Coal prospects hard for wine regions to swallow

Plans to mine parts of the Western Australia’s beautiful Margaret River prompted outrage among locals, politicians and the rich and famous.

Adventurer Michael Palin released YouTube video asking “who in their right minds” would mine Margaret River, and comedian Ben Elton has ridiculed the planned Vasse underground coal project. Actor Hugh Jackman proclaims the region is his favourite holiday destination in the world.

The coast, which is about 300 kilometres south of Perth, has world-class surf beaches, million-dollar mansions, upscale restaurants and some of the most important vineyards in Australia. From Christmas to Easter the entire south-west region is a low-key millionaire’s playground.

Two action groups, the No COALition, which fights coal projects, and SOS Margaret River, aim to quarantine the region from oil and gas development, quickly formed at the first sniff of interest from the resources industry.

In March mining outfit LD Operations planned for further studies for its proposed Vasse Coal Project, a huge underground mine just 15 kilometres from the town of Margaret River, was given a resounding no by the Environment Protection Authority.  Residents were concerned that groundwater could be contaminated and the area’s prestigious reputation as a holiday hotspot would be diminished.

That combined with powerful and relentless lobby groups and the area’s iconic status prompted resources-loving WA Premier Colin Barnett to declare Margaret River as a mining no-go zone.

Then in May, Barnett was reported to tell a Perth business lunch that he was prepared “to act” to block Vasse Coal Project.

“I don’t know how [LD’s appeal] will pan out, but at the end of the day it is up to the elected governments to make decisions, and it would take a powerful argument to convince me that we should place at risk the standing of the Margaret River,” he told the lunch.

Now the EPA has received close to 800 individual comments across 30 issues relating to the Vasse Coal Project. LD Operation’s appeal is with EPA conveners and a decision is expected within about two months.

LD Operations managing director Peter Ross has concerns about the validity of the EPA’s decision.

“We are currently going through the appeals process against what we believe was a premature decision by the EPA. Part of our concern with that decision was that it prevented a full environmental, social and economic assessment of what the impacts – positive or requiring management – of this project may be,” Ross says.

State opposition spokeswoman on the environment Sally Talbot says a local strategy needs to be developed to protect the unique qualities of the Margaret River.

“We did a similar thing for the Swan Valley some years ago and the same needs to be done in the south-west. Planning Minister Bill Marmion has had the EPA’s report for months and not made a single comment. It is incumbent upon him to state the government’s position on this,” Talbot says.

In New South Wales the same issue hangs over the wine-producing Hunter Valley. Barry O’Farrell’s government promised tough new restrictions to be placed on mining with favour falling to landowners.

Hunter Valley winemaker and activist Andrew Margan says that between a population boom and coal seam gas exploration vineyards have come under serious threat.

“AGL completed its first stage of exploration in Broke, and I am right in the middle of it and lobbying the state government,” Margan says.

He wants the government to give priority to agriculture over other interests.

“Barry O’Farrell says his government will recognise the primacy of agriculture throughout NSW. We are very happy with that, but we are watching closely and want promises to be made into reality,” he says.

In Queensland a year ago the Surat Basin Future Direction Statement was created to maintain a balance between economic benefits and quality of life. The statement polarised landholder rights, the protection of the environment and maintaining a good quality of life in a region under pressure from billion-dollar energy interests.

Meanwhile, in France, where vineyards are proudly protected by law, a group of wine growers in the depressed north are remediating defunct coalmines for viticulture. About 3,000 chardonnay vines have been planted on spoil heaps of Pas-de-Calais overlooking the village of Haillicourt.

Leading the project is engineer Olivier Pucek, who was born "at the foot of a spoil heap" but moved away and now runs his own hobby vineyard in Charentes.

He pulled together a group of winemaking friends to put down €24,000 and with some financial support from Haillicourt, hopes to create a new palatable vin blanc named Carbonnay.