Australia’s new environmental protection agency approves coal project, angering climate groups

by | Sep 3, 2026 | Business

 Australia’s new environmental protection agency approves coal project, angering climate groups

Australia’s newly established National Environmental Protection Agency has granted approval for the extension of the Saraji coal mine in Queensland, permitting continued extraction of approximately 55 million tonnes of coal through 2055. The decision marks the first coal project approval since the agency commenced operations on 1 July following recent reforms to national environmental legislation.

The approval includes provisions requiring the BHP Mitsubishi Alliance operator to implement habitat protections for threatened species, though the mine extension will necessitate clearing of koala habitat, ornamental snake habitat, squatter pigeon habitat, and Brigalow woodland. The agency stipulated maximum clearing limits for each habitat type as conditions of the permit.

The approval has drawn sharp criticism from environmental organizations. The Climate Council estimates that burning the coal overseas for steel production would release approximately 120 million tonnes of carbon dioxide over the mine’s operational span. Greenpeace Australia Pacific characterized the decision as the 37th fossil fuel project approval under the current government and criticized it as inconsistent with the prime minister’s recent statements regarding climate action at the Pacific Islands Forum.

Government representatives defended the decision, noting that the mine operates under the safeguard mechanism designed to reduce emissions from major industrial emitters. However, environmental advocates pointed out that this mechanism does not account for emissions generated from burning Australian coal overseas. The approval has intensified debate over whether recent environmental law reforms provide sufficient safeguards against climate pollution from fossil fuel expansion projects.

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