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The owner of the biggest coal mine in New South Wales has been accused of backflipping on a plan to cease mining by 2030. BHP has signed a deal to trade more than a quarter of its open-cut Mount Arthur mine near Muswellbrook to a neighbouring operator in exchange for storage of its mining waste. Malabar Resources's Maxwell Underground Mine will acquire the 3,700 hectares and a number of exploration and mining licenses. In 2022, BHP announced it would slowly transition Mount Arthur to closure by 2030 and the region has been preparing for life beyond the mine. Climate advocacy group The Australasian Centre for Corporate Responsibility (ACCR) has raised concerns the sale would enable mining to continue beyond 2030. Head of Engagement and Sector Strategy at the ACCR Naomi Hogan said it was a "bit of a backflip" from BHP, with impacts on investors, workers and the environment. "BHP had made a commitment to the market and there had been quite a lot of fanfare when it announced in 2022 that it would close the Mount Arthur coal mine in 2030. "It was trying to demonstrate that balance between good economic management, emissions reduction and good workforce planning and a just transition. Economic boost Vice-president of BHP's NSW Energy Coal Liz Watts said in a statement the deal reflected the needs of the broader community. "Our commitment is clear, we want to focus on environmental, economic and social outcomes in mine closure, to help set the region up for long-term success and deliver a positive legacy from BHP mining in the Hunter Valley," she said. The deal includes the transfer of the land from BHP to Malabar Resources, while Malabar will allow BHP to store coal tailings from Mount Arthur in an existing mine void at Maxwell. Malabar says it will seek to expand its metallurgical coal mining operation onto the site, which will be known as Maxwell North. In a statement, executive chairman Wayne Seabrook said the new operation could create more than 300 jobs. "We're proud to further invest in the region through Maxwell North and strengthen our commitment to the community we call home," he said. Any plans for a new underground mine would need to be approved by the NSW Department of Planning before proceeding. Muswellbrook Shire Mayor Jeff Drayton said it was good news for the region, which was set to lose 2,000 jobs when Mount Arthur closed. "Anything that can create jobs in the community is certainly good at the moment because we're certainly going to need them in a couple of years' time," he said. Post-mining plans progress The Mount Arthur site has been the subject of a federal government pilot project, developing a master plan for post-mining land use. The plan would allow new industries, from manufacturing to agriculture, to start up in mine buffer zones before mining actually ceases. Cr Drayton said those plans were progressing unchanged. "We're working closely now with all stakeholders on what the future holds for the site."
