NSW Rules Out New Coal Mines, Tightens Rules for Expanding Old Ones

The New South Wales (NSW) government is ruling out any new coal mines and will not invest in any more coal exploration, according to its latest NSW Coal Industry 2026-50 plan.

Exploration will, however, be permitted near existing mine sites under a strict approval process, while existing coal exploration licences will continue under “use it or lose it” renewal rules.

Any approvals given to existing coal mines would have to meet a swathe of stringent requirements, including assessing the impact on water resources, ecosystems, biodiversity, land use, air quality, emissions and Aboriginal heritage.

NSW Minister for Natural Resources Courtney Houssos said the role of coal was “evolving” (pdf) to meet 2050 net zero targets, despite the industry providing billions to the state’s economy.

“Coal mining is a high-value industry in NSW, currently employing about 23,800 people directly and contributing $2.7 billion in royalties in 2025,” she said.

“It sustains many regional communities and helps fund essential services right across NSW.

“Coal remains one of NSW’s top exports by value, with $23.4 billion generated in exports during 2025, serving 21 trading partners globally.”

Houssos said thermal coal would continue to play an important part of the global energy mix into the 2040s and ’50s.

“Some of Australia’s key trading partners require access to NSW coal to ensure their energy security, although these partners also have their own net zero targets,” she said.

According to the government’s “key principles” set out in the plan, the coal industry must “continue to play a part in meeting NSW’s net zero targets” through abatement technology and offsets where abatement is not feasible.

Around eight coal mine sites have been approved since NSW Labor Premier Chris Minns came to power in 2023.

The government says former mining land will be used to establish new industries under its plan, but says some sites may not be suitable for economic use due to site-specific factors including environmental factors.

“We will continue to monitor market trends, domestic and international energy and steel demand and to support coal regions to identify opportunities to diversify their economies and workforce skills,” Houssos said.

The Epoch Times contact shadow mining and natural resources spokesman Dave Layzell for comment.

Speaking in response, Sydney-based Family First leader Lyle Shelton called net zero an “economic suicide note.”

“We should use our resources to build a future for our kids,” he said on Facebook.