Our Mining Sector is Changing

Summary

Muswellbrook, a coal mining town in the Hunter Valley, has been significantly shaped by its relationship with the coal industry for over 117 years. This report examines the complex relationship between the town and the mining industry, exploring its importance and the challenges that lay ahead.

A Spotlight on Australia’s Mining Sector

Economic Reality Check

The region faces significant upcoming changes as Australia’s coal industry transforms.

• AGL's Liddell Power Plant and Muswellbrook Coal have already closed.
• BHP's Mt Arthur mine will close by 2030 (BHP, 2024).
• Bayswater power station is scheduled to close before 2035 (Clean Energy Regulator [CER], 2025).
• All coal stations are projected to close by 2038 (UNSW, 2023).

Reducing coal production improves Muswellbrook’s air quality and public health while creating opportunities for new industries (Campbell, 2014). However, this transition needs careful planning to protect the community’s economic wellbeing (MacNeil & Beauman, 2022). Historical examples of unplanned mine closures have had severe community impacts including job losses, collapsed housing markets, eroded public services, and abandoned mine sites with environmental hazards (Beer, 2018).

Recently Approved Coal Projects

Despite the broader transition away from coal, seven new mines have been approved since 2022, including:

• Mount Pleasant Optimisation Project: Set to become Australia's largest black coal mine.
• Glendell Continued Operations Project.
• Hunter Valley Operations Continuation.
• Mangoola Coal Continued Operations Project.

These approvals appear contradictory to Australia's climate commitments and transition goals. However, they've been justified by:

• Short-term economic benefits and job preservation = employees are left tied to the industry with no long-term support.
• Meeting ongoing export demands from Asian markets = Asia is shifting away from fossil fuels, led by China – Australia's biggest coal customer. China now dominates renewable energy and is developing coal-free steelmaking technologies (Hilton, 2024; Nicholas, 2024).
• Claims of using "cleaner" mining technologies = While only $5.2 million goes to helping coal communities adapt to new industries, the NSW government spends $27 million on coal research and backs a $700 million fund promoting unproven ‘clean coal’ technology (Simpson et al., 2024).

The ‘on the fence’ approach of approving new mines while the coal mining industry is coming to a close, hinders communities ability to prepare for the future.

The Future of the Mining Industry

Mining remains crucial for supplying the minerals needed for clean energy technologies. Australia’s abundant critical mineral resources and established mining infrastructure provide a natural pathway for communities and workers to shift from traditional coal mining to sustainable resource extraction.

Projected global demand by 2050 (Bruce et al., 2021):

• 9 million tonnes of lithium for energy storage
• 130 million tonnes each of silicon (EVs) and copper (wind turbines)
• 48 million tonnes of nickel for batteries

Australia's Strategic Position:

• World's largest lithium producer
• Third-largest cobalt producer
• Fourth-largest rare earth producer
• 81 major critical minerals projects in development (valued at $30-42 billion)
• $23 billion government commitment to domestic manufacturing and processing

Employment and Economic Opportunities:

• Current resources sector employs 290,000 people (14% of GDP) (ABS, 2023; Office of the Chief Economist, 2022)

• Projected new jobs in critical minerals:

  • 115,000 jobs in mining and extraction
  • Up to 262,600 jobs with expanded processing capabilities

Market Dynamics:

• Global EV sales projected to reach 60% market share by 2030 (International Energy Agency [IEA], 2022b).
• Lithium demand expected to increase 40-fold by 2040 (International Energy Agency [IEA], 2021).

• New infrastructure needed globally (International Energy Agency [IEA, 2022a):

  • 50 new lithium mines
  • 60 new nickel mines
  • 17 new cobalt mines

Hunter-Central Coast Renewable Energy Zone Development

EnergyCo, in collaboration with Ausgrid, is enhancing the existing power network to support new renewable energy generation projects in the Hunter-Central Coast region (EnergyCo, 2024).

Figure 1: Hunter-Central Coast REZ proposed network project.

This transition offers a sustainable path forward for mining communities, maintaining Australia’s resource industry strength while contributing to global clean energy goals.

Australia's mineral wealth is legendary, but who really controls these vast resources? The answer might surprise many Australians.

The Ownership Landscape

Foreign entities dominate Australia’s mining sector, controlling an overwhelming 86% of the industry, with most profits going overseas (McKissack & Xu, 2016). For instance, BHP has 76% foreign ownership, and Rio Tinto has 83% foreign ownership. These two giants represent 70% of the resources held by mining companies listed on the Australian Stock Exchange (Edwards, 2011).

The Australian Treasury found less than 10% of active mining operations have complete Australian ownership (McKissack & Xu, 2016).

Lobbying and Influence

Over the past decade, mining companies have poured over half a billion dollars into lobbying efforts targeting Australian governments (Australian Securities and Investments Commission, 2016, as cited in Aulby, 2017). This figure only accounts for spending through major industry groups, which are largely controlled by overseas interests. However, the amount spent on lobbying is likely much higher, as it does not include direct lobbying expenditures by individual mining firms, which aren't required to be disclosed publicly (Aulby, 2017).

Foreign mining companies shape Australian policy through lobbying and political donations, mainly to reduce their taxes and regulations. The impact is clear, the following was done all through lobbying:

• Rio Tinto and BHP prevented new oversight of the $75 billion iron ore sector.
• Mining companies also spent $100 million fighting the Minerals Resource Rent Tax (2010-2012), cutting tax revenue by $5.3 billion.

These companies then claimed their lobbying costs as tax write-offs.

Mining Industry Corruption

The Hidden Cost to Australian Taxpayers

Foreign mining companies claimed $162.4 million in tax deductions for lobbying expenses over the past decade (Aulby, 2017). Australian governments provided $14.5 billion in direct fossil fuel subsidies during 2023-24 (Campbell et al., 2024). Taxpayers bear $55.6 billion in implicit subsidies, including costs related to health impacts and environmental damage (Foley, 2023).

A Community at the Crossroads

Muswellbrook faces new challenges after decades of reliance on coal. In 2023, bushfires threatened Muswellbrook, Aberdeen, and nearby areas (Parmeter et al., 2023). Scientists predict that under a high emissions scenario, severe fire weather days may double by 2090 (DCCEEW, 2024).

Infrastructure and Employment Challenges

Muswellbrook suffers from inadequate regulations, including 25+ unfilled mining voids creating environmental hazards and low penalties for rehabilitation non-compliance. While coal production generates $810 million in royalties annually, the transition fund commitment is only $25 million total, with minimal investment in alternative industries.

TAFE NSW requires increased funding to train workers for new sustainable industries. Budget cuts have limited its capacity to help Hunter Valley workers transition to long-term careers.

What’s all this change about?

Understanding Climate Change

Climate change is a long-term shift in temperatures and weather patterns (United Nations [UN], n.d.). Over the last 200 years, scientists agree that humans have been the main cause. Here's how it happens:

• When we burn fossil fuels (coal, oil, and gas), they release greenhouse gases
• These gases trap the sun's heat in Earth's atmosphere
• This trapped heat raises global temperatures

A Community at the Crossroads

For nearly 30 years, Muswellbrook has been vital to NSW's coal mining industry, powering homes and businesses across the state. But now this community faces new challenges:

• The 2023 bushfires threatened Muswellbrook, Aberdeen, Scone, and nearby areas (Parmeter et al., 2023).
• These disasters are linked to rising CO2 emissions.

Impact of Bushfires in the Hunter Region

Infrastructure Damage

• 22,700 hectares affected
• 15,663 buildings destroyed
• Recovery and rebuilding can take over 2 years
• The 2019 southeastern Australian fires displaced 65,000 people and destroyed 3,100 homes.

Health Effects (2019-2020 Season)

Poor air quality from bushfires led to:

• 25 premature deaths
• 38 cardiovascular disease hospitalisations
• 129 respiratory disease hospitalisations

Looking Ahead

Scientists predict that under a high emissions scenario, severe fire weather days will double by 2090, putting more communities at risk (Department of Climate Change, Energy, the Environment and Water [DCCEEW], 2024).

Union Representation in Energy Transition

Union engagement in Australia has declined from over 50% in the 1970s to approximately 15% today (ABS, 2024). Key union initiatives include calling for a National Energy Transition Authority, supporting worker retraining programs, and advocating for job security and fair transition policies.

Impact of Decline

• Reduced collective bargaining power
• Decreased workplace representation
• Limited negotiation leverage
• Weakened worker protections

There is currently no dedicated union specifically focused on the renewable energy sector. This gap in specialised representation could affect worker attraction and retention in the growing clean energy industry, particularly as the sector requires unique skill sets and faces distinct workplace challenges.

Missing Elements in Clean Energy Sector

1. Industry Standards

• Workplace practices
• Safety protocols
• Job classifications
• Career pathways

2. Worker Protections

• Specialised training recognition
• Skill certification
• Fair wage structures
• Working conditions

Taking Action: Your Guide to Effective Community Advocacy

What is Grassroots Lobbying?

Lobbying means engaging with legislators to influence policy decisions. Whether you are an individual or an advocacy group, when you meet with representatives to elicit a policy change, you are lobbying them (Sivaraj, 2023). When approached from a community perspective, it becomes a powerful tool for change.

Action Pathways

1. Direct Communication

Patch-Through Calls

• Connect voters with representatives

Multi-Channel Approach

• Email campaigns
• Social media outreach
• Direct mail initiatives
• Phone banking

2. Community Leadership

• Build local awareness
• Organise community events
• Share success stories
• Connect with other advocates

3. Support Our Mission

Join us in nurturing the potential within mining-dependent communities, helping them grow strong roots for a sustainable future.

Tell us what you think!

Connect With Us

📱 Instagram: @geo.phytes, @smalltowncoal

References

Australian Bureau of Statistics. (2024). Trade union membership. https://www.abs.gov.au/statistics/labour/earnings-and-working-conditions/trade-union-membership/latest-release

Australian Taxation Office. (2023, October 22). ATO secures additional $6.4 billion from large corporates. https://www.ato.gov.au/media-centre/ato-secures-additional-6-4-billion-dollars-from-large-corporates

Aulby, H. (2017). Undermining our democracy: Foreign corporate influence through the Australian mining lobby. The Australia Institute. https://australiainstitute.org.au/report/undermining-our-democracy-foreign-corporate-influence-through-the-australian-mining-lobby/

Ausgrid. (2023). Hunter-Central Coast Renewable Energy Zone. https://www.ausgrid.com.au/About-Us/Future-Grid/Hunter-Central-Coast-Renewable-Energy-Zone

BHP. (2024). Mt Arthur Coal. https://www.bhp.com/what-we-do/global-locations/australia/nsw-mt-arthur-coal-mine-hunter-valley/mt-arthur-coal-pathway

Bruce, S., Delaval, B., Moisi, A., Ford, J., West, J., Loh, J., & Hayward, J. (2021). Critical Energy Minerals Roadmap. CSIRO, Australia.

Campbell, R. (2014). Seeing through the dust: Coal in the Hunter Valley economy. The Australia Institute. https://australiainstitute.org.au/wp-content/uploads/2020/12/PB-62-Seeing-through-the-dust-Coal-in-the-Hunter-Valley-economy.pdf

Campbell, R., Morison, L., Ryan, M., Saunders, M., Le, M. N., Adhikari, A., Scicluna, K., Simpson, E., & Anderson, L. (2024). Fossil fuel subsidies in Australia 2024: Federal and state government assistance to major producers and users of fossil fuels in 2023-24. The Australia Institute. https://australiainstitute.org.au/wp-content/uploads/2024/05/P1543-Fossil-fuel-subsidies-2024-FINAL-WEB.pdf

Clean Energy Regulator. (2025, January 9). AGL Energy Limited. https://cer.gov.au/markets/reports-and-data/corporate-emissions-reduction-transparency-report/corporate-emissions-8/CRPT-23-J6V054010440

Department of Climate Change, Energy, the Environment and Water. (2024, August). Metropolitan Sydney climate change snapshot (ISBN 978-1-76058-810-6). https://www.climatechange.environment.nsw.gov.au/sites/default/files/2024-08/NARCliM2-Snapshot-Sydney.pdf

Edwards, N. (2011). Foreign ownership of Australian mining profits. The Australian Greens.

EnergyCo. (2024, October 16). Upgrades to existing network proposed for Hunter-Central Coast Renewable Energy Zone network infrastructure project. NSW Government. https://www.energyco.nsw.gov.au/news/network-upgrades-proposed-hunter-central-coast-rez

Foley, M. (2023, August 24). Australian fossil fuel subsidies costing taxpayers $65 billion a year: IMF. The Sydney Morning Herald. https://www.smh.com.au/politics/federal/australian-fossil-fuel-subsidies-costing-taxpayers-65-billion-a-year-imf-20230824-p5dz0l.html

Grigg, A. (2021, July 19). Eddie Obeid found guilty of conspiracy over $30m NSW coal licence. The Australian Financial Review. https://www.afr.com/companies/mining/obeid-found-guilty-of-conspiracy-over-30m-nsw-coal-licence-20210719-p58awl

Hilton, I. (2024, March 13). How China became the world's leader on renewable energy. Yale Environment 360. https://e360.yale.edu/features/china-renewable-energy

International Energy Agency. (2021). The Role of Critical Minerals in Clean Energy Transitions. https://www.iea.org/reports/the-role-of-critical-minerals-in-clean-energy-transitions

International Energy Agency. (2022a). By 2030 EVs represent more than 60% of vehicles sold globally, and require an adequate surge in chargers installed in buildings. https://www.iea.org/reports/by-2030-evs-represent-more-than-60-of-vehicles-sold-globally-and-require-an-adequate-surge-in-chargers-installed-in-buildings

International Energy Agency. (2022b). Global Supply Chains of EV Batteries. https://www.iea.org/reports/global-supply-chains-of-ev-batteries

MacNeil, R., & Beauman, M. (2022). Understanding resistance to just transition ideas in Australian coal communities. Environmental Innovation and Societal Transitions, 43, 118-126. https://doi.org/10.1016/j.eist.2022.03.007

McKissack, A., & Xu, J. (2016). Foreign investment into Australia (Treasury Working Paper No. 2016-01). The Treasury. https://treasury.gov.au/sites/default/files/2019-03/TWP_201601_Foreign_Investment.pdf

Nicholas, S. (2024, March 28). Don't believe the spin: Coal is no longer essential to produce steel. Institute for Energy Economics and Financial Analysis. https://ieefa.org/resources/dont-believe-spin-coal-no-longer-essential-produce-steel

Parmeter, N., Murphy, B., & Bernasconi, A. (2023, October 22). Fire threat reduces at Scone in the Hunter and Nymboida in northern NSW. ABC News. https://www.abc.net.au/news/2023-10-22/nsw-bushfires-at-scone-segenhoe/103007090

Simpson, E., Gottschalk, A., & Campbell, R. (2024, November). Greenwashing coal in New South Wales: The organisations charged with overseeing regional transition away from coal mining in NSW have a budget of $5.2 million across four organisations. The Australia Institute.

Sivaraj, M. (2023, September 29). Here's a list of techniques and strategies you can use to excel in political lobbying. CallHub. https://callhub.io/blog/advocacy/political-lobbying-strategies-techniques/

The Australia Institute. (2024). Hands off our elections donate. https://nb.australiainstitute.org.au/hands_off_our_elections_donate

United Nations. (n.d.). What is climate change? https://www.un.org/en/climatechange/what-is-climate-change

UNSW Resources Regulator. (2019). Compliance blitz: High visibility operation - June 2019. NSW Government. https://www.resources.nsw.gov.au/sites/default/files/documents/statewide-compliance-operation-report-2019.pdf