Australia's newly-established National Environmental Protection Agency (NEPA) has granted its first ever approval for a coal development, clearing an extension for BHP Mitsubishi Alliance (BMA)'s Saraji open-pit coking coal mine in Queensland, allowing operations to run through to 2055, according to the Guardian.

The green light permits the mine to extract an additional 55 million tonnes of export-oriented coking coal up to 2055. Setup under last year's national environment law reforms, the regulator commenced work on July 1, and this marks its inaugural coal project clearance.

Approval comes with binding environmental safeguards aimed at limiting habitat loss for koalas, ornamental snakes, squatter pigeons and threatened Brigalow woodland.

The regulatory decision landed while Prime Minister Anthony Albanese attended the Pacific Islands Forum in Palau. During the summit, Albanese maintained that "taking climate change seriously" constituted the "entry fee for credibility" for engagement with Pacific nations, and denied regional leaders had raised formal objections against Australia's fossil fuel expansion plans.

Climate advocacy bodies have condemned the ruling. Climate Council senior adviser Ben McLeod estimated that coal produced over the extended mine life would generate roughly 120 million tonnes of CO2 when burnt overseas for steelmaking, comparing that volume against Australia's annual national emissions of 455 million tonnes.

McLeod argued the approval clashed with the government's Pacific forum rhetoric and showed recent environmental law reforms lacked sufficient teeth to curb climate pollution. He also noted that emissions from coal combusted outside Australia sit outside domestic accounting boundaries, referencing the International Energy Agency (IEA) guidance that no new fossil fuel developments are compatible with the 2050 net zero pathway.

Greenpeace Australia Pacific labelled the move an "affront" to Pacific communities facing climate-driven sea level rise, pointing out Saraji is the 37th fossil fuel project cleared under the Albanese administration. Local group Environmental Advocacy Central Queensland warned the extension would add pressure on threatened wildlife and water quality across the Fitzroy River catchment, especially during flood events.

A federal government spokesperson defended NEPA as Australia's first independent environmental regulator, describing it as a cornerstone of national environmental law reform.

The government reiterated its commitment to legislated net zero targets, highlighting its overhaul of the safeguard mechanism for heavy-emitting industrial facilities, which Saraji mine falls under. Officials acknowledged the scheme does not capture emissions released when Australian fossil fuels are burned abroad, adding that a formal review of the safeguard mechanism is underway.