The New South Wales government has released a roadmap for the future of coal production in the state, confirming that no new coal mines will be approved.
The NSW Coal Industry 2026–50 policy sets out a clear approach to future coal production in the state, with the government saying it will not consider applications for new greenfield coal mines.
While greenfield projects are now off the table, the government confirmed it will still consider extensions to existing operations to meet forecast local and export demand.
The government maintains that NSW has sufficient reserves at or near current sites to satisfy the market. By allowing extensions rather than new mines, the state aims to protect sovereign steelmaking capabilities and regional jobs while strictly managing the environmental footprint.
Coal will continue to play an important part in supporting regional jobs and investment, according to the report.
Though the government warns that any future approvals will be subject to strict project-by-project processes and robust regulatory frameworks to slash onsite emissions.
The policy shift comes as coal remains a massive economic driver. In 2025 alone, the industry generated AU$23.4 billion in exports and poured AU$2.7 billion in royalties into the state’s coffers.
However, the strategy acknowledges that the global appetite for thermal coal is shifting as trading partners chase low-emission alternatives.
To manage this transition, the government has established the Future Jobs and Investment Authority, tasked with supporting coal-reliant regions as demand eventually wanes.
Under the new rules, mine operators must align with the Australian government’s Safeguard Mechanism and NSW’s interim emissions targets. The state is prioritising on-site abatement technology, with carbon offsets only to be used as a last resort.
“NSW Coal Industry 2026–50 establishes a pathway for the future of coal mining in NSW, supports our coal mining communities, protects a critical input into Australia’s sovereign steelmaking capability and ensures that we continue to honour our export commitments, while reducing emissions,” said Minister for Finance Courtney Houssos.
“It represents a balanced approach to meeting the social, economic, and environmental needs of the state and continuing to ensure energy security for the people of NSW.”