March 1, 2023
The WA Government has provided almost a $20 million bailout to Griffin Coal in order to protect the state’s electricity supply.
In September, Griffin Coal mine which operates near Collie went into receivership with debts of almost $1.4 billion and declining reserves.
This follows Premier Mark McGowan’s announcement in June 2022 that all remaining state-owned coal power generators would close before 2030.
This may mean that the only remaining coal power could be the privately owned Bluewaters 1 and 2 stations, which is linked to their sole coal supplier, Griffin Coal.
The $19.5 million bailout is a significant intervention aimed at keeping the lights on.
Mining and Energy Union Western Australian Secretary Greg Busson cautiously welcomed the announcement by the Government.
“We have known that Blueswater 1 and 2 have been in significant trouble in recent years regarding coal supply, which has been concerning as within a matter of years they may be the last coal power station in the state, and Griffin is their sole supplier.
Supplies from Griffin Coal play a key role in servicing the grid that powers Perth and south west of WA, so continuing to have this supply will help provide stability to the grid over the next few years.
This is welcome news for workers in the short-term, however we are still calling on the WA Government to secure the future of Griffin Coal in the long-term for affected employees and the broader community.”
The Government has stated that they intend on recouping the $19.5 million when Griffin’s commercial arrangements are resolved.