Vic coal mine could close: owners

The French owners of Victoria's Hazelwood coalmine have flagged the possibility of selling or closing it.

Hazelwood Power Station

The "imminent" closure of the Hazelwood power station will affect Victoria's electricity prices. (AAP)

Victoria's Hazelwood coalmine could be closed or sold, owners Engie have told a French Senate committee, but the state government insists "no decision has been made".

Engie chief executive Isabelle Kocher told the committee in Paris that: "For the Hazelwood plant we are studying all possible scenarios, including closure, or a sale if the state of Victoria tells us that it cannot meet power-generating needs without this plant".

The Australian arm of the electricity giant on Thursday was quick to make clear no decision had yet been made, however.

"Any decisions on investment, divestment or closure are made by the Engie board with approval by shareholders," Engie Australia said in a statement.

"No such decision has been made regarding Hazelwood."

The company acknowledged the Hazelwood business was facing "a range of significant challenges" including difficult trading conditions in the national electricity market.

"(But) Hazelwood is a low-cost generator of electricity, has an operating licence until 2034 and is a reliable contributor to the NEM, where it supplies between 20 and 25 per cent of Victoria's energy requirements and 5.4 per cent of Australia's energy demand," the company said.

Victorian Resources Minister Wade Noonan on Thursday said the government has been advised by a local representative of Engie "that no decision has been made on the sale of the Hazelwood coal mine".

"We are aware the company is considering all options and I will be regularly updated on the issue," Mr Noonan said in a statement.

The Australia Conservation Foundation was quick to seize on Ms Kocher's comments.

"We have enough power without Hazelwood and we have an international responsibility to shut our worst climate polluting power stations," climate campaigner Hannah Aulby said in a statement.

"Given this reality, and the latest statements by the French company that owns Hazelwood, the federal and Victorian governments should set out a clear plan for the phased closure of coal-fired power plants."

That plan should include a fair transition for workers, and rehabilitation of the mine and power station sites, the ACF spokeswoman said.

The Victorian Greens also say the state government needs to ensure there's a transition plan in place for workers if the mine and power station close.


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Source: AAP


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