Delta Power & Energy has recently received approval for their Chain Valley Colliery Consolidation Project which extends the mine’s operations until 2029. It consolidates two consents for the Chain Valley and Mannering collieries that have been operating as a single mining operation since 2017.
The underground coal mine is located on the southern shores of Lake Macquarie. Coal mining in the area dates back to the mid-late 1800s when small operations began on the western and northern shores of the Lake.
Chain Valley Colliery and Mannering Colliery have both been operating since the early 1960s. In 2017 the two were linked underground and have been operating as a single mine since, supplying coal direct to Vales Point Power Station via an overland conveyor system.
The Independent Planning Commission (IPC) approval consolidates the former development consents for Chain Valley and Mannering collieries into a single, contemporary consent which extends the operations until 31 December 2029, and permits secondary extraction within approved mining areas under Lake Macquarie.
Chain Valley Colliery employs over 330 direct workers and procures goods and services from local suppliers on the Central Coast and in the Hunter Valley making substantial contributions to local and State economies.
Mine Manager Josh Cornford said the Consolidation Project approval is a significant outcome that has been four years in the making.
“The approval is fantastic news, bringing certainty for our workers, suppliers and the local community. The project went through a comprehensive assessment process and community consultation process by the NSW Government. A lot of work went into that process from the team here at Delta, particularly the technical and environmental teams.
“To finally get the project over the line is terrific.
“The approval allows the mine to continue operating until the end of 2029. We employ over 330 local workers at the mine, so that’s 330 families living in the community who have greater employment security because of this decision,” Josh said.
The mine will continue to operate in its existing footprint using existing infrastructure and will avoid new land disturbance. The IPC has applied strict conditions to Delta within the new development consent.
The conditions are much the same as what was in place previously, with the removal of the former option to transport coal by road to domestic customers other than Vales Point Power Station and to export customers via the Port of Newcastle.
“A lot of the approval conditions from our former consents carried over to the new consent updating some of those former conditions that were quite dated, bringing them into a contemporary state.
“One thing that wasn’t approved is the option under the former conditions to transport coal by road to either domestic or export customers.
“But the mine supplies all its coal to Vales Point Power Station, and so the approval allows that important supply to continue,” said Josh.
Delta also owns Vales Point Power Station located next to Chain Valley Colliery, which the mine supplies 100 per cent of its coal to. It has a 1,320-megawatt capacity and generates around 6.5 TWh annually, which is about 10 per cent of NSW’s electricity supply. It’s the only thermal coal generator in NSW with an integrated coal mine, with Chain Valley Colliery supplying around half of its fuel requirements.
“The approval ensures a continued, secure local coal supply to Vales Point Power Station which contributes to the energy security in NSW through the energy transition that is occurring.
“It is important at the moment that we need to maintain stable, reliable and affordable baseload power while NSW undertakes this transition to a more sustainable renewable electricity generation system,” Josh explained.
The IPC said their time-limited period of the approval is consistent with NSW’s decarbonisation strategy and the State’s 2030 emissions reduction targets and is intended to avoid some prolonged reliance on coal-fired generation beyond what is necessary for a stable transition to renewable energy.
Having been in the community for so many years, Delta and Chain Valley Colliery have strong connections with the local community through ongoing consultation and meaningful partnerships that have grown over time.
The Chain Valley Colliery Community Consultative Committee (CCC) has been running for many years. The CCC meets quarterly, bringing together community representatives, Council and Delta to share updates and feedback.
There’s also the Chain Valley Colliery Community Funding Program which is a joint initiative with Central Coast Council that supports not-for-profit organisations with grants of up to $30,000. In 2025-26, over $58,000 has been awarded across seven projects supporting community infrastructure and services.
The fund is in addition to Chain Valley’s workplace giving program, including a long-standing partnership of nearly 20 years with the Westpac Rescue Helicopter Service, as well as Delta’s Sponsorships and Community Funding Program supporting local volunteer groups like the Catherine Hill Bay Surf Life Saving Club, Landcare, Lions Clubs as well as school and education initiatives.
“Our relationship with the community is primarily through our consultative committee and community funding programs. This includes the fund that we have with Council which provides grants on our behalf to local initiatives and services.
“We also contribute royalties to the NSW Government and Council rates that support local services and so much more.
“The mine approval provides certainty for our workers and all the community projects and services we support,” Josh said.
