Mount Pleasant open-cut mine: Expansion project stalled in 'groundbreaking' climate decision

A controversial coal mine expansion has hit a stumbling block after a court found possible climate change harms had not been fully considered, a ruling that could have implications for other fossil fuel projects.

A community environment group from the NSW Hunter region successfully challenged an Independent Planning Commission decision to allow the expansion of the Mount Pleasant open-cut mine, near Muswellbrook.

Operator MACH Energy applied to deepen the mine and double its output, extending its life for 22 years to enable the extraction of an additional 406 megatonnes of coal.

The commission consented to the expansion in September 2022 and a judicial review brought by the community group was dismissed by the Land and Environment Court two years later.

Denman Aberdeen Muswellbrook Scone Healthy Environment Group took its fight to the Court of Appeal, arguing the environment court had erred and the commission failed to consider the likely climate effects in the region.

The Court of Appeal on Thursday found the commission had accepted the project’s emissions would contribute to global climate change, but there was nothing in its reasons to indicate it had considered the local impacts.

The commission’s consent referred to Australia’s obligations under the Paris Agreement, noting that the mine’s emissions would be “accounted for” in the countries where the coal was burnt.

“The commission’s obligation to consider the likely impacts of the development on the natural and built environment in the locality of the mine ... required it to address the potentially adverse effects of climate change in the locality,” the judgment said.

“This obligation could not be discharged by general references to the effects of global warming on the planet generally.”

Environmental lawyer Elaine Johnson, the director of the firm that represented the community group, said the court’s decision was groundbreaking.

“The NSW Court of Appeal has just confirmed that the local impacts of climate change on communities are a direct consequence of continued fossil fuel production in NSW,” Ms Johnson said in a statement.

“From today, climate harm must be specifically considered when deciding proposals for fossil fuel expansions.”

NSW Greens MP Sue Higginson also said it was a significant legal breakthrough.

“With this decision, the government must now reckon with the fact that they have a responsibility to the whole planet when it comes to allowing more coal to be dug up and burnt,” Ms Higginson said.

“The status quo of setting emissions reduction targets domestically and then exporting the climate crisis is now broken with this decision.”

The case will be returned to the Land and Environment Court to consider and MACH Energy was ordered to pay the costs of the appeal.

The company was contacted for comment.