The Western Australian Government is encouraging the Collie Basin's two private coal operators, Griffin Coal and Premier Coal, to explore merger opportunities on the back of recommendations from the Collie Basin Consolidation Taskforce Report.

Earlier last week, a plan for the Collie Basin was published upon finalization of the taskforce report. Drawing on the taskforce's findings, the plan sets out measures to support workers, industry and local communities as Collie advances its transition away from state-owned coal-fired power generation by 2030.

The taskforce reviewed coal assets across the basin to identify pathways for sustaining Collie's long-term economic growth amid the phase-out of coal-fired power output.

To bolster energy security and improve industry certainty, the state government has extended Griffin Coal's state agreement and locked in new coal supply arrangements between Griffin Coal and its key customers. The changes cut annual taxpayer-funded subsidies by A$ 60 million ($43.2 million).

Under the Collie Basin plan, the state will invest A$ 2.8 million to develop a basin-wide rehabilitation and future land use masterplan, and set up a dedicated rehabilitation and decommissioning body to coordinate planning and investment. Authorities will also review potential future ownership structures for basin coal assets against the taskforce's core objectives.

An additional A$ 16.8 million will fund basin-wide workforce transition program, covering worker retention schemes and targeted assistance for coal sector employees impacted by the energy shift.