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NEWCASTLE University has defended its long-term relationship with the corrupted Doyles Creek Mine project including a lucrative $1million ‘‘philanthropic agreement’’ between the two organisations.
The university outraged mine opponents yesterday by saying two 2009 agreements, which gave it $1million from mine backers and another $1million from the then Department of Primary Industries, were ‘‘philanthropic’’ and signed with the ‘‘clear intent’’ of building ‘‘excellence in education and research’’.
‘‘It wasn’t a philanthropic agreement. The university was bought off,’’ said Appletree Flat resident Craig Chapman whose family property, owned since 1913, was within the Doyles Creek Mine area.
Mr Chapman mounted a sustained campaign challenging the university about its association with the mine project.
‘‘Philanthropy suggests that somebody is doing something out of the goodness of their own heart, and it doesn’t apply in this case,’’ he said.
‘‘There was a clear conflict for the university because under the agreement the money – $250,000 a year from the mine – stopped if the exploration licence was terminated.
‘‘That’s 250,000 reasons per year not to listen to people like me who were saying for a long time that the whole thing stank.’’
The Independent Commission Against Corruption found a September 2007 letter of support from Newcastle University to Doyles Creek Mine backers was used, with similar letters, as a ‘‘political shield’’ to help disgraced former NSW minister Ian Macdonald protect himself from the inevitable criticism flowing from the Doyles Creek Mine exploration licence approval.
‘‘It’s pretty clear from evidence to the inquiry that the university’s name was used as a means of making the dodgy mine venture look somehow kosher,’’ Mr Chapman said.
In evidence to the commission a university representative agreed a line in the 2007 letter supporting ‘‘training opportunities’’ outside the university sector could have been included at the request of Doyles Creek Mine backer, and Ian Macdonald mate, John Maitland.
The university established the Institute for Frontier Geoscience with the Doyles Creek and department money.
In a statement yesterday it said it received its final funding contribution from Doyles Creek Mine owner NuCoal in June 2012, and had received $2million from the mine and the department.
About 40 students participated in three short postgraduate courses offered by the institute in 2013.
The university had sufficient funds to honour commitments to five students receiving scholarship funds through the institute, and would continue despite an end to the Doyles Creek Mine funds.
Mr Chapman said the university’s reputation had suffered because of its association with Doyles Creek Mine.
‘‘The benefit to the university was money, and the benefit to Doyles Creek Mine was the university’s credibility,’’ he said.