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18 Apr 2025

BHP, ACCIONA Energía Partner on Pumped Hydro Project at Mt Arthur Coal

18 Apr 2025  by power-technology   
BHP, in partnership with ACCIONA Energía, a renewable energy and infrastructure firm, is exploring a pumped hydro energy storage project at the Mt Arthur Coal mine in New South Wales, Australia. The initiative supports BHP’s plan to responsibly transition the site as the mine approaches closure by 2030, marking the end of its economic viability.


The company has received approval from the NSW Government to extend mining activities until June 2030.

The NSW Government has granted BHP approval to continue mining operations at Mt Arthur until June 2030, facilitating a phased transition. Preliminary studies suggest the proposed pumped hydro project could create around 1,000 jobs during construction, boost economic activity in Muswellbrook, and provide electricity to approximately 500,000 homes in NSW daily.

BHP president Australia Geraldine Slattery stated: “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 7,000ha 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.”

Pumped hydro systems offer flexible electricity generation, capable of producing power on demand or storing energy for later use. The Mt Arthur site’s natural elevation differences and water catchments make it a suitable location for such a facility. Over the next 12 months, ACCIONA Energía will conduct a feasibility study to evaluate the potential of converting part of the site into a pumped hydro energy storage system.

Slattery further noted: “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. BHP is committed to leaving a positive legacy in the Hunter Valley. With our approval to keep mining to 2030 and with a $30m [A$47.14m] fund, we are recommitting to giving the community and our people the certainty and the support they need for the future.”

The collaboration reflects BHP’s commitment to sustainable land use and economic support for the Hunter Valley region. By repurposing the Mt Arthur site, the project aims to contribute to a stable energy supply while fostering local employment and investment opportunities. The feasibility study will provide critical insights into the project’s viability, potentially positioning the site as a key contributor to renewable energy infrastructure in Australia.

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