Coal Mines Burning More Fuel While Output Stalls, Locking in Rising Subsidy Costs

Australian coal companies are locked into escalating diesel subsidies as extraction costs rise. Diesel consumption is outpacing coal production as surface seams deplete and miners must move more overburden per tonne recovered. The sector's scope 1 emissions rose 1.4% in FY2024–25 despite industry efficiency efforts. Simultaneously, global coal power additions hit a 20-year low in 2024. This structural squeeze—rising extraction costs meeting weakening demand—narrows the fiscal case for continued taxpayer fuel rebates worth billions annually.