The Australian Federal Government officially approved a seven-year extension for the Middlemount Coal Mine, a joint venture between Peabody Energy and Yancoal. This approval allows the mine to continue operations until 2044, extending its previous end-of-life date from 2037.
Key project details
The extension, formally known as the Middlemount Southern Extension Project, involves expanding the existing open-cut operations into new areas to the south.
The mine is permitted to extract up to 5.7 million tonnes per annum (Mtpa) of Run-of-Mine (ROM) coal. The site primarily produces PCI (Pulverized Coal Injection) and coking coal, both of which are high-quality metallurgical coals essential for steel manufacturing.
The extension is expected to yield approximately 112 million tonnes of additional coal over the extended life of the mine. The project is located in the Bowen Basin, approximately 3km southwest of the Middlemount township in Central Queensland.
Environmental and social impact
The approval has been met with significant debate, balancing economic longevity with environmental conservation. The project involves clearing approximately 233 hectares of vegetation. This includes over 180 hectares of habitat for threatened species, specifically the Koala and the Greater Glider.
A key part of the plan includes diverting a section of Roper Creek to allow for the pit expansion. The Independent Expert Scientific Committee (IESC) raised concerns regarding the long-term impact on water quality and the creation of “saline residual voids” (pits left behind after mining).
Environmental groups, including the Climate Council and the Australian Greens, have criticized the decision. They estimate the extension will contribute roughly 236 million tonnes of CO₂-e (carbon dioxide equivalent) when the coal is exported and burned overseas.
The Federal Environment Minister, Murray Watt, approved the project subject to “strict environmental conditions,” which include legally securing biodiversity offsets to compensate for the lost habitat.
Economic context
The extension provides job security for the local Middlemount community for another two decades. The mine utilizes existing infrastructure, including rail and port capacity through the Dalrymple Bay Coal Terminal (DBCT) and Abbot Point Port, ensuring a steady supply chain to international steel markets, particularly in India and Asia.
