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Media Release

Whitehaven faces heat over executive pay linked to huge coal expansion

30 October 2024

Wednesday 30 October: Market Forces has joined with more than 100 shareholders calling on investors to vote against Whitehaven Coal’s remuneration plan for its executives at the company’s annual general meeting (AGM) today.

New Market Forces analysis finds Whitehaven is over incentivising coal production growth compared to other coal miners, driving its executives to pursue risky, long life projects when the industry must be phased down due to mounting climate and economic risks.

Whitehaven Coal is pursuing the largest coal expansion plans of any coal miner in Australia and these projects are not in shareholders’ best interests, according to Market Forces latest modelling.
Will van de Pol, Chief Executive Officer, Market Forces said:

“Whitehaven Coal has its head stuck in the sand over the rapid transition to clean energy needed for a safe and secure economy, instead driving a missguided growth strategy through massive executive bonuses.”

“Our modelling shows the value of Whitehaven’s planned growth projects would be decimated by even small policy and market shifts towards alignment with global climate goals.”

As the transition to clean energy accelerates, coal growth projects are prone to risks including falling demand and prices, increasing emissions regulation, and decreasing access to finance.

The new Market Forces analysis reveals that if all of Whitehaven’s coal projects were to proceed, production from its mines would increase by over 80 percent by the mid-2030s. Thermal coal output would grow by around 40 per cent, primarily from the Vickery and Winchester South projects.

If all of Whitehaven’s coal expansion projects proceed, they would unleash around 3.6 billion tonnes of carbon emissions, which is 23 times the cumulative emissions reductions expected to be made under the Australian government’s Safeguard Mechanism by 2030.

The 2024 remuneration plan faces investor discontent at this year’s AGM as it uses nearly the same scorecard as last year, which received a first strike in 2023 with 41 per cent of shareholders voting against the company’s remuneration report.

“At a time when coal must be wound back to avoid the worst social, environmental and economic impacts of climate change, Whitehaven is ramming ahead with dangerous plans to mine coal for decades,” Mr van de Pol said.

“Investors who understand the unacceptable gamble Whitehaven is making must bring the company into line with global climate goals, or publicly cut ties with this coal company that’s endangering our climate and shareholder value.”

Read the shareholder statement filed with Whitehaven Coal and supporting analysis here.

For media inquiries and interviews, contact Antony Balmain, +61-423-253-477, [email protected]

Note to Editors

Whitehaven claims its transformation into a major metallurgical coal miner is a way to make the company more resilient to transition risk. However, the International Energy Agency’s most recent World Energy Outlook finds both thermal and metallurgical coal demand falling in scenarios that are aligned with currently legislated government policies, associated pledges and achieving net-zero emissions by 2050.

Whitehaven continues to pursue a raft of new and expanded coal projects including:

  • Blackwater South (metallurgical, some thermal), 90 year life
  • Blackwater North (metallurgical), 60 year life
  • Winchester South (metallurgical and thermal), 30 year life
  • Vickery (thermal), 25 year life
  • Narrabri Stage 3 (thermal), 13 year life
  • Maules Creek extension (thermal), 11 year life

Image credit: Dean Sewell, Oculi Greenpeace.