19 January 2023

NSW coal reservation scheme

Whitehaven Coal notes media reports that the NSW Government is looking to expand its domestic thermal coal reservation policy to include the majority of the State’s coal miners. According to a report in The Australian newspaper, the NSW Government is seeking to address an approximate 4 million tonne annualised supply shortfall to meet the needs of NSW power generators.

In December 2022, the NSW Government imposed domestic coal reservation and price cap orders on a number of NSW producers which have historically supplied coal to the domestic energy market to offer at least 18.6 million tonnes into the domestic market. These orders are to apply from 1 April 2023 to 30 June 2024 and are designed not to impact existing coal supply agreements. Whitehaven was not subject to these orders.

Yesterday, officials from the NSW Government met with the Company to provide an initial briefing on the proposed expansion of the policy to include new participants, including Whitehaven, and undertook to provide further details in coming days. The Company is currently reviewing the potential implications of an expanded scheme and will continue to engage with the NSW Government and update the market as appropriate.

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