NSW Government Announces Ban on New Greenfield Coal Mines While Continuing Expansions
The New South Wales Labor government, led by Premier Chris Minns and Natural Resources Minister Courtney Houssos, has declared it will no longer consider proposals for standalone greenfield coalmines on undeveloped sites. However, in a move that has sparked criticism, the government will continue to allow expansions and time extensions at existing mines, effectively rejecting warnings from its own climate agency.
Balancing Energy Security with Emissions Reduction
In a statement outlining the future of the coal industry, the government asserted this approach balances energy security, jobs, and regional development with the need to reduce emissions and meet NSW's net zero targets. Minister Houssos emphasized that coal has powered NSW for over a century and will continue to support the economy for decades, providing confidence to workers and communities as global markets evolve.
The NSW Minerals Council welcomed the announcement as very positive, noting it has been several years since a greenfield mine was proposed through the state's planning system. Chief executive Stephen Galilee said support for extensions would be welcomed by thousands of coalmining workers.
Climate Agency Warning Ignored
This strategy comes despite a December report from the NSW Net Zero Commission, which advised the government to consider climate impacts, including scope 3 emissions from exported coal, in planning decisions. The commission concluded new expansions were inconsistent with the state's legislated emissions targets: a 50% cut by 2030, 70% by 2035 compared to 2005 levels, and net zero by 2050.
Georgina Woods, head of research at the Lock the Gate Alliance, criticized the government, stating it is using semantics to mask that coal project approvals continue as usual. She pointed out that all 18 coal projects in the planning pipeline are expansions or extensions, which would create hundreds of millions of tonnes of greenhouse gas pollution.
Recent Approvals and Industry Context
Since the 2023 election, the government has approved at least eight coal expansions and extensions. Nearly 90% of NSW coal is thermal coal, used for electricity generation and considered more likely to be phased out due to clean alternatives than metallurgical coal for steelmaking.
The government acknowledged global demand for coal is expected to decline but maintained coal will remain important as renewable energy and industrial processes are deployed.
New Methane Regulations and Environmental Criticism
Concurrently, the NSW Environment Protection Authority released rules requiring major coalmines to directly reduce fossil methane pollution, a potent greenhouse gas. EPA chief executive Tony Chappel said reducing methane is one of the fastest ways to limit near-term climate impacts.
However, Lock the Gate argued the rules were watered down from a consultation draft and breach duties to protect communities from climate change. Australian Conservation Foundation campaigner Freja Leonard called for planning an orderly phase-out of coalmining and support for workers, welcoming the greenfield ban but urging more action.
The government's formal response to the Net Zero Commission's advice is expected in June, setting the stage for further debate on NSW's energy and climate future.
