Ulan coal mine expansion faces court challenge from Mudgee environment group (2026)

The Mudgee District Environment Group (MDEG) has launched legal action against the approval of Glencore's Ulan coal mine expansion, arguing the project's environmental assessment was inadequate.

The expansion, known as Modification 6, was approved on 22 May by the Department of Planning. It extends the mine's life by two years to 2035, the group says the extension will affect 634 hectares of land and produce more than 42 million tonnes of greenhouse gas emissions.

MDEG president Rosemary Hadaway said the group was concerned about both climate and biodiversity impacts.

"MDEG strongly objected to the expansion of Ulan Coal Mine, one of the largest coal mines in NSW. We have taken the opportunity to appeal this approval because the assessment failed to fully assess the impacts of climate change on the local area," she said.

"The project is also likely to have a significant impact on the nationally endangered Large Eared Pied Bat that are known to breed in the area. The approval was granted before a final mine design had been confirmed through exploration activity. It is unacceptable that the approval includes nine alternative options for one area of the expansion."

Environmental lawyer Elaine Johnson, representing MDEG, said the case draws on recent precedent.

"The recent Court of Appeal decision to reject the expansion of the Mt Pleasant Mine near Muswellbrook was based on the failure to assess the impacts of climate change on the local area," she said.

"MDEG says that the approval of the Ulan Mine expansion also failed this mandatory requirement of the planning assessment process."

The Mining and Energy Union has also been critical of Glencore in recent months, raising concerns over stalled enterprise agreement negotiations at its NSW operations. The union has accused the company of "dragging its feet" on pay and conditions while pursuing mine extensions, while Glencore has said it remains committed to negotiating in good faith.

Glencore rejected the claims, describing the appeal as "calculated lawfare".

"Glencore's Ulan Underground Modification 6 involves a minor change to the current mine plan to extend the operation for a further two years, providing ongoing employment for the current workforce out to 2035," the company said in a statement.

"The appeal is calculated lawfare aimed at using a legal loophole from a recent court decision to delay or stop a project that will provide vital jobs and business opportunities for the local Mudgee community and NSW.

"Last year, Ulan Coal directly contributed $846 million to the economy. We're proud of our long-standing track record in the region and remain committed to supporting its future through local jobs, business partnerships and community investment."

Glencore has said the extension will support around 660 jobs and provide continued economic benefits to the region. The company has also pointed to conditions imposed by the state government requiring a Greenhouse Gas Mitigation Plan, biodiversity offsets, monitoring of endangered bats and cultural heritage assessments.

MDEG is seeking leave to include further grounds in its appeal, including that the expansion should have been assessed as a new project rather than a modification, and that uncertainty around the mine design renders the consent ineffective.