Coalmine bailout extended on energy security fears
More taxpayer dollars will be poured into a troubled coal mine in Western Australia despite the state government promising to drop subsidies this year.
The cash-strapped Griffin Coal mine near Collie can continue operating for another five years under an extended agreement with the WA government.
Premier Roger Cook cited energy security as the reason for supporting the mine, which supplies coal to both industry and the Japanese-owned Bluewaters Power Station, which produces more than 15 per cent of WA’s electricity.
“My government is focused on ensuring energy security for households and businesses as Western Australia diversifies its economy,” he said in a statement.
About $308 million has been poured into the coal mine, owned by India’s Lanco Infratech, since its collapse in 2022 due to financial trouble.
The WA government has not provided an amount for the latest round of support but has assured that the subsidy required from mid-2026 will be “significantly” lower than in the past, thanks to a deal still being worked out with the mine’s customers.
Opposition energy spokesman Steve Thomas said the extension of the subsidy was evidence that the state government’s energy plan was in disarray.
“Over the past year I have said repeatedly that more funding will be needed for Griffin, while Premier Cook has consistently said no more public money will be doled out,” he said.
“The Cook government has been forced to accept that coal-fired electricity will continue to be essential for at least the next five years, and likely well beyond that, if it is to keep the lights on and the air conditioners running.”
Western Australia has committed to phasing out all state-owned coal-fired power stations by 2030 as part of its energy transition, and the state government has confirmed that this target remains valid.
WA’s Conservation Council chief executive Matt Roberts criticized the government’s decision to “pour more money into the dirtiest fossil fuels” despite previously promising Griffin there would be no funding after mid-2026.
“This five-year extension announcement, made on one of the hottest days of the new year in Western Australia, is an example of our state government missing the opportunity for a sustainable, long-term energy transition away from heavily polluting fossil fuels,” he said.
The conservation group has called on the prime minister to commit to 2030 emissions reduction and renewable energy targets that would put Western Australia on par with other states.
A working group has also been formed to consider the possible merger of Griffin and Premier Coal, two coal mines in the basin.
Australian Manufacturing Workers Union general secretary Steve McCartney welcomed the state government’s idea of merging two mines that union members have been campaigning for.
“Workers at Griffin and Premier know better than anyone that the current order is not working,” he said.
“We have seen financial instability, security risks and uncertainty for families in Collie.”
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