More taxpayer dollars will be funnelled into a troubled coalmine in Western Australia despite the state government’s promise to quit subsidies this year.
The cash-strapped Griffin Coal mine near Collie will be able to keep operating for another five years under the extended agreement with the WA government.
Premier Roger Cook cited energy security as reason for propping up the mine that supplies coal to both industry and the Japanese-owned Bluewaters Power Station, which generates more than 15 per cent of WA’s electricity.
“My government is focused on delivering energy security for households and businesses as it diversifies Western Australia’s economy,” he said in statement.
Roughly $308 million has already been handed to the coalmine, which is owned by India’s Lanco Infratech, since its collapse in 2022 due to financial strain.
The WA government has not provided a sum for the latest round of support but assured the subsidy required from mid-2026 would be “significantly” lower than in the past thanks to an agreement still being ironed out with the mine’s customers.
Opposition energy spokesperson Steve Thomas said the subsidy extension was proof the state government’s energy plan was in disarray.
“I have said repeatedly over the last year that more funding for Griffin would be required, while Premier Cook has continually said that no more public money would be handed over,” he said.
“The Cook government has been forced to admit that if it wants to keep the lights on and air-conditioners running, coal-fired power remains essential for at least the next five years—and likely well beyond that.”
Western Australia has committed to retiring all state-owned coal-fired power stations by 2030 as part of its energy transition, a target that remains in play, the state government has confirmed.
The Conservation Council of WA executive director Matt Roberts was critical of the government’s decision to “pour more money into the dirtiest of fossil fuels” despite earlier promises not to fund Griffin beyond mid-2026.
“This announcement of a five-year extension, made on one of the hottest days of the new year across Western Australia, is an example of our state government missing an opportunity for sustainable, long-term energy transition away from heavily polluting fossil fuels,” he said.
The conservation group urged the premier to commit to 2030 emission reduction and renewable energy targets that would bring Western Australia in line with other states.
A taskforce has also been set up to consider the possible consolidation of the two coal mines in the basin, Griffin and Premier Coal.
Australian Manufacturing Workers’ Union state secretary Steve McCartney welcomed the state government’s consideration of merging the two mines, which union members have been campaigning for.
“Workers at Griffin and Premier know better than anyone that the current setup hasn’t been working,” he said.
“We’ve seen the financial instability, the safety risks and the uncertainty for families in Collie.”