Mount Arthur coal mine in NSW to shut by 2030 after BHP fails to discover a purchaser

The largest coal mine in NSW will shut operations by 2030 after BHP was unable to discover a purchaser for the location, with greater than 2000 jobs set to be axed.

BHP didn’t safe a suggestion for the Mount Arthur mine within the Hunter Valley after trying to find a brand new purchaser for 2 years.

The open-cut mine close to Muswellbrook employs about 2000 individuals and supplies thermal coal to worldwide prospects.

It was as soon as valued at a whopping $2billion, however that determine has been repeatedly slashed.

The Mount Arthur coal mine (pictured) in the Hunter Valley will close by 2030 after BHP failed to find a valid buyer

The Mount Arthur coal mine (pictured) within the Hunter Valley will shut by 2030 after BHP didn’t discover a legitimate purchaser

BHP is at present licensed to conduct operations on the mine till 2026.

However the firm stated it should attempt to purchase approval to increase operations till the top of the 2030 monetary yr.

‘Shifting to a closure in 2030 supplies the optimum monetary final result when in comparison with alternate possibility,’ BHP stated in an announcement to the ASX.

Minerals Australia President, Edgar Basto stated: ‘Looking for approval to proceed mining till 2030 avoids closure in 2026 and permits BHP to stability the worth and threat of these issues and our commitments to our individuals and native communities.’

NSW Minerals Council chief govt Stephen Galilee added that the choice to hunt an extension would give those that depend on the mine years to work and plan for the longer term.

‘Whereas the Mt Arthur mine is a big operation, it is only one of almost 40 coal mines working throughout NSW, and 17 working within the native area.’

‘Fifteen different native coal mines within the Higher Hunter both have approvals already in place or are searching for approvals to proceed mining to 2035 or past, with a number of searching for extensions to function past 2040.’

NSW's largest mine near Muswellbrook employs 2000 people and provides coal to international customers

NSW’s largest mine close to Muswellbrook employs 2000 individuals and supplies coal to worldwide prospects

BHP is only licensed to conduct operations at the mine until 2026. The company is seeking to extend that until 2030

BHP is simply licensed to conduct operations on the mine till 2026. The corporate is searching for to increase that till 2030

BHP expects to spend $US700 million ($A999 million) on closing the mine and rehabilitating the location over the subsequent 10 to fifteen years, with remaining plans for the location but to be decided.

‘ work with our individuals, native enterprise companions, Homeowners and native and state TraditionalWe will function safely and productively, put together for closure and sustainable rehabilitation of the location, and make sure the pathway to closure is managed in a manner that meets neighborhood and regulatory expectations,’ commented Adam Lancey, vice chairman of BHP’s NSW Power Coal operation.

Beneath stress from traders to reply to local weather points, BHP has been divesting its thermal coal and lower-grade coking coal belongings.

Mr Basto stated BHP had ‘totally reviewed potential choices’ for the Hunter Valley operation, together with divestment and future funding necessities.

BHP had talked about searching for an extension for the Mt Arthur mine to function till 2045 as a part of the divestment course of, though it by no means formally utilized for that extension.

The operation reported working losses in fiscal 2020 and 2021, and BHP stated its evaluate concluded that the mine’s ‘business viability’ was restricted previous the 2030s.

‘Or actually not safe sufficient to warrant the numerous capital funding and energy that may be required within the close to time period for mining past 2030,’ the corporate says on its web site.

Carmel Flint, the national coordinator for the environmental group Lock the Fate, said the closure of the mine was a good sign

Carmel Flint, the nationwide coordinator for the environmental group Lock the Destiny, stated the closure of the mine was a great signal

Lock the Gate Alliance nationwide coordinator Carmel Flint stated the environmental group was happy that BHP was closing the mine, though it could have favored it to occur in 2026 somewhat than 2030.

‘It is a very vital step by BHP, and the absence of patrons for the mine sends an extremely robust message that thermal coal is in decline globally, as buyer nations act on local weather change.’

Harriet Kater, Local weather Lead (Australia) on the Australasian Middle for Company Duty, stated that closing the mine as a substitute of promoting it was the proper name.

‘Use of asset divestment as a software to decrease carbon footprints and keep away from accountable closure will not be acceptable,’ she stated.

The Mount Arthur mine has been in operation since 2002.

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