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Australian Court Blocks Coal Mine Expansion Over Climate Impact

Financial Times Companies •
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An Australian High Court ruling has blocked the expansion of Mach Energy's Mount Pleasant coal mine in New South Wales, finding that local authorities must consider climate effects when granting mining permits. The decision, which could set a template for future cases, was described as a "blow" by Minerals Council of Australia CEO Tania Constable. The trade body's membership includes Glencore and BHP.

The ruling follows a case brought by retired science teacher Wendy Wales and a community group, who argued that Australian coal directly contributes to climate harms like droughts and bushfires. The court upheld a state court ruling that the independent planning commission should not have approved the expansion without considering how burning the coal would affect the region through extreme weather events. The decision directly affects 17 coal proposals in the planning pipeline in New South Wales.

Australia's largest oil and gas company, Woodside, is also encountering opposition to a planned offshore gas project. Mach Energy said it would work with regulators and local communities to understand the practical implications. The Mount Pleasant project represented around A$2bn in spending by investors in Indonesia and Japan.

The International Energy Agency estimates Australia's annual thermal coal exports will increase slightly to 216mn tonnes this year, with Australia remaining the world's largest exporter of metallurgical coal.

Source: Financial Times Companies · Summarized by HeadlinesBriefing