NSW sets coal course to 2050, backs mine extensions and rules out greenfield projects

newy.com.au – The state Government has released its NSW Coal Industry 2026-50 statement, setting out a long-term policy for the state’s coal sector that backs existing mining operations, rules out new standalone greenfield mines and promises support for workers and regional communities as demand shifts over time.

Announced on Thursday, the statement says coal used for NSW energy security and steelmaking will continue to be supported where demand exists, while applications to extend existing mines adjacent to current operations will still be considered, subject to environmental and emissions requirements. The government said the framework was designed to balance energy security, jobs and regional development with the state’s emissions reduction targets and net zero commitments.

Under the policy, coal producers will be expected to continue reducing onsite emissions through proven abatement technologies and strengthened EPA regulatory controls, with emissions to remain part of the assessment process through the NSW planning system. The government said it would not consider proposals for new standalone greenfield coal mines.

The statement also links the future of coal-producing regions to the proposed Future Jobs and Investment Authority, with legislation to establish the body now before Parliament. The authority is expected to focus in part on the reuse of coal mining land and infrastructure after mining ends, with the aim of unlocking new investment, jobs and regional development.

The government said it was already working with councils and industry on a post-mining land use trial at two sites in Muswellbrook and Lake Macquarie to help create new jobs and diversify local economies.

Health Minister and Minister for the Illawarra and the South Coast Ryan Park said: “The Illawarra has always been a manufacturing powerhouse, forming a key part of not just the NSW economy, but the entire Australian economy.

“This plan provides a clear direction for ensuring our region is future ready.

“This will provide certainty for the thousands of skilled workers currently in coal mining in the Illawarra, who will continue to be the cornerstone of our region for years to come.”

Police and Counter-terrorism Minister and Minister for the Hunter Yasmin Catley said: “The workers of the Hunter have kept the lights on in NSW for generations, and they deserve certainty about what comes next.

“This plan recognises the vital role coal communities have played in building our state and provides a clear path forward for workers, businesses and local communities.

“That means protecting jobs today, maintaining stability for our regional economies and making sure the Hunter continues to play a key role in powering the state and supporting our export partners.”

Planning and Public Spaces Minister Paul Scully said: “This is an important milestone in NSW’s energy transformation, which sets clear expectations for industry and provides certainty for the regions.

“Thermal coal remains important for jobs, energy security and manufacturing, and metallurgical coal plays a vital role in Australia’s sovereign steel-making capability largely based in the Illawarra.

“As the need for thermal coal declines we are planning for future jobs and energy in coal-dependent regions. Work is already underway to convert former mining and energy sites so they can continue to benefit the community supporting local jobs and regional economies.”

Finance and Natural Resources Minister Courtney Houssos said: “Coal has powered NSW for more than a century, and it will continue to support our economy for decades to come.

“We’ve engaged with communities, industry, consent authorities, environment groups and trading partners. Their feedback has shaped a direction that gives certainty, sets firm expectations and keeps NSW a reliable supplier where market demand exists.

“We are providing workers and communities confidence about the road ahead, supported by new opportunities as global markets evolve.”