Proposed Collie transition plan dug up as coal industry troubles still loom

A union-backed proposal to rescue Collie’s coal industry could yet be revived, while the Opposition is putting pressure on the State Government to rethink plans to end dealings with utility Bluewaters. Key miner Griffin Coal has been under the control of receivers from Deloitte since late 2022 following a fight with Bluewaters over supply problems. The State Government has committed about $260 million to keep the collapsed company running until 2026 and ensure the crucial Bluewaters power station stays online. Unions — including the Australian Manufacturing Workers Union — wanted an alternative deal in which a transition trust took control of Griffin and potentially bundled in ASX-listed Yancoal’s nearby Premier Coal mine too. Backers are still working on the scheme, despite the Government pouring cold water on the idea. The proposal was first floated in a letter to the Government in early November and is projected to cost $175m. Premier Roger Cook expressed doubts about the plan after it emerged weeks later, warning the proposal would still need to resolve the contractual impasse between the miner and the power station. But an updated plan is under development for submission in coming months. A spokesman for Mine Super — which runs a defined benefit scheme for Griffin and Premier staff — said the fund was aware of ongoing discussions about the trust proposal. He said no formal proposal for investment had been received yet. “As a superannuation fund we always remain open to discussing investment opportunities that are assessed as being in our members best financial interests,” the spokesman said. Bluewaters produces about 15 per cent of the electricity on the State’s main grid and its key customers are Synergy and Water Corporation, which buy about two thirds of the company’s electricity. Those deals end in 2025 and are not expected to be renewed after energy minister Bill Johnston ruled out State-owned companies buying coal power as the Government seeks to cut its carbon emissions. Shadow energy minister Steve Thomas said the business case for Bluewaters would be “problematic” without the ability to tender for the replacement contracts. “Bluewaters needs to be considered on an equal basis,” he said. “They should be given the opportunity to bid in an open tender process.” The West Australian revealed in December that the power station had posted a loss of $47 million in 2023 and the company’s directors warned the utility’s future was in jeopardy without resolution of supply deals. “I don’t see how accelerating the demise of Bluewaters . . . improves the situation at all,” Mr Thomas said. A spokesman for the State Government said the policy was unchanged and the contracts would not be renewed. “The State Government is continuing its managed transition away from coal-fired power generation as part of its commitment to cleaner, reliable and affordable energy for WA’s future,” he said. “Given the Cook Government’s significant investment of more than $3 billion into new energy generation and storage projects, it is not expected that Synergy and the Water Corporation will require power from Bluewaters beyond 2025.” The battle comes as demand on the grid hit a fresh record high on Wednesday evening, with all available coal power stations firing close to capacity.