Industry and Science Minister Tim Ayres thinks that new coal and gas projects are not incompatible with Australia's net zero ambitions, and could contribute to global energy security.
Senator Ayres' comments appeared to be at odds with the NSW government's decision to ban new coal mines, but not extensions, as part of its coal industry 2026-50 plan.
He told a Business Hunter lunch on Wednesday that new projects that satisfied the environmental and business assessments should proceed.
"We are blessed with enormous reserves of space and sun. In terms of energy resilience, Vladimir Putin can't stop the wind blowing in Australia, and no Iranian dictator can stop the sunshine in Australia," he said.
"This is our energy advantage for the future, but that doesn't mean that Australian thermal and metallurgical coal doesn't have big markets overseas. There's nothing inconsistent about these positions, it's not some sort of moral competition."
"We are exporting energy to economies that require it which are undergoing their own transitions. In terms of environmental perspective there is an absolutely consistent position for Australia to take - we want to lower our own emissions, we want to see our partners lower theirs and we want to contribute to the energy security of our partners."
But he also noted that many mines and coal-fired power stations would close in coming decades, which would create the opportunity to repurpose assets in the establishment of new industries.
He highlighted the fact that there would be hundreds of millions of dollars worth of infrastructure at Mount Arthur Coal, which would no longer be needed when the mine closes in 2030.
BHP has also previously argued that it made no sense to demolish its high-quality office and administrative facilities, industrial workshops, high-capacity electrical infrastructure, maintenance facilities, and rail lines, when they had the potential to be incorporated into the site's future development.
"Yes, it is presently being used today as part of the mine's operations, but it's on the New England Highway and Golden Highway and the railway line. You would build it if it wasn't there," Senator Ayres said.
"I want to make sure that we are finding a targeted way to use those brownfield assets for future industrial development."
"We haven't cracked the code of coordinating that effectively at the local level. We need to do more and that is the top priority for us in the region."
BHP is consulting with staff and stakeholders regarding future options for the 7000 hectare site.
These include adventure parks, hiking, and mountain bike trails, renewable energy projects such as solar and pumped hydro, manufacturing and biodiversity projects.
Senator Ayres also said the federal government remained in negotiations with the state government over a funding package that would ensure Tomago Aluminium could continue to operate beyond 2028.
"We are continuing to work that through, working with our partners in the NSW government and with Rio Tinto and the other owners of this facility. This is a top order priority," he said.
"It is very important for the Hunter Valley economy. But there is an enormous opportunity here to use this major facility that uses so much of our electricity to drive new investment, to drive the rebuild of our electricity system."
