In breaking news, the NSW Land and Environment Court has handed down its decision on the Warkworth Coal Project, overturning approval given by NSW state regulatory agencies.  The project will not go ahead.

The mine, owned by Rio Tinto subsidiary Coal and Allied, had applied to extend its operations through environmental offsets, endangered ecological communities, agricultural land and close to the village of Bulga.  The project was approved by the NSW planning department, but contested by local community group, the Bulga Milbrodale Progress Association.  Rod Campbell from Economists at Large appeared as an expert witness for the Association in the case last year.

This is the first time a coal project has been contested on economic grounds, along with environmental and social concerns.  Chief Judge Preston found:

I am not satisfied that the economic analyses provided on behalf of Warkworth support the conclusion urged by both Warkworth and the Minister, namely that the economic benefits of the project outweigh the enviornmental, social and other costs. (para 451)

Rod’s evidence focused on the Benefit Cost Analysis (BCA) and choice modelling study, contesting their accuracy and usefulness in decision making around the project.  CJ Preston found:

The BCA, and the Choice Modelling on which the BCA depends, are also deficient. They do not consider all of the relevant matters that need to be considered by an approval authority in determining a project application, the relevant matters at the level of particularity required, or in accordance with the factual findings and inferences I have made in relation to the relevant matters. (para 452)

The judgement is 170 pages long (full judgement available here).  We are still digesting it and the early afternoon champagne it just inspired!  Updates over the next few days.

Congratulations to the Bulga Milbroughdale Progress Association, all the team at EDONSW, barrister Robert White and other people involved especially Richard Denniss and John Quiggin who also appeared as economic expert witnesses.