Australia’s new national environmental protection agency has approved its first coal project, allowing the Saraji open-cut mine in Queensland to continue operations until 2055. The decision permits the mine, which digs and exports coal for steelmaking, to clear threatened woodland and koala habitat as part of the extension. The approval has angered climate groups, who argue it undermines Australia’s climate commitments and its reputation among Pacific nations vulnerable to rising seas.
The confirmation comes as Prime Minister Anthony Albanese denied this week that there was tension over Australia’s fossil fuel exports during talks with Pacific leaders. The Saraji extension, operated by BHP Mitsubishi Alliance (BMA), is one of the largest coal mines in the country. Environmental advocates have long opposed the project, citing its impact on biodiversity and its contribution to greenhouse gas emissions.
The new agency, established to provide independent oversight of projects with significant environmental impacts, had been seen as a potential check on fossil fuel expansion. Its approval of the Saraji extension marks a significant test of its mandate. Critics say the decision signals that the agency will not stand in the way of coal development, despite the government’s stated climate goals.
The mine’s extension will involve clearing additional areas of remnant vegetation, which provides habitat for koalas and other threatened species. Conservation groups have warned that the approval sets a dangerous precedent for other coal and gas projects awaiting review. They have called on the government to intervene, but officials have defended the decision as consistent with existing laws.
The Saraji mine has been operating for decades, and its extension ensures continued employment for thousands of workers in the Bowen Basin region. The coal produced is primarily used in steel manufacturing, a sector that remains heavily reliant on fossil fuels. Industry representatives argue that the mine supports local economies and that steel production is essential for infrastructure and development.
However, the approval has intensified debate over Australia’s role as a major coal exporter. Pacific island nations, which are on the front lines of climate change, have repeatedly urged Australia to phase out fossil fuel extraction. The timing of the approval, just after talks with Pacific leaders, has added to concerns that Australia’s actions do not match its rhetoric on climate diplomacy.
Climate groups have vowed to challenge the decision, potentially through legal action. They argue that the agency failed to adequately consider the full climate impact of the mine’s extension, including emissions from the coal when it is burned overseas. The government maintains that the approval process was rigorous and that the project will bring economic benefits.
The Saraji decision is likely to be a flashpoint in the ongoing national debate over coal’s future in Australia. With the country experiencing more frequent bushfires and heatwaves, public pressure to reduce emissions is growing. Yet, the economic reliance on coal exports remains a powerful counterweight, leaving the government in a difficult position as it tries to balance climate action with economic stability.
