A Controversial Green Light
The Ulan Coal Mine, one of Australia’s largest coal operations, has received state government approval to expand its underground activities, despite widespread environmental concerns. The NSW Department of Planning has granted permission to extract an additional 18.8 million tonnes of coal, extending the mine’s lifespan by two years to 2035.
Located near Mudgee in central-west New South Wales, the mine is operated by Glencore Australia and has been a significant contributor to the regional and national economy. However, this approval comes with a suite of conditions and a storm of criticism from environmental groups and local communities.
Ulan runs a continuous 24/7 mining operation, employing around 931 workers, including the team responsible for developing the Ulan West Underground. (Photos: Glencore/Mudgee Guardian)
What the Approval Means
The recent determination allows Glencore to:
- Expand its underground operations
- Extract 18.8 million more tonnes of coal
- Extend the operational life of the mine to 2035
- Continue contributing to the already-approved 330 million tonnes of total ore extraction
The company, which employs 660 people at the Ulan Complex and contributed $1.7 billion to the economy in 2023 alone, has welcomed the decision. A spokesperson for Glencore emphasised that the expansion would provide ongoing employment and economic benefits for the region.
Uan Coal Mine [Credit: Damian Seagar]
Environmental Alarm Bells Ringing
While the economic benefits are clear, the environmental costs are raising alarms.
Habitat Destruction and Endangered Species at Risk
The Department of Climate Change, Energy, the Environment and Water flagged the expansion’s serious risks to 21 native species, including:
- Koalas
- Brush-tailed rocky wallabies
- Several species of microbats, including the large-eared pied bat and large bent-winged bat
The development will result in the clearing of 17 hectares of native vegetation, including critical habitat for endangered fauna. According to the department, more than 630 hectares of surrounding land will also gradually subside, threatening cliffs and caves that serve as essential breeding and roosting areas for bats.
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“A Death by a Thousand Cuts”
Rosemary Hadaway, president of the Mudgee District Environment Group, has criticised the decision, calling it “a death by a thousand cuts” for local biodiversity. She argues that despite habitat protections on paper, species continue to suffer due to consistent approvals of harmful developments.
“Why do we have our wonderful animals listed for protection but then we don’t do it?” she asked.
Subsidence, Bats and Offsetting Doubts
Subsidence – the sinking of land – is a major concern. Rocky sandstone cliffs within the mining area provide vital habitat for microbat species. The large-eared pied bat, listed as endangered, is particularly vulnerable, as it uses the cliffs for breeding. The risk of rockfalls and cave collapse due to mining subsidence poses a direct threat to these animals’ survival.
Large-eared Pied Bats take shelter in caves, old mines, and abandoned bird nests. [Image Credit: Michael Pennay | “Chalinolobus dwyeri” by Michael Pennay]
Although the approval mandates a “comprehensive bat monitoring program” and requires Glencore to offset habitat destruction, Ms Hadaway insists that such offsetting efforts are ineffective for species with highly specific environmental needs.
The bats have “nowhere else to go,” she said, “Monitoring tells you when damage has occurred and that’s beyond the point of no return.”
Distribution of the endangered bat species [Credit: Australian Museum]
Conditions Imposed on the Project
To address the environmental and social concerns, the approval comes with 13 strict conditions, including:
- A Greenhouse Gas Mitigation Plan, due within six months
- Management plans to reduce impacts on biodiversity, cultural heritage, and water
- Mandatory identification and assessment of bat roosting sites prior to mining
- Requirement for offset strategies to be implemented for habitat loss
The Department of Planning, Housing and Infrastructure stated that these measures would allow the mine to avoid, manage, and offset the most significant impacts of the expansion.
A Divisive Outcome
For some, the project is a welcome boost to the local economy, particularly in the face of an uncertain global energy future. With over $494 million spent on goods and services and strong employment figures, Glencore’s operations are deeply integrated into the region’s economic fabric.
However, for environmental advocates and many in the community, the approval highlights a deeper issue — the ongoing conflict between economic growth and environmental protection.
Hadaway said. “There should never be permission for the damage to occur in the first place.”
Final Thoughts
As Australia grapples with its climate commitments, projects like the Ulan Coal Mine expansion ignite pressing questions about the nation’s path forward. Balancing economic interests with long-term environmental integrity remains one of the most difficult and important challenges facing policymakers and communities alike.
The next few years will test whether conditions and mitigation plans truly protect what remains — or whether this marks another setback in Australia’s biodiversity crisis.
