When it comes to coal mining and climate change, the Minns Labor government seems determined to have its cake and eat it too.
Premier Chris Minns even said as much on Monday when he announced special legislation to ensure Indonesian-owned MACH Energy can maintain current levels of production at its Mount Pleasant mine near Muswellbrook, despite a High Court decision earlier this month.
“There are some people who say that the only thing to worry about is industry and jobs in all and every circumstance, and there are others who say you should only be worrying about the environment in any and all circumstances,” Minns told reporters.
“The truth in our economy and our community is that we have to do both. We have to manage jobs. We have to manage investment. We have to approach these things in a common-sense way and draw conclusions so that we’re making progress towards our climate goals, whilst at the same time, not tipping hundreds and hundreds of families onto the scrap heap weeks before Christmas.”
The Minns government deserves some credit for action on climate change. It legislated emissions reductions targets – 50 per cent cuts by 2030 and 70 per cent cuts by 2035. More than one third of NSW’s electricity generation now comes from renewable sources. More than 90 per cent of NSW’s electricity used to come from coal-fired power, and it’s now fallen to 54 per cent.
But NSW is likely to miss its emissions targets by a wide – and widening – margin. The Net Zero Commission says coal mining is a large reason why. So does the Environment Protection Authority. Despite Minns’ insistence, there is ample evidence we can’t have both.
Since taking office in March 2023, NSW has approved 14 coal mine expansions or extensions and refused none, according to a tally maintained by anti-fossil fuels activist group Lock the Gate. Another 17 are in the pipeline.
The government has developed many plans, policies, strategies and frameworks that might, some day, have the effect of curbing coal mining. But the moment it looks like that day has come, the government rushes to reverse or mitigate the outcome.
In March it released the NSW Coal Industry 2026-50 strategy, which ruled out any more greenfield coal mine developments. It looks like action but has no effect, since there have been no proposed greenfield coal mines for many years because of structural decline in the coal industry.
In the case of the Mount Pleasant mine, the argument is that the High Court created legal uncertainty earlier this month when it ruled the 2022 approval by the NSW Independent Planning Commission (IPC) of the mine’s expansion and extension to 2048 was invalid on climate change grounds.
MACH Energy, having expanded its workforce based on the approval, was then left with the prospect of sacking 400 workers by the end of the year while it awaits the outcome of a resubmission to NSW planning authorities that may well result in approval.
To avoid that happening, Minns and Natural Resources Minister Courtney Houssos have announced legislation in the next sitting fortnight to ensure the company can maintain its current production levels in exchange for guaranteeing jobs until 2032, with some extra conditions on who can buy the coal.
This is the second time in two months the government has rolled out the red carpet for the same mine. In August, the NSW Department of Planning granted approval to extend the life of the mine to 2032, since without the IPC approval, the mine’s operating consent technically expired this year.
But the High Court decision did not come out of the blue. It merely upheld the NSW Court of Appeal, which made the same decision in July 2025. MACH Energy may have hoped to win its appeal, but both the company and the government have known for at least that long the approval was in doubt.
NSW planning authorities have been encouraging coal miners to think about exit strategies since the early 2000s, but very little has been done. Belatedly, the Future Jobs and Investment Bill 2025 should pass parliament this week, requiring coal mining companies to create workforce transition plans as mines start to close.
Minns says he agonised over this decision, though he also wound up in his favourite position – pragmatic defender of the middle ground.
But there is nothing normal about passing special legislation to allow one company to circumvent the planning system after a court loss.
In case you doubted the next state election in March next year was on his mind, Minns also argued that if the price of transitioning away from coal was too high, “you’ll see either One Nation elected or One Nation-style policies enacted”.
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