The New South Wales (NSW) Government is grappling with a critical issue concerning coal mining jobs in the Hunter Valley. A report from the NSW Net Zero Commission, released on March 15, 2024, indicates that the state’s coal mining sector is not aligned with its emissions targets, posing significant implications for the industry and its workforce.
The report highlights that the resources sector contributes approximately 12 percent of NSW’s total greenhouse gas emissions, predominantly from coal mining activities. The Commission’s findings suggest that the government must not only implement “additional regulatory measures” to manage emissions but also prepare for a gradual decline in coal extraction. This shift necessitates a focus on ensuring a just transition for coal communities and regional economies affected by the downturn.
During a visit to Newcastle on March 16, Premier Chris Minns acknowledged the importance of mining to the state’s economy, stating it remains the largest export for NSW. While he refrained from committing to halting mining approvals or extensions, he recognized the changing landscape for coal sales, saying, “Yes, our trading partners are getting out of it. Yes, the people that buy coal will buy less of it in the years ahead.” He emphasized the need for a balanced approach to transition away from fossil fuels without abruptly shutting down the sector.
Despite the Premier’s cautious stance, the Lock The Gate Alliance criticized the government for approving all eight coal mine expansions that have been proposed since the election nearly three years ago. The organization warned that continuing to expand coal mining operations would pose severe risks to local communities and the environment.
Among the significant developments in the Hunter Valley is the extension granted to the joint venture of Glencore and Yancoal for their Hunter Valley Operations. This extension allows mining to continue through December 2026. The mine has argued that this extension is crucial for maintaining jobs and providing certainty to local businesses reliant on its operations.
However, concerns have been raised about the environmental impact of these operations. Reports indicate that the Hunter Valley Operations could potentially double its greenhouse gas emissions by 2026 if further expansion plans proceed without establishing clear reduction targets. The mine has been operating under a plan that lacks conditions for reducing greenhouse gases, leading to increased scrutiny from environmental advocates.
In September 2023, the mine proposed changes to its development applications, aiming to reduce coal extraction by about 220 million tonnes. These adjustments would shorten the lifespan of the HVO North project by five years, moving from 2050 to 2045, and the HVO South project by three years, from 2045 to 2042.
According to Nic Clyde, a spokesman for Lock The Gate Alliance, the report underscores the urgent need for the government to reassess its approach to coal mining. “There are 37 coal mines already operating in NSW, and we can’t keep expanding them indefinitely. This report makes it clear that further expansions will cause severe harm to communities,” he stated.
The findings of the Net Zero Commission align with broader discussions surrounding sustainability and economic stability. On the same day the report was published, Prime Minister Anthony Albanese visited Tomago Aluminium, a key employer in the Hunter region, to announce a multi-billion-dollar deal aimed at preserving jobs and ensuring the plant’s operations extend beyond 2028.
Despite the importance of such initiatives, the absence of NSW government representatives at the Prime Minister’s announcement raised questions about the collaboration between state and federal authorities. Premier Minns played down the significance of this absence, indicating that his weekend commitments in the Hunter took precedence.
As the government navigates the complexities of transitioning from coal dependency to renewable energy, it faces mounting pressure from various stakeholders to address the urgent environmental challenges while safeguarding local jobs. The path forward remains uncertain, as officials work to balance economic sustainability with environmental responsibility.
