-scale ownership of rural land by coal companies has reached unsustainable proportions鈥, Woods said. of the Namoi region found that Whitehaven coal owns more than 61,050 hectares over 471 freehold titles 鈥 a land area about the size of Singapore. This area does not include land owned by other coal companies in the Namoi, notably Boggabri Coal.聽
鈥淐oal mining is already competing with agriculture for water in this district and building another huge coal mine there will be a big mistake,鈥 Woods said. Even the department admits that, in dry times, there won't be enough water in the Namoi district to supply the mine, she added.
Simon Nicholas from the Institute for said the fact that Whitehaven Coal has said it will not give a financial commitment to the mine until 2021 鈥渢ells a story of an industry in decline鈥. 鈥淚t鈥檚 not a great time to be expanding or even opening a coal mine,鈥 he said.
David Watt, a farmer who depends on three bores to irrigate part of his 600-hectare holding that Whitehaven鈥檚 Maules Creek coal mine is impacting farmers鈥 ability to access water. 鈥淚t鈥檚 unviable now for farmers to pay $1000 a megalitre for water,鈥 he said.
Boggabri farmer told the IPC hearing that Whitehaven did not undertake any reduction in its production when its Maules Creek mine was running low on water last year. 鈥淣ever once did they consider producing less coal and not using so much water,鈥 she said. 鈥淲e saw them aggressively buy out water in the market, paying three times the usual prices.
The IPC decision is expected in August.
Farmers鈥 scepticism about Whitehaven鈥檚 adherence to conditions laid down by the IPC was borne out in the days following the hearings.
On July 2, the state鈥檚 independent water regulator announced it was taking action against Whitehaven Coal for activities at Maules Creek near Boggabri for breaches of the law for allegedly taking water without an access licence between 2016 and 2019. 聽The maximum penalty for a company breaching the Water Management Act 2000 is more than $2 million.
said the company鈥檚 alleged failure to obtain licences for the water taken, impacts other water users and the environment 鈥 especially during severe drought.