Anglo American loses battle with John Magnier over coal mine

Anglo American has lost its battle with Irish billionaire John Magnier and Dubai’s ruler over the firm’s attempts to expand an Australian coal mine near their stud farms.

The decision by New South Wales planning authorities on Friday ends a four-year battle with Mr Magnier and Dubai’s ruler Sheikh Mohammed bin Rashid al-Maktoum, owners of the nearby Coolmore and Darley horse studs, two of Australia’s biggest thoroughbred businesses

It means Anglo will have to close its existing Drayton mine in the state.

“The mining and thoroughbred land uses are vastly different and are not compatible in close proximity,” said the review, which warned of catastrophic consequences for the bloodstock industry if the studs chose to relocate abroad.

However, the commission stressed it had no ideological objection to coal mines noting it was simultaneously granting an extension of a coal mine operated by Rio Tinto in the region.

The move is regarded, however, as a reflection of growing community concern about pollution and global warming in the world’s second biggest coal exporter. It is also a poignant symbol of the troubles facing an industry battling slumping prices, weak demand and calls for a moratorium on new mines to tackle global warming.

“This is the worst possible outcome for our workers,” said Séamus French, Anglo American coal chief executive. “In this case, unfounded claims and threats from two horse studs have trumped social and economic benefits.”

The Financial Times Limited 2015