Mount Arthur coal mine to be given second life

NSW coal giant Mount Arthur will be given a second life as a pumped hydro energy storage project following its 2030 closure.

BHP (ASX: BHP) has announced its partnership with renewable energy and infrastructure company ACCIONA Energia to transition the project.

In 2022 BHP confirmed that Mount Arthur Coal mine would be ushered to sleep as it reached the end of its economic life in 2030.

The NSW Government approved the extension of mining activities for a further four years from July 2026 to June 2030 as part of its planned pathway to closure.

Conceptual studies of the project show that the proposed facility at Mount Arthur has the potential to support more than 1,000 jobs in the region during the construction phase.

The project also has the potential to contribute ongoing economic activity to local Muswellbrook and to provide power for up to 500,000 homes across NSW every day.

BHP Australia’s president Geraldine Slattery said that the announcement comes after extensive review of options including divestment.

“Mount Arthur coal mine sits on more than 7,000ha and we are working hard to explore alternative land uses for the site that will continue to support jobs, investment in the region, and the local economy,” she said.

“The community have told us they want to see Mount Arthur repurposed when mining ends.

“BHP is committed to leaving a positive legacy in the Hunter Valley.”

BHP has also pledged $30m to a community fund to help support Upper Hunter prepare for the mines’ closure and future.

“With our approval to keep mining to 2030 and with a $30m fund, we’re recommitting to giving the community and our people the certainty and the support they need for the future,” said Ms Slattery.

The fund is planned to be delivered in partnership with the community through a shared decision-making model that prioritises job creation, industry diversification and economic empowerment.