Lock the Gate Alliance has called on the Hunter's biggest coal miner Glencore to immediately axe its United Wambo mine proposal after the company announced it would pursue a future focussed on limiting climate change.
The big miner announced in London it would not increase its coal production to limit impacts on climate in line with the Paris climate agreement. One of the company's biggest investors, The Church of England, is behind the change in corporate focus. Instead the company will focus on minerals to aid renewable energy sources.
The announcement by one of the world's biggest coal players has thrown a political timebomb into conservative ranks, especially within The Nationals, who support a coal future. It means a new future for the Hunter, although the company will maintain existing mines including Ravensworth, Liddell, Mount Owen complex, Integra and Mangoola for at least the next 15 years. But expansions and new mines now appear to be off the agenda.
Carmel Flint, spokesperson for Lock the Gate Alliance, said, "This is a very significant move from Glencore, who are one of the world’s largest coal miners, and it sends a powerful signal that thermal coal is in decline globally.
"However, the statement may not go far enough, because deep cuts in coal mining and burning are needed to meet Paris climate targets, and maintaining current levels of production is not sufficient to deliver on that," she said.
"The true test of the statement will be in whether Glencore acts immediately to withdraw from new coal mining projects it has on its books – especially the proposed Wandoan coal project on the Western Downs of Queensland and the United Wambo project in the Hunter Valley in NSW.
"Both mines would make a massive contribution to global warming, as well as causing major damage to land and water and harming communities, and should be shelved permanently and not sold on to another company.
"We’re calling for Glencore to demonstrate it is serious about implementation of its climate statement and confirm that it will now drop these two projects and any other coal expansion projects currently proposed in Australia."
The move by Glencore comes after a recent NSW Land and Environment Court decision to reject the proposed Rocky Hill coal mine near Gloucester, based in part on carbon emissions and consideration of climate change issues.
"Glencore’s announcement should also sound a massive warning to state and federal governments that it’s time to get on board with mainstream views on climate change action and invest now to support regional communities to prepare for the decline of coal," she said.
Glencore said it would cap its production of thermal and coking coal at about 150m tonnes per year.
Glencore is the world’s top coal exporter.
Glencore will instead focus on metals such as cobalt, nickel, vanadium and zinc, which are all key components of batteries as it targetted lower carbon industries as its customers.
"We aim to prioritise capital investment to grow production of commodities essential to the energy and mobility transition and to limit our coal production capacity broadly to current levels," the company said.
Glencore said it would examine its membership of trade associations to ensure those groups aligned with the Paris climate agreement. These associations include the Minerals Council of Australia.
"To deliver a strong investment case to our shareholders, we must invest in assets that will be resilient to regulatory, physical and operational risks related to climate change," a company statement said.