Coal in Australia



Coal is mined in every state of Australia. The largest black coal resources occur in Queensland and New South Wales. About 70% of coal mined in Australia is exported, mostly to eastern Asia, and of the balance most is used in electricity generation. In 2019-20 Australia exported 390 Mt of coal (177 Mt metallurgical coal and 213 Mt thermal coal) and was the world's largest exporter of metallurgical coal and second largest exporter of thermal coal. While only employing 50,000 mining jobs nationally coal provides a rich revenue stream for governments. Coal mining in Australia has been criticized, due to carbon dioxide emissions during combustion. This criticism is primarily directed at thermal coal, for its connection to coal-fired power stations as a major source of carbon dioxide emissions, and the link to climate change in Australia and worldwide. Coal was responsible for 30% (164 million tonnes) of Australia's greenhouse gas (GHG) emissions, not counting methane and export coal, in 2019. Coal as a fuel was responsible for 41% (160 million tonnes) of carbon dioxide emissions in Australia in 2020.

The Carbon Pollution Reduction Scheme, which followed the draft report in the Garnaut Climate Change Review, placed a price on carbon emissions through a reducing cap and trade emissions trading scheme and incentivised against carbon pollution temporarily, before it was revoked in 2014.

In 2021, coal accounted for 64% of energy production and 32% of the Total Energy Supply (TES), with 93% of its consumption by the heat and electricity generation sector and the remaining 7% by the industrial sector.

Forms of coal
Australian coal is either high-quality bituminous coal (black coal) or lower-quality lignite (brown coal).

Bituminous coal is mined in Queensland and New South Wales. It is used for both domestic power generation and is exported. Mining is underground or open-cut. The coal is transported by rail to power stations or export shipping terminals.

Lignite is mined in Victoria and South Australia, and is of lower quality due to a lower thermal value largely caused by a high water content. Ash content varies significantly but some Australian lignites have relatively low ash content. In 2013 coal from three open cut lignite coal mines in Victoria was used for power generation.

History


Australian coal was first discovered in New South Wales by shipwreck survivors in August 1797, at Coalcliff, north of Wollongong. George Bass discovered coal soon afterwards in the cliffs at Newcastle off of Point Solander. Coal exports first left Newcastle in 1799, with it being mined by convicts. Shipments left for India, marking Australia's first commodity export. Mining in the area was initially small scale and used in domestic heating.

In Queensland, coal mining began near Ipswich in 1825. The following year coal was discovered at Cape Paterson in Victoria. It wasn't until the 1850s that the deposits were mined, however it wasn't enough to sustain Victorian communities. Coal was discovered in Tasmania at Plunkett Point in 1833. In Western Australia, the first coal deposits were discovered in 1846 at Irwin River in what is known as the Coalseam Conservation Park.

By 1901 Australia was exporting several million tonnes annually. By the 1900s coal had become integral to the economy as it was used in locomotives on railways and in steam mills cutting logs, and grinding wheat. In New South Wales development was particularly influenced by coal during the 20th century. During the 1940s Australian coal mines experienced significant strikes. The 1949 Australian coal strike lasted for seven weeks. The Joint Coal Board was formed to aid in the resolution of workers' disputes. Before WWII underground mines dominated. After WWII, Australia began exporting coking coal to Japan to aid in their production of steel. Exports to South Korea and Taiwan soon followed. Australia became the number one coal exporter in 1984. By 1986 Australia was supplying around half of all its exports to Japan. As the Bowen Basin Coalfields were developed, open-cut mines became more common. From the 1980s onwards the ratio of thermal coal exported to Asia increased significantly. High-grade coking coal extracted from the Illawarra region has supported a steel and steel products market with exports leaving via Port Kembla harbour. An anti-coal movement is a recent historical development.

Production, exports and reserves
In 2016, Australia was the biggest net exporter of coal, with 32% of global exports (389 Mt out of 1,213 Mt total). It was the fourth-highest producer with 6.9% of global production (503 Mt out of 7,269 Mt total). 77% of production was exported (389 Mt out of 503 Mt total).

At the end of 2019, Australia earned $63.9 billion from black coal. The value of Australian coal exports reached $112 billion in the 2021-22 financial year. This was the second time a commodity had reached $100 billion in exports for Australia, after iron ore.

In 2021, Australia ranked second among International Energy Agency (IEA) member countries for the highest utilization of coal in both energy generation and electricity production.

Major export markets for Australian coal
Australia exports the largest share of coal of any nation, at 54% of the total. In 2020, exports of coal accounted for 1% of national revenue, with a total value of A$55 billion.

Australia is the world's leading exporter of coking coal. In 2021-2022, about 55% of its coal exports were thermal coal, with the remainder being metallurgical coal. The primary destinations for its coal exports are Asian countries, notably Japan, Korea, India, and Taiwan. Following import restrictions by the Chinese government in 2021, coal exports to China ceased, even though China had previously received 69% of Australia's exports in 2020. Currently, the main importers of Australia's metallurgical coal include India, Japan, the European Union, and Korea.

Major coal export ports
The Port of Newcastle, New South Wales, is the world's largest and most efficient coal handling operation through its two terminals: Carrington and Kooragang. Australia has nine major coal-export ports, including:

Major coal mining companies


The largest coal producers in Australia are BHP, Glencore, Yancoal, Peabody, Anglo American and Whitehaven Coal. As at June 2023, coal companies in Australia were making windfall profits due to the Russian invasion of Ukraine. However, international sanctions against Russia and the energy transition in Europe are also forcing Russia to direct its coal exports eastward, creating more competition with Australian exports in the long term.

Future planned coal mining
Several new coal mines are planned for development in Australia. This includes Olive Downs mine, to be operated by Pembroke Resources, near Coppabella, Queensland. In 2021, the federal government agreed to loan the project A$175 million to begin the first stages of its development. In April 2022, the construction of the mine commenced. Production is expected to begin in 2023.

Divestment from coal
Australia's coal policy is aligning with legislative targets to reach net zero emissions by 2050 and reduce emissions by 43% by 2030. There's no fixed schedule for phasing out coal electricity plants or coal mining activities. Coal-fired generators must give a three-and-a-half-year notice before shutting down.

Several mines have announced plans to wind-down operations in coal within set timeframes, alongside planned closures of coal power plants in Australia. This includes Werris Creek (2025).

In 2016, Glencore announced that Tahmoor Colliery would be closed by 2019. However, Glencore later sold the mine to SIMEC in 2018, who still operate it.

In 2018, Rio Tinto completed its exit from coal mining with the sale of the Kestrel coal mine.

BHP planned to sell the Mount Arthur mine in 2022, but failed to attract a viable offer and decided to continue operations there until financial year 2030.

In August 2022, BHP completed its sale of the BHP Mitsui Coal to Stanmore Resources.

Banks such as Westpac have introduced restrictions on lending for new thermal coal mines, including a limit of 6,300 kilocalories per kilogram for new projects. By 2021, Australia' big four banks were committed to leaving thermal coal by 2030, pledging alignment with the Paris Climate Agreement. In 2021, ANZ concluded that the Port of Newcastle could become a stranded asset. ANZ took the opportunity to divest when the port was refinancing.

Environmental impacts
Both underground and open-cut mines generate significant environmental impacts, including modified topography, soil erosion, water pollution, air pollution and acid water drainage. The coal industry claims that extensive rehabilitation of areas mined helps to ensure that land capability, after coal mining, meets agreed and appropriate standards. It is estimated that air pollution from coal-fired power stations in Australia is responsible for 785 premature deaths each year.

Coal is the principal fossil fuel used in power generation not only in Australia but in many other countries. Links between coal mining, coal burning, and climate change are being discussed widely in Australia.

On 27 November 2006 the Land and Environment Court of New South Wales judge Justice Nicola Pain made the decision to set aside the Director-General's acceptance of the Environmental Assessment for the Anvil Hill coal mine, on the grounds that it did not include a comprehensive greenhouse gas assessment, even though the proposed mining of coal was for export. However, on 7 June 2007 the planning minister for NSW Frank Sartor reversed this decision and approved the mine, attaching a list of 80 conditions to the mines operation including conservation offsets.

An international climate think tank produced a report that concluded Australia's coal mines are emitting twice as much methane as national estimates, finding a massive under-reporting of methane emissions in Australia. As part of the nation's commitment to the Paris Agreement Australia must reduce its emissions by 26–28% in 2030 compared to 2005. According to the International Energy Agency, no new coal projects or gas projects can be approved if the world is to achieve net zero emissions by 2050.

Protests against coal
One of the first protests against coal development occurred to the south of Sydney in the early 1970s. Clutha Development wanted to build a new coal loading facility at Coalcliff. Coal was to be stored in heaps along the coast. Local activist, Judy Gjedsted, organised protests which successfully ended the proposal.

In November 2021, anti-coal protestors led by Blockade Australia disrupted activity at the world’s largest coal terminal, the Port of Newcastle, by abseilling from equipment and obstructing railway tracks. The protests lasted for 10 days and 17 people were arrested. Coordinated action by Blockade Australia in June 2023 saw ports in Newcastle, Brisbane and Melbourne targeted. In April 2023, about 50 people caused a train loaded with coal to come to a halt at Newcastle. Some of the protestors then climbed on top of a carriage loaded with coal, remaining there for almost three hours.

The Carmichael mine run by Adani Group, planned since 2012 and opened in 2021, drew national and international opposition, both from climate activists and traditional owners. In August 2019, the government extinguished 1,385 hectares of Wangan and Jaggalingou native title in order to grant Adani title to the land. Protestor activity at the mine has included 40 people blocking the entrance of the mine, with two chaining themselves to a drum of reinforced concrete.

In November 2023, one of the largest protests against coal and fossil fuels in Australia took place in Newcastle. A 30-hour blockade consisting of kayaks, surfboards and pontoons across a shipping channel blocked coal exports from the port. The occupation was organised by Rising Tide. More than 100 people were arrested after staying longer than an agreed deadline.

Environmental regulation of coal mining
The Australian commonwealth government is responsible for making policy on off-shore exploration of coal and resources, while the governments of the states and territories are responsible for policy on onshore exploration.

Commonwealth law
The main Commonwealth environmental laws potentially applicable to coal mining are the Environment Protection and Biodiversity Conservation Act 1999 (EPBC Act) and the Clean Energy Act 2011. The EPBC Act is triggered if a proposed action is likely to have a significant impact on a matter of national environmental significance, for example federally listed threatened species and groundwater impacts.

In September 2022, the Australian Parliament passed the Climate Change Bill. It includes the national targets of cutting emissions by at least 43% by 2030 (compared with 2005) and reaching net zero by 2050. The bill is largely symbolic, it doesn't stipulate how the country will get to its targets.

New South Wales
Relevant laws are mining law, land use planning law, biodiversity law and water law.

Pollution law
Coal mining requires a pollution control ('environment protection') licence under the Protection of the Environment Operations Act 1997 (NSW) if it exceeds the following thresholds set out in Schedule 1 of the Act: if it is mining, processing or handling of coal (including tailings and chitter) at underground mines or open cut mines and (a) it has a capacity to produce more than 500 tonnes of coal per day, or (b) it has disturbed, is disturbing or will disturb a total surface area of more than 4 hectares of land by: (i) clearing or excavating, or (ii) constructing dams, ponds, drains, roads, railways or conveyors, or (iii) storing or depositing overburden or coal (including tailings and chitter).

Queensland
In March 2020, the Queensland Resources Council introduced safety protocols to promote the health of coal mine workers amidst the international spread of COVID-19. These included improvements to social distancing of workers, disallowing visitors from the public to enter the sites and checking the temperature of workers at mine site entries.