The Western Australian government has extended its agreement with Griffin Coal for up to five years. This decision continues financial support for the Indian-owned mining company, which faces debts exceeding $1 billion.
Since 2022, the WA government has provided over $300 million to Griffin Coal. Premier Roger Cook had previously stated that government payments would conclude by June 2026. However, he now indicates that financial support will extend beyond this date, though with a commitment to a "significant and drastic reduction."
Premier Cook cited energy security as the key rationale for the ongoing support. He stated that coal is required to maintain power grid stability while new transmission lines are constructed to integrate large-scale wind and solar projects. The specific costs associated with the extended agreement will be revealed in parliament.
Griffin Coal is the sole supplier to Bluewaters Power Station, Western Australia's largest privately-owned electricity generator, which depends on a consistent coal supply for operation.
Mr. Cook asserted that the government's intervention aims to secure WA's energy supply and preserve jobs, preventing potential power disruptions. He also reaffirmed the government's policy to retire state-owned coal-fire power stations by 2030. Despite this, energy experts have expressed skepticism regarding the feasibility of replacing coal with renewables in WA by the specified deadline.
Furthermore, the Premier announced the establishment of a "transition taskforce." This taskforce is mandated to develop a detailed proposal for the future of coal assets in the Collie region, exploring options such as consolidating the two local coal mines under a single entity and addressing mine rehabilitation requirements.