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New South Wales has approved its largest coal mine continuation project despite recognising its substantial contribution to global warming.
The decision concerns Hunter Valley Operations (HVO) near Singleton.
The Independent Planning Commission approved continuation at HVO North until 2045 and HVO South until 2042. [1]
The approval followed a three-day public hearing during July. The Commission received 10,576 written submissions and heard from 129 members of the public and subject-matter experts. [1]
HVO occupies a long-established mining landscape between Singleton and Muswellbrook. The complex has operated since 1949 and remains a major employer and economic contributor. [3]
The Commission weighed those regional interests against environmental impacts identified during its assessment. Its reasons recognise consequences for the Hunter, NSW and the global climate system. [1]
The project therefore sits at the centre of a policy tension. NSW seeks an orderly transition from coal while permitting an established operation to continue for almost two decades. [5]
Environmental groups have strongly criticised the decision. Rising Tide described the approval as the largest climate policy failure in NSW history, a characterisation the organisation attributes to the scale of the extension. [6]
The Commission identified about 809 million tonnes of greenhouse gases associated with local mining operations and combustion of the exported coal overseas. [1]
That figure includes emissions generated beyond the mine itself. It therefore captures the wider climate consequence of selling coal for combustion in international markets. [1]
The Commission nevertheless concluded that the project could proceed within existing NSW and Commonwealth statutory and policy frameworks. Its conditions aim to manage the identified greenhouse impacts. [1]
That approach leaves a difficult policy question surrounding responsibility for exported fossil fuel emissions. The approval regulates the mine while the largest emissions occur when customers burn its coal overseas. [1]
HVO currently employs about 1,550 employees and contractors. Glencore reports a 2025 economic contribution of $1.76 billion and more than $1.2 billion spent on goods and services. [3]
Those figures explain the strength of local support for continuation. Mining wages circulate through regional businesses while contractors depend upon the operation for sustained demand. [2]
The Commission considered employment, business and broader social benefits alongside environmental costs. Its decision therefore reflects a regional economy still heavily connected to coal production. [1]
Yet continuation also extends the period available for transition planning. The Commission has required a closure plan designed to support workers and communities as the region develops new economic opportunities. [1]
The approval requires HVO to prepare a greenhouse gas mitigation plan within six months. The plan must address Scope 1 emissions, including fugitive emissions from mining. [1]
The operator must also purchase additional carbon offsets beyond those required under the Commonwealth Safeguard Mechanism. The condition adds a separate obligation to the federal scheme. [1]
Within three months, HVO must publish a Scope 3 Management Plan. It must explain how the operation will limit exports towards jurisdictions pursuing emissions policies consistent with the Paris Agreement. [1]
The project must also maximise renewable electricity use within four years and publish a comprehensive closure plan within 12 months. Those requirements create measurable obligations beyond ordinary operational controls. [1]
State approval does not complete the regulatory process. HVO still requires Commonwealth environmental approval for continuation, with the federal decision required by the end of December 2026. [4]
That second decision carries particular significance because the state assessment has already quantified the project's global greenhouse consequences. The federal process therefore enters a debate already defined by extensive evidence. [1]
NSW has legislated a pathway towards net zero emissions while retaining an economy with major coal exports. HVO illustrates the practical difficulty of reconciling those objectives within existing planning frameworks. [5]
The approval also places greater weight on transition planning around the mine. Its closure condition acknowledges that regional economic resilience requires preparation before coal production eventually ends. [1]
The HVO decision exposes the competing obligations facing governments in coal regions. Jobs and regional investment carry immediate value while climate damage accumulates across borders and generations.
The Commission has imposed unusually detailed greenhouse and closure conditions. Their effectiveness will depend upon transparent reporting, regulatory enforcement and credible implementation throughout the mine's remaining life.
The federal assessment now becomes the next major accountability test. HVO demonstrates why Australia's transition debate increasingly concerns governance, responsibility and the practical limits of managing fossil fuel expansion.
1. Hunter Valley Operations coal mine approved with conditions. Independent Planning Commission NSW. Official determination summary, including emissions, economic impacts and approval conditions.
2. Hunter Valley coal mine wins approval to operate until 2045. Daily Telegraph. Reports employment, regional business impacts and economic arguments surrounding the approval.
3. Hunter Valley Operations. Glencore Australia. Provides ownership, employment, production and economic contribution information.
4. HVO Project: One step closer to certainty for 1,500 workers. Glencore Australia. Confirms the state approval and remaining Commonwealth environmental approval requirement.
5. Securing long-term jobs for the Hunter: HVO approval strikes right balance. NSW Government. Sets out the government's response and the approved operating periods.
6. Biggest climate failure: Major coal mine project approved despite laws to reduce emissions. Nature Conservation Council NSW media statement. Records environmental groups' response to the decision.



