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In a significant win for environmental advocacy and community action, the New South Wales Court of Appeal has overturned the approval for MACH Energy's proposed expansion of the Mount Pleasant coal mine near Muswellbrook.

The landmark decision, delivered yesterday, comes after a persistent legal battle waged by the Denman Aberdeen Muswellbrook Scone Healthy Environment Group (DAMSHEG).

The ruling is a significant blow to MACH Energy’s plans, which sought to extend the mine’s operations from 2026 to 2048 and significantly increase coal extraction. The expansion would have extracted an additional 247 million tonnes of coal, with profound implications for greenhouse gas emissions.

DAMSHEG’s challenge focused on the Independent Planning Commission’s (IPC) alleged failure to adequately consider the expansion’s climate impacts, particularly “Scope 3 emissions”—the greenhouse gases released when exported coal is burned overseas. While the IPC had previously noted that these emissions would be “accounted for” in the countries where the coal was burned, the Court of Appeal found this insufficient.

Justice Julie Ward, in her ruling, highlighted a fundamental flaw in the IPC’s assessment methodology, stating that the commission’s obligation to consider the likely impacts of the development on the natural and built environment in the locality of the mine required it to address the potentially adverse effects of climate change in the area. This obligation, the judgment stated, “could not be discharged by general references to the effects of global warming on the planet generally.”

This decision sets a crucial precedent for future fossil fuel projects in NSW, indicating that climate harm, including the impacts of Scope 3 emissions, must be specifically and thoroughly considered in environmental impact assessments.

“We’re just over the moon,” said DAMSHEG president Wendy Wales following the court’s decision. “It’s been a long haul and we know we’re on the right side of history.”

The ruling has also intensified calls for a complete cessation of new coal and gas mine approvals. Richard Denniss, Executive Director of The Australia Institute, weighed in on the decision, noting, “There are two other coal mines that were granted extension by the federal government in the Hunter Valley.”

He added, “While it is welcome news that one may not go ahead, these approvals are inconsistent with Australia’s climate goals and reinforces the country’s reputation as one of the world’s major fossil fuel exporters.”

Denniss also stressed the perceived hypocrisy of approving new coal mines while Australia bids to host COP31, calling it “a slap in the face to our Pacific neighbours, who have clearly and repeatedly requested that Australia stop expanding fossil fuel production.” He further cited the International Court of Justice’s confirmation that states have binding legal obligations under international law to prevent climate harm, concluding, “The science is clear – the best way to do this is to stop approving coal and gas mines.”

The case will return to the Land and Environment Court for further review to determine whether the expansion approval should be permanently reversed.