High Court Ruling Raises Legal Uncertainty for NSW’s HVO Coal Mine

On October 9, 2026, the High Court of Australia struck down the approval for the Mount Pleasant coal mine, ruling that planning authorities must consider all categories of greenhouse-gas emissions—including scope 3 emissions from coal burned abroad—when imposing conditions on mine approvals. The decision follows a week-old approval that allowed the Hunter Valley Operations (HVO) mega-project to extend operations until 2045. HVO, co-owned by Yancoal (51 %) and Glencore, is projected to emit roughly 800 million tonnes of carbon-warming gases over its 19-year lifespan, about 98 % of which would arise from overseas transport and combustion.

The Sydney Morning Herald

The Independent Planning Commission approved HVO’s extension despite acknowledging the difficulty of quantifying economic damage from scope 3 emissions. The commission highlighted local benefits such as jobs and tax revenue. The High Court’s 3-2 split decision, authored in part by Justice Michelle Gordon, rejected the commission’s omission of scope 3 impacts, marking the first Australian requirement that export-oriented coal projects account for emissions generated abroad. Industry analysts note that the ruling arrives as Australia’s $68 billion coal sector faces declining demand and a recent ban on new “greenfield” coal mines in New South Wales.

The Sydney Morning Herald

Premier Chris Minns described the judgment as “very narrow” and cautioned climate activists against becoming “over-excited.” Justice Michelle Gordon wrote, “The impact of greenhouse gas emissions is the same, regardless of how they are categorised.” The HVO legal team, citing an unnamed source, expressed hope the ruling is limited to the Mount Pleasant case but warned of no “complacency.” Herbert Smith Freehills Kramer argued the decision does not constitute a watershed moment for climate law.

The Sydney Morning Herald

• “The impact of greenhouse gas emissions is the same, regardless of how they are categorised,” — Justice Michelle Gordon

The Sydney Morning Herald

• “The requirement to consider scope 3 emissions as part of the mine approval process is unprecedented among major seaborne export thermal coal producing countries and marks a meaningful shift in the regulatory landscape,” — Brent Spalding, principal coal analyst at research firm Wood Mackenzie

The Sydney Morning Herald