Clarity for the future of coal in NSW

Statement attributable to NSW Minerals Council CEO Stephen Galilee

The NSW Government’s ‘NSW Coal Industry 2026-50’ Strategy outlines a generally balanced approach which should provide clarity for the future of coal mining in NSW.

Importantly, the Strategy’s strong support for extensions to existing coal mines is very positive.

This policy intent will be welcomed by thousands of coal mining workers in mining communities across NSW reliant on coal mining operations for their livelihoods.

The NSW Government’s commitment that ‘Planning authorities will continue to consider proposals for extensions in light of their economic benefits, including supporting industry job security’ (p7) is recognition of the importance of existing coal mining operations for coal mining workers, mining communities and the NSW economy.

Some NSW coal mines will close in the years ahead. Others are seeking planning approvals to continue operating for longer into the future. With around 8,000 people working at mines currently seeking extensions, those approvals are critical to protect these jobs, and the ongoing economic contribution of those operations more broadly.

Supporting extensions will also help maintain the coal production needed for our own energy needs and the energy needs of our key coal export partners into the future.

The Statement’s intention that “…coal will continue to play an important part in supporting regional jobs, investment and communities.” (p7) is welcome, as is the NSW Government’s commitment in the Statement for NSW to “…continue to supply high-quality thermal coal and metallurgical coal to our trading partners, ensuring producers continue to honour their export commitments…”(p15)

However, the decision to no longer support potential new coal mines is disappointing.

While there have not been any new coal mines proposed through the NSW planning system for several years, the decision to no longer support new mines places an artificial limit on future economic opportunities for NSW and our trading partners.

The updated Strategy follows several years of substantial policy and regulatory change.

This has included introduction of the Commonwealth’s ‘Safeguard Mechanism’, the NSW Climate Change Act, and the NSW EPA’s Climate Change Action Plan.

The Statement’s commitment that the coal sector ‘…should not be expected to commit to deeper reductions than other sectors of the economy, or anything that is not technically feasible’ (p16) is welcome, particularly given Commonwealth greenhouse accounting shows since 2005 the NSW coal sector has reduced its emissions by 28% – faster than the 25% average emissions reduction achieved across the state over the same period.

With 95% of the industry’s emissions also covered by the ‘Safeguard Mechanism’, the NSW Government’s own modelling shows the NSW coal industry is on track to reduce its net emissions by 50% by 2030 and to net zero by 2050.

In this regard, the Statement’s commitment that ‘...abatement technology and initiatives by mine operators may be complemented by the use of offsets where abatement is not feasible’ (p19) recognises that while the industry’s emissions reductions efforts prioritise abatement where possible, offsets must remain an important option when needed.

ENDS

Brad Emery | NSW Minerals Council | bemery@nswmining.com.au | 0450620254