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Australia: Yancoal–Glencore Hunter Valley Coal Extension Wins NSW Approval

 

 

September 30, 2026 - The New South Wales Independent Planning Commission has approved the Hunter Valley Operations North and South Open Cut Coal Continuation Projects, extending the operating life of a major Australian thermal and metallurgical coal complex.

The decision allows mining at HVO North through the end of 2045 and HVO South through the end of 2042. The projects include extensions of existing mining areas, access to deeper coal seams and continued operations 24 hours a day, seven days a week.

Federal environmental approval remains outstanding. Yancoal said the operation needs that approval by December 31, 2026, and will continue working with the National Environmental Protection Agency to secure it.

Located near Singleton in the Hunter Valley region, HVO produces thermal coal for electricity generation and semi-soft coking coal for steelmaking. Yancoal owns 51% of the operation, with Glencore holding the remaining 49%.

The approved proposal follows significant revisions to the original mine plan. The combined annual production limit was reduced from 42 million to 26 million tonnes of run-of-mine coal, while approximately 220 million tonnes were removed from the proposed extraction plan. The annual limit applies to coal before processing, rather than finished saleable coal.

Approximately 429 million tonnes of coal are expected to be extracted across the North and South sites over the continuation period, according to ABC reporting.

Yancoal welcomed the approval, describing it as a significant development for approximately 1,570 mine workers, their families and the regional economy. The company said the decision followed a six-year regulatory process during which the project’s design and operational framework were adapted.

Yancoal Chief Executive Officer Sharif Burra said the company remained optimistic that the outstanding approvals could be secured, supporting continued benefits for workers, local businesses, customers and shareholders.

The approval includes requirements to reduce greenhouse gas emissions, maximise renewable energy use where reasonable and feasible, and purchase additional carbon offsets. Conditions also seek to limit coal exports to jurisdictions with emissions policies consistent with the goals of the Paris Agreement.

The commission concluded that the project’s remaining impacts were outweighed by continued employment, economic activity, local business support, royalties and taxation revenue. Environmental groups opposed the extension, arguing that its emissions would undermine climate targets.

Estimated lifetime greenhouse gas emissions total approximately 809 million tonnes of carbon dioxide equivalent, predominantly associated with downstream use of the coal.

The federal environmental decision is the next major milestone in securing the operation’s long-term future.