Opponents of coal mining at Sutton Forest are feeling hopeful as the tide of sentiment in the nation turns against large coal mining projects. Deb Richards found out why.

The Federal Government’s agreement with Independent Tony Windsor for a $200 million dollar package to stiffen regulation of the coal mining industry has bolstered local landowners and residents fighting the Korean steel company Posco, and its minor partners in Cockatoo Coal.

“This is a significant change to the equation,” Southern Highlands Coal Action Group (SHCAG) convenor, Peter Martin told YourTimes. “If the bar the State Government has to meet is lifted, it’s harder for projects to get through the sieve.”

The reforms will introduce an independent scientific panel that can review significant mining or coal seam gas projects where they endanger ground water.

Martin says any hurdle makes the lease at Sutton Forest less economically viable, and the Windsor reform is the first of three big hurdles looming.

However, a spokesman for Cockatoo Coal said it was too early to judge what impact this reform will have. “To date, as we understand it, no state government has agreed to the proposal.”

The second hurdle concerns renewal of the company’s exploration lease, which SHCAG believes cannot be taken for granted. Their submission argues points of law, where the licence conditions have not previously been met. Although the Korean miners only appeared on the scene last year, they acquired the lease by a change of shareholding, and so inherit the lease’s record.  SHCAG maintains there are several strong grounds for the government to not renew, or to reduce the lease area in accordance with the legislation.

The licence renewal is taking place at the same time as tight restrictions have been placed on BHP and Shenhua Watermark Coal leases near Caroona in the Liverpool Plains.

State Minister for Resources and Energy, Chris Hartcher said, “The NSW Government will not, under any circumstances, compromise the health and sustainability of our water resources.”

SHCAG is counting on that. The lease at Sutton Forest straddles a major and complex aquifer system, which feeds into Sydney’s drinking water catchment. It is considered extremely sensitive.

The eagerly awaited Draft Aquifer Protection legislation is expected to be released this month for public comment. Early drafts were criticised by some stakeholders, who went public, claiming terms were imprecise and conditions vague.

Cockatoo Coal isn’t concerned, and says, “We will ensure compliance with the finalised aquifer interference policy.”

For SHCAG, it adds up to a more promising picture than they had hoped for. “The miners here know the Highlands aquifer is strong and flowing close to the surface. It will be too hard to mine economically, and I don’t think there’s a snow ball’s chance in hell they will get through all the hurdles,” says Martin. “Why don’t they give up now?”

No coal exploration petition: see p28