A coal mine in New South Wales has won approval to keep operating for two more years. The NSW Independent Planning Commission approved an extension for the Chain Valley and Mannering coal mines. They can now keep digging until the end of 2029.
Two coal mines in New South Wales have received approval to continue operations through the end of 2029.
The mines supply Vales Point Power Station, the oldest power station in NSW. Coal travels directly from the mines to the station via conveyors. No trucks are needed, so there’s no extra pollution affecting nearby residents. Operator Delta Power and Energy sought the extension to keep the station running during NSW’s shift to renewable energy.
However, the commission rejected Delta’s request to export coal. Trucks would’ve been needed to move coal to the Port of Newcastle, and the commission said that would harm local residents. Environmental group Lock the Gate called the export denial a historic first for NSW.
The approval came shortly after the NSW Net Zero Commission released a major report in December 2025. That report warned that coal mining conflicts with NSW’s Climate Change Act and the Paris Agreement. It said coal mining isn’t compatible with a safe climate future and called for an end to new coal approvals.
One key concern is methane. Coal mines release methane into the atmosphere, and the report said those leaks aren’t being properly controlled. The commission warned that methane emissions are making it harder for other sectors to meet their climate goals.
The timing of the mine’s closure is notable. It’s set to shut down one day before NSW’s 2030 net-zero targets kick in. That means the coal extracted before 2030 won’t count against the state’s legislated emissions limits. Critics, including Greens MPs, argue this risks undermining climate laws.
Vales Point Power Station itself could stay open until 2033, which could extend demand for coal beyond the mine’s planned closure. Greens MPs warned the extension risks breaching state climate laws. NSW Greens MP Sue Higginson stated the approval could be declared unlawful if challenged in court.
Environmental groups are expected to challenge the approval legally. The Nature Conservation Council called the Net Zero Commission’s report a clear line in the sand against new coal projects.
