King Coal and his fiddlers three

NSW Treasurer Daniel Mookey and NSW Natural Resources Minister Courtney Houssos consulted with coal mining industry representatives last Friday, as NSW Energy Minister Penny Sharpe also held a separate meeting with coal station operators, to consider options past the end date of the State’s temporary coal cap.

The cap will expire on 1 July 2024 and considerations currently on the table include the modernisation of the coal royalty system to ensure it remains fit for purpose.

NSW Treasurer Daniel Mookhey says “these consultations are critical to ensuring we strike the right balance for the people of New South Wales and key industry stakeholders”.

“It is important to meet representatives of the coal mining industry and hear their views on the operation of the coal cap and the future of the sector,” he added.

NSW Finance and Natural Resources Minister Courtney Houssos says last Friday’s meeting “was productive and together with written submissions will inform the Government’s strategy”.

NSW Energy Minister Penny Sharpe says coal caps have played an important role assisting households and businesses with electricity costs.

“Understanding how the implementation has worked for power stations is important,” she said.

“I thank them for sharing their views as we contemplate future changes.”

Earlier last week, Glencore called on the NSW Government to engage the coal sector in a two-way consultation process over the coal price cap and the coal royalty rate system.

Coal delivers about 70% of NSW’s electricity and the State’s mineral royalties increased by more than 50% to $5.5b in FY23.

“Prior to the introduction of the coal price cap, we asked to see the previous NSW Government’s modelling that would show a benefit to the electricity consumer,” the Glencore media statement read.

“None was provided and the coal price cap has failed to provide a benefit to anyone other than the electricity generators.

“Electricity prices are driven by supply and demand.

“To lower the cost of electricity while also increasing the share of renewable energy, government needs a pragmatic approach which protects the security of the current electricity supply while also encouraging additional supply.”