Coal is mined in every state of Australia. The largest black coal resources occur in Queensland and New South Wales.[1] About 70% of coal mined in Australia is exported, mostly to eastern Asia,[2] and of the balance most is used in electricity generation. In 2019-20 Australia exported 390 Mt of coal (177 Mt metallurgical coal and 213 Mt thermal coal) and was the world's largest exporter of metallurgical coal and second largest exporter of thermal coal.[3] While only employing 50,000 mining jobs nationally coal provides a rich revenue stream for governments.[4]
Premier coal mine in Western Australia, 2022Maules Creek coal mine, 2014
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]
History
Australian Energy resources and major export ports as of 2008[update]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 1901 Australia was exporting several million tonnes annually.[25] 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.[26] 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.[27] By 1986 Australia was supplying around half of all its exports to Japan.[27] 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.[26]
Production, exports and reserves
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).[28]
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.[29] This was the second time a commodity had reached $100 billion in exports for Australia, after iron ore.
Major export markets for Australian coal
Coal loading facilities at Newcastle, 1901
Australia exports the largest share of coal of any nation, at 54% of the total.[30] In 2020, exports of coal accounted for 1% of national revenue, with a total value of A$55 billion.[31]
Major export markets for Australian coal (2018)[32]
Country/area
Million tonnes coking
Million tonnes steaming
Million tonnes total
Rank
% of exports
Japan
35.8
81.0
116.8
1
30.0
China
39.6
49.8
89.4
2
23.1
India
45.3
4.8
50.1
3
13.0
Other
30.3
19.5
49.8
4
12.9
Korea (ROK)
17.8
30.1
47.9
5
12.4
Taiwan
10.0
22.5
32.5
6
8.4
Total
178.8
207.7
386.5
Major coal export ports
This section needs to be updated. Please help update this article to reflect recent events or newly available information. (October 2022)
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,[33] including:
The largest coal producers in Australia are BHP, Glencore, Yancoal, Peabody, Anglo American and Whitehaven Coal.[39] As at June 2023, coal companies in Australia were making windfall profits due to the Russian invasion of Ukraine.[40] However, Western sanctions against Russia and the energy transition in Europe are also forcing Russia to direct its coal exports eastward, creating more competition with Australian exports in the long term.[41]
Future planned coal mining
Several new coal mines are planned for development in Australia. This includes Olive Downs mine, to be operated by Pembroke Resources, near Coppabella, Queensland.[42] In 2021, the federal government agreed to loan the project A$175 million to begin the first stages of its development.[43] In April 2022, the construction of the mine commenced. Production is expected to begin in 2023.[44]
Divestment from coal
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).[45]
In 2016, Glencore announced that Tahmoor Colliery would be closed by 2019.[46] However, Glencore later sold the mine to SIMEC in 2018,[47][48] who still operate it.
In 2018, Rio Tinto completed its exit from coal mining with the sale of the Kestrel coal mine.[49]
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.[50]
In August 2022, BHP completed its sale of the BHP Mitsui Coal to Stanmore Resources.[51]
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.[52] By 2021, Australia' big four banks were committed to leaving thermal coal by 2030, pledging alignment with the Paris Climate Agreement.[53] In 2021, ANZ concluded that the Port of Newcastle could become a stranded asset. ANZ took the opportunity to divest when the port was refinancing.[54]
Both underground and open-cut mines generate significant environmental impacts, including modified topography, soil erosion, water pollution, air pollution and acid water drainage.[55] The coal industry claims that extensive rehabilitation of areas mined helps to ensure that land capability, after coal mining, meets agreed and appropriate standards.[56][57] It is estimated that air pollution from coal-fired power stations in Australia is responsible for 785 premature deaths each year.[58]
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.[59][60]
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,[61] 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.[62]
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.[63] 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.[64]
One of the first protests against coal development occurred to the south of Sydney in the early 1970s. Clutha Development wanted to build a new coal loading facility at Coalcliff.[65] Coal was to be stored in heaps along the coast. Local activist, Judy Gjedsted, organised protests which successfully ended the proposal.[65]
In November 2021, anti-coal protestors led by Blockade Australia disrupted activity at the world’s largest coal terminal, the Port of Newcastle, by abseilling from equipment and obstructing railway tracks. The protests lasted for 10 days and 17 people were arrested.[66][67] Coordinated action by Blockade Australia in June 2023 saw ports in Newcastle, Brisbane and Melbourne targeted.[68] In April 2023, about 50 people caused a train loaded with coal to come to a halt at Newcastle.[69] Some of the protestors then climbed on top of a carriage loaded with coal, remaining there for almost three hours.[69]
The Carmichael mine run by Adani Group, planned since 2012 and opened in 2021, drew national and international opposition, both from climate activists and traditional owners.[70][71] In August 2019, the government extinguished 1,385 hectares of Wangan and Jaggalingou native title in order to grant Adani title to the land.[72] Protestor activity at the mine has included 40 people blocking the entrance of the mine, with two chaining themselves to a drum of reinforced concrete.[73]
In November 2023, one of the largest protests against coal and fossil fuels in Australia took place in Newcastle. A 30-hour blockade consisting of kayaks, surfboards and pontoons across a shipping channel blocked coal exports from the port.[74] The occupation was organised by Rising Tide. More than 100 people were arrested after staying longer than an agreed deadline.[75]
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.[76]
In September 2022, the Australian Parliament passed the Climate Change Bill. It includes the national targets of cutting emissions by at least 43% by 2030 (compared with 2005) and reaching net zero by 2050.[78] The bill is largely symbolic, it doesn't stipulate how the country will get to its targets.
State laws
New South Wales
Relevant laws are mining law, land use planning law, biodiversity law and water law.
Pollution law
Coal mining requires a pollution control ('environment protection') licence under the Protection of the Environment Operations Act 1997 (NSW) if it exceeds the following thresholds set out in Schedule 1 of the Act: if it is mining, processing or handling of coal (including tailings and chitter) at underground mines or open cut mines and (a) it has a capacity to produce more than 500 tonnes of coal per day, or (b) it has disturbed, is disturbing or will disturb a total surface area of more than 4 hectares of land by: (i) clearing or excavating, or (ii) constructing dams, ponds, drains, roads, railways or conveyors, or (iii) storing or depositing overburden or coal (including tailings and chitter).[79]
Queensland
In March 2020, the Queensland Resources Council introduced safety protocols to promote the health of coal mine workers amidst the international spread of COVID-19. These included improvements to social distancing of workers, disallowing visitors from the public to enter the sites and checking the temperature of workers at mine site entries.[80]
^ abGeoscience Australia (2013). "Coal - Geoscience Australia". Australia's Mineral Resource Assessment 2013. Australian Government. Archived from the original on 1 March 2018. Retrieved 18 September 2018.
^"Lignite/ Brown Coal". Victoria State Government. Department of Jobs, Precincts and Regions, Victoria, Australia. 4 March 2016. Archived from the original on 6 July 2018. Retrieved 8 January 2019. ...its high moisture content - which ranges from 48-70 per cent - reduces its effective energy content
^Knibbs (1910). "Non-Metallic Minerals". Official Year Book of the Commonwealth of Australia No. 3 1910. Collins Street, Melbourne: McCarron, Bird & Co. p. 515.
^Power, Frederick (1912). "Chapter IV, New South Wales". Coalfields & Collieries of Australia. Sydney: Critchley Parker. p. 60.
^De Valck, J., Williams, G., & Kuik, S. (2021). Does coal mining benefit local communities in the long run? A sustainability perspective on regional Queensland, Australia. Resources Policy, 71, 102009. doi:10.1016/j.resourpol.2021.10
.jpg)
.jpg)
