A thousand mining jobs at risk over Eraring coal contract spat, union warns

The fight over jobs surrounding Eraring comes amid sensitive negotiations between Origin and the NSW government to keep the power station open.

Sensitive discussions to keep Australia’s largest coal-fired power station open have hit even rougher waters, with up to 1000 jobs in the NSW Hunter Valley at risk due to a dispute over a coal supply contract.

Origin energy, the operator of Eraring power station, is threatening not to renew its contract with Centennial Coal’s two mines which supply the station.

One of the mines – Myuna – is completely captured by Eraring, with 100 per cent of its produce conveyor-belted straight to the facility.

About half of the coal produced by nearby Mandalong mine is used at the station.

The Mining and Energy Union says if Origin decides not to extend its supply contract beyond its expiry in June, 1000 jobs are at risk.

The development comes amid delicate negotiations between Origin and the NSW government over keeping Eraring open with government-backing to ensure the station continues operating beyond its forecast closure date of August next year.

Workers at Centennial Coal's Myuna and Mandalong mines have started a letter-writing campaign to politicians, over their concerns Origin won't renew its contract with the company to supply coal to Eraring power station.

The union’s Northern Mining and NSW Energy District President Robin Williams said the state government had to insist coal contracts would be kept with Myuna and Mandalong as part of any deal to extend the power station’s life.

“Origin should do the right thing and purchase coal from these local coal mines that exist to supply the power station. Further, the NSW government should insist on contracts for the life of the power station if they provide support to extend its operation,” said Mr Williams.

The jobs are critical to supporting local communities.

The workers are encouraging politicians to mandate that coal be supplied from the Myuna and Mandalong mines.

“The sudden closure of Myuna and Mandalong mines, with the consequent loss of hundreds of good jobs in our community, would undermine confidence in these assurances.”

An Origin spokesman confirmed negotiations were ongoing with coal suppliers including Centennial but wouldn’t confirm why the contract wasn’t being renewed.

“Origin continues to engage a range of coal suppliers including Centennial regarding the supply of coal at market rates. We also receive coal from a diverse network of suppliers enabling us to keep downward pressure on the price of electricity supplied to the homes and businesses of NSW,” the Origin spokesman said.

The Mining and Energy Union says if Origin decides not to extend its supply contract beyond its expiry in June, 1000 jobs are at risk.

The Daily Telegraph understands the price offered by Centennial is why Origin is looking elsewhere.

It’s understood up to 80 per cent of coal used at the station is already sourced from other providers.

Energy Minister Penny Sharpe was contacted for comment, with a spokeswoman from the NSW energy department saying negotiations over coal supply was “a commercial matter for Origin and Centennial Coal”.

“Power station operators make decisions about sourcing coal supply based on a range of factors,” she said.

“The NSW government is engaging with Origin on its plans for Eraring power station and will not comment while this process is ongoing.”

CEO of the NSW Minerals Council Stephen Galilee slammed the coal cap — introduced by the NSW government in 2022 in a bid to keep energy prices down and due to expire in July — which it said had allowed Origin to stockpile coal during the negotiation process.

Origin confirmed it had stored supplies of coal.

“The price cap has distorted coal markets through massive taxpayer-funded subsidies, allowing Origin to make big profits and build stockpiles of cheap coal,” he said.

“Yet over the same period energy bills have risen, demonstrating just how useless the whole exercise has been.

“With up to 1,000 jobs now at risk, these workers and their families may also end up paying for this policy disaster.”
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