NSW Government Approves Rezoning and Master Plan for Mt Arthur Coal

BHP announced on 22 October 2026 that the NSW Government approved the Mt Arthur Coal Mine Land Transformation Precinct Master Plan and the rezoning of its Mt Arthur Coal site near Muswellbrook in the Hunter Valley. The company said the Government’s conceptual studies indicate around 5,900 jobs could be enabled over 15 years through the Master Plan.

“The approved Master Plan and rezoning enables Mt Arthur Coal mine land to be used for a range of additional uses, a key step once BHP stops mining,” the company stated. BHP thanked everyone who participated in the public exhibition period and said it will continue to work collaboratively with Government, Council and community to progress the project.

Finalised Planning Controls

The rezoning amends the Muswellbrook Local Environmental Plan 2009 to excise the precinct, inserts a new chapter into the State Environmental Planning Policy (Precincts – Regional) 2021 to rezone the precinct to SP4 Enterprise, and amends the State Environmental Planning Policy (Planning Systems) 2021 to include the precinct as an identified site, according to the finalisation report published by the NSW Department of Planning, Housing and Infrastructure in October 2026. The changes are implemented through amendments made under Section 3.29(1) of the Environmental Planning and Assessment Act 1979.

The precinct covers approximately 5,700 hectares across 64 allotments currently operated by Mt Arthur Coal Pty Ltd, a BHP subsidiary, about 5 kilometres south of the Muswellbrook town centre, and the mine is scheduled to cease operations in 2030. The land was previously zoned RU1 Primary Production and C3 Environmental Management. The Department states the finalised proposal facilitates the delivery of up to 5,900 new jobs, approximately 800 hectares of developable land across two priority areas for early activation, and approximately 4,600 hectares of rehabilitated land for agriculture and environmental use.

All future development applications within the precinct will be assessed by the Department and must meet the requirements of the State Environmental Planning Policy (Precincts – Regional) 2021, the vision and aims of the Master Plan and any other relevant legislation, according to the Department’s planning portal listing.

On 20 January 2026, Mt Arthur Coal Mine was identified as a project to proceed as a State-led rezoning under the State Significant Rezoning Policy. The Department publicly exhibited the draft Master Plan, rezoning proposal and technical studies for 28 days from 14 July to 11 August 2026. BHP’s 14 July 2026 announcement described a proposal to rezone around 5,400 hectares and to prioritise around 950 hectares for early activation, and cited government conceptual studies indicating up to 4,890 jobs could be enabled through the Master Plan at that stage.

The Department received 29 submissions during the exhibition: 12 from individuals, 11 from industry and organisations, and 7 from NSW Government agencies. Of the 29 submissions, 14 were in support (48%), 4 were objections (14%) and 11 offered neutral or general feedback (38%), the finalisation report states. Engagement during the exhibition included 1,236 letters delivered to landowners within the rezoning area and a 3.3 kilometre letterbox drop to surrounding neighbours, three community drop-in sessions at Campbells Corner in Muswellbrook on 28 and 29 July 2026 with approximately 40 attendees, and a social media campaign that reached approximately 50,000 people.

According to the finalisation report, the precinct boundary was refined following the exhibition to align with legal lot boundaries, increasing the precinct area from approximately 5,400 hectares to approximately 5,700 hectares, while Priority Area 2 increased from 611 hectares to 655 hectares. The heritage curtilage for the Yammanie Homestead was reduced following a Heritage Curtilage Study, and the Master Plan was amended to address potential amenity impacts on nearby sensitive receivers. The proposal was prepared in partnership with Muswellbrook Shire Council, the Australian Government through the Net Zero Economy Authority, NSW Government agencies and BHP, and is one of two pilot projects, alongside the Macquarie Coal Complex, identified through the 2024 parliamentary inquiry into beneficial and productive post-mining land use.

Path to the 2030 Closure

In June 2022, following a review of all available options, BHP made the decision to cease mining at Mt Arthur Coal in 2030 as part of a responsible pathway to closure for the operation, according to the company’s pathway page. BHP has since received approval from the NSW Department of Planning, Housing and Infrastructure to continue mining for an additional four years as part of the planned closure of the site in June 2030. BHP has committed to a $30 million community fund to support the Upper Hunter, with priorities including job creation, education and training, community wellbeing, heritage protection and Indigenous economic empowerment. BHP has also partnered with ACCIONA Energía to explore a potential pumped hydro energy storage project at the site; the company states its conceptual studies show such a project could support around 1,000 jobs within the Upper Hunter in the construction phase and provide power for up to 500,000 homes across NSW every day.

As of August 2026, more than 200 Mt Arthur Coal teammates had enrolled in paid training through nationally recognised training programs, spanning more than 160 different courses with more than 100 training providers, BHP said. The company has also organised Individual Pathway Plans and free career coaching sessions for its workforce ahead of the closure.

The Department recommended the rezoning be supported to facilitate the delivery of up to 5,900 new jobs for Muswellbrook and the broader Hunter Region. The Department states Muswellbrook Shire Council will progress the implementation phase of the Master Plan using funds allocated by the Australian Government through the Net Zero Economy Authority, and will prepare an Infrastructure Delivery Plan identifying the detailed infrastructure requirements needed to support the precinct and how, when and by whom they will be funded and delivered.