The NSW Minerals Council can’t imagine a future without coal

Dan Gocher
LobbyWatch
Published in
6 min readSep 27, 2019

On 18 September, the NSW Independent Planning Commission (IPC) rejected a new thermal coal mine planned for the Bylong Valley by Korean company KEPCO. In its statement of reasons for the decision, the IPC cited “problematic” carbon emissions, and the impact the mine would have on “intergenerational equity”:

“The project is not in the public interest because it is contrary to the principles of ESD [ecologically sustainable development] — namely intergenerational equity because the predicted economic benefits would accrue to the present generation but the long-term environmental, heritage and agricultural costs will be borne by the future generations”.

The rejection of the Bylong Valley coal mine followed a ruling against the Rocky Hill coal mine earlier this year in the Land and Environment Court. Needless to say, the coal mining industry is reeling.

Coal mining in NSW is big business — NSW exported more than 164 million tonnes of coal in 2018. And as you’d expect, the coal industry, represented in NSW by the NSW Minerals Council, are well-funded, aggressive lobbyists.

The NSW Minerals Council is the peak mining body in NSW, representing the vast majority of coal mining companies and their service providers. Its largest members include global giants BHP, Glencore, Peabody Energy and South32 as well as local players Centennial Coal, New Hope Group and Whitehaven Coal.

Stephen Galilee and 2GB’s Chris Smith, during the NSW state election (credit: 2GB)

Stephen Galilee, the CEO of the NSW Minerals Council and former Chief of Staff to NSW Treasurer Mike Baird, provided a fairly predictable response to the Bylong Valley decision:

“This is an absurd and dangerous economic approach that risks making NSW an international investment laughing stock, losing investment and jobs due to uncertainty on who sets planning policy in NSW — faceless bureaucrats or elected representatives?” SMH — 18 Sep 2019

In a media statement, the NSW Minerals Council called the IPC “faceless”, “unelected and unaccountable”.

Galilee didn’t stop there. He engaged in what can only be described as a “full court press”, making multiple media appearances within hours of the decision. He told ABC radio:

“It’s a very disappointing ruling and it raises a question in relation to the future of the NSW economy… the NSW government needs to answer the question here, of who is running the NSW economy, is it the courts and the bureaucrats in NSW, or will the elected government of the day step up and ensure that the NSW economy has a future”. ABC — 18 Sep 2019

The next day, Galilee was interviewed on 2GB — the network that broadcast from an underground coal mine in the lead up to the NSW state election — to further criticise the decision:

“The government need to take control of the planning system or our economy is going to be completely stuffed”. 2GB — 19 Sep 2019

That night, Galilee appeared on Channel 7 News to tell NSW Planning Minister Rob Stokes that he should:

“spend less time enjoying the sea breezes of his Pittwater electorate, and more time out in regional NSW”. 7News — 19 Sep 2019

On 23 September, just five days after the IPC decision on the Bylong coal mine, the NSW Minerals Council launched an advertising campaign targeting the IPC and NSW Planning Minister Rob Stokes. According to the NSW Minerals Council, the campaign will run in print, on radio and online. News of the campaign was duly covered by the The Australian, The Daily Telegraph, The Newcastle Herald and The Mudgee Guardian. Galilee was also interviewed by Channel 7 News and Sky News about the campaign.

On Sky News, Galilee was asked about the “hysteria that Greta Thunberg is preaching at the UN”, to which he replied:

“There are calmer heads that are prevailing on some of these issues, but we do see these breakouts from time to time and it can be quite disturbing to see that footage that you showed earlier of that young lady [Greta Thunberg] is very concerning, to see the level of emotion, the lack of logic, and the platform and the audience as well. Let’s hope that in the months ahead, we can see a far more logical approach to these issues.”

As NSW voters have seen time and time again, The Daily Telegraph was quick to join the campaign. The Tele attacked Planning Minister Rob Stokes, North Shore “greenies”, members of the IPC and published an editorial which could have been written by the NSW Minerals Council.

The NSW Minerals Council advertising campaign, paid for by BHP & South32

Stephen Galilee also wrote an opinion piece for The Daily Telegraph, in which he attacked the IPC for daring to consider climate change in its review:

“It’s an agenda that appears more focused on appeasing the Land and Environment Court, the Environmental Defender’s Office and professional activists than the best interests of our state and its citizens”. The Daily Telegraph — 25 Sep 2019

According to Reuters, the NSW Minerals Council will be drawing on a multi-million dollar “fighting fund” to push its anti-IPC campaign — a fund which member companies like KEPCO, BHP and South32 contribute to. Reuters also pointed out that:

The launch of the new campaign comes as ethical investors led by the Church of England step up pressure on BHP to divorce itself from funding lobby groups who advocate for policies inconsistent with the Paris Climate Change Agreement.

Reuters was referring to the shareholder resolution filed by ACCR and a group of institutional investors, for consideration at BHP’s upcoming UK and Australian AGMs, calling for suspension of its membership of industry associations that undertake lobbying counter to the goals of the Paris Agreement. Indeed, at the very same time the NSW Minerals Council launched its advertising campaign, BHP was defending its oversight of industry associations to its investors.

In early September, Stephen Galilee wrote an opinion piece for the Newcastle Herald criticising the time taken by the IPC to approve mining projects. In August, Galilee found it “curious” that the IPC approved a coal mine expansion on the condition that the coal could only be exported to countries with a plan to reduce emissions.

Of course, the NSW Minerals Council is no stranger to campaigning. Throughout the NSW state election earlier this year, Stephen Galilee claimed the NSW Minerals Council could “determine who wins”; it warned of “economic chaos” from too much renewable energy; it demanded election candidates commit to the future of the coal industry; and, it distributed anti-Greens party propaganda.

The members of the NSW Minerals Council, including BHP and South32, have the power to influence its advocacy. At the very least, they could insist that there should be no advocacy unless there is consensus on an issue. And yet, the NSW Minerals Council’s toxic record of advocacy continues — proudly paid for by BHP and South32.

On 26 September, just eight days after the IPC handed down its finding on the Bylong Valley coal mine, and just three days after the NSW Minerals Council launched its advertising campaign, it was reported that the NSW Premier and senior ministers are “discussing how to regulate when Scope 3 emissions are factored into mine approvals”. One of those ministers is Deputy Premier John Barilaro, who said in June that “coal and mining is a big part of our future”.

This is how easily governments are manipulated by lobby groups, not just in NSW, but Australia wide.

The most useful thing you can do about this, is to contact your super fund and urge them to support ACCR’s shareholder resolution at BHP.

NB: This article was updated on 28 September to reflect news about the NSW government’s review of planning, and Stephen Galilee’s comments on Sky News.

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