Australia's Coal Mining: A Giant Industry Overview

how big is coal mining in australia

Coal mining is a significant industry in Australia, with the country being the biggest net exporter of coal in 2016, accounting for 32% of global exports. In 2023, Australia exported $91.4 billion worth of coal, and the industry employed around 50,000 people. Coal is mined in every state, with the largest black coal resources found in Queensland and New South Wales. Open-cut mines, also known as surface mines, dominate the landscape and make up most of the country's coal mine operations. Australia's coal mines are getting bigger, with a recent trend towards the expansion of existing sites, rather than seeking approvals for new mines. This has led to concerns about emissions and the environmental impact of coal mining in Australia.

Characteristics Values
Number of coal mines in Australia 128
Number of people employed by the coal industry in Australia 50,600
Amount of coal produced in Australia in 2021-22 422 million tonnes
Amount of coal exported from Australia in 2023-24 $91.4 billion worth of coal
Amount of coal exported from Australia in 2019-20 390 million tonnes
Amount of coal exported from Australia in 2019 $63.9 billion
Amount of coal exported from Australia in 2021-22 $112 billion
Percentage of coal mined in Australia that is exported 70%
Percentage of electricity supplied to the National Electricity Market by coal in 2022-23 62.6%
Number of new coal mines awaiting Federal Government approval 25
Amount of coal reserves in Peak Downs, Australia's biggest coal mine 718 million tonnes
Amount of coal reserves in Goonyella Riverside, Australia's third-biggest mine 549 million tonnes

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Australia's coal exports

Australia has 128 coal mines in operation, exporting the majority of the coal produced. In 2021–22, Australia exported 10,173 PJ of coal and coal products, which was about 57% of Australia's total energy exports. The total value of coal exports increased by an average annual rate of 9% per year from $38.6 billion in 2012–13 to $113.8 billion in 021–22.

Australia is the second-largest exporter of coal in the world, behind Indonesia. It is also the fifth-largest producer and has the third-largest reserves of coal globally. Australia exports coal to many countries, including Japan, South Korea, Taiwan, India, and China. In 2021–22, exports to China were on hold, but exports to other countries remained relatively high.

The Peak Downs coal mine, located in the Bowen Basin of central Queensland, is currently the country's biggest coal mine by recoverable reserves. It has been producing high-quality hard coking coal since 1972 and was estimated to hold 718Mt of recoverable coal reserves last year. The Goonyella Riverside open-pit coal mine, also located in the Bowen Basin, is Australia's third-biggest mine, with 549Mt of recoverable coal reserves.

Australia has a long history of coal mining and exports, dating back to the late 18th and early 19th centuries. Coal exports first left Newcastle in 1799, with it being mined by convicts. Shipments left for India, marking Australia's first commodity export. In the 1850s, coal deposits were mined in Victoria, but they were not enough to sustain the local communities. By 1901, Australia was exporting several million tonnes of coal annually, and by the 1940s, Australian coal mines experienced significant strikes. After World War II, Australia began exporting coking coal to Japan, becoming the number one coal exporter in 1984.

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Coal mining history

Australia has 128 coal mines in operation, making it a country with one of the largest coal industries in the world. The country's coal mines are also getting bigger, with the introduction of "mega mines". This is partly due to the fact that new mine approvals are becoming harder to obtain, so it is easier to increase capacity at existing sites. The Australian government has also been criticized for its light-handed approach to regulating open-cut mine emissions.

The history of coal mining in Australia goes back decades. For example, the Peak Downs coal mine in the Bowen Basin of central Queensland, currently the country's biggest coal mine by recoverable reserves, has been producing high-quality hard coking coal since 1972. The Goonyella Riverside open-pit coal mine, also located in the Bowen Basin and currently Australia's third-biggest mine, has been operational since 1971. The Saraji open-pit coal mine, the world's 10th-biggest by recoverable coal reserves, has been producing high-quality metallurgical coal since 1974.

The Bowen Basin is a significant location for coal mining in Australia. In addition to the mines mentioned above, the Basin is also home to the Peak Downs mine, which is owned and operated by Australia's biggest coal producer and exporter, BHP Billiton Mitsubishi Alliance (BMA). BMA operates seven coal mines in the Bowen Basin and produced more than 11.8 million tonnes of metallurgical coal in the year ending June 2019.

Another significant coal-mining region in Australia is New South Wales (NSW). In NSW, open-cut mines now make up 80% of production, up from 75% just a few years ago. The Moolarben Mine, located in NSW, is owned by Yancoal Australia and produced an estimated 17.81 million tonnes of coal in 2023 through a combination of surface and underground mining.

Victoria is another state in Australia with significant coal reserves. The Loy Yang Mine, a surface mine located in Victoria, is owned by AGL Energy and produced an estimated 25.06 million tonnes of coal per annum in 2023. The mine is expected to operate until 2048.

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Coal mining environmental impact

Coal mining is a major industry in Australia, with 128 coal mines in operation across the country as of 2023. The majority of these mines are open-cut or surface mines, which have a significant environmental impact.

One of the most destructive forms of surface coal mining is mountaintop removal, where explosives are used to blast off the mountaintop and expose the coal seam. This method can remove 600 feet or more of elevation and results in the dumping of excess rock and soil into adjacent river valleys, burying headwater streams and causing critical losses in wildlife habitat, clean water sources, and natural benefits such as nutrient regulation and flood control. More than 2,000 miles of headwater streams have been buried due to mountaintop removal, and the water quality degradation from these mines can have severe and long-lasting impacts on aquatic wildlife downstream.

Surface mining also involves clearing forests and stripping away the earth, leaving behind desolate lands incapable of supporting wildlife. The removal of vegetation and topsoil can accelerate erosion, with precipitation carrying away loose topsoil and sediment into nearby waterways, disrupting their natural flow and decreasing available aquatic habitat. This can result in the clogging of streams and the death of fish and plants. Additionally, the coal industry's use of large diesel mining equipment contributes to air pollution and greenhouse gas emissions, further degrading air quality.

Another environmental concern associated with coal mining is selenium pollution in water, which has been linked to the decline and deformation of sensitive fish populations in affected regions. These pollutants can also impact birds and humans through a process called biomagnification, where the concentration of toxins increases as they move up the food chain. Coal mining also causes acid mine drainage, leading to the dissolution of heavy metals that seep into ground and surface water, further contaminating water sources.

While underground mines generally affect the landscape less, they are not without their environmental impacts. The ground above mine tunnels can collapse, and abandoned mines can release acidic water and methane gas, posing risks to both the environment and human safety. Overall, the environmental impacts of coal mining in Australia are extensive and far-reaching, affecting lands, waters, wildlife, and air quality.

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Coal mining job creation

Coal mining is a significant industry in Australia, with 128 coal mines in operation across the country, according to recent data. The sector is characterised by the presence of mega mines, which have resulted from the expansion of existing sites due to challenges in obtaining approvals for new mines. This trend towards larger mines has been influenced by environmental concerns, lending restrictions on new coal mine developments, and the government's approach to regulating emissions.

Despite the decline of coal mines globally, Australia remains heavily reliant on the industry, and it continues to play a crucial role in the country's economy. The expansion of existing mines has led to increased job opportunities in the coal mining sector.

Various job roles are available in Australia's coal mining industry, including:

  • Haul truck operators: These operators are in demand, preferably with experience in open-cut coal mining. Some companies offer traineeship programs for individuals seeking to enter this field.
  • Trade assistants and operators: These roles are often available in prominent coal-producing regions like the Bowen Basin in Queensland.
  • Maintenance and engineering personnel: With the increasing scale and complexity of coal mining operations, professionals in these fields are needed to ensure the safe and effective maintenance of electrical infrastructure and equipment.
  • Single and multi-skilled operators: These roles are often based at mine sites and may involve working on a roster system with competitive perks and benefits.

The coal mining industry in Australia offers a range of employment opportunities, including both entry-level positions and those requiring specialised skills and experience. It is worth noting that some companies provide attractive benefits, such as long service leave schemes, personal development plans, education assistance, and competitive salaries with additional allowances.

While the industry faces environmental challenges and community concerns, it continues to play a significant role in Australia's energy landscape, contributing to job creation and economic growth.

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Coal mine locations

Australia has 128 coal mines in operation, making it the country with the third-highest number of coal mines worldwide. The majority of coal mining in Australia takes place in open-cut or surface mines, particularly in New South Wales (NSW) and Queensland. In NSW, open cuts now make up 80% of production, and a similar situation is observed in Queensland, with its top 10 producing mines being open-cut.

The Bowen Basin of central Queensland is home to several large coal mines, including the Peak Downs coal mine, which is currently the country's biggest coal mine by recoverable reserves. The Goonyella Riverside open-pit coal mine, also located in the Bowen Basin, is Australia's third-biggest mine. The Saraji open-pit coal mine, the world's 10th-biggest by recoverable coal reserves, is another significant deposit in the Bowen Basin.

The Moolarben Mine, located in New South Wales, is a large surface and underground mine owned by Yancoal Australia. The Loy Yang Mine, a surface mine in Victoria owned by AGL Energy, is another major coal mine in Australia.

While coal mines are generally declining globally due to a shift towards a cleaner economy, Australia remains heavily reliant on the industry, with its coal mines continuing to expand in size and capacity.

Frequently asked questions

There are 128 coal mines in Australia, according to GlobalData's mines and projects database.

In 2021-22, Australia produced 422 million tonnes of coal. In 2019-20, Australia exported 390 million tonnes of coal.

Australia exported $91.4 billion worth of coal in 2023-24. In the 2021-22 financial year, the value of Australian coal exports reached $112 billion.

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