WA government pushes merger of state's last two privately-owned coal mines ahead of 2030 power plant closure deadline

A taskforce established in January has recommended the merger, and Premier Roger Cook said on Wednesday he was confident an agreement would be reached, though the final decision rests with the mining companies.

"I'm not in the rooms for those conversations taking place, but I think it's self-evident that we will see a consolidation," Cook said.

The push for consolidation comes as the state government prepares to end financial support for the coal sector. Griffin Coal has been propped up by WA taxpayers since 2022, when it was placed into receivership amid concerns its collapse could cause blackouts and threaten hundreds of jobs. Over the past five years, the state has spent $240 million keeping the privately owned miner afloat.

"I don't know where they'll get coal from because we won't be subsidising the coal mines as we do at the moment," Cook said.

Premier Coal, which supplies coal to the state-owned power stations, announced in April it would cut between 70 and 100 jobs at its mine near Collie, citing slowing demand.

The government has committed $700 million to decommission state-owned power plants and transition the Collie region, in the state's south-west, into other industries. Labor member Jodie Hanns has called on the federal government to step in and support affected workers.

"The federal government stepped in and supported a number of other projects around the country, including Whyalla," she said. "It is now time for our transitioning workers to be supported by the federal government."

The Collie Basin Consolidation Taskforce, which includes mine operators, lenders, major customers, unions and government representatives, recommended the merger.

Why This Matters

The merger proposal directly affects the future of Western Australia's electricity supply and the approximately 2,000 workers in and around Collie, a town built on coal mining
The state's 2030 deadline to close all state-owned coal power stations is fast approaching, and the path to replacement energy sources remains uncertain
The outcome will test how governments manage the phase-out of fossil fuels while balancing energy reliability, economic transition and job security

Background

Western Australia has relied on coal-fired power for decades, with the Collie region serving as the state's energy heartland. In 2022, the state government announced it would retire all state-owned coal-fired power stations by 2030, accelerating a shift toward renewable energy and gas. Griffin Coal, owned by Indian interests, went into receivership in 2022, forcing the state to step in with taxpayer funds to prevent an energy crisis. Premier Coal, owned by a Chinese company, has been cutting production as demand falls. The private Bluewaters power station, which would be supplied by the merged entity, is the remaining privately owned coal plant in the state.

Key Perspectives

WA Government: Views the merger as a logical consolidation to ensure a stable coal supply for the private power station while it winds down its own support. Premier Roger Cook is confident a deal will happen but is leaving the commercial negotiations to the companies. Mining companies (Griffin Coal and Premier Coal): Face declining demand for coal and the end of government subsidies. A merger would create a single, potentially more viable supplier, but the final decision rests with them. Local workers and the Collie community: Represented by Labor MP Jodie Hanns, who is calling for federal government support to help workers transition, comparing Collie's situation to federal interventions in other regional economies. Critics/Skeptics: The reliance on coal until 2030 and the push for merger may delay the transition to cleaner energy. Questions remain about whether a merged private coal miner can be viable without ongoing subsidies or whether the state will face energy shortfalls.

What to Watch

Whether the two mining companies formally agree to a merger and on what terms
The progress of the $700 million Collie transition plan and whether the federal government provides additional support
The security of coal supply to the Bluewaters power station as state-owned power stations are closed
Any changes to the 2030 deadline or new energy generation projects announced to fill the gap

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