New Hope Corporation - Market Forces

New Hope is an Australian-based undiversified coal mining company deriving more than 95% of revenue from the sale of thermal coal.

Despite there being no room for new or expanded coal mines if we’re to achieve the climate goals of the Paris Agreement or net zero emissions by 2050, New Hope is pursuing a major expansion of its New Acland coal mine on some of Queensland’s best farming land.

According to the International Energy Agency (IEA), reaching net zero emissions by 2050 means no new coal mines or expansions can proceed. Meanwhile, scientists are clear that limiting global warming to 1.5ºC means 95% of Australia’s coal must stay in the ground.

New Hope was funded by a group of five Australian and international banks via a $600 million loan in 2018. Most of Australia’s top 40 super funds are also yet to rule out investment in New Hope. Many of these financial institutions claim to support the Paris Agreement and goal of net zero emissions by 2050 yet have continued to support a company pursuing new coal projects inconsistent with these goals.

As the latest climate science makes clear, there is no time to waste. It’s time for these banks and super funds to walk away from New Hope.

See which banks have loaned to New Hope

See if your super fund has ruled out New Hope

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Send a message to the banks funding New Hope:

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I am very concerned that your bank has been a major lender to New Hope, whose plans to build climate-wrecking coal mines are consistent with the failure of the Paris Agreement. I want you to confirm that your bank will not provide further financial support to New Hope, or other companies pursuing business plans consistent with the failure of the Paris Agreement. Any expansion of the coal industry is incompatible with the climate goals of the Paris Agreement, which aims to limit global warming to 1.5˚C above pre-industrial levels. It is also incompatible with the International Energy Agency’s (IEA) Net Zero by 2050 modelling, which sees “no new coal mines or mine extensions”. Yet New Hope is pursuing the New Acland Stage 3 thermal coal mine expansion, when the world desperately needs to transition to clean, renewable energy sources. Plans to expand the coal industry New Hope has repeatedly justified its expansion plans with coal demand projections that are consistent with almost 3°C of warming. Even 2ºC of warming would expose 37% of the world’s population to extreme heat, destroy 99% of the world’s coral reefs (including the Great Barrier Reef) and result in massive biodiversity loss. At 3ºC of warming, global GDP losses could be more than 25% by 2100. Put simply, New Hope’s business model is consistent with catastrophic ecological, social and economic collapse. New Hope needs to secure AU$900 million in finance for its New Acland Stage 3 coal mine expansion. The company has assessed a further 200 million tonnes of coal reserves at New Acland, and Stage 3 would increase the mine’s production capacity to 7.5 million tonnes per year and extend its production life by 12 years. Beyond New Acland, New Hope has assessed 231 million tonnes of coal reserves at its Lenton, Elimatta and Taroom coal exploration sites. This brings New Hope’s total assessed coal reserves at its prospective projects to around 430 million tonnes. If this coal was burned, it would release 1 billion tonnes of carbon emissions, or nearly twice Australia’s annual CO2 emissions. Local impacts and community controversy The New Acland Stage 3 expansion is one of the most contested coal mining projects in Australian history. The expansion’s original Land Court hearing was the longest in that Court’s 120 year history. The mine is situated in Queensland’s fertile Darling Downs, and located on land that is classed as among the best 1.5% of agricultural land in Queensland. New Hope’s Stage 3 expansion would dig three vast new coal pits, destroying land that has sustained generations of dairy and cattle farmers. Beyond the physical destruction of this prime farming land lies concern about the impact of the mine on local groundwater aquifers. According to the Oakey Coal Action Alliance, around 20,000 hectares of cropping land surrounding the mine is at risk of permanent groundwater impacts. Despite several rounds of water modelling revisions, expert scientists remained unconvinced by New Hope’s final water management plans. Large coal mines pose a huge threat to our water sources. At a time when droughts are being turbo-charged by global warming, there is no justification for allowing massive new coal pits on prime agricultural land. Your company should not bankroll New Hope and its destructive coal plans. Breaking the law New Hope’s operations at New Acland are notorious for breaking environmental laws. In 2018, the company was fined by the Queensland Government for drilling 27 illegal water bores. In 2020, documents obtained under freedom of information laws revealed New Hope had been caught breaking noise limits on its operations 34 separate times in a 10 week period. As of December 2021, New Hope remained under investigation by the Queensland Government for allegedly mining $500 million worth of coal outside its approved open-cut pit boundaries. Investors and other stakeholders have tried for years to change New Hope Corporation, but nothing has tempered the company’s plans to expand coal mining. No amount of engagement is going to bring New Hope’s business plan into line with the Paris Agreement and goal of achieving net zero emissions by 2050. Expanding coal mining and climate action are entirely incompatible. I want you to confirm to me personally, and announce publicly, that you will not provide any further financial support to New Hope, or other companies pursuing expansion of the climate-wrecking coal industry. Sincerely,
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TOOK ACTION: Banks - New Hope campaign page - Feb 2022
- TOOK ACTION: Banks - New Hope campaign page - Feb 2022

Your email will be sent to Australia and New Zealand Bank, National Australia Bank, Macquarie Bank, Mizuho Bank, and Caterpillar Finance Corporation.

Acland Rally - 8 Aug 2017 - Qld Parliament

Protestors rally outside Queensland’s parliament against the New Acland coal mine expansion. Credit: Lock the Gate

Banks that have loaned to New Hope

In November 2018, a group of five lenders provided a $600 million loan to New Hope, a company still pursuing expansion of the climate-wrecking coal industry. Concerningly, their policies fail to prevent providing further funding to New Hope.

wdt_ID	Name	Amount loaned in 2018 [1]	Ruled out funding New Hope? [2]	Explanation [3]
1	Australia and New Zealand Bank (ANZ)	Undisclosed	No	Failed to rule out finance for New Hope
4	National Australia Bank (NAB)	Undisclosed	No	Failed to rule out finance for New Hope
5	Macquarie Bank	Undisclosed	No	In May 2021 Macquarie Bank announced it “expects” to exit coal by 2024. While it would be very difficult for Macquarie to meet this deadline if it provides further funds to New Hope (including renewal of its existing loan), this is an expectation rather than a commitment.
6	Mizuho Bank	Undisclosed	No	Failed to rule out finance for New Hope
9	Caterpillar Finance Corporation	Undisclosed	No	Failed to rule out finance for New Hope

Table notes

[1] It is unknown how much each bank committed to the loan. If it’s assumed the $600 million loan was evenly split among the lenders, each lender would have committed $120 million.

[2] To qualify, the bank must have ruled out providing any finance for New Hope through an on-record public statement (e.g. policy document, media release, public comment in an article etc).

[3] While ANZ and Mizuho have ruled out finance for new thermal coal mining projects, the banks have failed to rule out funding for coal companies such as New Hope. (While NAB claims it will no longer fund new thermal coal mining projects, it has breached this policy and in any case remains open to funding coal companies such as New Hope.) Any lending to New Hope, whether characterised as being for new or existing projects, supports an undiversified coal miner pursuing new coal projects.

Super funds failing to rule out investment in New Hope

Despite several of Australia’s biggest super funds having divested from New Hope, 26 of the top 40 funds by assets under management have failed to publicly disclose any fund-wide divestment or exclusion of coal companies (or plans to do so). A further three funds have policies in place that would likely see a reduction in investment exposure to coal companies like New Hope, but these policies are not fund-wide exclusions.

Is your super fund one of the laggards that still hasn’t ruled out investment in New Hope? Check the list below and take action! You can also find out more about super funds’ investments in coal, oil and gas companies via our super funds comparison table.

ACSRF
AMP
APSS (Australia Post Superannuation Scheme)
BT Financial Group (BT Super)
CareSuper
Cbus
Colonial First State
CommBank Group Super
Energy Super (now merged with LGIA Super)
Equipsuper (including Catholic Super)
HOSTPlus
HUB24
IOOF
LGIAsuper (now merged with Energy Super)
LUCRF
Macquarie
Mercer
Mine Super
MLC (owned by IOOF)
Netwealth Super
OnePath (now owned by IOOF)
Qantas Super
QSuper
Russell Investments
Spirit Super (formed after the merger between MTAA Super and Tasplan Super)
Statewide Super
Suncorp
Sunsuper
TWU Super

Take action using the form on this page if you’re with one of these super funds.

TAKE ACTION!

Tell your super fund that it must rule out investment in New Hope:

Super fund*
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I want to make sure my money is invested in companies and projects that are compatible with a safe climate future, and not causing major environmental damage. I do not want my money used to help finance the expansion of coal mining when we desperately need to phase out coal to meet the climate goals of the Paris Agreement. I therefore insist that you divest all holdings in Whitehaven Coal (Whitehaven) and New Hope Corporation (New Hope). I will not stand for my super fund using my retirement savings in such a reckless and shameful way. I note that around half of Australia's biggest super funds (by assets under management) have divested Whitehaven and New Hope from their active holdings. Continued investment in Whitehaven and New Hope means my money is being used to support those companies’ business models. These business models are predicated on the failure of the Paris Agreement. I cannot in all conscience allow my retirement savings to support Whitehaven and New Hope’s plans to expand coal mining when the world desperately needs to transition to clean, renewable energy sources. Any expansion of the coal industry is incompatible with the climate goals of the Paris Agreement, which aims to limit global warming to 1.5˚C above pre-industrial levels. It is also incompatible with the International Energy Agency’s (IEA) Net Zero by 2050 modelling, which sees “no new coal mines or mine extensions”. Yet Whitehaven and New Hope are pursuing new and expanded coal mines consistent with the failure of the Paris Agreement. Plans to expand the coal industry Whitehaven and New Hope have repeatedly justified their expansion plans with coal demand projections that are consistent with almost 3°C of warming. Even 2ºC of warming would expose 37% of the world’s population to extreme heat, destroy 99% of the world’s coral reefs (including the Great Barrier Reef) and result in massive biodiversity loss. At 3ºC of warming, global GDP losses could be more than 25% by 2100. Put simply, Whitehaven and New Hope’s business models depend on catastrophic ecological, social and economic collapse. Whitehaven is planning to spend around $2 billion on three new coal mines and expansions: Vickery, Narrabri Stage 3 and Winchester South. These mines have marketable coal reserves of almost 500 million tonnes. When emissions from digging up and burning the coal are added, over their lifetimes these three mines would unleash almost 1.1 billion tonnes of carbon emissions, the equivalent of almost twice Australia’s annual emissions. In the last decade Whitehaven has more than doubled its production. At the company’s 2021 AGM, CEO Paul Flynn confirmed Whitehaven could more than double its coal production again by 2030 through these new coal projects. Meanwhile, New Hope needs to secure AU$900 million to finance its New Acland Stage 3 coal mine expansion. The company has assessed a further 200 million tonnes of coal reserves at New Acland, and Stage 3 would increase the mine’s production capacity to 7.5 million tonnes per year and extend its production life by 12 years. Beyond New Acland, New Hope has assessed 231 million tonnes of coal reserves at its Lenton, Elimatta and Taroom coal exploration sites. This brings New Hope’s total assessed coal reserves at its prospective projects to around 430 million tonnes. If this coal was burned, it would release 1 billion tonnes of carbon emissions. Breaking environmental laws Not only is Whitehaven wrecking our climate, it also has a long history of destroying the local environment and communities that it operates in. Whitehaven has repeatedly broken environmental conditions put in place to govern its operations, including by contaminating nearby streams and excessive air pollution. In December 2020, Whitehaven pleaded guilty to 19 charges brought against it by the New South Wales resources regulator for unauthorised vegetation clearing, unauthorised drilling of bores and failing to rehabilitate drill sites. For years, local farmers have raised concerns that Whitehaven’s coal mines have been unlawfully taking water without a licence, including during severe drought. The state water regulator has since commenced prosecution against Whitehaven Coal over these allegations. Even where Whitehaven has lawfully obtained its water, it has done so at the expense of local farmers by outbidding them on the water trading market. New Hope’s operations at New Acland are also renowned for breaking environmental laws. In 2018, the company was fined by the Queensland Government for drilling 27 illegal water bores. In 2020, documents obtained under freedom of information laws revealed New Hope had been caught breaking noise limits on its operations 34 separate times in a 10 week period. As of December 2021, New Hope remained under investigation by the Queensland Government for allegedly mining $500 million worth of coal outside its approved open-cut pit boundaries. Local impacts and community controversy The New Acland Stage 3 expansion is one of the most contested coal mining projects in Australian history. The expansion’s original Land Court hearing was the longest in that Court’s 120 year history. The mine is situated in Queensland’s fertile Darling Downs, and located on land that is classed as among the best 1.5% of agricultural land in Queensland. New Hope’s Stage 3 expansion would dig three vast new coal pits, destroying land that has sustained generations of dairy and cattle farmers. Beyond the physical destruction of this prime farming land lies concern about the impact of the mine on local groundwater aquifers. According to the Oakey Coal Action Alliance, around 20,000 hectares of cropping land surrounding the mine is at risk of permanent groundwater impacts. Despite several rounds of water modelling revisions, expert scientists remained unconvinced by New Hope’s final water management plans. Large coal mines pose a huge threat to our water sources. At a time when droughts are being turbo-charged by global warming, there is no justification for allowing massive new coal pits on prime agricultural land. Attempts at dialogue have failed Investors and other stakeholders have tried for years to change Whitehaven and New Hope, but nothing has tempered these companies’ plans to expand coal mining. No amount of engagement is going to bring Whitehaven and New Hope’s business plans into line with the Paris Agreement and goal of achieving net zero emissions by 2050. Expanding coal mining and climate action are entirely incompatible. I look forward to you taking action. Further information about Whitehaven and New Hope can be found on the Market Forces website: www.marketforces.org.au/whitehaven and www.marketforces.org.au/new-hope. Sincerely,
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TOOK ACTION: Super - New Hope and Whitehaven campaign pages - Feb 2022
- TOOK ACTION: Super - New Hope and Whitehaven campaign pages - Feb 2022

Planning for climate catastrophe

Many of the banks funding New Hope have publicly stated their support for the Paris Agreement and the goal of achieving net zero emissions by 2050. The International Energy Agency has confirmed that reaching net zero emissions by 2050 means no new coal mines or expansions can proceed:

“No new coal mines or extensions of existing ones are needed in the [Net Zero Emissions scenario] as coal demand declines precipitously.”

International Energy Agency

May 2021

The current state of climate science means we should be aiming for net zero emissions far sooner than 2050 if we want to limit global warming to 1.5ºC. To achieve this goal, 95% of Australia’s coal reserves must stay in the ground and global coal production must decrease 11% each year between 2020 and 2030.

In stark contrast, New Hope plans to spend around $900 million on its New Acland Stage 3 coal expansion. New Hope has determined there’s a further 200 million tonnes of coal reserves at New Acland, and Stage 3 would increase the mine’s production capacity to 7.5 million tonnes per year and extend its production life by 12 years.

Beyond New Acland, New Hope has assessed 231 million tonnes of coal reserves at its Lenton, Elimatta and Taroom coal exploration sites. This brings New Hope’s total assessed coal reserves of its potential expansion projects to around 430 million tonnes. If all this coal was burned, it would release 1 billion tonnes of carbon emissions, or nearly twice Australia’s annual CO2 emissions.

These coal reserves are in addition to New Hope’s near 150 million tonnes assessed for the company’s existing Bengalla coal mine, which is licensed to extract up to 15 million tonnes of coal per year until 2039.

New Hope’s coal expansion plans are clearly inconsistent with the goal of net zero emissions by 2050 and the Paris Agreement’s 1.5°C warming limit.

New Hope Group's Bengalla coal mine, 2014.

Mining operations at the Bengalla mine. Credit: D Sewell

Coal markets drying up

New Hope derives more than 95% of its revenue from the sale of thermal coal (i.e. coal burned to produce electricity), despite its own claims to be a “diverse” energy company. At the company’s 2021 annual general meeting, New Hope’s chairman confirmed the company’s intention to continue sourcing this level of revenue from coal by 2030.

Almost 80% of the countries where New Hope’s customers are based, mostly in Asia including Japan and Taiwan, have now committed to achieve net zero emissions by 2050. According to the International Energy Agency, reducing emissions to net zero means unabated coal use (i.e. coal-fired power generation that doesn’t rely on speculative carbon capture and storage technologies) must fall by over 98% between 2021 and 2050. These net zero commitments therefore pose an existential risk to New Hope’s business model.

However, in an apparent failure of climate risk management, New Hope did not refer to the IEA’s net zero scenario even once in its 2021 Sustainability Report. Instead, New Hope refers only to the IEA’s Stated Policies Scenario (consistent with around 2.7ºC of global warming) and Sustainable Development Scenario (consistent with net zero emissions by 2070).

Destroying prime farmland and local communities

The New Acland Stage 3 expansion is one of the most contested coal mining projects in Australian history.

The mine is situated in Queensland’s fertile Darling Downs, on and around land considered as among the best 1.5% of agricultural land in Queensland. New Hope’s Stage 3 expansion would dig three vast new coal pits, destroying land that has sustained generations of dairy and cattle farmers.

Aside from the physical destruction of this prime farming land, there is deep community concern about the impact of the mine on local groundwater aquifers. According to the Oakey Coal Action Alliance, around 20,000 hectares of cropping land surrounding the mine is at risk of permanent groundwater impacts. Despite several rounds of water modelling revisions, expert scientists remained unconvinced by New Hope’s final water management plans.

Large coal mines pose a huge threat to our water sources. At a time when droughts are being turbo-charged by global warming, there is no justification for allowing massive new coal pits on prime agricultural land.

New Hope Corp's New Acland coal mine, February 2016

The New Acland coal mine on Queensland’s fertile Darling Downs. Credit: Lock the Gate

Splashing out to promote climate-wrecking coal

Data released in May 2021 shows New Hope splurged over $650,000 on the 2020 Queensland election. The bulk of the company’s expenditure was on advertising, marketing and public relations advice, as New Hope appeared to seek to pressure the Queensland Government to grant approvals for an expansion of the New Acland coal mine.

This isn’t the first time New Hope has engaged in political spending while seeking approvals for coal expansions. Between 2010 and 2013, while the company was seeking initial approvals relating to New Acland Stage 3, New Hope and its then parent company Washington H Soul Pattinson donated a combined $700,000 to the Queensland Liberal National Party and the federal Liberal Party.

The influence of fossil fuel corporations like New Hope over our democracy is wrecking our climate. Market Forces’ analysis has consistently revealed fossil fuel companies are huge donors to Australia’s political parties.

2022 political donation graphics - companies

Source: Compiled from Electoral Commission Queensland, Election Summary Return – New Hope Corporation Limited (May 2021).

Breaking the law

New Hope’s operations at New Acland have a history of breaking environmental laws. In 2018, the company was fined by the Queensland government for drilling 27 illegal water bores. In 2020, documents obtained under freedom of information laws revealed New Hope had been caught breaking noise limits on its operations 34 separate times in a 10 week period. As of December 2021, New Hope remained under investigation by the Queensland Government for allegedly mining $500 million worth of coal outside its approved open-cut pit boundaries.

This dirty coal corporation simply can’t be trusted – with our climate, water or environmental laws. It’s time for New Hope’s banks to walk away.

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Page last updated February 2022. Unless otherwise specified, all currencies are in AUD.

Disclaimer: This site is intended to convey factual information about New Hope. It is not intended to provide financial product advice. You should obtain independent advice before making any financial decisions.