The Pros And Cons Of Shenhua Coal Mining

The proposed Shenhua Coal Mine will fulfill sufficient economic benefits as a interim solution to coal demands in global resource commodity markets, however, the declining value of coal on a global scale contributes to the mine’s inability to be a stable and efficient asset. This is accelerated by its intrusions on other abundant and durable Australian industries, and its generation of further indirect costs through social and cultural consequences.

The proposed Shenhua Coal Mine will fulfill sufficient economic benefits on a temporary scale, yet its detrimental impacts on other major industries will degrade long-term economic sustainability. The open-cut Shenhua Coal Mine, devised for the Liverpool Plains of NSW, was granted in 2008 at the

The major setback of the Shenhua Coal Mine is its intrusion of the prime agricultural lands of the Liverpool Plains, stretching 35 square kilometres with three large extraction pits. The Liverpool Plains is considered the “food bowl of Australia,” quoted by NSW Opposition leader Luke Foley. The Plains, rich with alluvial black soil, are major grounds for cropping, grazing and farming. The depth and extensive interference of the pits with the underground irrigation systems poses a detrimental issue, causing instability to the water table and damaging aquifers. These water systems are crucial to the agricultural activities of the Plains, limiting and contaminating water resources. With a decrease in both the quality and quantity of agricultural produce, the agricultural industry will decline, which represents one of Australia’s top exports with wheat holding 13.4% share of agricultural exports in 2014. Additionally, the mine will have detrimental repercussions for the tourism industry, another of Australia’s significant assets. The impacts on both the geosphere and atmosphere (ground destruction and air pollution) threaten tourism’s 5.3% contribution to GDP in 2012, a larger percentage than that of coal mining. The Gunnedah district houses the largest inland population of koalas in NSW, a tourist asset and population diminished due to the clearing of 847 ha. Moreover, the data provided by Shenhua Cost Analysis Results provides that 29 Indigenous archaeological sites will be ‘directly impacted’. This presents cultural violations and possible financial land right implications. Additionally, the mine carries potential social health costs. The Shenhua Mine will impose degrading air quality in surrounding towns such a Gunnedah, causing flow-on expenses for healthcare funds and treatment costs. Although the Shenhua Mine