In 2008 the NSW government invited expressions of interest, with an open tender process, for an exploration licence (El7223), which Shenhua was successful in securing against interest from other corporations.
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Contracts were agreed between the government and Shenhua for timeframes, including works, studies and conditions to be carried out and approved before a development consent would be granted.
These agreements were expanded and altered significantly by both NSW and federal governments, but despite this, Shenhua has continued with compliance and has had development consent approved, subject to more than 200 conditions to ensure minimum risk to the environment, especially water, with these conditions endorsed by appointed panels and expert independent scientists.
Since Shenhua secured the exploration licence, they have purchased properties needed for the total mine operation on their own land.
These purchases were at multiple times the current day valuations, and the land titles will be returned to the Australian open market at the conclusion of the mining project.
This project has progressed as others have before it, under democratically elected state governments, except for interference from the federal government.
If the “No Mines” were effected and Shenhua were compelled to leave, their losses for works, purchases and disposal would be more than $1 billion, and the forfeiture of at least $30 billion worth of coal they would rightly believe they had secured for their people.
It would be obvious any nation would be unhappy with a political, rather than a rational, scientific decision, and no doubt China would be enraged by such a contractual betrayal by our governments.
Currently China is our largest trading partner and imports annually approximately 75 per cent of Australia’s raw cotton, three million tonnes of wheat and barley, $1.5 billion of wool (and rising), $250 million of dairy products (and rising), $225 million of wine (and rising),
$2 billion in live cattle expected, and a not insignificant $60 billion plus of minerals and fuels, and this before the pending FTA.
It is highly likely that a “No Mines” scenario would result, not in formal trade sanction or embargoes, but simply “we prefer to purchase our needs elsewhere”.
If this happens, it has the potential to plunge our agricultural industry into the darkest days it has known and seriously trash the national economy.
Diplomacy and trade are interdependent, and essential to the prosperity of agriculture and our nation. It’s two-way give and take.
The xenophobia, erroneous propaganda and hysteria currently being whipped up by a self-promoting politician, a former self- promoting politician, a few landholders, a “shock jock” entertainer and professional protesters, has the potential to finish in tears.
I remind them of the old proverb: “be careful what you wish for, it may come true”.