BHP’s Shocking Backflip: Mining Giant Sells Off 3,700 Hectares of Land at Mt Arthur Coal Mine to Neighbouring Operator
- BHP accused of reneging on 2022 promise to close Mt Arthur mine by 2030
- Malabar Resources to acquire land and expand metallurgical coal mining operation
- Deal sparks outrage among climate advocates and concerns over environmental impact
In a stunning reversal, BHP has sold off nearly 4,000 hectares of land at its Mt Arthur coal mine to neighbouring operator Malabar Resources, sparking outrage among climate advocates and concerns over the environmental impact. The deal has been labelled a “backflip” by critics, who claim it undermines BHP’s previous commitment to close the mine by 2030.
The Mt Arthur mine, located near Muswellbrook in New South Wales, is the largest coal mine in the state, covering an area of 7,000 hectares. In 2022, BHP announced plans to slowly transition the mine to closure by 2030, a move that was hailed as a significant step towards reducing the company’s environmental footprint.
However, the latest deal has raised concerns that mining will continue beyond 2030, with Malabar Resources planning to expand its metallurgical coal mining operation onto the site. The new operation, to be known as Maxwell North, is expected to create over 300 jobs, but critics argue that it will come at a significant environmental cost.
“BHP had made a commitment to the market and there had been quite a lot of fanfare when it announced in 2022 that it would close the Mount Arthur coal mine in 2030,” said Naomi Hogan, Head of Engagement and Sector Strategy at the Australasian Centre for Corporate Responsibility. “It was trying to demonstrate that balance between good economic management, emissions reduction and good workforce planning and a just transition. But now all of that is in question.”
Despite the criticism, BHP has defended the deal, saying it reflects the needs of the broader community. “Our commitment is clear, we want to focus on environmental, economic and social outcomes in mine closure, to help set the region up for long-term success and deliver a positive legacy from BHP mining in the Hunter Valley,” said Liz Watts, Vice-President of BHP’s NSW Energy Coal.
The deal has been welcomed by Muswellbrook Shire Mayor Jeff Drayton, who said it was good news for the region, which was set to lose 2,000 jobs when the Mt Arthur mine closed. “Anything that can create jobs in the community is certainly good at the moment because we’re certainly going to need them in a couple of years’ time,” he said.
However, the deal is subject to approval by the NSW Department of Planning, and it remains to be seen whether the expansion of the Maxwell Underground Mine will be given the green light. One thing is certain, however: the decision has sparked a fierce debate over the future of coal mining in Australia and the impact it will have on the environment.