The West Australian (WA) government has decided to allocate an additional $220 million (US$146 million) to support a failing coal mine that is crucial for electricity generation. Premier Roger Cook announced that these funds will enable Griffin Coal, which went into receivership last year, to continue operating at its Collie mine until June 2026, ensuring the preservation of hundreds of jobs. However, Cook made it clear that support for the financially burdened mine will not be extended beyond this date. He expressed disappointment in the private companies involved for failing to find a commercial solution to their issues despite significant government support.
Griffin Coal supplies coal to industry and the Japanese-owned Bluewaters Power Station, which generates more than 15 percent of WA’s electricity. Receivers were appointed to Griffin, which is owned by India’s Lanco Infratech, last year following commercial disputes. Premier Cook stated that the mine is burdened with significant debt, aging infrastructure, and an unfavorable contract with Bluewaters Power Station for coal supply at a price lower than the cost of production. The WA government has already injected $39.3 million (US$26 million) into the mine over the past year and decided to provide funding to Griffin until mid-2026, giving the mine workers and industry time to prepare for the possibility of closure.
However, not everyone is pleased with this decision. Shadow treasurer Steve Thomas criticized the government for failing to adequately reform and manage the Collie coalfields, while unions warned that only funding the mine for two-and-a-half years would have dire consequences for jobs, energy security, and the long-term future of the region. Australian Manufacturing Workers Union secretary Steve McCartney expressed that the support was insufficient to facilitate a transition away from the coal industry for the workers and the Collie community.