WA Premier Extends Griffin Coal Deal Amid Energy Security Concerns

Embattled coal miner Griffin Coal has been thrown yet another lifeline, as its agreement with the Western Australian government is extended for up to five years. Since 2022, the WA government has already tipped more than $300 million into propping up the insolvent Indian-owned miner, which is more than $1 billion in debt. Premier Roger Cook last year described them as payments "we just need to make” in order to maintain energy security, but maintained they would stop by the end of June 2026. But today he conceded the government’s financial support would continue beyond that date — though it would be a “significant and drastic reduction.” “Coal will be needed to underpin energy security as we build transmission lines to connect large scale wind and solar projects to our power grid,” Mr Cook said. He would not say how much money would be required. “I will reveal all those costs in parliament once the agreements have been finalised." Griffin supplies coal to WA's largest privately-owned electricity generator, Bluewaters Power Station, which would not be able to operate without steady supply. The premier said the latest agreement, and the hundreds of millions of dollars already spent, was about maintaining energy security for WA and saving jobs. “If we did not intervene, it would have mean we were switching the lights off in Western Australia. That's not acceptable,” he said. End of coal 'rock-solid' Mr Cook said today’s announcement would not impact the government’s commitment to retire state-owned coal-fire power stations by 2030 — a policy he described was “rock-solid.” However, energy experts have flagged concerns Labor’s promise to replace coal with renewables in WA by 2030 won't happen on time. Energy Minister Amber-Jade Sanderson also stood firm. "I think it's important that people understand that [state-owned power stations] do not rely on Griffin," she said. "Those retirement dates are set — 2027 for Collie Power Station, 2029/2030 for Muja. "There isn't an option of extending those assets for the state. Our intent is to replace those assets with reliable renewable energy backed by storage and gas. "Western Australia is probably the best-placed jurisdiction in the world to actually undertake this transition. "We have world-class wind, world-class solar, we have domestic gas supply to support that firming of the grid." The premier also announced a "transition taskforce" to develop a detailed proposal on the future of the coal assets in the Collie region. It will consider whether the two coalmines in the area could be more efficiently mined by a single entity — and the issue of mine rehabilitation.