Griffin Coal set to deplete $220 million in WA taxpayer support nine months early
Failing Collie coal miner Griffin Coal is burning through its $220 million taxpayer support fund faster than the government anticipated.
Premier Roger Cook revealed to parliament on Tuesday that the government had so far made $182.7 million worth of payments from the $220 million support package for Griffin Coal, which mines coal used to power the state 180 kilometres south of Perth.
The package was devised in December 2023 to avoid the shutdown of Griffin Coal's mining operations in Collie, which would have cut coal supply to the privately owned Bluewaters power station and Synergy's nearby coal-fired power stations.
The $220 million package was on top of $40 million in support payments already paid to Griffin.
On average, Griffin is drawing down about $10.5 million from the taxpayer fund each month.
At that rate, it will have expended the whole $220 million by September, despite the funding support originally slated to end in June 2026.
If the Collie coal supply is impacted, it could impact the reliability of the south-west electricity grid over summer.
Indian-owned Griffin Coal entered receivership in 2022 following escalating losses on the fading operation and crippling debts that reached about $1.5 billion.
Cook confirmed he intended to cease funding Griffin by June next year and had reached out to stakeholders to find out what their plan was after taxpayer support ended.
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