The operator of the Mt Arthur coal mine near Muswellbrook has announced it will seek approval to extend mining operations by an extra four years before shutting down the site in 2030.
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BHP had conducted a trade sale process in an attempt to sell its New South Wales Energy Coal (NSWEC) subsidiary, which operates the Mt Arthur mine, but the company said it did not receive a viable offer.
Adam Lancey, the vice president of NSWEC, said BHP had been reviewing its options for the future of Mt Arthur Coal for the past two years.
"We have completed that process and, as a result, a decision has been taken to seek the relevant approvals to enable mining to continue to 2030, an additional four years beyond our current consent," Mr Lancey said.
"After that time, we will wind down mining operations and rehabilitate the site - a process that will take a further 10 to 15 years.
"We know this is significant news for many, especially those in and around Muswellbrook, and comes at a time when many of us are thinking about the future for our region."
Mr Lancey said seeking approval to continue mining at Mt Arthur until 2030 would provide certainty for the Upper Hunter community and give the company "eight years to work together on a plan that contributes to helping the region diversify and strengthen its economy".
"Nothing is changing right now. BHP will continue to safely operate Mt Arthur Coal, as we have been doing since 2001," he said.
"Starting in the coming weeks, we will commence a program of broad consultation with our people, local suppliers and businesses, Indigenous groups, governments and community leaders.
"Through this process, we will develop a plan together on the most appropriate post-mining land use, and how we can help further strengthen and diversify the local economy."
Mr Lancey said BHP was committed to working with the Upper Hunter community and its staff at Mt Arthur Coal to "get this right and create a positive legacy for the region".