FARMERS trying to block BHP Billiton from exploring for coal in some of the most fertile land in NSW have lost the latest leg in their legal battle, but have promised to keep challenging.
The NSW Land and Environment Court yesterday dismissed proceedings brought by farmers from Caroona, from the Liverpool Plains.
The Caroona Coal Action Group (CCAG) said the Government had failed to follow due process when it issued BHP's exploration licence, but the court ruled against the farmers.
Chief Justice Brian Preston found no grounds for ruling the licence was invalid, but stressed the court was not judging whether the licences should have been granted in the first place.
The decision comes after blockades by the farmers, who fear that developing the coalfields could damage aquifers that are critical to their livelihood. Despite the setback they say the fight has further to run.
CCAG spokesman, Timothy Duddy, would not rule out a further challenge in the Court of Appeal. ''We are not about to roll over just yet,'' he said.
Mr Duddy said governments were cutting corners with approvals because of the lure of mining royalties. BHP paid $100 million for the permit in 2006, setting a record, while the Chinese-owned Shenhua paid $300 million for another licence in the area. A year earlier, the licences were estimated to be worth about $10 million each.
''They are turning a blind eye to the proper processes and they are turning a blind eye to the laws that they created,'' Mr Duddy said. ''It would be a very brave court that ruled in our favour in this business, when so much of the state relies on the proceeds of mineral exploration.''
Federal Greens leader, Bob Brown, has responded to the news saying Environment Minister, Peter Garrett, should intervene immediately to protect the rich farming land of the Liverpool Plains.
"The Minister has the power and the responsibility to protect farms and ensure underground water supplies for the plains are safe," Senator Brown said.
"The Land and Environment Court decision to allow mining exploration by BHP Billiton is another blow to the local farming community who are battling valiantly to protect their environment and livelihoods now and for future generations."
The case is being watched closely because of its potential implications for other mining deals. Because of the commodities boom, it is one of a growing number of clashes between farmers and resources companies.
Miners and energy companies have the right to explore for resources on private land under the Mining Act, but the intrusion and environmental damage has sparked similar protests in other areas, including Queensland's coalfields.
After an inquiry into the impact of mining in the Murray Darling Basin, a Senate committee last month called on state governments to conduct regional water plans before releasing more permits.
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