“Since the IPC was created the NSW Department of Planning has assessed 12 major new coal projects. Eleven in a row were recommended for approval, with only the Hume Coal project breaking that trend.”

A spokesperson for the Department of Planning said the state had adopted the world’s best practice in mine approvals “that includes a rigorous, independent merit assessment that considers the impacts and overall public benefit of the proposal”.

“The government’s policies contain clear criteria to protect the environment and the health and safety of the community.

“Examples of proposals that could not meet the NSW government’s criteria, and were subsequently not approved, include the Bylong coal mining proposal near Mudgee, the Rocky Hill coal mine near Gloucester, the Drayton Coal Mine Extension in the Hunter Valley, the Dendrobium Extension Project in the Southern coalfields and, more recently, the Hume Coal Project in the Southern Highlands.”

The proposals come despite predictions of a long-term decline in demand for Australia’s coal exports as key markets across Asia accelerate efforts to phase out fossil fuels to meet carbon-reduction goals. The use of coal in Australian power plants is also falling sharply as the rollout of renewable energy continues, with most coal generators set to retire before 2040.

In the last quarter of last year Australian coal-fired power generation fell to historical lows due to surging renewable energy, the Australian Financial Review reported this week citing figures from Dylan McConnell, research fellow at the University of Melbourne’s climate and energy college.

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Despite this, a global energy crunch has prompted a spike in coal prices as a sharper-than-expected post-pandemic rebound in economic and industrial activity has collided with severe supply shortages.

The surge in proposed expansions in NSW is unlikely to be a response to the high prices, said Wood Mackenzie coal analyst Viktor Tanevski, as the proposals would have been in the approval and development pipeline for some time.

He said Wood Mackenzie modelling suggested international demand for NSW coal would peak about five years from now and then begin a slow decline.