Origin Energy has finally come to the party, offering a new three-year contract for the supply of coal from Centennial’s Myuna Colliery.
The company verified the latest proposal on Thursday 5 February, just days after submitting a 12-month deal, effective from March.
That earlier arrangement was rejected by the Mining and Energy Union (MEU), Collieries Staff and Officials Association (CSOA), Australian Manufacturing Workers Union (AMWU) and Electrical Trades Union (ETU) for being “commercially unviable and incapable of providing certainty” for 300 employees, their families and the wider community.
The dialogue between the two parties also centred around Eraring Power Station’s lifeline, recently extended until 2029.
Myuna Colliery was built solely to supply coal to the Lake Macquarie plant and has no alternative domestic or export markets.
But, Origin, which owns Eraring Power Station, returned to the negotiating table.
It followed a mid-week rally from workers, as well as criticism from Shortland MP Pat Conroy and his Hunter counterpart Dan Repacholi.
“We can confirm we’ve offered a three-year contract for the supply of coal from Myuna Colliery, on terms consistent with the existing agreement,” an Origin spokesperson said.
“This aligns Myuna to the scheduled retirement of Eraring Power Station, providing Centennial additional time to plan for appropriate support for its employees.
“Origin has continued to engage openly, constructively and in good faith [with Centennial].
“We have now tabled two offers this week, with our latest proposal responding directly to Centennial’s request for an end-of-life agreement.
“Our submission is on consistent terms to today, as we cannot meet Centennial’s elevated pricing demand, which is forecast to be about $50 million per year above market levels.
“Over three years, we forecast this is $150 million above the cost of coal from other suppliers.
“The cost of operating Myuna is a matter for Centennial and its parent company, Banpu, a company of substantial size and profitability.
“Origin and NSW households and businesses cannot be expected to wear those costs.
“Our latest offer shows we’re committed to working constructively towards an agreement that supports local jobs.
“We now need Centennial to respond genuinely with a realistic proposal so we can reach a fair outcome for everyone.
“Workers and the broader community deserve greater transparency from Centennial Coal regarding how it will support them through the full implementation of the Energy Industry Jobs Plan, should the Net Zero Economy Authority recommend it be required.”
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