The proposed extensions to Hunter Valley Operations' open-cut coal mines in Australia's New South Wales are inconsistent with the state's emissions targets and coal policy, according to a report by the Institute for Energy Economics and Financial Analysis.
HVO is seeking approval to extend its North and South thermal coal mines into the mid-2040s, with a combined maximum extraction limit of 26 million tonnes of coal annually from 2027, the report said. The two mines were set to cease operations in 2026 and 2030, respectively.
The proposal, which was subject to public hearings by the NSW Independent Planning Commission last month, has reportedly received over 8,000 submissions, with two-thirds being in favor of the extension.
However, according to analysts at IEEFA, this would increase the mines' emissions to 15.3 million tonnes of carbon dioxide equivalent, with nearly 60% from an estimated 3.2 billion liters of diesel consumed over their remaining operating lives.
While HVO has committed to buying carbon credits to meet baseline emissions requirements under Australia's Safeguard Mechanism, the report noted that it had made no firm commitments on an on-site emissions-abatement strategy.
The report also criticized NSW's economic assessment guidelines for coal mines, saying that they allowed HVO to only account for 0.33% of its emissions in the state.
The IEEFA further argued that valuing them using the NSW Treasury's carbon cost would significantly reduce the project's estimated net economic benefit.