WA coal miner given 5-year lifeline as state-owned coal exit looms
WA coal miner given 5-year lifeline as state-owned coal exit looms
The WA Government will extend Griffin Coal’s State Agreement from July 2026 by up to five years, allowing the Ewington Mine in Collie to continue supplying coal to industry and the privately owned Bluewaters Power Station.The WA Government says it has been in “advanced negotiations” with Griffin’s major direct and indirect customers, and that the new commercial arrangements are expected to significantly reduce the subsidy required from July 1.Details as to the reduced subsidy are not yet available, with the WA Government saying they will be provided to Parliament once new commercial arrangements are finalised.Despite the agreement extension, the WA Government maintains it is on track to retire all State-owned coal-fired power stations by 2030.In May 2025, WA Minister for Regional Development Stephen Dawson indicated that support would end in mid-2026 and that any continuation would be industry-led without ongoing government funding.“Continuation beyond 30 June 2026 will need to be industry-led on a commercially sustainable basis without ongoing WA Government funding and underpinned by Griffin Coal's customers paying a fair price for coal,” he said at the time.“If this is not achievable, coal mining operations may cease.”The extension builds on the WA Government’s $220m allocation to support continued operations at Griffin until June 2026. Announced in December 2023, the WA Government warned at the time that sudden closure risked immediate job losses and electricity system stability.The WA Government says it has now provided $308m in support to Griffin Coal since 2022, and that the extension will support energy security during the transition."Collie remains critical to our government's vision of becoming a renewable energy powerhouse, with coal fired power generation underpinning energy security and affordability as we build our major new transmission lines to connect large scale wind and solar to the grid,” WA Premier Roger Cook said."The extension of the Griffin Coal State Agreement will provide certainty to the Collie community and underpin energy security for households and businesses across the South West Interconnected System, including Perth, as we deliver the energy transition."WA Energy and Decarbonisation Minister Amber-Jade Sanderson says the commitment to retire State-owned coal by 2030 remains.“Renewables firmed by batteries and gas is the least cost mix for households and businesses — and that is what we are delivering,” she said."Extending the State Agreement is a sensible, pragmatic step to provide certainty for industry, the Collie community and the power system as we deliver the energy transition."The WA Chamber of Minerals and Energy (CME) backed the extension, with CME chief executive Aaron Morey saying it is a pragmatic step.“Not only does coal remain an important source of power generation in the SWIS, key resources operations rely on coal as a reductant or heat source in their production processes,” he said.“Industry supports the pursuit of net zero by 2050 but the pathway is not linear. It will require adjustments along the way to ensure the viability of our existing operators and to safeguard high-paying jobs in our regions.”The Mining and Energy Union (MEU) also welcomed the announcement, saying it delivers long-overdue certainty for coal workers and families in Collie while supporting energy security during the transition.MEU WA District President Greg Busson says the announcement addresses the uncertainty workers have been living with as existing funding arrangements near their end.“With the current funding arrangements coming to an end, the Government’s commitment to extend support for a further five years is a practical and responsible intervention that will keep people in jobs and give workers and the Collie community the certainty they need during the transition,” he said.“Importantly, this extension comes alongside a significant reduction in the level of subsidy required from taxpayers, while still bridging the gap in a way that keeps the lights on and workers in jobs as the transition continues.“That five-year commitment gives everyone the clarity they need to plan for an orderly and just transition, rather than facing ongoing uncertainty year to year.”Alongside the extension, the WA Government will also immediately form the Collie Basin Consolidation Taskforce.The taskforce will develop a proposed future structure for the coal assets in the basin, exploring whether the basin's two mines — operated by Griffin and Premier Coal — would be more efficiently mined by a single entity.The taskforce will be required to report back to the WA Premier within six months.
