Glencore Plc (LSE:GLEN) and Yancoal Australia Ltd. (LSE:ASX:YAN) have received approval for an expansion of their jointly owned coal mining operations in Australia’s Hunter Valley, allowing production to continue until 2045.
The New South Wales Independent Planning Commission approved the Hunter Valley Operations Continuation Project following a six-year assessment process.
The project will allow the operations to extract an additional 430 million tonnes of coal over their extended operating period.
Hunter Valley Operations Produce Around 42 Million Tonnes Annually
The Hunter Valley mines currently produce approximately 42 million tonnes of coal annually, with output exported for use by power stations and steel producers.
Glencore operates the mines and holds a 49% interest in the joint venture, while Yancoal owns the remaining 51%.
The approval extends the operating life of the mines until 2045 and provides for additional extraction from the existing Hunter Valley operations.
Approval Includes Environmental Conditions
The project approval includes several conditions relating to greenhouse gas emissions and energy use.
Coal exports from the operations will be restricted to jurisdictions with greenhouse gas reduction policies consistent with the objectives of the Paris Agreement.
The mines will also be required to maximise the use of renewable energy and purchase additional carbon offsets.
Expansion Follows Six-Year Approval Process
Approval of the continuation project follows a six-year planning and assessment process in New South Wales.
The decision enables Glencore and Yancoal to proceed with the planned extension subject to the conditions attached to the approval.
The Hunter Valley operations produce coal for international energy and steelmaking markets, with the additional approved extraction extending production from the jointly owned assets for almost two decades.
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