WA government pushes merger of state's only two coal mines

The Western Australian government is urging the merger of the state's sole coal mining companies as it nears the 2030 deadline to cease state-owned coal power stations. Premier Roger Cook affirms that discussions will be conducted independently, but a merger is considered inevitable. The government is collaborating with privately-owned Griffin Coal and Chinese-owned Premier Coal to negotiate the merger's particulars.

The combined entity would supply coal to Bluewaters power station. The ultimate choice rests with the mining firms, yet Cook expressed confidence in reaching a consensus. The state government aims to retire all state-owned coal-fired power by 2030. In April, Premier Coal, a state-owned power station supplier, announced between 70 to 100 job losses at its Collie mine due to declining demand for coal-fired power.

Since 2022, Griffin Coal, propped up by taxpayer support, has faced bankruptcy concerns, risking blackouts and local job losses. The government has spent $240 million keeping the private miner afloat over the past five years. As state aid concludes, Labor MP Jodie Hanns calls for federal assistance, noting other projects nationwide received federal aid.

The state government has allocated $700 million to decommission state-owned power plants and transition Collie, a coal-mining town, into alternative industries. A taskforce recommended a merger, citing cost efficiencies and workforce management benefits. However, Shadow Energy Minister Steve Thomas criticized the announcement for lacking details, emphasizing the potential cost to taxpayers.

The WA government's Collie Industrial Transition Fund has invested $58 million in rehabilitation, infrastructure, and workforce transition initiatives, including voluntary redundancy measures.