The Chamber of Minerals and Energy of Western Australia (CME) has welcomed the state government’s decision to extend the operational life of Griffin Coal’s Ewington mine by up to five years, saying the move will help safeguard energy reliability and affordability during the state’s transition to net-zero emissions.

Under the extension, Griffin Coal’s state agreement will be renewed from July 2026, allowing the operation to continue supplying coal to industry and to the privately owned Bluewaters power station in the Collie basin.

The Western Australian government said the extension would provide greater certainty for workers, households and businesses, while supporting energy security across the South West Interconnected System (SWIS) as renewable generation continues to expand.

CME CEO Aaron Morey described the decision as a “pragmatic step” that recognised the ongoing role of coal in the state’s energy and industrial systems.

“Not only does coal remain an important source of power generation in the SWIS, key resources operations rely on coal as a reductant or heat source in their production processes,” Morey said.

He added that coal remained a critical input in the production of silicon and titanium, as well as a heat source for alumina refining.

“Industry supports the pursuit of net zero by 2050, but the pathway is not linear. It will require adjustments along the way to ensure the viability of our existing operators and to safeguard high-paying jobs in our regions,” Morey said.

Since 2022, the state government has provided about A$308-million in support to Griffin Coal, helping to sustain thousands of local jobs and maintain system reliability. The government said advanced negotiations with Griffin’s major customers were expected to significantly reduce the level of subsidy required from July 1, with details to be provided to Parliament once new commercial arrangements are finalised.

Premier Roger Cook said the extension formed part of the government’s broader strategy to deliver secure and affordable energy while expanding renewables capacity.

“Collie remains critical to our government’s vision of becoming a renewable-energy powerhouse, with coal-fired power generation underpinning energy security and affordability as we build our major new transmission lines to connect large-scale wind and solar to the grid,” he said.

Cook noted that the region was also hosting Synergy’s A$1-billion big battery project, which was designed to store excess renewable energy for use during peak demand periods.

“The extension of the Griffin coal state agreement will provide certainty to the Collie community and underpin energy security for households and businesses across the SWIS,” he said.

Energy and Decarbonisation Minister Amber-Jade Sanderson said the government remained committed to retiring all state-owned coal-fired power stations by 2030.

“Renewables firmed by batteries and gas is the least-cost mix for households and businesses – and that is what we are delivering,” she said.

“Extending the state agreement is a sensible, pragmatic step to provide certainty for industry, the Collie community and the power system as we deliver the energy transition.”

As part of the announcement, the government confirmed the immediate establishment of a Collie Basin Consolidation Taskforce, which will assess options for the future structure of coal assets in the region, including whether Griffin Coal and Premier Coal could be more efficiently operated under a single entity.

The taskforce will include representatives from mine operators, lenders, major customers, unions and government, and will be chaired by Department of Premier and Cabinet director-general Michael Carey. It is expected to report back to the Premier within six months.

Morey said CME supported the formation of the taskforce, noting that system-wide efficiency improvements could benefit both industry and workers.

“Exploring opportunities to improve efficiency across the system is sensible,” he said.

“Decisions should support secure energy supply for the SWIS and provide certainty for industry and workers alike.”

South West Minister Don Punch said the extension would help protect local jobs while supporting the town’s transition to new industries under the Collie Just Transition framework.

“This decision provides certainty for Collie workers and families, protecting local jobs as we continue the town’s transition to new industries,” he said.

Collie-Preston MLA Jodie Hanns also welcomed the announcement, saying it delivered long-term certainty for the community during a critical phase of the state’s energy transformation.

The state government reiterated that Western Australia remained on track to retire its state-owned coal-fired power stations by 2030, with coal expected to play a diminishing but stabilising role as renewable generation, storage and transmission infrastructure were progressively expanded.