THE race to fulfil its coal mining lease requirements has started for coal mining giant Anglo-American, which began approaching Sutton Forest landowners last week to drill on their land.
Anglo-American have until November next year to fulfil the exploratory drilling requirements of the NSW Government issued lease or a $76 million deal with Cockatoo Coal could be in doubt.
Cockatoo Coal is planning a possible coal mine on a 115 million ton deposit of coking coal, used to make steel, but has continually asserted any mine would be years away.
The "Hume project" is one of five leases, worth $580 million, being sold by Anglo to Cockatoo Coal, backed by Korean steel manufacturers POSCO.
Anglo's regional manager for external affairs Aldo Pennini, former chief of staff to former NSW Planning Minister Frank Sartor, has been receiving less than a warm reception from around half a dozen landowners he approached last week.
Southern Highlands Coal Action Group (SHCAG) head Peter Martin said the group was informed immediately about the approaches and all landowners had so far declined Anglo's invitation for a face-to-face meeting.
"The bush telegraph started pretty quickly, which is very encouraging. They are targeting the big landowners so far," Mr Martin said.
Mr Pennini declined to comment on the approaches and said Anglo would make a public statement but wouldn't say when.
One resident on Golden Vale Road, who didn't want to be named and whose family own a large property covering several hundred hectares, said he received a call from Mr Pennini on Thursday.
"It was very interesting. He went through the details and I let him pitch it to me before saying no," he said.
The resident pointed to the giant gas pipeline, which supplies Sydney and Canberra, which runs through the area and he couldn't believe any company would be thinking of building a mine near it.
"Any subsidence would destroy gas supply. I don't think Cockatoo have any idea about it," he said.
While he wouldn't consider letting drillers on his land he said some of his neighbours might consider it.
"In light of the GFC there could be some stressed sellers," he said.
He said he was opposed to any mine in Sutton Forest.
"No one wants to live next to a mine...I'm not against coal mining per say," he said.
A woman who lives on the Illawarra Highway, and also wanted to stay anonymous, said Mr Pennini made his approach sound like the firm had permission from the State Government to come onto her father's property.
She said her family had owned the property for more than 30 years and her father had attended the first SHCAG meeting at Sutton Forest in August.
“I got the whole PR trick and he definitely made it sound like it was the NSW Government not a mining company,” she said.
“It’s going to destroy the environment.
“How can they promise what happened in New Zealand won’t happen here?”
The woman said it was time to look at other sources of energy.
“We should start finding re-usable resources. There should be more push from the government for solar and wind power. Local councils should also come on board,” she said.
Goulburn MP Pru Goward said if Anglo couldn’t drill they could have problems selling the lease.
She said if landowners weren’t willing to co-operate Anglo might try to buy land of its own to drill on, she said.
“Cockatoo are negotiating with the State Government to see if they can do the drilling for Anglo,” Ms Goward said.
“If Anglo can’t fulfil the lease it reverts back to the government who would then sell it to Cockatoo.”
Ms Goward said she spoke to Cockatoo Coal chairman Norm Seckold a few weeks ago and the two companies were “very worried” about missing an opportunity.
“Coking coal is at an all time high of US$200 a ton,” she said.
The effect a possible longwall mine might have on water catchments and aquifers was front and centre of the Coalition’s concerns.
“They can’t bluff people about aquifers,” she said.
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