BHP is exploring the potential for pumped hydro energy storage at its Mt Arthur Coal site, working with renewable energy and infrastructure company ACCIONA Energía to assess the idea. The study is part of BHP’s plan to prepare the site and the surrounding Upper Hunter region for the closure of mining activities by 2030.
In June 2022, BHP announced that Mt Arthur Coal, located near Muswellbrook in the Hunter Valley, would close after reaching the end of its economic life. In April 2025, BHP received approval from the NSW Government to continue mining until June 2030, providing what the company describes as “more certainty for our people, the community, suppliers and local businesses”.
Over the next year, BHP and infrastructure and renewable energy firm ACCIONA Energía will explore whether a pumped hydro facility could be developed at the site. Mines like Mt Arthur, with natural elevation changes and existing water catchments, can be suitable locations for such projects. Pumped hydro technology stores and generates electricity by moving water between two reservoirs at different elevations, helping to balance energy supply and demand.
Initial conceptual studies by BHP suggest the project could have strong regional benefits. Construction could support around 1,000 jobs in the Upper Hunter and contribute to the ongoing economic activity of Muswellbrook, while the facility itself could supply enough power for up to 500,000 homes daily.
BHP President Australia, Geraldine Slattery, said, “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.”
Ms Slattery also reinforced BHP’s broader efforts to support the region: “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.”
As part of its broader closure planning, BHP is also launching a $30 million community fund to be delivered through a shared decision-making model with the community. The fund will prioritise support for job creation, industry diversification, education and training opportunities, wellbeing initiatives, heritage protection, and Indigenous economic empowerment.
Ms Slattery said, “BHP is committed to leaving a positive legacy in the Hunter Valley. With our approval to keep mining to 2030 and with a $30 million fund, we’re recommitting to giving the community and our people the certainty and the support they need for the future.”
The Mt Arthur Coal mine currently employs about 2,000 people, most of whom live in the Hunter Valley region. Since the second half of the 2020 financial year, the mine has produced energy coal for international customers only.
While mining will continue for the next few years, the pumped hydro study signals BHP’s intention to help shape the site’s future and maintain regional resilience once coal operations end.
