The Western Australian Government has extended its agreement with Griffin Coal from July 2026 by up to five years, enabling the continued operation of the Ewington Mine in the Collie Basin and supplying coal to industry as well as the privately owned Bluewaters Power Station.
The government said the extension of one of the Collie Basin’s most significant coal mines would help provide energy security for businesses and households during the energy transition.
Griffin Coal entered receivership at the end of 2022. Since then, the WA government has provided $308 million in support to maintain operations, protect local jobs and support energy security across the South West Interconnected System.
Last year, Premier Roger Cook called on industry to deliver a commercial outcome for the future of Griffin Coal.
The government said advanced negotiations with Griffin’s major direct and indirect customers are expected to significantly reduce the level of subsidy required from July 1, with further details to be provided to state parliament once new commercial arrangements are finalised.
It also announced the creation of the Collie Basin Consolidation Taskforce, which will develop a detailed proposal on a future structure for coal assets in the basin. This will include consideration of whether the basin’s two mines – operated by Griffin Coal and Premier Coal – could be more efficiently mined by a single entity.
Cook said the government remained focused on delivering energy security for businesses and consumers across the state.
“Collie remains critical to our government’s vision of becoming a renewable energy powerhouse, with coal-fired power generation underpinning energy security and affordability as we build major new transmission lines to connect large-scale wind and solar to the grid,” he said.
“This is in addition to hosting Synergy’s $1 billion big battery, which stores excess solar and wind energy during the day for use during peak periods, supplying up to 780,000 Western Australian homes.
“The extension of the Griffin Coal State Agreement will provide certainty to the Collie community and underpin energy security for households and businesses across the South West Interconnected System, including Perth, as we deliver the energy transition.”
The Chamber of Minerals and Energy of Western Australia (CME) supported the decision to extend the mine’s operational life, saying coal remains a critical industrial input in the production of materials such as silicon and titanium, as well as a heat source for alumina refining.
CME chief executive officer Aaron Morey said the five-year extension was a pragmatic step.
“Not only does coal remain an important source of power generation in the SWIS, key resources operations rely on coal as a reductant or heat source in their production processes,” Morey said.
“Industry supports the pursuit of net zero by 2050, but the pathway is not linear. It will require adjustments along the way to ensure the viability of existing operators and to safeguard high-paying regional jobs.”