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Local coal mines should supply customers says industry

Centennial Coal
Centennial Coal

Sourcing Australian minerals for domestic consumption is in everyone’s interest, an advocacy said.

Origin Energy was recently urged to use locally produced coal to support business and jobs.

The Mining and Energy Union (MEU) wants the Eraring Power Station to purchase product from Centennial Coal’s Myuna and Mandalong coal mines. Otherwise, the operations could sack hundreds of workers when the current agreement expires on August 2025.

“Centennial’s Myuna mine at Lake Macquarie is a fully captured coal mine of Eraring Power Station … with no other opportunity to transport coal to other markets. If no new ongoing contract is secured, there is an imminent risk of the mine closing and 350 workers being stood down,” the MEU said in a public statement.

“At least 600 and up to 1000 direct jobs are at risk across the two mines unless a coal supply contract for Eraring is urgently secured, with existing contracts expiring at the end of June [2024].”

However, the customer reportedly refused to negotiate a new contract on “viable terms”, partly due to stockpiled coal purchased elsewhere under price cap rules.

This forced MEU to urge the State Government to mandate coal contracts with Myuna and Mandalong in any proposed extension to the power station’s operating life.

“Origin should do the right thing and purchase coal from these local coal mines that exist to the supply the power station. Further, the NSW Government should insist on contracts for the life of the power station if they provide support to extend its operation,” northern mining and NSW energy district president Robin Williams said.

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