WA government backs merger of state’s last two coal mines

Western Australia’s two remaining privately owned coal mines could become one operation as the state moves toward its 2030 deadline for retiring state-owned coal-fired power stations.

The proposed merger would combine Indian-owned Griffin Coal and Chinese-owned Premier Coal. The new entity would supply the private Bluewaters power station. The final decision rests with the companies, but Premier Roger Cook said he expected consolidation.

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I’m not in the rooms for those conversations taking place, but I think it is self-evident that we will see a consolidation.

“I’m not in the rooms for those conversations taking place, but I think it is self-evident that we will see a consolidation,” Cook said.

The government announced in 2022 that it would retire all state-owned coal-fired power generation by 2030. Premier Coal, which supplies those state-owned stations, announced in April that it would cut between 70 and 100 jobs at its mine near Collie as demand for coal-fired power slowed.

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I don’t know where they’ll get coal from because we won’t be subsidising the coal mines as we do at the moment.

Griffin Coal has received state support since entering receivership in 2022. The government has spent $240 million keeping the privately owned company operating, amid concerns that its collapse could threaten the Perth and South-West electricity system and hundreds of local jobs. Cook said the state would not continue subsidising the mines once support ended.

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The federal government stepped in and supported a number of other projects around the country, including Whyalla. It is now time for our transitioning workers to be supported by the federal government.

Local Labor member Jodie Hanns has called for federal assistance for affected workers. The state has also committed $700 million to decommissioning its power plants and helping Collie develop other industries. A taskforce made up of mine operators, lenders, customers, unions and government representatives recommended the merger.

Cook described the future of the coal industry as complex, but said consolidation could create economies of scale and allow older workers to retire while retaining other skilled workers. Collie has been a centre of coal mining and power generation in Western Australia for more than a century.

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It gives you economies of scale … it allows you to blend your workforce so you can have your older workers start to retire from the industry and continue to consolidate the other skilled workers that you have.