PERTH (miningweekly.com) – Diversified miner Anglo American’s new mine plan for the Drayton mine extension project would wipe away A$7-billion of coal revenue, and would reduce the life of the operation from 27 years to 15 years.

The expected total tonnage from the mine has been reduced from a projected 189-million tonnes to only 75-million tonnes.

The major was currently developing the new mine plan for the Drayton mine extension, dubbed Drayton South, to incorporate objections by the New South Wales Planning Assessment Commission (PAC).

The PAC has twice refused Anglo American’s application to expand the Drayton operation, stating in its October assessment that the development would negatively affect horse breeding operations.

“Anglo American will develop a new project to provide employment and operational continuity for the Drayton workforce, address the PAC’s October 2014 report, and deliver world-class environmental management practices around rehabilitation, noise, dust, visual amenity, proximity to neighbours and equine health,” said the company’s coal CEO, Seamus French.

Under the new plan, the Drayton South project had been reduced to the Blakefield and Whynot pits, which would provide a buffer between the operation and the affected equine operations.

However, French noted that the new plan would wipe away A$360-million in state royalties, as well as significant wages and other benefits to suppliers and the local community.

“As we make these further compromises, it is time for fair assessment that takes the broader community, economy, local business impacts and declining employment options into consideration,” French said.

“Anglo American believes the projected A$900-million in annual regional economic benefits to the Hunter Valley and to the state of New South Wales has been ignored by the PAC up until this point, and immediate action is required to save the jobs of our workforce.”

French pointed out that with the concessions made to date, the people of New South Wales were now essentially subsidising the two horse stud operations, which did not pay any taxes.

“This is not about Anglo American. It is the people of New South Wales who miss out on the significant community and state benefits that have been foregone to appease the two horse studs.”

The new mine plan would be subject to the usual environmental impact statement process, with the papers reportedly already lodged with the state government.