BHP says it plans to shut down its Mt Arthur coalmine in NSW's Hunter Valley in mid-2030 after an attempt to sell it failed to find a buyer.
The open-cut mine near Muswellbrook employs about 2000 people and provides thermal coal to international customers.
BHP is licensed to operate the mine until 2026 and will now ask permission from the NSW and Australian government to extend that timeline until the end of the 2030 financial year.
It then expects to spend $US700 million ($A999 million) on closing the mine and rehabilitating the site over the next 10 to 15 years.
"We will work with our people, local business partners, Traditional Owners and local and state governments to operate safely and productively, prepare for closure and sustainable rehabilitation of the site, and ensure the pathway to closure is managed in a way that meets community and regulatory expectations," said Adam Lancey, vice president of BHP's NSW Energy Coal operation, which operates the mine.
Under pressure from investors to respond to climate issues, BHP has been selling off its thermal coal and lower-grade coking coal assets, such as the Poitrel and South Walker Creek coalmines in Queensland it sold to Stanmore Resources last year for $US1.35 billion.
Minerals Australia president Edgar Basto said BHP "thoroughly reviewed potential options" for the Hunter Valley operation, including divestment and future investment requirements.
Lock the Gate Alliance national coordinator Carmel Flint said the environmental group was pleased that BHP was closing the mine, although it would have liked it to happen in 2026 rather than 2030.
""This is a very significant step by BHP, and the absence of buyers for the mine sends an incredibly strong message that thermal coal is in decline globally, as customer countries act on climate change."
Harriet Kater, Climate Lead (Australia) at the Australasian Centre for Corporate Responsibility, said BHP had been seeking to extend the life of the mine until 2045 as part of its efforts to sell it, and that closing the mine instead was the right call.
"Use of asset divestment as a tool to lower carbon footprints and avoid responsible closure is not acceptable," she said.
