Key facts
- Matt Kean, chair of the Climate Change Authority, questioned the approval of the Hunter Valley Operations mine expansion.
- The mine expansion was approved by the NSW Independent Planning Commission to operate until 2045.
- The commission acknowledged the project's contribution to climate change impacts but found local benefits outweighed them.
- NSW Premier Chris Minns supported the decision, citing its economic importance and job creation.
- The mine's owners forecast the project could release 809 million tonnes of carbon dioxide.
- The expansion requires federal environmental law approval by the end of the year.
Matt Kean, chair of the Climate Change Authority and a former NSW treasurer, has challenged the state approval of the largest coalmining development in New South Wales' history, arguing that the economic costs of climate change were not adequately considered. The Independent Planning Commission granted the Hunter Valley Operations mine, located near Singleton, approval to continue until 2045.
The commission acknowledged that greenhouse gases from the mine would contribute to climate change impacts affecting the Hunter region, NSW, and globally. However, it concluded that these impacts were outweighed by local benefits, including employment, economic activity, and tax revenue.
NSW Premier Chris Minns supported the decision, describing it as "hugely important" for the state's economy and responsible for thousands of jobs and billions of dollars in royalties. He did not mention the projected climate impact in his public statements.
The mine's owners, Yancoal and Glencore, forecast that the project could lead to the release of 809 million tonnes of carbon dioxide into the atmosphere once the coal is exported and burned. This figure is nearly double Australia's annual climate pollution.
Kean pointed to evidence suggesting climate-related disasters could cost Australians at least $73 billion a year by 2060, but noted the commission had not estimated the specific climate-related economic damage within NSW. He emphasized that climate change imposes real economic costs on households and businesses through extreme weather, impacting food production, infrastructure, and incomes.
The approval follows a lengthy assessment process that received over 10,000 public submissions. The mine could have been forced to close in December without this extension. The decision was welcomed by industry groups like Coal Australia and the NSW Minerals Council.
The mine expansion still requires approval under federal environment law. The Greens have called on the Albanese government to prevent its approval before the Cop31 climate summit, where federal climate change minister Chris Bowen will lead negotiations. Jacynta Fa’amau of 350.org described the decision as "horrifying," warning that the consequences of burning the coal would affect Australia directly.