The New South Wales government has been labelled "hypocritical" for approving coal mine extensions and expansions, despite aiming to achieve net zero by 2050.
Demand for the state's fossil fuel resources from overseas has doubled over the past decade, and held steady during the pandemic and the war in Ukraine.
Coal prices reached record highs of more than $US400 ($535) per tonne last month.
In the past 12 months NSW government departments have approved a modification to extend the life of one coal mine and two "state significant" expansions of existing mines.
Meanwhile, the owners of three more coal mines are also wanting to extend their operating lives and the NSW Department of Planning is assessing whether it will allow five other coal mines to expand.
Climate Energy Finance, a private advisory consultancy, said an orderly retreat from the industry was needed.
Director Tim Buckley said the state government was reaping the benefits of coal mining while trying to maintain an appearance of being environmentally conscious.
"The idea that the NSW government continues to approve massive new coal developments is very much hypocritical," Mr Buckley said.
"Short-term profitability of the industry is extreme. It's war profiteering."
If there's coal, keep digging
In the Central West of the state, Lithgow and Mudgee are home to some of the state's "most productive and efficient" coal mines, according to the NSW Minerals Council.
Chief executive Stephen Galilee said the region's production of the commodity will remain stable.
The owners of Moolarben, near Mudgee, want to mine approximately 40 million tonnes, or about one million truckloads, of additional reserves.
Yancoal which exports its product primarily to Asia said "demand is likely to remain strong over the coming decades".
Peabody Energy's Wilpinjong mine is adjacent to Moolarben and currently supplies enough coal for about 15 per cent of the state's energy needs.
Approving a proposed expansion of its operations would allow a further 1,600 hectares of land to be mined around the tiny village of Wollar beyond 2030.
Soaring prices, steady demand
The price of thermal coal has soared from about $US50 per tonne in 2020.
Global demand remains high, particularly from India, Thailand, Korea, and the largest importer, Japan.
"The infrastructure is in place, the workforce is in place, the supply chains are in place, the export opportunities are in place."
Coal exports last year were at near record levels of 164 million tonnes, just one per cent lower than 2020.
"The power operators of South-east Asia aren't going to turn their power stations off if they can't source their coal from NSW," Mr Galilee said.
"They're going to source their coal from another part of the world. It's going to be lower-quality coal and it's going to generate higher emissions."
The state's net zero commitments are only calculated on emissions produced here.
No new coal mines
In the last year no company has applied for a new coal mine in NSW.
The rejection of KEPCO's Bylong Valley mine highlighted the hurdles greenfield, or new, proposals are up against.
Coal-fired power stations in New South Wales are beginning to close, and the life span of those still operating are being reduced.
More than half of the electricity used in Australia comes from coal.
Outside of Lithgow, the region's biggest coal supplier, Centennial Coal, is seeking approval for Angus Place West which would allow it to keep supplying coal to the nearby Mount Piper Power Station until it shuts in 2040.
It is expected to be the last coal-fired energy source in the state.
In a statement, a spokesperson from the Department of Planning and Environment said all mining proposals undergo rigorous assessments and coal, being the state's largest export commodity, helps fund essential services and infrastructure.
The ABC requested interviews with the NSW Energy Minister Matt Kean, Environment Minister James Griffin, and Deputy Premier Paul Toole. All were unavailable.
Peabody Energy and Centennial Coal were contacted for comment.
Editor's note (April 12, 2022): Tim Buckley is the director of Climate Energy Finance, not the federal government-backed Climate Energy Finance Corporation as an earlier version of this story stated.
