Global miners praised for JV plans to create new super pit at Warkworth

Singleton Business Chamber has praised the initiative of global miners Glencore and Peabody Energy for their proposed United-Wambo open cut mine at Warkworth.

Glencore's mothballed United Collieries lease will be combined with Peabody's Wambo open cut for the JV operation, using existing infrastructure.

The miners' union, which is a shareholder in United, backs the move because it will provide continuity of employment for mineworkers.

Mr Ryan Fitzpatrick, Chamber president, said that reactivating the United mine sends a positive message amid the gloom of the current industry downturn.

Mr Fitzpatrick said that "I think it's great to have such a big mining house, like Glencore, involved and Peabody. It's giving some confidence that the market hasn't finished and they're look at different ways to encourage the market, their businesses.”

He said that "Talking to Glencore and Rio Tinto and all these mining houses, they are looking at what are the impacts on the community and what can we do."

He added that the proposal gives Singleton reason for optimism.

Mr Fitzpatrick said that "Not only a vote of confidence for the Singleton shire, but a vote of confidence from the mining houses on the market returning. I'd like to see the government come in and support these guys and possibly bringing it in earlier. It shouldn't take them too long to get it up and running, and just getting back on with business.”

He said that "It gives some positivity to the community who have been suffering for the last two years."

Environmentalists fear Hunter communities will be worse off after the two coal mines are merged into what they have dubbed a super-pit.

Mr Steve Phillips, Hunter co-ordinator of the anti-mining Lock the Gate Alliance, said that it is a sign of desperation by the miners.

Mr Phillips said that "We view this as another example of a mining companies scrambling desperately to salvage profits from an industry that's on its way out. These are global mining companies who don't give a damn about the people of the Hunter and it shows in their decision-making."

He said that he wants strict mine rehabilitation conditions on the project because of the existing exposed overburden in the Warkworth area.

He added that "They could make more jobs through rehabilitating the existing mess of that site than expanding their mine and putting a few more people on that way."

He further added that "It just shows again, for all the talk of the coal companies in the Hunter being all about communities and jobs, when push comes to shove, they will make decisions that look after their bottom line, and they really don't care much about anybody else."