Towns across Australia uncertain what can ‘fill the void’ of closing mines, power plants
Places across the country are facing immense pain with the demise of industries that have been their lifeblood for decades.
For a handful of regional centres and towns dotted across Australia whose economies and identities have been long underpinned by the fossil fuel industry, locals are living in uncertain times.
Whether it’s a mine or coal-fired power plant on borrowed time, the accelerating shift away from traditional energy sources driven by private industry has left some areas facing the loss of employment hubs that have been the lifeblood of their communities.
There are up to 16 coal-fired power stations scheduled to close around Australia over the next 25 years, located in traditional blue collar mining regions such as NSW’s Hunter Valley, Gladstone in Queensland and the Latrobe Valley in Victoria.
Elsewhere about 240 Australian mines are projected to close by 2040, according to an analysis by the CSIRO released last month.
A recent study from economic research institute e61, published in October, estimated coal-fired power plant workers lost up to 69% in earnings in the year after redundancy.
That figure still sat at 50% after four years, compared to 29% for all other workers, according to the report.
It’s these figures that have left residents and local business leaders wondering what can “fill the void” when the future catches up to their towns and they’re left unemployed.
The Federal government hopes its Net Zero Economy Authority, which still needs to pass parliament, can co-ordinate a smooth transition to new industries and jobs in affected areas, saying the previous government had “put its head in the sand” about the plights facing communities.
It’s a move industry groups including the Mining and Energy Union welcomed as the “missing piece” of support for workers witnessing accelerating closure timelines nationwide.
NSW
At the foot of Barrington Tops, inland from NSW’s mid north coast, the community of Gloucester is preparing for the nearby Stratford mine to close later this year.
Matt Clinch, the president of Gloucester Business Chamber, said he believed the wider community did not yet realise the impact Stratford’s closure would have on the local economy.
According to mining operator Yanco, which owns both Stratford and the old Duralie mine that was shuttered in 2021, it paid $16m in wages to the sites’ 103 workers and spent $74m on local businesses in 2022.
“The economic impact is quite significant when you look at that dollar figure,” Mr Clinch said.
“That’s big numbers for us to try and fill. The town’s definitely going to feel it.”
Yanco said on its website some workers would remain on site to decommission Stratford for four years after mining stops there.
But without a set plan for what comes next, Mr Clinch said the uncertainty might see families leave Gloucester – which could be the difference between another teacher or dentist in a town of just over 3000 people.
Mr Clinch said he was not sure proposals for a solar farm and pumped hydro projects could replace the $100m per year Stratford brings to the town: “As a business community we feel that is not going to fill the void, pun intended.”
Queensland
Last year mining giant Glencore notified the 1200 workers at its two underground copper mines at Mount Isa that both sites would close by 2025.
At the time, the Australian Workers’ Union said the announcement had signalled the beginning of a “fight for Mount Isa” and its 13,000 residents.
One town in the state that was nearly already wiped off the map, the village of Glenden in the state’s Isaac region, was described as being “on life support” less than 12 months ago.
Swiss minor Glencore announced it was closing the Newlands mine after it stopped producing coal, meaning Glenden, established in the 1980s purely to house the mine’s workers, was set to be razed.
In August the Queensland government passed legislation to save the town by ruling that workers on another large coal mining project must live in the town southwest of Mackay.
Victoria
Locals in towns like Moe, Morwell and Traralgon, in the Latrobe Valley, are facing a string of power plant closures, including two in the next 11 years.
In 2021, EnergyAustralia announced it was bringing forward the closure of its Yallourn power station by four years to 2028.
Then last year, AGL said its Loy Yang A plant would shut in 2035.
A few towns away, the Hazelwood power station – a plant bigger than Melbourne’s CBD – was decommissioned in 2017, years earlier than its 2025 projection.
Wendy Farmer, the president of the Voices of the Valley, lives about 4km away from Yallourn and said that while locals some are “terrified”, there are mixed emotions about the closures.
One thing people are certain about, she said, is they no longer want to be used as “political footballs” in the renewable energy debate.
“Overall regional communities are ready for the support needed and the non-political games to make a difference,” Ms Farmer said.
“And our young people want to see that change.”
There are tens of billions of dollars worth of renewable energy projects in the planning pipeline for the Gippsland area, as the state government focuses on a green energy future.
The MEU hope new proposals, such as a controversial $2.3b coal-to-hydrogen plant, can keep jobs in the Latrobe Valley.
Western Australia
By 2030 all three of the coal-fired power stations in the Collie area, including two owned by the state government, are set to be closed.
About half of Collie’s approximately 9000 residents work in the energy or manufacturing industries, according to the MEU.
In December the government announced $220 million to support the Griffin Coal plant until 2026, saying it would “prevent hundreds of immediate job losses”.
Griffin, which entered receivership in late 2022, is one of only two mines producing coal for WA’s power generation.
It fuels the nearby Bluewaters power station built in 2009, but one that the energy market regulator has predicted might close as soon as 2029.
The MEU criticised the Cook government’s move as “shortsighted”, saying it had “rubber stamped” the closure of both Griffin and Bluewaters.
Shire of Collie president Ian Shiffling, however, said the government’s commitment to Griffin had guaranteed its employees’ jobs for the next few years.
He said projects in the pipeline such as green steel and graphite manufacturing would all create hundreds of jobs in construction and operation phases.
Cr Shiffling gave “full credit” to the government for its project to transition Collie: “It’s looking toward a green energy future”.
South Australia
Leigh Creek had 2,000 residents when its coal mine closed eight years ago.
Now there’s only about 100, as the outback town looks to reinvent itself.
A future town plan was announced in the South Australian government’s 2020-2021 budget, with the Outback Communities Authority overseeing plans to make Leigh Creek a tourist hub and service centre for the northern Flinders Ranges.
The government has committed $43.6m to transforming the former mining settlement into an open public town, with homes already demolished to make way for a new layout.
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