Millmerran Power seeking to extend life of coalmine

A proposal for a Queensland coal mine needed for a key power station will be an early test for the Albanese Government as it seeks to balance net zero with the need for “cheap power”.

A Queensland coal mine proposal needed for a key power station will be an early test for the Albanese Government as it seeks to balance green credentials and the need for “cheap, baseload power”.

Millmerran Power, which owns the Millmerran Power Station, has applied to expand and extend the life of its coalmine linked to the generator by 20 years.

The Queensland Conservation Council say approving the mine and keeping the power station will “be a climate disaster” and undermine the Albanese Government’s net zero by 2050 commitment.

But Millmerran Power says without the mine extensions there will be “the loss of cheap baseload electricity post 2036” and loss of economic opportunities for the region.

The power station is one of the youngest in the nation’s fleet and is the last in Queensland scheduled to close, currently not until 2051.

The Millmerran Power Station.

The proposal, to keeping it supplying 4Mt of coal a year, has gone to Federal Government to be assessed under the Environmental Protection and Biodiversity Conservation Act.

QCC director Dave Copeman said

“It’s a test of the government’s commitment to decarbonise the electricity scheme in line with its policies,” he said.

“It’s not controversial, it’s an easy decision to make not to grant this extension because of the environmental and climate impacts.”

In its submission for assessment under the EPBC Act, Millmerran Power said it was seeking the continuation of the mine to serve as a fuel source for the Millmerran Power Plant and provide baseload power to the National Electricity Grid.

“The only alternative is to not undertake the action,” it stated.

“The direct consequences of not proceeding with the proposed action are the loss of cheap baseload electricity post 2036 and loss of sustained positive economic opportunities and the region.”

Environment Minister Tanya Plibersek. Picture: NCA NewsWire / Gary Ramage

Environment Minister Tanya Plibersek confirmed she had received a valid submission from Millmerran Power.

“This referral is currently moving through the legal process. As the decision maker, I am unable to make comment as this time,” she said.

Ms Plibersek recently made a decision to reject approval for Clive Palmer’s Central Queensland Coal Project, subject to a 10 day public comment period, on the basis it was 9.7km from the Great Barrier Reef Marine National Park.

The Greens are lobbying for no new coal mines or power stations, but the Albanese Government has maintained its position of making each decision on an environmental and economic basis.

Prime Minister Anthony Albanese has said the Clive Palmer decision did not mean Labor has given in to the Greens’ demands for no new coal or gas projects.