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Australia clears coal mine expansions in hit to green goals

25th September 2024

By: Bloomberg

  

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Australia approved the expansion of three coal mines, sparking criticism of Prime Minister Anthony Albanese’s administration and its efforts to keep emissions in check.

The government cleared an extension of operations at Whitehaven Coal’s Narrabri, MACH Energy Australia's Mount Pleasant and Ashton Coal Operations’s Ravensworth thermal coal mines in New South Wales. The Narrabri underground mine was granted permission to operate until 2044 and Mount Pleasant to 2048.

Australia, one of the world’s biggest exporters of fossil fuels, has been criticised for continuing to support massive coal and natural gas projects while pursuing more ambitious cuts to domestic emissions. Miners argue that their fuel is cleaner than supplies from other nations and that delays to approvals risk jobs and Australia’s reputation as a reliable partner.

“Whitehaven’s high-quality thermal coal has an important role to play in supporting global energy security during the multi-decade energy transition, particularly in Asia where there continues to be strong demand for its use in high-efficiency, low-emissions, coal-fired power stations,” the Sydney-listed company said Wednesday.

The three mines will emit about 1.4-billion tons of carbon dioxide over their lifetime, according to the Australia Institute, about three times national annual emissions. They take the total number of coal projects approved by Albanese’s government to seven.

“These are not new projects,” but extensions of existing operations, said Environment Minister Tanya Plibersek. “The emissions from these projects will be considered by the Minister for Climate Change and Energy under the government’s strong climate laws.”

Australia’s thermal coal exports are set to fall to about A$28-billion in the year through June 2026, from A$37-billion in the 2023-2024 period, according to government forecasts. Volumes are likely to be stable.

Edited by Bloomberg

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