The Western Australia state government has extended Griffin Coal’s state agreement from July 2026 by up to five years, allowing it to continue operations at the Ewington mine in the Collie Basin and supply coal to the industry and Bluewaters Power Station.
West Australian Premier Roger Cook cited energy security and affordability as to why the state government decided to extend support to the mine.
“My government is focused on delivering energy security for households and businesses as it diversifies Western Australia’s economy,” Cook said.
“Collie remains critical to our government’s vision of becoming a renewable energy powerhouse, with coal-fired power generation underpinning energy security and affordability as we build our major new transmission lines to connect large-scale wind and solar to the grid.
Griffin Coal has been in receivership since 2021 with debts of almost AU$1.4 billion and declining reserves.
Since 2022, the state government has provided AU$308 million in support to Griffin Coal, supporting local jobs and energy security across the South West Interconnected System.
Cook said the government’s subsidy requirement is set to significantly reduce from July 1 as a result of advanced negotiations with Griffin’s major direct and indirect customers. To date, the government has committed AU$308 million.
The coal miner was negotiating with large customers like power station Bluewaters for better prices for its coal, after the government demanded they come to commercial terms. Cook said specifics of the deal would be revealed to parliament once the commercial arrangements are finalised.
Despite the extension, the state government is committed to retiring state-owned coal by 2030.
The government plans to shut the Collie and Muja generators in 2027 and 2029, respectively.
Energy and Decarbonisation Minister Amber-Jade Sanderson said: “Our commitment to retire state-owned coal by 2030 remains.
“Renewables firmed by batteries and gas is the least cost mix for households and businesses – and that is what we are delivering. Extending the State Agreement is a sensible, pragmatic step to provide certainty for industry, the Collie community and the power system as we deliver the energy transition.”
The government will form a Collie basin transition taskforce to develop a detailed proposal on the future structure of the coal assets in the basin, considering whether the basin’s two mines – operated by Griffin and Premier Coal – would be more efficiently mined by a single entity.
The taskforce will be chaired by Department of Premier and Cabinet director general Michael Carey and will report its findings within six months.
The Mining and Energy Union has welcomed the government’s extension of arrangements for Griffin Coal, saying it delivers long-overdue certainty for coal workers and their families in the Collie region.
MEU WA District President Greg Busson said the government’s commitment “is a practical and responsible intervention that will keep people in jobs and give workers and the Collie community the certainty they need during the transition”.
“Importantly, this extension comes alongside a significant reduction in the level of subsidy required from taxpayers, while still bridging the gap in a way that keeps the lights on and workers in jobs as the transition continues.”
