Google AI

Weekend Times


The Times

Business News

NSW's biggest coal mine to close in 2030. Now what about the workers?

  • Written by: Liam Phelan, Senior Lecturer, School of Environmental and Life Sciences, University of Newcastle
NSW's biggest coal mine to close in 2030. Now what about the workers?

The clock is now ticking on New South Wales’ largest coal mine. BHP has announced it will close its Mount Arthur mine in the Hunter Valley in 2030 – 15 years ahead of its scheduled end of life.

This decision comes after two years attempting to sell the mine[1], in keeping with BHP’s strategy to divest itself of thermal coal operations.

Read more: BHP's offloading of oil and gas assets shows the global market has turned on fossil fuels[2]

Given the collapsing market for coal assets, the lack of interested buyers is not a huge shock. But this announcement is still significant. The end is no longer speculative. There’s a firm deadline for the thousands of workers employed at the mine, and for the surrounding communities.

This use-by date should focus the attention of the local, state and federal governments on the much talked-about need for a just transition for coal communities.

How to assist those communities to survive (and prosper) after coal has been talked about for decades? Now with less than a decade to go, that talk must turn into concrete plans and action.

End of the line for 2,000 workers

The Mount Arthur mine is the one of the biggest coal mines in the world[3] by estimated reserves. Mining began in 2002, extending on existing mining in the area dating back to the late 1960s. Up to 20 million tonnes of thermal coal a year have been extracted. About 2,000 workers[4] are employed at the site.

It’s worth noting BHP only has permits from the NSW government to operate the mine until 2026. So it will need to seek an short extension to keep to its schedule. The NSW government can be expected grant that extension.

The NSW government will probably be glad for the extra time to plan on the transition. It has already been caught off-guard[5] once this year, by Origin Energy’s February announcement of the early closure of its Eraring coal-fired power station in Lake Macquarie, also in the NSW Hunter region.

Eraring power station, near Lake Macquarie, about 40 km south of Newcastle in NSW Hunter region.
The Eraring coal-fired power station, near Lake Macquarie, about 40 km south of Newcastle in the NSW Hunter region. AAP/supplied

Federal government planning on just transitions for coal communities, meanwhile, has been stymied by the Coalition’s focus over the past decade on prolonging coal mining as long as possible.

What Labor will do is yet to be seen, though new federal member for the electorate of Hunter, Dan Repacholi, has said[6] his key concern is the welfare of workers.

Read more: Australia's next government must start talking about a 'just transition' from coal. Here's where to begin[7]

Three community priorities

Communities in NSW’s Hunter Valley are more than aware that time is running out for coal mining. Last year community workshops were held[8] around the region to discuss what is needed for a just transition to occur. Three priorities emerged from those discussions[9]:

  • a local authority to coordinate transition efforts
  • funding for a “flagship” job-creation project
  • more resources for technical and vocational education.

Read more: 3 local solutions to replace coal jobs and ensure a just transition for mining communities[10]

The first priority has been somewhat met by the NSW government creating a Royalties For Rejuvenation Fund and Expert Panel[11], which has $25 million a year to spend on mining communities.

But compare that to the $660 million[12] the Western Australian government has allocated to fund the coal transition of a single town, Collie.

Lessons from the past

Research shows[13] the best transitions are those that are equitable, just, and well-planned.

The good thing is that the Hunter Valley has experience with transition, from when BHP shuttered its Newcastle steelworks in 1999[14]. While not a perfect case study, it does provides lessons for today.

Read more: 'We want to be part of that movement': residents embrace renewable energy but worry how their towns will change[15]

Particularly important is a collaborative approach[16] between unions and management. This ensured workers had support for redundancy, retraining, financial planning and finding new employment. A Hunter Valley alliance between unions and environmental groups[17] is pushing for the same level of collaborative planning.

Without a co-operative and inclusive approach, drawing on local knowledge, no transition plan is likely to succeed.

Authors: Liam Phelan, Senior Lecturer, School of Environmental and Life Sciences, University of Newcastle

Read more https://theconversation.com/nsws-biggest-coal-mine-to-close-in-2030-now-what-about-the-workers-185292

The Weekend Times Magazine

Tips for Choosing a Caravan for Australian Conditions

Australia's landscapes are unlike anywhere else in the world. From scorching outback heat and corrugated dirt tracks to coastal humidity and alpine cold, the demands placed on a caravan can...

Laser Skin Clinic Kew: Advanced Treatments for Radiant, Healthy Skin

With advancements in modern cosmetic treatments, people no longer need to rely solely on skincare products to achieve visible results. Professional clinics offering laser technology have become trusted destinations for...

What To Look For In a Robot Pool Cleaner

Robotic pool cleaners are a stunning feat of modern technology, allowing you to keep your pools clean with minimal effort on your part. Pool cleaning and maintenance has always remained...

Understanding Root Canal Treatment – What You Need to Know

For many people, hearing the term root canal treatment brings immediate anxiety. It’s one of the most feared dental procedures, often associated with pain and discomfort. However, this perception is outdated...

Protecting Properties with Durable Security Fencing

From residential homes to large commercial facilities, strong and reliable fencing provides peace of mind by keeping intruders out and safeguarding what matters most. Among the many options available, security...

How TPD Solicitors Unlock Your Super Insurance Payout Fast

Up to 70% of Australians don't realize they have TPD insurance through their super, potentially missing out on life-changing payouts when they need them most. This staggering statistic reveals a...

Evaporative Cooling Cleaning Melbourne for Fresh Air and Reliable Cooling

Regular Evaporative Cooling Cleaning Melbourne is essential for maintaining clean air, consistent cooling performance, and the overall reliability of evaporative cooling systems. These systems are widely used across Melbourne due to...

Film Review: Why Casablanca Still Captivates Audiences Eight Decades On

Few films have endured in the public imagination quite like Casablanca. Released in 1942 during the height of World War II, the film was not expected to become a cultural...

Why Car Sharing is dominating Car Renting

Sustainability, budget, urban living, lack of parking – these are just a few of the reasons that many people are choosing not to buy cars in today’s environment. ...