OREANDA-NEWS. UK-South African mining firm Anglo American's plans to expand the Drayton South thermal coal mine in the Hunter valley region of New South Wales (NSW) has been approved by the NSW planning and environment department.

Anglo American plans to expand the mine to 6.4mn t/yr from around 3mn t/yr currently. Its plan to expand to 8mn t/yr was rejected by the NSW government last year. This will extend the life of the mine by 15 years instead of the original 27 years. The current mine licence expires in 2017.

The department's assessment has found that the project will be able to comply with the relevant air, noise and blasting criteria at the nearby Coolmore and Woodlands studs, Anglo American said in response to opposition to the mine expansion by horse breeders.

The decision comes as Anglo American is trying to find buyers for its thermal and coking coal mines in Australia. It is looking for buyers for its 70pc stake in the 2mn t/yr Foxleigh pulverised coal injection grade mine, its 51pc stake in the 4.2mn t/yr Dawson coking and thermal coal mine and its 8mn t/yr Callide thermal coal mine.

The extension of Drayton South is one of several coal projects that have met with community opposition. Sectors such as horse breeding and vineyards complain that their industries are being affected by the continuous expansion of NSW's thermal coal mines.

The 10mn t/yr Watermark thermal coal mine project operated by China's state-controlled Shenhua has also met with community opposition. This is led by farmers, as the Watermark coal deposit is on the Liverpool Plains that is one of the richest farming areas in Australia.

The development of the vast Galilee basin coal deposits in Queensland is being opposed by environmental groups. They cite the impact that increased shipping movements will have on the Great Barrier Reef and from the projects' increased greenhouse gas emissions.