New South Wales
Australia’s NSW Bans New Coal Mines
New South Wales, Australia’s second largest coal-producing state, revealed plans to stop accepting applications for new coal mines in its NSW Coal Industry 2026-50 strategy and net zero 2050 emissions plan. The ban applies only to greenfield projects, existing mines and extensions are unaffected, allowing them to continue operating for decades. The state will also cease new coal exploration funding. Japan, China and Taiwan are the state’s largest coal buyers. Environmental groups welcomed the announcement but said continued approval of extensions to that mine was inconsistent with the state’s own climate legislation.
New South Wales has banned applications for any new coal mine as part of its net-zero plan, enabling existing mines and extensions to go ahead. Environmental groups support the decision but warned that mine extensions still run counter to the state’s climate goals.
Key Highlights
- No new coal mine applications will be accepted by NSW from any company.
- Current mines and approved extensions could operate for decades.
- 80% of NSW’s coal exports are sold to Japan, China and Taiwan.
- The government will also cease funding new coal exploration across the state
- Environmental groups greet the move but note that mine expansions are at odds with climate goals.
No New Coal Mines in NSW
The New South Wales government declares an end to the approval of new coal mines in the state. NSW is the nation’s second-largest coal-producing state, and the ban applies to so-called greenfield mines, projects constructed from scratch on previously untouched land.
Courtney Houssos, NSW Natural Resources Minister said the action is a component of the state government plan for net zero in the context of both funds. She also stated that this is part of the new strategy and is good for the coal industry, specifically mining sector. It is the first update in six years of the state’s plan for its coal industry.
What Is Still Allowed
The ban is limited to new mines. It will include consideration of extensions to existing coal operations, which will also go through a project-by-project approval process with stringent requirements. The government argues these extensions will preserve jobs in mining communities for decades to come.
The state will also cease investment in new coal exploration, although this is still allowed near existing mine sites. Current exploration licences will be renewed on a use-or-lose-it basis. Companies that have a licence but do nothing with it will lose that licence.
Coal is still significant to the economy of New South Wales
Even if new mines are banned, NSW is not abandoning coal overnight. The industry continues to employ tens of thousands, especially in the Hunter Valley area. In 2025, 89% of coal traded from the Hunter was exported and Japan purchased 43%, China 27%, and Taiwan 10% of total coal exports out of NSW.
The government added that coal will remain a significant contributor to regional jobs and investment, and NSW producers will continue providing thermal and metallurgical coal to trade partners abroad. Export volumes have already sunk 4% from 2018–19, and the largest decline in demand will likely arrive in the 2040s.
Environment Groups Say It Is Insufficient
Environmental groups praised the announcement but were quick to criticise its limitations. The Australian Conservation Foundation, the conservation group was also pushing for the coal ban to also apply in 2023 when NSW’s climate law came into effect. It also added that the government’s ongoing readiness to approve major mine extensions is in direct conflict with its own emissions targets.
The Lock the Gate Alliance said the strategy recognises declining demand for coal but provides no plan on what happens next to workers and regional communities, leaving their future in the control of big mining houses. The Nature Conservation Council was more blunt, stating that any new coal project approvals are incompatible with a safe climate future.
FAQs
- What has NSW banned?
New greenfield coal mines, projects built on new land from scratch. Existing mines as well as extensions are unaffected.
- Will existing coal mines need to shut down?
No, the existing approvals process is an interim measure to allow them to continue operating and apply for extensions.
- Does the government continue to fund coal exploration?
No, explicitly allowing pre-existing coal mine exploration to continue.
- How do environmental groups feel about the decision?
They welcome the rules on new mines but say that permitting extensions undermines the state’s own climate goals.
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