Taxpayers in Western Australia are set to shoulder even more financial responsibility as the Collie coal mine secures a five-year extension to its operations. This decision comes just six months after Premier Roger Cook promised to cease government funding for the struggling sector. Currently, state support for this foreign-owned coal mining venture has already reached a staggering $308 million as of last June.
During a recent visit to Collie, the Premier announced the need for this new five-year agreement to ensure stability for the privately owned Bluewaters power station, which is vital not only for its operators but also for its customers and the local workforce. Meanwhile, the government has plans in place to close the State-owned Muja power stations by 2030.
Despite these developments, Mr. Cook emphasized that the additional funding for Griffin Coal should not be interpreted as a wavering commitment to that timeline. "We have a rock-solid commitment that we will retire the State-owned coal fired power stations by 2030," he stated. He went on to clarify that this funding is intended to provide assurance to Bluewaters' customers, the owners of Griffin Coal, and the workers in Collie.
It’s worth noting that Mr. Cook previously declared in Parliament that the financial burden should fall on the mine's private ownership and its customers rather than on taxpayers. He had stated, "This funding support will cease in June 2026," during a discussion in May. When questioned about his change of heart, he pointed to the necessity of maintaining energy reliability. "I now have the confidence to say that we can extend the agreement by five years, which will further provide for energy security while we move through the energy transition," he argued. He added, "If we did not intervene, it would have meant we were switching the lights off in Western Australia. That’s not acceptable."
Mr. Cook also asserted that the taxpayer costs associated with this arrangement would be considerably lower than the previous $308 million expended since 2022, although he did not specify the anticipated amount. "I will reveal all those costs in Parliament once the agreements have been finalized," he assured.
To further streamline operations, a new Collie Basin Consolidation Taskforce will be established with the goal of merging Griffin and Premier Coal to enhance efficiency. This task force is expected to deliver its findings within six months.
Energy Minister Amber-Jade Sanderson expressed optimism about Western Australia transitioning away from coal, despite acknowledging the challenges ahead. The Australian Energy Market Operator has alerted that the South West grid could face an electricity generation shortfall of nearly 2 gigawatts by 2033. Nonetheless, Ms. Sanderson maintained that there are enough green energy initiatives underway to bridge this gap. "Not every project will succeed. There’s $50 billion worth of projects across the pipeline," she noted. She mentioned that even in one local government area, such as Narrogin, there are billions worth of potential projects in the works. "So there is significant potential investment; even if half of that is realized, we will meet demand."
She acknowledged that garnering support from both the community and industry stakeholders is crucial for the successful implementation of the state’s energy transition. "Large-scale wind is really critical to the energy transition," Ms. Sanderson pointed out. However, she also recognized that there are numerous interdependencies and challenges surrounding wind energy development, suggesting that the issue isn't community opposition but rather the need for better community education regarding these projects.
The extension of Griffin Coal was met with approval from industry representatives, who stressed the importance of maintaining reliability and affordability as Western Australia pivots toward renewable energy sources. Aaron Morey, the chief executive of CME WA, articulated the industry's reliance on coal, stating, "Key resources operations rely on coal as a reductant or heat source in their production processes." He also affirmed the industry's commitment to achieving net zero emissions by 2050, while cautioning that the pathway to this goal is not straightforward. Adjustments will be necessary along the way to ensure the sustainability of existing operations and to protect well-paying jobs in regional areas.
