Glencore’s Ulan thermal coal mine expansion, near Mudgee in NSW is the first coal mining project to be approved during this term of the Albanese government.
The approval was quietly granted on Thursday last week, with the approval decision notice published on Tuesday this week.
Glencore’s Ulan coal mine is one of Australia’s largest coal mines and has existing approvals to mine up to 20 million tonnes of thermal coal each year. The approved expansion is called Ulan Modification 6 - Underground Mining Extension.
The approval allows Glencore to extract an additional 18.8 million tonnes of run of mine coal to produce an additional 16.3 million tonnes of product coal and extends the life of the mine for another two years from 2033 to 2035. The approval has effect until 2045.
The federal government has granted approvals to the expansion, despite Mudgee District Environment Group lodging a legal challenge to the NSW government approval last week. The local community group is arguing the project’s state environmental assessment was inadequate. Instead of waiting for the outcome of the challenge to the NSW approval, the Albanese government has rushed through the federal environmental approval. The approval decision can be viewed here.
Emissions impacts
Glencore estimates that the project would create 41.68 million tonnes of ‘scope 3’ emissions, produced from the burning of the coal that is mined and then exported, more than double the pollution from NSW’s entire transport sector in 2022.
The direct emissions from the Ulan coal mine are not regulated under the federal government’s Safeguard Mechanism. Glencore self-reports its direct (scope 1) emissions. In 2022-2023 Glencore reported 44,723t CO2e emissions from the Ulan mine, below the 100,000 tonnes CO2e per annum threshold that triggers reporting under the Safeguard Mechanism. This means the Ulan coal mine has no emissions limit or Safeguard Mechanism baseline and no legal requirement to reduce emissions 1 . The Ulan coal mine is one of more than 20 coal mines that do not report under the Safeguard Mechanism.
Glencore’s Ulan coal mine Greenhouse Gas Management Plan states:
UCMPL has no baseline threshold and UCMPL are not required to commit to specific greenhouse gas performance targets under legislation, industry codes of practice or GCAA Standards.
The NSW government did not require a Greenhouse Gas Mitigation Plan from Glencore, instead proposing that a mitigation plan be developed with the EPA within 6 months of securing state approvals.
Biodiversity impacts:
Up to 37 hectares of land would be cleared for surface area infrastructure 2, including areas of critically endangered Box Gum Woodland and Grassland.3 At least 993 hectares of land would be impacted by subsidence from underground mining below the surface. 4
The approval allows Glencore to clear 5.9 hectares of Critically Endangered Box Gum Grassy Woodland and 17.4 hectares of Large-Eared Pied Bat habitat. The approval also allows for impacts to 205 hectares of Critically Endangered Box Gum Grassy Woodland and 588 hectares of Large-Eared Pied Bat habitat from land gradually sinking as a result of mining operations below the surface.
The NSW government granted approval of the project with 9 different options for biodiversity impacts. Glencore is uncertain where the impacts will specifically occur and says it will undertake further geological studies to determine the precise location of the impacted areas where mining will occur, after receiving approval.
Cultural Heritage impacts:
The project would impact 53 sites of Aboriginal Cultural Heritage including rock shelters that could be subject to ground subsidence impacts including rock falls due to mining occurring below the surface. More details in the project brief here.
Who is campaigning:
Mudgee District Environment Group - see the MDEG website here for detailed information on the project. Groups who made formal objections include the Nature Conservation Council, the Warrabinga Native Title Claimants Aboriginal Corporation, Lock the Gate Alliance and neighbouring landholders. You can read the objections here.
Key Facts:
If the Albanese Government keeps approving new coal projects, then its climate policy is to make the climate crisis worse. The Albanese Government cannot claim to be taking serious action on climate change while it approves new coal and gas projects that undermine global climate action and make global heating worse. The Albanese Government is still letting greedy, tax-dodging corporations like Glencore call the shots, instead of taking urgent action to protect our communities by rejecting new coal mines and making a plan to phase out coal exports.
The approval of Glencore’s Ulan coal expansion is another betrayal of Pacific Island nations by the Albanese Government. The Albanese Government is trying to show the world it is a climate leader as it prepares its next climate target and seeks to co-host next year’s global climate conference (COP31) with Pacific Nations. Australia’s coal and gas exports are drowning our Pacific neighbours. Pacific leaders have repeatedly and urgently called on Australia to stop exporting climate destruction. If Australia wants to partner with Pacific Island nations as part of next year’s international climate conference, it must be a true partner in climate action by stopping coal exports and setting a science-aligned date for phase out.
The Albanese government’s climate laws are so weak they don't require Glencore to reduce pollution from the Ulan thermal coal mine. The climate pollution from this coal mine extension will be totally ignored by the Albanese government despite its undeniable impact on the global climate.
Allowing thermal coal mines to continue to pollute well into the 2030s is reckless and makes a mockery of the Albanese government’s climate policies. The science on climate change is very clear - we must reduce pollution now, not throw more fuel on the fire by extending the life of thermal coal mining projects. Every year the Albanese Government expands coal and gas exports and delays a strong, science-backed climate plan adds billions of dollars to disaster recovery costs from floods, fires and insurance costs. The best way to protect our environment, economy and communities is to stop new coal approvals and make a proactive plan to end coal and gas exports that supports workers and communities impacted by the transition.
Australian communities and natural environments are suffering the devastating impacts of climate change. The coral at Ningaloo and the Great Barrier Reef are bleaching to death. Marine heatwaves and algal blooms are wiping out South Australia’s marine life. Approving new coal and gas will make these devastating events even worse.
Glencore's Ulan coal mine extension will destroy habitat for threatened wildlife but Glencore is unsure precisely where its habitat destruction will occur. The NSW government approved the project with different options for impacts on biodiversity. This sets a dangerous precedent that allows approvals to be granted without fully understanding the impacts on the environment.
Photos of Ulan available here.
References:
- Ulan Coal, Glencore Air Quality and Greenhouse Gas Management Plan, 4.1.3.2 Greenhouse Gas Performance Measures, p 41
- Attachment 3 - Biodiversity Information_Part1.pdf (18642 KB), part 1.1 - 1.2, p 9
- Attachment 3 - Biodiversity Information_Part3.pdf (19962 KB), table 3.3, p 9
- Attachment 3 - Biodiversity Information_Part1.pdf (18642 KB), part 1.1 - 1.2, p 9
