Mining giant BHP has announced a $30 million community fund for the Upper Hunter region as part of its plan to responsibly close Mt Arthur Coal mine by June 2030.
The funding will support job creation, education, health, cultural heritage, and economic empowerment, while also helping the community transition into a post-mining future. The announcement follows three years of consultation with local residents, businesses, and Indigenous groups.
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BHP backs future of Upper Hunter
BHP launched its closure plan in 2022, after deciding Mt Arthur Coal had reached the end of its economic life. Since then, the company has worked closely with the community to design a strategy that supports the region beyond mining.
The $30 million fund will operate under a shared decision-making model, giving the community a say in how the money is used. It will prioritise initiatives that:
- Support local jobs and entrepreneurship
- Expand education and training pathways
- Promote mental and physical health
- Enhance cultural, social, and recreational wellbeing
- Protect Aboriginal heritage and cultural landscapes
- Empower Indigenous-owned businesses
“BHP is committed to leaving a positive legacy”
BHP President Australia Geraldine Slattery said the company is determined to deliver long-term benefits to the region.
“In 2022, following an extensive review of options including divestment, BHP announced our plan to cease mining at Mt Arthur in 2030,” she said.
“Mt Arthur Coal sits on more than 7,000 hectares and we are working hard to explore alternative land uses for the site that will continue to support jobs, investment in the region, and the local economy.”
“The community have told us they want to see Mt Arthur repurposed when mining ends. This study will examine the role pumped hydro at the Mt Arthur site could play in the region’s future.”
“BHP is committed to leaving a positive legacy in the Hunter Valley. With our approval to keep mining to 2030 and with a $30 million fund, we’re recommitting to giving the community and our people the certainty and the support they need for the future.”
Green energy on the horizon
Alongside the community fund, BHP also announced a partnership with renewable energy company ACCIONA Energía to explore a pumped hydro energy storage project at the Mt Arthur site.
The proposed project could create around 1,000 construction jobs, boost the local economy in Muswellbrook, and generate enough electricity to power up to 500,000 homes across New South Wales every day.
ACCIONA will begin a 12-month feasibility study to assess the technical and environmental suitability of the site. The Spanish-based company has 600MW of renewable energy capacity in operation across Australia, with another 1.3GW in development.
Why pumped hydro?
Pumped hydro energy storage is a proven way to store and dispatch electricity. It works by moving water between two reservoirs at different elevations. During off-peak hours, water is pumped uphill to store energy. When power is needed, the water is released downhill through turbines to generate electricity.
Mining sites like Mt Arthur, with their natural elevation changes and existing infrastructure, are ideal candidates for such projects.
Extension approved for final years of mining
To support the planned transition, the NSW Government has approved an extension of Mt Arthur Coal’s operations from July 2026 to June 2030. This ensures continued employment and economic activity while BHP and the region prepare for a post-mining future.
Support already underway
BHP has already launched its “Tomorrow, Together” program, which offers current workers access to training, education, career advice, and financial planning. This initiative aims to equip employees with the tools they need to succeed beyond the life of the mine.
A clean transition for a coal community
The $30 million community fund and pumped hydro feasibility study reflect BHP’s focus on sustainable development. As the largest open-cut coal mine in New South Wales nears closure, the company says it wants to ensure the Upper Hunter continues to thrive.
With job creation, renewable energy, and local empowerment at its core, the transition from coal could become a national example of how mining towns reshape their future.
