Mining industry accused of dividing Hunter Valley communities

A group opposed to the expansion of Rio Tinto's Warkworth coal mine in the Hunter Valley says the mining industry is attempting to buy community support.

The Bulga Milbrodale Progress Association' John Krey, is also accusing coal companies of dividing communities by offering some landholders acquisition deals but not others.

A Court of Appeal hearing starts in Sydney tomorrow, with Rio Tinto and the state government seeking to overturn a Land and Environment Court decision to refuse the mine extension.

Mr Krey says the threat of mass layoffs, should the mine expansion not go ahead, is fuelling ill-will in the region against opponents of the mine.

"The miners talk often about what they're contributing to the community in the way of these school projects, they support football teams and whatever," he said.

"(They) use that as justification for their continuation but as the Judge of the Land and Environment court said that does not offset the damage which is being caused by an open cut mining company."

Mr Krey, says over 20 homes in the town were initially under an acquisition offer when the Warkworth mine extension was due to go ahead.

When the Land and Environment Court overturned the company's approval to mine, the offer was revoked and Rio Tinto began warning of mass job losses.

Mr Krey says it has caused serious divisions in the community.

"There is this divide, not caused by us, but I believe it's caused by the mining industry.

"This is a full scale onslaught against villages such as ours.

"We're being accused of being activists, greenies, and whatever, and we're not, we're simply a progress association that is protecting our village."

A former corporate lawyer appointed by Singleton Council to negotiate a royalties deal on its behalf for the Warkworth mine, Rod McGeoch, has also weighed into the debate on the Warkworth mine.

Best known for having led the bid for the Sydney Olympics, Mr McGeoch says he cannot understand why the New South Wales government appears to be using the mine as justification to change planning laws.

"I think it's very unfortunate that the first time out under the potential force of the new SEPP (State Environmental Planning Policy) it happens to point at Warkworth," he said.

"It's a bad case to allow the force of the new SEPP to be applied to in my view, because that deed is an instrument the government signed itself and so did the mining company."

A self-professed supporter of coal seam gas and mining, he says the NSW Government is showing no signs of wanting to make planning laws fairer.

"All the new SEPP is doing is actually re-stating how the government has behaved in the past and that is that this is the primary matter to be considered ie: the economic benefit arising out of mining and I get that.

"My point is you can still do much much better and there's no sign that they want to do it that way."