The Drayton mine and Drayton South project will change hands under a deal between Anglo American and Malabar Coal.
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Owner Anglo American announced it ha struck a deal with Malabar Coal to sell its 88.17 per cent stake in the Hunter’s Drayton thermal coal mine plus the Drayton South project in a bundle.
Anglo American said the sale was contingent on several conditions and the terms were confidential.
Malabar Coal already owns the Spur Hill underground coking coal mine near Denman.
Anglo American chief executive Mark Cutifani said the Malabar agreement “marks further progress as we focus our global portfolio around our largest and most competitive assets.”
Anglo American stopped mining at Drayton last year.
In February the NSW Planning Assessment Commission refused to approve the Drayton South project, the fourth time the PAC refused to let it progress.
The Commission had argued it was “not in the public interest”.
The project had been a flashpoint in land use disputes between miners and the neighbouring thoroughbred industry.
If approved, Anglo American said the project would have employed 500 miners directly to extract almost 75 million tonnes of coal over 15 years.
The Hunter Thoroughbred Breeders’ Association on Friday called for the state government to “avoid another senseless round of mining applications” on the site.
“We cannot operate with any confidence if we are subjected to engless mining applications and a death by a thousand cuts,” Association president Dr Cameron Collins said.
“The NSW government must make its position clear.”