Hunter mine land overhaul: $5 million master plans to repurpose Mt Arthur and West Wallsend sites for jobs and new industries

newy.com.au – The Albanese Government has signed a $5 million funding agreement to develop master plans for BHP’s Mt Arthur mine at Muswellbrook and Glencore’s Macquarie Coal site near Lake Macquarie, announced on Thursday 20 November 2025.

The initiative, delivered through the Net Zero Economy Authority with in-kind support from the New South Wales Government, is designed to help the Hunter region plan for mine closures and turn former coal sites into long-term economic assets that support jobs, investment and a more diversified economy.

First announced during the 2025 election campaign, the funding will support detailed master plans for the two large mine sites, with the federal and state governments describing the work as a pilot that can be replicated across other mining regions as Australia’s energy system changes.

The federal government says the master plans will guide the reuse of the Mt Arthur and Macquarie Coal lands as “productive, sustainable assets”, with a focus on aligning future development with local community priorities and regional growth. Officials say the planning is aimed at ensuring investment is “ready to flow” as some mines reach the end of their operating life.

Minister for Industry and Innovation and Minister for Science Tim Ayres said the funding represented a break from what he described as a decade of inaction on mine and power station closures. “For a decade under the Coalition, coal-fired power stations and mining sites announced closures and they did nothing,” Ayres said. “This funding changes that. It ensures investment is ready to flow and helps the Hunter prepare for its next chapter.”

Ayres said the program was intended to support communities as well as industry. “This funding is about more than planning – it’s about delivering a future for the Hunter that works for people, business, and the environment,” he said. “Repurposing these sites will unlock new opportunities and ensure the region remains a powerhouse for generations to come.”

NSW Minister for Planning and Public Spaces Paul Scully said the planning work was an important part of the state’s broader energy transition. “As we continue the energy transformation it’s vital that we also adapt the land,” Scully said. “The funding for this pilot brings us another step closer to unlocking new jobs potential for these former mine sites in Muswellbrook and near Lake Macquarie.”

Scully said converting former mining land for new uses would help sustain local economies. “Converting this land so it can continue to benefit the community supporting jobs and the local economy into the future is an important part of the puzzle as we shift to renewables,” he said.

Net Zero Economy Authority chief executive David Shankey said the work with the NSW Government, councils and industry was intended to create a template for other coal regions. “By working closely with NSW government, local councils and industry, we’re creating a model that can be replicated across Australia to deliver economic resilience and new opportunities in mining communities,” he said.

“Through practical partnerships and evidence-based planning, we are building new development pathways that will drive industry growth and support jobs in regions like the Hunter,” Shankey said.

Federal Member for Hunter Dan Repacholi said the former West Wallsend mine site at Lake Macquarie had “huge potential” for new industries. “This is a big win for the Hunter, the West Wallsend site has huge potential. This funding means we can start turning old mine land into new job opportunities for Lake Macquarie families,” he said.

“This is not just paperwork. It is the groundwork for real projects, real investment and real jobs staying in the Hunter where they belong,” Repacholi said, adding that as mines reach the end of their life “we cannot just leave these sites sitting there”.

Muswellbrook Shire Council Mayor Jeffrey Drayton said the funding gave the town more certainty as it faced the closure of major industrial sites. “This funding gives certainty to plan properly, take action on the record industrial closure Muswellbrook is facing, and make sure our community isn’t left waiting for action that should’ve happened years ago,” he said. “The Mt Arthur pilot project is a priority for Muswellbrook and we’ll waste no time putting this welcome Federal support into planning that future.”

Lake Macquarie Mayor Adam Shultz said the West Wallsend master plan would have implications beyond a single site. “A master plan outlining the future reuse of the former Glencore West Wallsend coal mine won’t just help guide its future – it will provide a blueprint for how this can be applied to mine sites coming to the end of their lives right across NSW and Australia,” he said.

With the funding agreement now finalised, the Net Zero Economy Authority and NSW Government will work with Muswellbrook Shire Council, Lake Macquarie City Council and industry to prepare the master plans, which are expected to guide future project proposals, investment decisions and land-use approvals at the two Hunter sites.