What a High Court decision on a NSW coal mine could mean for WA gas

A High Court ruling in New South Wales has Western Australia’s energy industry “deeply concerned” about future investment in the resource-rich state. 

The ruling stymied the planned expansion of MACH Energy’s coal mine after it had already been approved by NSW planning authorities in 2022, after three out of five judges ruled in favour of a community group, Denman Aberdeen Muswellbrook Scone Healthy Environment Group (DAMSHEG).

The ruling found the planning authorities were required to take into account the emissions caused by using the coal MACH would export, otherwise known as the project’s scope 3 emissions. 

While the ruling is an interpretation of NSW planning laws, the energy industry is concerned effects could be felt on the other side of the country. 

In WA, Woodside’s $30 billion Browse gas proposal, which would produce more than 11 million tonnes of gas per year, is still being considered by state and federal environmental bodies.

WA government seeks legal advice

WA Treasurer Rita Saffioti said the High Court’s assessment came as a surprise, and said the government was seeking urgent legal advice.

“Everyone was slightly shocked by the decision, [particularly] a state like WA, which continues to develop significant resources to help our trading partners deal with their emissions,” she said.

“I’m no legal expert, but it was made in relation to a planning decision in NSW.

“The question for us is under what guidelines the High Court made their decision, and whether that impacts every state or just the NSW planning framework.”

Ms Saffioti said it was likely the decision would require a federal government response.

“The whole nation will need to look at work we can continue to support resources development,” she said.

Industry concerned

Independent oil and gas consultant Jeanette Roberts said the decision affirmed industry fears of “lawfare”.

“One of the issues that concerns the industry in general is this lawfare of an approval being given, and then an opportunity for it to be challenged, and the approval rescinded,” she said. 

“International investors will come because they believe that there’s certainty and a rule of law and understanding what the rules and ground rules are.

“That certainly swings the pendulum away from that.”

Chamber of Minerals and Energy WA chief executive Aaron Morey said it was “deeply concerning”.

“If we shoot ourselves in the foot and we don’t allow the development of these sorts of projects, then what you’ll find is that new projects will spring up in other countries with lower environmental controls and standards,” Mr Morey said. 

Mr Morey said it was important that everyone took the implications of the decision as seriously as possible.

“Those are the sorts of issues that we need to more deeply understand,” he…