Coal in Australia

Australian coal is either high-quality bituminous coal (black coal) or lower-quality lignite (brown coal).[10]

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.[11][12]

Lignite is mined in Victoria and South Australia,[13] and is of lower quality due to a lower thermal value largely caused by a high water content.[14] Ash content varies significantly but some Australian lignites have relatively low ash content.[15] In 2013 coal from three open cut lignite coal mines in Victoria was used for power generation.[13]

Australian Energy resources and major export ports as of 2008

Full-time employment in coal mining since 1984 (thousands of people)

Australian coal production (red) and exports (black), 1980–2012

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.[16][17] Coal exports first left Newcastle in 1799,[18] with it being mined by convicts. Shipments left for India, marking Australia's first commodity export.[19] Mining in the area was initially small scale and used in domestic heating.[20]

In Queensland, coal mining began near Ipswich in 1825.[21] The following year coal was discovered at Cape Paterson in Victoria.[22] It wasn't until the 1850s that the deposits were mined, however it wasn't enough to sustain Victorian communities.[23] Coal was discovered in Tasmania at Plunkett Point in 1833.[24] In Western Australia, the first coal deposits were discovered in 1846 at Irwin River in what is known as the Coalseam Conservation Park.[22]

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.[20] In New South Wales development was particularly influenced by coal during the 20th century.[25] During the 1940s Australian coal mines experienced significant strikes.[20] 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.[20] Exports to South Korea and Taiwan soon followed. Australia became the number one coal exporter in 1984.[26] By 1986 Australia was supplying around half of all its exports to Japan.[26] As the Bowen Basin Coalfields were developed, open-cut mines became more common.[20] From the 1980s onwards the ratio of thermal coal exported to Asia increased significantly.[20] High-grade coking coal extracted from the Illawarra region has supported a steel and steel products market with exports leaving via Port Kembla harbour.[19] An anti-coal movement is a recent historical development.[25]

Australian coal and coke quarterly exports ($Millions) since 1960

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).[27]

At the end of 2019, Australia earned $63.9 billion from black coal.[22] The value of Australian coal exports reached $112 billion in the 2021-22 financial year.[28] This was the second time a commodity had reached $100 billion in exports for Australia, after iron ore.

Coal loading facilities at Newcastle, 1901

Australia exports the largest share of coal of any nation, at 54% of the total.[29] In 2020, exports of coal accounted for 1% of national revenue, with a total value of A$55 billion.[30]

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,[32] including:

Kestrel coal mine, 2007

The largest coal producers in Australia are BHP, Glencore, Yancoal, Peabody, Anglo American and Whitehaven Coal.[37] As at June 2023, coal companies in Australia were making windfall profits due to the Russian invasion of Ukraine.[38]

Several new coal mines are planned for development in Australia. This includes Olive Downs mine, to be operated by Pembroke Resources, near Coppabella, Queensland.[39] In 2021, the federal government agreed to loan the project A$175 million to begin the first stages of its development.[40] In April 2022, the construction of the mine commenced. Production is expected to begin in 2023.[41]

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).[42]

In 2016, Glencore announced that Tahmoor Colliery would be closed by 2019.[43] However, Glencore later sold the mine to SIMEC in 2018,[44][45] who still operate it.

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.[46]

In August 2022, BHP completed its sale of the BHP Mitsui Coal to Stanmore Resources.[47]

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.[48] By 2021, Australia' big four banks were committed to leaving thermal coal by 2030, pledging alignment with the Paris Climate Agreement.[49]

September 2019 climate strike in Tumbarumba, Australia

Both underground and open-cut mines generate significant environmental impacts, including modified topography, soil erosion, water pollution, air pollution and acid water drainage.[50] The coal industry claims that extensive rehabilitation of areas mined helps to ensure that land capability, after coal mining, meets agreed and appropriate standards.[51][52]

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.[53][54]

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,[55] 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.[56]

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.[57] 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.[58]

A haul truck moves overburden at Carmichael coal mine, 2022

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.[68]

• Carbon capture and storage in Australia
• Coal phase out
• Greenhouse Mafia
• Hunter Valley Coal Chain
• List of coal fired power stations in Australia
• Mining in Australia
• Coastal coal-carrying trade of New South Wales

• "Illawarra Coal" - An unofficial history of coal mining in the Illawarra
• Survey of Energy Resources 2007 for Australia