Beyond Profits: Why the Labor-NSW Government should reject Whitehaven Coal’s Gunnedah mine extension

Whitehaven Coal‘s Maules Creek Coal Mine has long been a source of livelihood for some, a point of contention for others and a symbol of the complex relationship between the mining industry and First Nations.

But as Whitehaven Coal pushes forward with its application for the continuation of the mine beyond its original expiry in 2034, a myriad of voices emerge, each vying to be heard in a debate that stretches far beyond the confines of the mine itself.

Because this project’s implications ripple out, touching on issues of environmental stewardship and the rights and well-being of the local Aboriginal population.

And at the heart of this discourse is a question of balance: Can the positive benefits touted by Whitehaven Coal justify the environmental impact and the concerns raised by the Aboriginal community?

Whitehaven’s “Fact Sheet” and Reconciliation Action Plan 2021 – 2024

Whitehaven’s “Maules Creek Continuation Project fact sheet” and “Whitehaven Coal Stretch RAP 2021-2024” documents shed light on contrasting statistics regarding Aboriginal employment at the mine, discrepancies that raise questions about the actual benefits accruing to the community.

And on one hand, Darren Swain, Whitehaven’s General Manager Community Engagement, cites a significant portion of the workforce as being Aboriginal and/or Torres Strait Islander, suggesting a substantial flow of salaries and wages back into local communities.

But on the other hand, the company’s own CEO and Reconciliation Action Plan public state a lower percentage, highlighting a gap between representation and reality.

“Since we launched our inaugural RAP in September 2015, we have achieved significant progress, progressing from an ‘Innovate’ to a ‘Stretch’ RAP. We are extremely proud of the success of our achievements in employment, with about 9% of our workforce identifying as Aboriginal and/or Torres Strait Islander, and an estimated $25m in salaries and wages flowing from our Aboriginal and/or Torres Strait Islander workforce back into local communities in FY21 alone.” – Paul Flynn,Managing Director and CEO Whitehaven Coal, Page 2, Whitehaven Coal Stretch RAP 2021-2024

“Our Aboriginal and Torres Strait Islander workforce self-identify across all of our operations, including Maules Creek Coal. In regard to your question about Maules Creek Coal’s spend with Indigenous business, our procurement team tracks the amount spent with Indigenous owned businesses who self-identify. Accurate details of spend with Indigenous businesses can be found in the Whitehaven Sustainability Report. Wages to Indigenous personnel were $29.2M for FY23.” – Darren Swain General Manager Community Engagement via email correspondence.

And while Whitehaven’s social impact claims sound impressive, the problem with self-identification is, self-identifying…

Because there is no legitimate proof that Whitehaven employees ticking the “are you Indigenous” box are actually Indigenous… which is why Journalists and anyone with half a brain was questioning Westpac’s Indigenous employment figures not too long ago…

But to complicate matters further is the involvement of Wayne Griffiths, a convicted sex offender, in cultural awareness training for Whitehaven staff—a decision that has sparked controversy and cast a bigger shadow over the company’s engagement and impact within the Aboriginal community.

“Our most recent round of (Cultural Awareness) training was conducted in partnership with Greg Griffiths, Traditional Gomeroi Owner and Wayne Griffiths, Elder and Centre Manager of the Winanga-Li Aboriginal Family and Children Centre. Wayne Griffiths spoke to Whitehaven staff about the work of the Winanga- Li in Aboriginal communities across North West NSW and the history of Gambu Ganuurru, an Aboriginal leader in the Gunnedah region in the 18th century. Whitehaven staff also visited some important local sites referenced in the historical account of Gambu Ganuurru.” – page 10, Whitehaven Coal Stretch RAP 2021-2024

This association brings to the forefront questions about the sincerity and efficacy of Whitehaven’s efforts to foster genuine understanding and respect for the local Aboriginal culture and history.

If that wasn’t bad enough, more questions need to be asked about Whitehaven’s company culture, with allegations of racism by their employees which I won’t go into detail because I don’t want to overload the brains of the government beauracrats at NSW Government / NSW Department of Planning, Housing and Infrastructure (NSW Dept of Planning and Environment) but there seems to (also) be a problem there..

But to finish it off, economics.

Economics justify Whitehaven’s operations but many Aboriginal people in the mining area are negatively impacted when it comes to housing and cost of living because the pricing substantially goes up (even though most of us aren’t on mining wages) and it basically makes it impossible to get a house and break the poverty cycle.

So while some people have benefit from Whitehaven and the mines, including Wayne and his family, many Aboriginal have not benefited and have potentially been negatively impacted by the mines operations.

Environmental Concerns vs. Economic Benefits

According to Whitehaven Coal’s documentation, the Maules Creek Coal Mine promises a modest increase in production limits and aims to extend operations to approximately 2045.

This expansion, Whitehaven argues, is crucial for sustaining approximately 800 jobs and continuing the mine’s substantial economic contributions to north-west NSW, including over $200 million annually to local businesses and suppliers, and around $160 million paid in wages to the workforce.

However, these economic advantages come at a significant cost to the environment and First Nations, as discussed.

And critics of the project highlight the potential impact on biodiversity, water hydrology, air qualit, and Aboriginal cultural values.

The project’s Environmental Impact Statement (EIS) is tasked with addressing these concerns, but scepticism remains with environmental activists and local communities who worry about irreversible damage to the land and water resources, questioning whether the economic benefits justify such environmental risks.

A Path Forward

For the Maules Creek Coal Mine Continuation Project to truly benefit all stakeholders, a more transparent and inclusive approach is necessary.

Whitehaven Coal must address the environmental and First Nations concerns with tangible actions and verifiable data, demonstrating a genuine commitment to minimising the project’s ecological footprint.

Similarly, the company must reconcile the discrepancies in its Aboriginal employment statistics and ensure that its initiatives for cultural engagement and employment are both respectful and effective.

And the involvement of the Aboriginal community in decision-making processes is paramount.

As articulated by Karen Mundine, CEO of Reconciliation Australia, Whitehaven’s efforts (Page 3, Reconciliation Action Plan 2021 – 2024) to embed reconciliation commitments offer a pathway to lasting, substantive outcomes for Aboriginal and Torres Strait Islander peoples.

“This Stretch RAP sees Whitehaven continue this impressive trajectory, embedding and expanding its reconciliation commitments in innovative ways. Particularly notable is its intention to set the standard for its industry and show what the mining sector can achieve by contributing to the reconciliation movement… On behalf of Reconciliation Australia, I commend Whitehaven Coal on this Stretch RAP and look forward to following its ongoing reconciliation journey.”

In Summary

The Maules Creek Coal Mine Continuation project’s success will ultimately depend on Whitehaven Coal’s ability to navigate these complex issues transparently and inclusively, ensuring that the benefits extend to all stakeholders, especially the local Aboriginal communities whose land and culture are intrinsically tied to the future of Maules Creek.

Because while Whitehaven’s Application for the continuation of Maules Creek Coal Mine will look pretty and sound good on the surface, and will probably include pretty Aboriginal artwork and dots… And the NSW Government get a lot of tax money from mining royalties.

The local Aboriginal community hasn’t got much to show for it.

And the disparity gaps haven’t gotten better during the 20+ years or so of Whitehaven operating in the area…

So is approving the extension for another 10 years worth it?