BHP Weighs Pumped Storage Project at Closing Coal Mine

Wedoany.com Report-May 6, BHP, an Australian mining company, has partnered with ACCIONA Energía, a renewable energy and infrastructure firm, to study the feasibility of a pumped hydro energy storage project at Mt Arthur Coal, an open-cut coal mine in New South Wales (NSW), Australia. The initiative aims to repurpose the site as the mine approaches closure.

Mt Arthur Coal

In 2022, BHP announced plans to cease operations at Mt Arthur Coal by 2030, as the mine reaches the end of its economic viability. The NSW Government has approved a four-year extension of mining activities, from July 2026 to June 2030, to support a smooth transition. The proposed pumped hydro project is part of BHP’s strategy to explore sustainable post-mining land uses.

Preliminary studies by BHP indicate that a pumped hydro facility at Mt Arthur could create around 1,000 jobs in the Upper Hunter during construction, stimulate economic activity in Muswellbrook, and supply electricity to approximately 500,000 homes daily across NSW. Over the next year, ACCIONA Energía will assess the potential for converting part of the site into a pumped hydro energy storage system.

ACCIONA Energía brings extensive experience, with 600MW of operational renewable energy assets in Australia, 1.3GW under commissioning, and over 14GW of global electricity generation capacity. Pumped hydro technology, which generates or stores electricity by moving water between reservoirs at different elevations, is well-suited to the site’s geological features, including natural elevation differences and water catchments.

BHP is also establishing a $30 million community fund to support the Upper Hunter region beyond 2030. Developed in collaboration with local stakeholders, the fund will focus on job creation, industry diversification, and economic growth through a shared decision-making approach.

Geraldine Slattery, BHP president Australia, said: “In 2022, following an extensive review of options including divestment, BHP announced our plan to cease mining at Mt Arthur in 2030. 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.”

The project aligns with community aspirations to repurpose the site sustainably. By leveraging the mine’s infrastructure, the pumped hydro initiative could enhance energy reliability, support renewable energy integration, and contribute to the economic vitality of the Upper Hunter region.