BHP's Mt Arthur coal mine paid $264 million to the state government in coal royalties last financial year on the back of a massive spike in coal prices, the company's annual report has revealed.
The figure represents a 218 per cent increase on the $83 million it paid in the previous financial year.
Mt Arthur, which employs 2000 people, is BHP's only remaining Hunter asset.
In addition to royalties, BHP engaged 830 NSW suppliers (up from 790) and made payments worth $3billion last financial year.
Payments to indigenous suppliers totalled $21.4 million.
"We're proud of our significant contribution to the NSW economy and the Hunter," Mt Arthur general manager and NSW Energy Coal vice president Adam Lancey said.
"Small businesses are essential to our operations and help sustain their communities. We are proud to support them as our suppliers and help create local jobs.
"We will continue to support the Hunter as we work with our people, local business partners, Traditional Owners and local and state governments to prepare for closure and sustainable rehabilitation of the site, and ensure the pathway is managed in a way that meets community and regulatory expectations."
But despite warnings about the need to prepare for significant social and economic change in coming years, the government is yet to invest more money to help Hunter communities adapt.
This would involve the introduction of a progressive coal royalties system that would require coal companies to pay more as the coal price increased.
It estimated such a move would see coal royalty income increase by 400 per cent this financial year, leaving billions more to support regional communities undergoing energy transition.
A similar system was introduced with bipartisan support in Queensland in June.
BHP estimates the job of rehabilitating the 6600 hectare Mt Arthur site, the state's largest coal mine, will take between 10 and 15 years.
"Since the announcement we have been meeting with a range of key stakeholders, including the community, to hear their concerns and explain the decision," Lancey said.
"The community has welcomed the opportunity to hear more from us and help build the pathway forward."
The company contributed nearly $80 billion ($79.3 billion) in economic value to the Australian economy over the 12-month period.
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