NSW approves major coal mine extension to 2045 despite climate concerns

The New South Wales Independent Planning Commission has granted approval for the Hunter Valley Operations Continuation Project, permitting the largest coal mine in the region’s history to extend its operations until 2045. The decision allows for the extraction of an estimated 429 million tonnes of coal from both the North and South sites. This approval follows a contentious assessment process that attracted significant criticism from climate activists, environmental groups, trade unions, and state authorities, who argued that the move contradicts Australia’s international climate commitments.

The planning commission acknowledged that the mine would contribute to climate change impacts affecting the people, economy, and environment of the Hunter region, New South Wales, and the globe. However, it determined that these negative impacts were outweighed by the project’s benefits. The commission cited continued employment, sustained economic activity, support for local businesses, and ongoing royalties and taxation revenue as key factors in its decision. It further stated that the project would provide economic stability for the Hunter region and support a more orderly transition for workers, businesses, and communities as the coal industry evolves. The Hunter Valley Operations is believed to contribute over one billion dollars annually to the economy.

The proposal received strong political backing from Premier Chris Minns, Natural Resources Minister Courtney Houssos, and the New South Wales Coalition. The commission received more than 10,000 public submissions regarding the project, with approximately 60 per cent expressed in favour of the extension. Despite this support, opponents have voiced strong objections. Georgina Woods, co-national coordinator of the Lock the Gate Alliance, described the decision as a catastrophic failure of the state’s planning system to protect residents from the worst impacts of global warming. She argued that every year of greenhouse gas pollution resulting from the mine would negate the efforts of individuals and organisations in Australia and New South Wales to reduce their own pollution.

Coal mining remains a significant component of Australia’s energy mix and economy. The country produced approximately 431 million tonnes of coal in 2025, with the sector contributing around 28.8 per cent of the nation’s energy supply. In the Hunter Valley alone, the coal industry employs approximately 1,500 people. However, the extension of the project is expected to generate 809 million tonnes of greenhouse gas emissions over a 19-year period. A member of the Climate Council noted that the environmental harm caused by coal exports does not stop at the border, stating that the state imports back the consequences of these emissions in the form of bushfires, floods, heatwaves, and droughts.

The project still requires federal environmental approval to proceed, with a decision expected before the end of the year. If approved, the planning commission and the operator will need to establish a plan to manage emissions from overseas coal burning. This includes limiting exports to jurisdictions with greenhouse gas emissions policies consistent with the goals of the Paris Agreement. The operator will also be expected to seek ways to reduce greenhouse gas emissions, maximise the use of renewable energy, and purchase additional carbon offsets.

Minister for Finance Courtney Houssos stated that while the state has legislated net-zero emissions targets and will adhere to them, it also recognises the important role that coal mining plays for the Hunter Valley and the broader state economy. Australia is set to co-host the next United Nations COP 31 climate summit alongside Turkey in November. The country has faced criticism for supporting new coal development and for remaining largely silent on the need to secure a global deal to transition rapidly away from fossil fuels. Climate activists have accused both Australia and Turkey of being a vacuum of action on plans for a transition away from coal, gas, and oil, which remains a key goal for many nations participating in the conference.