Coal jobs hit record levels, as China demand returns

Anthony Albanese visits Mount Thorley Warkworth mine in regional NSW with Hunter MP Dan Repacholi during the 2022 election campaign. Picture: Toby Zerna

• EXCLUSIVE

  By GEOFF CHAMBERS

  CHIEF POLITICAL CORRESPONDENT

  @Chambersgc
• 6:23PM NOVEMBER 12, 2023
• 5 COMMENTS

NSW coalminers – who now employ a record 25,170 workers and are set to eclipse Queensland as Australia’s coalmining powerhouse – are cashing in on Beijing’s removal of export bans after shipping $3.3bn worth of coal to China in eight months.

After two years of zero coal exports, NSW miners sent 21 million tonnes of coal to China between January and August, and are projecting a bumper year after lifting exports to Japan, South Korea, Taiwan and India during the Chinese ban.

A new report released by the NSW Minerals Council on Monday reveals that at the end of July there were 25,172 coalmining workers in the state.

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The workforce is more than double 1998 levels and surpasses the previous 2012 record of 24,972 jobs. Just under 8000 NSW workers are employed in the metals mining sector.

In the NSW Hunter region, coalmining jobs surged to more than 15,100, with workforces in Gunnedah and the state’s western region remaining at near record levels.

NSW miners are pushing to fast-track 15 coal projects under assessment, with the state now boasting greater job forecasts in mining and stronger investment interest than Queensland, where the Palaszczuk government has imposed crippling royalty taxes on miners.

The projects, which are mainly seeking to extend existing operations, represent almost $3.7bn in investment opportunities for the regions and would create or protect almost 10,000 jobs.

Amid calls from the Greens and climate activists to phase out coal and gas, NSW Minerals Council chief executive Stephen Galilee said “these job numbers highlight the need to support mining communities”.

After BHP sold its coal assets in Queensland last month and lashed the state’s tax grab, Mr Galilee said “NSW coalmining is playing a critical role in the budget repair task being undertaken by the state government”.

In Chris Minns’ first budget in September, the NSW government imposed a royalty hike from July next year to raise an extra $2.7bn over four years.

“Although the increase in royalties will add to the cost burden for NSW coal producers, the NSW government at least consulted constructively with the industry prior to making a final decision,” Mr Galilee said. “By contrast, the Queensland government completely ambushed coal producers in that state with a massive royalty hike that has put jobs and investment at risk. We may now be seeing the impact.

“The record number of people working in the NSW coalmining sector shows that over the last 25 years, coalmining has become increasingly critical to regional communities and the state economy.”

The Department of Industry and Resources September quarterly report said thermal coal exports to China had returned to pre-ban levels of 2019-20. The report warned thermal coal exports were forecast to fall from $66bn in 2022-23 to $36bn in 2023-24 and $28bn the following year. Metallurgical coal exports are projected to fall from $62bn in 2022-23 to $41bn in 2024-25.

Queensland Resources Council chief executive Ian Macfarlane last week released a report warning that Queensland coal producers will pay an extra $6.5bn over two years under the Palaszczuk government’s royalty regime.

“The state government’s short-term thinking for short-term gains is killing the golden goose and doing long term damage to Queensland by deterring investment in new, greenfield projects and drying up that pipeline of future projects,” he said.

“The loss of investment confidence threatens new projects across all commodities, including battery minerals and renewable energy projects, so the impact is broader than the coal sector.”