The Australian Government has approved an extension for Glencore’s Ulan Coal Mine, according to a report by Mining.com, citing Bloomberg.
The approval allows for an additional 18.8 million tonnes (mt) of coal to be mined and extending the mining operations until 2035.
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The extension of operations at the coal mine has sparked a backlash from environmental groups and highlights the nation’s struggle to balance economic interests with climate commitments, according to the report.
The decision also underscores the conflicting priorities facing Prime Minister Anthony Albanese, who is simultaneously promoting Australia’s goal to reduce domestic emissions and vying to host the upcoming UN climate summit.
Climate Council CEO Amanda McKenzie was quoted as saying: “It’s nonsensical to cut climate pollution with one hand while approving new coal projects with the other.”
Members of the Australian Greens Party also voiced their opposition to the extension.
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By GlobalDataGlencore maintained that the extension was a “minor change to the current mine plan” that ensures continued employment for its workforce.
The Department for the Environment and Water of Australia has not yet provided comment on the matter.
Miners have defended the quality of Australian coal, claiming it is cleaner than that of competitors such as Indonesia, and have expressed concerns that delays in approvals could threaten jobs and Australia’s reputation as a reliable supplier.
Australia, as the world’s second-largest exporter of thermal coal, shipped 209mt last year.
The country’s export earnings from thermal coal are projected to decrease from A$32bn ($29.9bn) to around A$22bn by June 2027, with volumes expected to decline as well.
In a separate development, Glencore has reportedly initiated a retrenchment process at its Rustenburg ferrochrome smelter and vanadium operations in South Africa.
The company has cited challenges such as power cuts, rising electricity costs and economic pressures impacting the viability of its joint venture with Merafe Resources.
