PERTH (miningweekly.com) – The New South Wales Planning Assessment Commission (PAC) has refused diversified major Anglo American’s application to develop the Drayton South mine, claiming it would negatively affect the Coolmore and Dudley horse breeding studs.

The Drayton mine has been in operation since 1983 and produces about five-million tons a year of thermal coal, and although the project currently has mine approval until 2017, Anglo American has said that its coal reserves would run out by 2015.

The expansion project, known as Drayton South, would see operations increase to seven-million tonnes a year, while increasing the mine life by about 21 years.

In December 2013, the PAC conducted a review of the proposed expansion, concluding that the opencut mine should not proceed at the planned scale, or in the location proposed, prompting the miner to revise its mine plan.

The current mine plan, which would increase production to seven-million tonnes a year would also include the development of associated infrastructure such as haul roads, access roads, overburden placements, extending utility services, and two pipelines to the Hunter river.

Anglo American has claimed that Drayton South will deliver A$35-million in state government royalties each year, spend A$70-million with local businesses annually and secure 500 local jobs which will provide peace of mind for the Drayton mine workforce.

However, the PAC this week seemed less than impressed by the economic benefits of the project, saying it must be weighted against not only the potential economic loss of the equine industry if Coolmore and Darley left the region, but also the negative impact on the international reputation of New South Wales and Australia.

“Given the uncertainty that the operation of the proposed mine, if approved, would not negatively impact on the operations of Coolmore and Darley, the commission finds a precautionary approach should be adopted and determines that the application should not be approved as proposed.”

The PAC concluded that the project was not in the public’s interest.