Origin's Short-Term Coal Contract Raises Questions for Hunter Valley Workforce
Origin Energy has tabled a new 12-month contract to Centennial Coal to supply coal from the Myuna Colliery to Eraring Power Station, a move that has ignited debate over the future of hundreds of mining jobs in the Hunter Region. The existing supply agreement between the two companies is set to expire later this month, with Centennial pushing for a longer three-year deal that would align with Eraring's scheduled closure in 2029.
Jobs and Community Impact in the Balance
Beyond the direct employment of 300 mineworkers at Myuna Colliery, the operation supports thousands of additional roles across contractors, transport workers, small businesses, and service providers throughout the Hunter. This underscores the broader economic significance of the colliery, which has been a cornerstone of local industry for decades.
Origin's reliance on locally sourced coal has diminished since the installation of a rail unloader loop in 2013. In recent years, approximately 80 per cent of the coal for Eraring has been sourced from Hunter Valley mines, highlighting the regional dependency on this energy supply chain.
Corporate Stances and Transition Plans
Greg Jarvis, Origin's head of energy supply and operations, stated that the 12-month offer, presented on Tuesday, aims to sustain the long-standing relationship with Centennial and support ongoing employment for the Myuna workforce. He emphasised that Eraring plays a critical role in ensuring energy reliability for New South Wales households and businesses until its planned closure in April 2029.
However, Jarvis expressed disappointment that workforce issues have been brought into commercial negotiations, urging Centennial to focus on helping its employees prepare for the energy transition. Origin has implemented a Future Directions program for its own staff and has challenged Centennial to adopt similar initiatives.
Net Zero Economy Authority's Role
The Net Zero Economy Authority (NZEA) recently indicated that an Energy Industry Jobs Plan (EIJP) should apply to Eraring's closure, a plan designed to assist both power station workers and the wider community in finding new employment opportunities. Origin's short-term contract is intended to provide Centennial with time to implement such support measures.
Jarvis called for greater transparency from Centennial regarding its commitment to supporting workers through the full implementation of the EIJP, should the NZEA recommend its necessity. This highlights the growing pressure on companies to address social responsibilities amid Australia's shift towards renewable energy.
As the deadline for the current contract approaches, stakeholders are closely watching whether this 12-month extension will suffice to safeguard jobs or if it merely delays inevitable challenges in the Hunter Valley's economic landscape.
