Key facts
- The Independent Planning Commission (IPC) approved the Hunter Valley Operations Continuation Project, allowing mining until 2045.
- The IPC cited continued employment, economic activity, and taxation revenue as benefits outweighing climate impacts.
- Climate groups described the project as a "carbon bomb" and a "climate policy failure."
- The project's estimated emissions over its life are 809 million tonnes of CO2-equivalent.
- Approximately 87% of the emissions will come from burning the coal overseas in power plants.
- The IPC requires HVO to manage emissions from burning coal overseas, limiting exports to jurisdictions aligned with the Paris Agreement.
The Independent Planning Commission (IPC) in New South Wales has approved the largest coal project in its history, the Hunter Valley Operations Continuation Project, allowing mining to continue until 2045. The decision, which followed a contentious assessment period that included input from climate and environment groups, unions, state authorities, and over 10,000 public submissions, has been met with strong criticism from environmental advocates.
The IPC acknowledged that the project's greenhouse gas emissions would contribute to climate change impacts globally, but stated these were outweighed by benefits to the Hunter region and NSW, including continued employment, economic activity, support for local businesses, and royalty and taxation revenue. The commission also suggested the decision would provide economic stability and support an orderly transition for workers and communities as the coal industry evolves.
However, climate groups have decried the approval. Georgina Woods of the Lock the Gate Alliance called it a "catastrophic failure" of the NSW planning system, while Rising Tide labeled it the "largest climate policy failure in NSW history." Climate Council councillor Greg Mullins highlighted concerns about emissions from burning the coal overseas, stating, "Climate harm does not stop at the border, and neither does the responsibility for it." Former NSW Fire and Rescue Commissioner Mullins noted that the additional global heating caused by the project could expose nearly half a million people to unprecedented heat, kill millions of coral colonies, and lead to additional heatwave deaths in Europe.
Despite the controversy, the IPC mandated that HVO prepare a plan to manage emissions from burning the coal overseas, limiting exports to jurisdictions aligned with the Paris Agreement goals. The project still requires federal environmental approval, expected by the end of the year. HVO stated the approval was a "pivotal milestone" for its 1,500 mine workers and the regional economy, and is working with the National Environmental Protection Agency for federal approval by December 2026. The NSW Net Zero Commission had previously warned the IPC that approving the project could jeopardize the state's ability to meet its climate targets.