BHP has warned that significant changes to operating conditions in the coal mining sector would make it more difficult to achieve its long-term goal for the Mt Arthur Coal site.
BHP, which had been seeking an extension of the mine's life until 2045, announced in June last year that it was bringing forward the closure date to 2030 after failing to find a buyer for the mine.
The company has outlined an ambitious future plan for the 7000-hectare site including an adventure park featuring hiking and mountain biking trails situated alongside renewable energy projects and grazing cattle.
But BHP vice president NSW energy coal Adam Lancey told a Business Singleton meeting that there had been some significant shifts in the external operating environment since the company announced its Pathway to 2030 plan.
This included a drop in the price of coal and the introduction of federal government plans to change the safeguard mechanism and industrial relations laws.
The state government has also announced plans for a coal reservation policy, including a price cap for domestic coal. Most recently it has signalled a potential increase in coal royalties.
"Ultimately, all of these changes will have a cumulative effect on our business," Mr Lancey said.
"We will need to see government working with industry more collaboratively in the future to ensure we can achieve the best outcomes on the pathway journey," Mr Lancey said.
The state government flagged a potential increase in coal royalties earlier this year as a means of boosting the state's bottom line when the temporary cap on coal prices implemented to curb soaring electricity prices expires.
Some have urged the government to introduce progressive royalties, similar to what has been introduced in Queensland. Under this model, coal companies pay more as the coal price increases.
The industry and the NSW Minerals Council is fiercely opposed to progressive royalties arguing that a Queensland-style system would be counterproductive to the industry and the wider community.
The state government will announce its decision on coal royalties as part of the September 19 state budget.
A spokesman for NSW Treasurer Daniel Mookhey said: "The NSW Government undertook formal consultations with the coal industry in August 2023 and stakeholders were invited to make written submissions. The NSW government is considering these submissions."
Mr Lancey said that under any scenario, BHP was committed to fulfilling its statutory rehabilitation obligations and relinquishment criteria.
"However - our aspiration is to deliver sustainable landforms and land uses which can provide a positive legacy for generations to come post Mt Arthur Coal's closure," he said.
"Alternate sustainable land uses will contribute to supporting the community and the Upper Hunter region long after 2030.
"We are committed to exploring these alternatives by working with key partners - including government - to deliver something we can all be proud of."
