¶ GRIFFIN Coal could exhaust the State Government’s $220 million bailout package well ahead of next year’s June cut-off.
In a statement to parliament last week, Premier Roger Cook revealed $182.7 million has been doled out to the embattled miner since announcement of the package in December 2023.
At this rate, Griffin is on average drawing more than $10 million a month, and may potentially require the final remaining funds by September.
The premier reiterated the funding support will cease next June, and advised he recently wrote to the relevant commercial parties, seeking updates on their planning ahead of this date.
“The government remains of the firm belief that beyond June 2026, Griffin Coal's future is a matter for the relevant commercial parties,” Mr Cook said.
“As I have previously advised, if the commercial parties come forward with arrangements to support the stable operation of the mine, based on customers paying a fair price for coal, the government will facilitate an appropriate outcome.”
As reported by the Bulletin in April, Griffin secured a new contract with Iluka Resources earlier this year, under which it will supply the critical minerals company a minimum of 180,000 tonnes a year.
Griffin general manager operations João Paulo Da Silva Fernandes told the Bulletin Griffin is hopeful of finalising a second new contract in the second half of the year.
“At some point midway through this year we aim to have a range of options that we can put forward to the government to shortlist so we can then develop those options further,” Mr Fernandes said.
Shadow Energy Minister Dr Steve Thomas said regardless of whether the funding sees Griffin through to June next year, the problem remains development of a commercially viable outcome.
“What was required was an actual commercial solution,” Dr Thomas said.
“I fully expect that they’ll now have to continue to subsidise it. Then it’s just again kicking the can down the road.”
Dr Thomas expects the government will in turn revisit and push out its Just Transition deadlines, with coal-fired power to continue to play a role in the short term.
“I think over the next 12 months the government will take a new look at this,” he said.
“I fully expect to see some change in the right direction.”