OPINION: HVO PROPOSAL SHOWS A RESPONSIBLE PATH FORWARD FOR MINING

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Mining and Energy Union

In an era of change and uncertainty for coal communities, the Hunter Valley Operations (HVO) Continuation Project presents a clear opportunity to chart a responsible path forward for the coal mining industry. It offers a model for how mining can continue to deliver economic strength and regional stability while responding to environmental concerns.

The MEU strongly supports the project and we urge state and federal decision-makers to view Glencore’s amended extension proposal as a blueprint for responsible continuity of the coal industry in the decades ahead.

Glencore’s application seeks to extend operations at HVO North and South through to 2045 and 2042 respectively, supporting over 1,500 well-paid jobs in the Hunter region. These jobs are vital to local communities already facing the impacts of mine closures and broader economic shifts.

Importantly, the extension proposal has been significantly revised following extensive consultation with government and community stakeholders. Glencore has shown a genuine willingness to listen and respond to concerns raised during the assessment process. While the MEU supported the original scope and longer timelines, we acknowledge that environmental protection and emissions reduction are priorities for both government and the community. The revised proposal reflects a constructive and practical approach to supporting these priorities.

Compared with the original proposal withdrawn in 2023, the amended plan shortens the mine life, reduces total coal extraction volumes, avoids high-gas areas to minimise safety and emissions risks, and scales back the overall environmental footprint. These are not minor adjustments – they represent a meaningful shift in the project and a high level of responsiveness to legitimate concerns.

From the MEU’s perspective, the benefits of the HVO extension are clear and compelling. The project will protect thousands of jobs and sustain hundreds of supply chain businesses across the region. It is expected to deliver a net economic benefit of $5.7 billion to NSW.

A key component of this benefit is the more than $2 billion in coal royalties that will flow to the NSW Government. These royalties are not just numbers on a balance sheet – they are a critical source of funding for essential public services, including schools, hospitals, infrastructure, and regional development initiatives. At a time when governments are investing heavily in economic transformation, coal royalties from responsible projects like HVO provide the financial foundation to make that transformation possible. The NSW Government should not be dismissive of the important role coal royalties play in supporting prosperity in our state.

Without approval, HVO North would close in 2026 and HVO South in 2030 – just as other major operations like Mt Arthur are scheduled to wind down. The premature closure of HVO would compound the socioeconomic challenges facing communities like Muswellbrook and Singleton. In contrast, the continuation of mining at HVO offers a vital lifeline during a period of structural economic change.

The amended HVO Continuation Project is currently under assessment by the NSW Government and will ultimately be referred to the NSW Independent Planning Commission (IPC) for determination. Federal Government approval will also be required.

The HVO Continuation Project is a strong example of how the coal industry can evolve – by listening, adjusting, and committing to responsible practices.

It offers certainty in uncertain times and demonstrates that good jobs, strong industries and environmental responsibility can go hand in hand.

The MEU strongly supports the HVO Continuation Project. We urge decision-makers to approve this project and support a future where coal mining continues to deliver for workers, communities, and the state.

Robin Williams

District President MEU Northern Mining and NSW Energy

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