BHP has announced a collaboration with ACCIONA Energía, a renewable energy and infrastructure company, to evaluate the potential for a pumped hydro energy storage project at the Mt Arthur Coal mine in New South Wales (NSW), Australia.

The move aligns with BHP’s strategy to responsibly transition the site towards closure by 2030, when the mine reaches the end of its economic life.

The company has received approval from the NSW Government to extend mining activities until June 2030, ensuring a gradual transition.

Conceptual studies by BHP indicate that the pumped hydro project could support approximately 1,000 jobs during the construction phase, contribute to Muswellbrook’s ongoing economic activity, and supply power to up to half a million homes in NSW daily.

BHP president Australia Geraldine Slattery said:“In 2022, following an extensive review of options including divestment, BHP announced our plan to cease mining at Mt Arthur in 2030.

“Mt Arthur Coal sits on more than 7,000ha and we are working hard to explore alternative land uses for the site that will continue to support jobs, investment in the region and the local economy.”

Pumped hydro facilities are known for providing dispatchable electricity, generating power on demand or acting as storage to supply when needed.

The technology utilises the natural elevation differences and ample catchments found in mines such as Mt Arthur Coal, making them ideal candidates for such projects.

Over the next 12 months, ACCIONA Energía will conduct due diligence to assess the feasibility of transforming part of the Mt Arthur site into a pumped hydro facility.

Slattery added: “The community have told us they want to see Mt Arthur repurposed when mining ends. This study will examine the role pumped hydro at the Mt Arthur site could play in the region’s future.

“BHP is committed to leaving a positive legacy in the Hunter Valley. With our approval to keep mining to 2030 and with a $30m [A$47.14m] fund, we are recommitting to giving the community and our people the certainty and the support they need for the future.”

Earlier this month, BHP considered a potential spin-off of its Australian iron ore and coal divisions.