The Australia Institute has labelled the rise of mining in the Narrabri Shire as the industry’s ‘last gasp’ before renewables take hold.
A representative from the research institute, which is funded by private donations, made a presentation at a community forum in Maules Creek last Friday.
Mark Ogge communicated research findings from the Australia Institute, CSIRO, University of Queensland and Reserve Bank of Australia, to an audience of more than 100 local people.
His main message was that extractive energy industries were in rapid decline.
“India is building massive amounts of renewable energy infrastructure, by 2022 they aim to generate the same amount of power that comes out of the Australian grid,” he said.
“The more renewable energy infrastructure you build the more the price comes down because you’ve got an economy of scale so this is irreversible.
“Miners want to make the money before they run out of time so that’s why there’s a mad rush.
“Their claims exaggerate the benefits and ignore many of the costs, it’s the industry’s last gasp and it’s driven by desperation.”
Senior management of Whitehaven, the major shareholder of the Maules Creek Coal Mine, have dismissed claims that the future of fossil fuels is uncertain.
At the mine’s official opening earlier this week, Whitehaven CEO and Managing Director, Paul Flynn, explained why coal would remain a global necessity.
“Coal remains the cheapest and lowest risk form of energy, it has enriched Western nations but there are still 750 million people in Africa who don’t have access to power, so coal will help give them access,” he said.
“The future of coal is bright and it’s about using cleaner coal, exactly like what we have here at Maules Creek.”
Thermal coal mined so far at Maules Creek is testing only 7 percent ash, which makes it among the cleanest coal in the world.
While the product is high quality, coal prices in general have hit a five year low and Whitehaven recently posted a first half loss of $79 million.
Mr Flynn argues cost savings and structural changes will enable the company to ride out the coal slump.
Whitehaven senior management also took the opportunity at the official opening to thank the NSW Premier Mike Baird for government support of the development.
“It’s nice to see the investment coming to fruition for the benefit of all, and such an extraordinary achievement in a short space of time,” Paul Flynn said.
“It’s a herculean effort and Maules Creek is changing our company before our very eyes, 359 days after clearing began we have started shipping coal.”
The mine has so far been built under budget and three months ahead of schedule.
Just one year on from final approvals, the developement is 90% complete according to Whitehaven, with further clearing of the Leard State Forest due to begin on February 15 and a coal washing facility due to be completed mid year.
Management predict the mine will provide 450 jobs at full production, most based locally, with $680 million in wages circulating through the towns.
While the Premier and Whitehaven senior management maintain that activities at the mine are transparent and within the law, there are members of the community who remain unimpressed by government decisions and the conduct of the company.
Boggabri farmer Sally Hunter, originally from Roma at the heart of the mining boom in Queensland, continues to campaign against mining in the region.
“What we’ve seen in the case of the Maules Creek mine is blatant disregard for independent science, community and cultural issues, and a highly questionable approvals process leading to snap decisions by politicians,” she said.
“These are the people and processes that are supposed to protect us, but we are starting to understand that we can’t rely on them to protect us anymore.
“What we’re told locally, what investors are told, what governments are told and what company staff are told can be totally different and change rapidly.
“The government is often compromised by financial incentives that mean they’re not always putting the community, health and environmental interests first.
“These companies are driven solely by the desire to generate profits to satisfy shareholders and unfortunately the government struggles to remain independent and uphold the rights of people and the environment.”
The forum resolved to change the political landscape by voting differently at the upcoming state election, and to remain educated about the mining industry.
“Education is the most critical way of maintaining our rights,” she said.
“We struggle not to be alarmists but to inform people of what the risks are and what has happened in other places.
“By being informed about health, economic and environmental issues we can begin to work out what we can do to protect our families, communities, resources and assets into the future.”
The community forum also heard presentations from local politicians, health experts and representatives of the local indigenous community, who all expressed concerns around the social, economic and environmental impacts of the industry.