Glencore and Yancoal have withdrawn the largest coal mining project ever proposed in NSW from consideration under Federal environment law, in a move that could prevent more than one billion tonnes of greenhouse gas emissions being released into the atmosphere.
The application for the Hunter Valley Operations mine expansion under Federal Environment law was facing a legal challenge brought by local group Hunter Environment Lobby which argued the climate impacts of the project on the Great Barrier Reef had not been considered.
In NSW, the gargantuan project has also come under pressure from NSW Government agencies due to the vast increases in direct greenhouse gases, particularly methane, it would cause, including a spike after 2040.
NSW is not on track to meet climate targets and if this project proceeded all other sectors of the NSW economy would likely have had to reduce emissions more quickly to make up for it, according to the NSW EPA.
The EPA found that “the large increase in emissions from this Project in the mid-2040s, would mean that this project may contribute to requiring other parts of the NSW economy to compensate by making deeper emissions cuts for the state to remain on track with the NSW Government’s target of net zero emissions by 2050”.
Steve Phillips from Hunter Renewal said “The withdrawal today is a reminder the world is shifting away from coal because it is damaging our climate and support is needed for communities and workers to prepare for these structural changes.
“Here in the Hunter, our communities have been calling for a region-wide plan for our economy and our landscape post-coal for years, and this is becoming more and more urgent but has still not been done.
“We’re asking the NSW Government to urgently release the millions of dollars it is sitting on in Royalties for Rejuvenation Funds to rapidly accelerate new economic opportunities and support workers in the Hunter region.
“We’re also calling for Glencore/Yancoal to rapidly develop the detailed training and transition plan for workers that is required by industry best practice but which they have failed to produce for the Hunter Valley Operations coal mine."
Carmel Flint, National Coordinator with Lock the Gate Alliance said “The withdrawal of the Federal referral underscores that this was an ill-conceived project from the outset, and that global mining giants like Glencore should not be able to recklessly endanger the climate that Australians rely on.
“This project would have shifted the responsibility for action on climate onto other sectors of the economy. Australia’s agriculture and manufacturing sectors should not have to shoulder responsibility for greenhouse emissions from export coal mining companies and their expansion plans.
“Everyday Australians would also have suffered the worsening effects of extreme weather from the contribution of this project to climate change, and be faced with ever more expensive insurance premiums as a result.”
ENDS
Background:
Hunter Valley Operations Continuation Project North and South was seeking approval from the NSW and Federal Governments in parallel to mine an additional 780 million tonnes of coal over 25 years to 2050.
The project is a joint venture of Glencore and Yancoal, the two largest thermal coal mining and export companies operating in Australia.
Hunter Valley Operations (HVO) is one of the largest coal mining complexes in the Hunter Valley, licensed to extract 42 million tonnes of coal per annum. The operation is permitted by two separate approvals on each side of the Hunter River. Consent for mining to continue at HVO North expires in June 2025, and for HVO South in March 2030.
The Hunter Valley Operations Continuation Projects’ application under the Federal Environment Protection and Biodiversity Conservation Act was withdrawn on 1 October, and notice of the move posted yesterday.
The application for approval in NSW law has not been withdrawn, indicating that the companies may be intending to modify the proposal to avoid mining methane-rich seams that would have been responsible for a large increase in greenhouse gas emissions at the mine in the 2040s.
Both Glencore and Yancoal have breached their own policies by failing to have a mine closure and worker transition plan in place for HVO. Glencore asserts in its Sustainability Report 2023 that the company requires its mines “to have a closure plan that could be initiated at any time for a planned, unplanned or temporary closure.” Such plans are said to be developed in consultation with local communities, and be regularly reviewed “to ensure they remain fit for purpose.”
The company’s 2024-2026 Climate Action Transition Plan commits Glencore to:
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“retraining [its] workforce who are directly affected by the energy transition,” and,
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“[engaging with] governments, affected communities, our workforce, trade unions and civil society groups to consider options to address socioeconomic consequences arising from mine closure”.