Australia holds the third-largest coal reserves in the world — around 14.3% of total global reserves — sitting behind only the United States and Russia, according to the US Energy Information Administration. The country produced approximately 463 million tonnes (Mt) of black coal in 2024, with Queensland and New South Wales driving nearly all of it.

 

While the national output trajectory is expected to decline from 2027, as dozens of mines reach end-of-life, the current operating landscape is still defined by a handful of extraordinarily large, long-running operations.

 

This article profiles the five largest coal mines currently operating in Australia, ranked by annual production. For each mine, we look at what it produces, who operates it, and what the near-term outlook is — the questions that matter most to industry analysts, investors, and anyone watching Australia’s coal sector navigate the energy transition.

 

 

Before examining individual mines, it helps to understand how Australian coal is categorised and measured.

Australian coal is divided into two primary types: brown coal and black coal.

 

Comprising anthracite, bituminous, and sub-bituminous grades, black coal is mined predominantly in Queensland and New South Wales and accounts for the bulk of export tonnages.

 

Within this category are two types of black coal:

On the other hand, brown coal (lignite) is a softer, higher-moisture product that cannot be economically exported and is mined exclusively in Victoria’s Latrobe Valley, burned at adjacent power stations to generate state electricity.

 

Queensland is Australia’s largest coal-producing state, producing more than 224Mt from 59 active mines between May 2024 and May 2025, with approximately 61% metallurgical coal and 39% thermal coal, according to the Queensland Department of Natural Resources.

 

New South Wales is the second-largest producer, with 41 operating mines concentrated in the Hunter Valley and Gunnedah Basin.

 

 

The Loy Yang Mine is Australia’s single largest coal mine by volume and one of the biggest brown coal operations in the world. Located in Victoria’s Latrobe Valley, the mine is owned and operated by AGL Energy, which also runs the adjacent Loy Yang A power station. The two Loy Yang power stations that the mine feeds account for around 50% of Victoria’s total coal-fired electricity generation.

 

Around 30Mt of coal is extracted from the open pit each year. The pit is approximately 200 metres deep, 3km long, and 2km across at its widest point.

 

Four massive electric-powered bucket-wheel dredgers work around the clock, each weighing roughly 5,000 tonnes and capable of excavating 4,000 tonnes of coal per hour. Coal travels from the mine to the power stations via 15km of conveyors running at 5.3m per second.

 

Unlike the black coal mines in Queensland and New South Wales, Loy Yang does not stockpile its product. The high moisture content of brown coal makes long-term storage impractical, so extracted coal is burned within 24 hours of leaving the ground.

 

The tight operational coupling between the mine and the power station means any disruption to either facility has an immediate effect on Victoria’s electricity supply. In February 2024, storm damage to transmission towers took Loy Yang A offline briefly, pushing wholesale power prices to a market cap of $16.60/kWh.

 

 

The Loy Yang deposit holds reserves of approximately 168 billion tonnes, with a coal seam averaging 180m in thickness and relatively shallow overburden of just 5–24m.

 

This makes extraction extremely cost efficient compared to deep underground operations elsewhere. The coal has low sulphur and low ash content, which are helpful characteristics for a lignite-class fuel. However, its high moisture reduces the energy yield per tonne compared with black coal.

 

The mine and its adjacent power complex employ around 600 people, making it one of the largest single employers in Victoria’s Latrobe Valley.

 

 

Loy Yang is not investable as a standalone asset. It is fully integrated into AGL Energy’s generation portfolio, and for AGL shareholders, the mine and power station represent a significant share of near-term earnings — and the company’s most exposed stranded-asset risk as the grid decarbonises.

 

AGL brought forward the closure of Loy Yang A to 2035, down from 2045. Resources Victoria has required AGL to submit a Declared Mine Rehabilitation Plan by October 2027, with a lake-based rehabilitation model currently the preferred option. AGL applied for a bulk water entitlement from the Latrobe River system to support this, which the Victorian Government approved in December 2025.

 

The 2030–35 wind-down window is the single most material near-term question for anyone tracking AGL’s long-term earnings trajectory and balance sheet.

 

Mt Arthur is the largest coal mine in New South Wales and Australia’s biggest export-oriented black coal operation. Located near Muswellbrook in the Hunter Valley, it was opened by BHP in 2002 and has operated continuously since. Coal is railed via Aurizon on the Main Northern railway line to the Port of Newcastle for export, with all domestic supply ceasing in 2020.

 

In FY2025, Mt Arthur produced 15.04Mt of saleable coal, exceeding the top end of BHP’s external guidance range of 13–15Mt. BHP’s FY2025 annual report noted that record annual feed volumes through the coal-handling preparation plant contributed to this.

 

Looking to FY2026, BHP expects production to increase to 18–20Mt, a deliberate ramp-up ahead of closure.

 

The mine produces 21 unique seams of medium-rank bituminous thermal coal in the Upper Hunter region. Its infrastructure includes access to the Newcastle Coal Infrastructure Group loading terminal at the Port of Newcastle, in which BHP holds a 28% interest.

 

 

BHP’s handling of Mt Arthur has been one of the most closely watched mine exit processes in Australian mining history. In 2020, the company announced it was selling the mine, appointing JPMorgan and Macquarie to manage the sale.

 

When no buyer materialised at an acceptable price, BHP reversed course and committed to operating the mine through to 2030, bringing the closure date forward from the original 2045 timeline.

 

The decision to ramp up production ahead of closure is financially rational. From 1 July 2024, NSW’s open-cut coal royalty rate increased to 10.8% of coal value, meaning faster extraction maximises returns before operations cease.

 

BHP has updated its closure and rehabilitation provision from US$0.7 billion to US$1 billion ($1.39 billion). Separately, the company has also partnered with ACCIONA Energía to explore a pumped hydro energy storage project on the site, a potential post-mining land use that could anchor renewable investment in the region.

 

For the workforce, BHP estimates that about 35% of the mine’s 2,000-strong team will be at retirement age by 2030, which softens — but does not eliminate — the transition challenge for the local community.

Full rehabilitation of the mined area is expected to take between 10 and 15 years after closure.

 

 

For BHP shareholders, Mt Arthur’s remaining contribution is relatively modest within the context of the company’s diversified portfolio. Two more significant questions arise: whether the rehabilitation liability is fully provisioned, and whether the pumped hydro project can attract development capital in the current investment environment, as that project would convert the site into a renewable energy asset.

 

Moolarben is the single most productive individual mine in Yancoal Australia’s portfolio and is central to the company’s standing as Australia’s second-largest coal producer. The complex combines open-cut and longwall underground operations across multiple pits and panels, giving operators the flexibility to optimise output for different market conditions.

 

In 2024, Moolarben’s open-cut operations ran so well that the site reached its annual permitted ROM ceiling of 16Mt well ahead of year-end. Yancoal’s FY2024 full-year results confirmed attributable saleable production of 36.9Mt across all sites (within guidance of 35–39Mt), with Moolarben as the single largest contributor.

 

The mine’s total resource base is approximately 610Mt, spanning open-cut and underground accessible coal. This makes it one of the most substantial thermal coal endowments in NSW outside the Hunter Valley. The complex sits 40km east of Mudgee, with coal railed to the Port of Newcastle for export.

 

 

Yancoal recently increased its stake in the Moolarben joint venture to 98.75%, acquiring the residual interest from a consortium of Korean power companies, including KORES, KEPCO, and affiliated generators. The consolidation reflects Yancoal’s confidence in Moolarben as its core long-term asset.

 

Alongside the stake increase, the company refinanced its contingent liability facilities, establishing a new $1.35 billion five-year facility.

 

Yancoal closed 2024 with a cash balance of $2.13 billion, up $307 million from the September quarter. The company then broke production records in 2025, producing 38.6Mt of attributable saleable coal for the full year, according to the company’s January 2026 quarterly report.

 

 

The key upcoming decision point for Moolarben is the OC3 Extension Project. Yancoal has lodged an application to extend open-cut operations immediately south of the approved OC3 pit and to develop four new pits to the east and southeast. This project would provide about 10 years of additional mining from 2025 to 2034, while maximising use of the existing fleet.

The NSW Department of Planning completed its assessment in December 2025 and referred the project to the Independent Planning Commission (IPC) for determination. Yancoal has since requested that the IPC process be paused while it prepares an Amendment Report incorporating the department’s recommendations.

 

For Yancoal investors, the OC3 extension approval is the most material near-term catalyst in the company’s portfolio. A successful outcome secures Moolarben’s output floor through to at least 2034 and underpins the earnings base supporting Yancoal’s dividend capacity.

 

Maules Creek is Whitehaven Coal’s most important asset, and one of the highest quality thermal coal deposits operating in Australia. Located in the Gunnedah Basin near Boggabri, it has been in operation since 2015, following a $767 million construction program. The mine has planning approval to extract up to 13Mt of coal each year until 2034.

 

Coal from Maules Creek is characterised by low phosphorus, low sulphur, and low ash content — precisely the specification preferred by Japanese and South Korean utilities, which are Whitehaven’s primary customers. This premium translates directly into above-benchmark realised prices. In FY2024, Whitehaven achieved an average realised price of $217 per tonne across its NSW business.

 

In FY2024, Maules Creek delivered ROM production of 11.4Mt, up from 9.6Mt in FY2023, reflecting more consistent operations throughout the year following improvements to the mine’s equipment and haulage systems. The cessation of autonomous haulage during FY2024, which seemed counterintuitive, actually contributed to increased productivity.

 

 

Maules Creek operates within a significantly transformed Whitehaven Coal, following the company’s acquisition of BHP’s Daunia and Blackwater metallurgical coal mines in Queensland in April 2024.

 

Valued at approximately $4.1 billion, the transaction shifted Whitehaven from a pure thermal coal producer into a diversified coking and thermal company almost overnight. In FY2024, metallurgical coal accounted for 31% of total revenues (up from 6% the year before), with thermal coal representing the remaining 69%.

 

Maules Creek remains the anchor of the NSW thermal business, generating consistent cash flow that funded the Queensland expansion. The mine’s proximity to rail infrastructure, sitting 16km from the main Hunter Valley railway, supports efficient logistics to the Port of Newcastle, 360km to the southeast.

 

 

Whitehaven has lodged an application with the NSW Government to continue mining at Maules Creek until 2044, a full 10 years beyond the current approval. If approved, the project would add approximately 126Mt of additional production and sustain employment for more than 900 people in the North West NSW region.

 

The proposal is undergoing both state and federal environmental assessment, including review under the EPBC Act for impacts on threatened species habitat. The Leard State Forest is home to critically endangered ecological communities, including White Box-Yellow Box-Blakely’s Red Gum Grassy Woodland and Derived Native Grassland. More than 100,000 trees have already been planted as part of progressive rehabilitation at the site.

 

For Whitehaven shareholders, approval of the continuation project is a material valuation event. Extending the mine life to 2044 would add roughly a decade of high-margin thermal coal production from Whitehaven’s best NSW asset, while the company integrates its newly acquired Queensland metallurgical coal operations.

 

Hail Creek is the only metallurgical coal-focused mine in this ranking and one of the most significant coking coal operations in Queensland’s Bowen Basin. The mine extracts both hard coking coal and thermal coal for export, railing product 100km to the Dalrymple Bay Coal Terminal near Mackay.

 

Glencore became the mine’s operator in August 2018 after acquiring Rio Tinto’s (ASX:RIO) 82% interest in the asset and adjacent coal resources.

 

In 2024, Hail Creek produced 8.2Mt of saleable coal, employing 1,090 people across the site. In 2024–25, the project mix shifted to approximately 51% thermal coal and 49% metallurgical coal, reflecting ongoing optimisation of the mine’s extraction sequence and market conditions.

 

Located in Widi Country, 40km north of Nebo and 120km southwest of Mackay, Hail Creek operates as a truck-and-shovel open cut, extracting coal from a large-scale Permian coal basin that stretches 600km through central Queensland.

 

 

In March 2026, the Queensland Government approved Glencore’s Eastern Margin Extension project at Hail Creek. The extension will produce an additional 29Mt of thermal and metallurgical coal, extending the mine’s operating life by approximately three years to 2038.

 

The approval allows Glencore to expand three existing open-cut pits and dig one new pit adjacent to Homevale National Park.

 

The decision drew significant opposition from environmental groups, primarily over the clearing of 600 hectares of habitat identified as nationally significant for koalas. Lock the Gate Alliance conducted thermal drone surveys in June 2025 and found at least 13 individual koalas within a 160-hectare section of the proposed extension footprint.

 

The Federal EPBC approval for threatened species impacts remains outstanding at the time of writing — a decision now awaiting the Federal Environment Minister.

 

 

Hail Creek carries an unusual emissions profile that sets it apart from other large Australian coal mines. It is estimated to emit roughly 20% of Australia’s total methane pollution from coal mining, while accounting for only about 1% of national coal production.

 

A UNSW study published in 2025 found that actual methane emissions at the site could be three to eight times higher than previously reported, following improvements to the measurement methodology.

 

Australia’s safeguard mechanism makes this matter financially significant. The Institute for Energy Economics and Financial Analysis (IEEFA) estimates Hail Creek surrendered around 192,000 Australian Carbon Credit Units (ACCUs) in 2024.

 

If the mine extension proceeds as approved, offset requirements are expected to rise sharply — potentially covering up to 94% of the site’s emissions by 2030. Given the volatility of ACCU prices, this represents a material — and often underappreciated — operating cost risk for the mine’s economics over the extension period.

 

Glencore has committed to implementing a Greenhouse Gas Abatement Plan and is undertaking a gas pre-drainage study at the site. Energy analysts note that Hail Creek is technically well suited for pre-drainage, given the high gas content of its coal seams — and that captured methane could be used for on-site power generation, reducing both emissions and operating costs.

 

 

The five mines profiled here collectively account for a substantial portion of Australian coal output, but they also paint a picture of a sector in structural transition.

Three of the five have confirmed or approved end-of-life timelines before 2040. The remaining two are actively seeking life extensions, reflecting their operators’ confidence that thermal coal demand from Asia will remain economically viable into the mid-to-late 2030s.

 

Australia’s coal production is set to decline sharply from 2027, driven by the planned closure of approximately 24 mines. GlobalData forecasts a marginal overall production decline to around 525Mt by 2030, even as remaining mines ramp up throughput where approvals allow.

 

The more significant long-term trajectory is downward — driven by energy transition policy in key export markets, the retirement of coal-fired power stations in Australia and abroad, and the growing cost of carbon compliance.

 

Beyond purely environmental, these points are balance sheet questions, and they will shape the valuation of Australian mining and energy equities for the next decade.

 

 

The following external sources were used in preparing this article and are recommended for readers seeking additional data or regulatory detail.

 

 

Australia’s coal mining sector remains among the world’s largest by volume, but its defining characteristic heading into the second half of the decade is managed decline. The five largest mines in operation today are all navigating a combination of wind-down planning, life-extension negotiations, or rehabilitation preparations.

 

Loy Yang produces the most coal of any single mine in the country, but its future as a power station supplier ends with the closure of Loy Yang A in 2035. BHP is deliberately ramping up output at Mt Arthur before walking away in 2030. Yancoal and Whitehaven are fighting to extend two NSW mines that define the state’s thermal coal export capability well into the 2030s. And Glencore is managing a methane accounting challenge at Hail Creek, even as it wins approval to extend the mine’s life.

 

What comes next for Australia’s coal sector is a long, complicated slope with significant differences in gradients depending on the commodity, operator, and jurisdiction.

 

The investors, analysts, and communities best placed to navigate it are those who understand not just what each mine produces today, but what each operator is committing to — and walking away from — tomorrow.