Integrated Mine Planning to Optimize Coal Operations in a Low-Emissions Future

At Okane, we recognize the continued importance of existing coal mining operations in supporting critical industries such as steel manufacturing across Australia and Canada (Government of New South Wales, 2026; Natural Resources Canada, 2026). At the same time, we support the global focus on emissions reduction and recognize the importance of achieving this by supporting existing coal operations with mine planning optimization while embedding progressive closure and responsible practices into mine plans.

The recently released Coal Industry 2026–50 Policy by Australia’s New South Wales Government provides a clear framework for responsible coal sector development during this global energy transition. With less than four years remaining to meet 2030 low-emissions targets, coal producers face increasing pressure to balance production with emissions reduction. This raises a critical question as to how mine plans can be optimized to extract maximum value while staying aligned with emission-reduction goals, as well as evolving environmental and regulatory expectations.

In this article, we explore how integrated mine planning can help operators optimize their life of coal assets, improve operational efficiency, and implement progressive closure strategies that reduce emissions and help support extension approvals.

How NSW’s New Coal Industry Policy Impacts Coal Operators?

Coal operators in New South Wales (NSW) will work with a more disciplined regulatory landscape under the new policy, especially in relation to permitting timelines and emissions accountability. The new NSW Coal Policy states that future greenfield coal development will cease, and the NSW Government will continue to allow mining operations (other than new greenfield exploration) if the site can demonstrate that environmental impacts can be managed, and can support job and energy security (Government of New South Wales, 2026).

Since no new greenfield coal mines are permitted, the NSW Government will continue to support applications for coal exploration adjacent to an existing operation (Government of New South Wales, 2026). There will also be a strict renewal policy, requiring sites to “use it or lose it”. This means existing operations must actively explore the land held under title, and if exploration is limited, sites are required to reduce their area of control (Government of New South Wales, 2026).

Lastly, for operators proposing to explore existing coal operations, they will meet strict environmental and planning frameworks to reduce overall emissions from the coal sector over time (Government of New South Wales, 2026). This includes designing mines to reduce these emissions, adopting on-site abatement technologies, and investing in offsets if onsite abatement isn’t feasible (Government of New South Wales, 2026).

How Can Integrated Mine Planning and Closure Strategies Optimize Coal Operations?

Integrating mining engineering, geotechnical, geochemical, environmental, and closure planning expertise enables a more comprehensive understanding of current ground conditions, material behaviour, and environmental constraints. This approach allows operators to assess existing mine landforms and footprints, quantify mine expansion risks and uncertainties, and develop optimized mine designs, sequencing, and risk management strategies that can maximize resource recovery while identifying opportunities to reduce emissions and implement progressive closure.

Integrated mine and closure planning also facilitates the permitting process. Approximately 76% of mining jurisdictions worldwide require closure plans as part of the mine development and permitting process (Intergovernmental Forum on Mining, Minerals, Metals and Sustainable Development, 2021). Under the new NSW Coal Policy, proposals to extend existing coal mines must meet environmental and emissions requirements, as well as demonstrate the operation’s ability to manage impacts on water, ecosystems, biodiversity, land use, air quality, dust, noise, and Indigenous heritage. These considerations are important as they align closely with the International Council on Mining and Metals’ Integrated Mine Closure Good Practice Guide.

Early planning for mine footprints, as well as optimization of existing footprints, can be improved by integrating long-term planning and rehabilitation strategies for reinstated waterways and surface infrastructure (e.g., mine rock stockpile, tailings storage facility, or processing facility).

Backfilling open-cut voids with stabilized mine rock can improve geotechnical stability and help manage potentially contaminated surface runoff, thereby enabling access to additional coal by reducing safety and environmental risks. Backfilling voids can be strategically profiled to accommodate future surface water management and infrastructure placements.

This approach supports future coal extraction to occur closer to, and potentially beneath, existing creeks and infrastructure while maintaining appropriate geotechnical and hydrological outcomes. Hence, early integration of mine and closure planning helps optimize mine surface footprints and can extend life of coal assets by allowing resources, previously assumed to be sterilized, to be mined.

How to Reduce Emissions in Mining Operations?

In the mining industry, the primary source of greenhouse gas (GHG) emissions is direct fossil fuel consumption during excavation and transportation (Rahnema, 2024). Integrated mine and closure planning can identify optimal haulage strategies and primary rock placement locations to help reduce fuel consumption through practical and strategic design of haul route distances and slopes (Rahnema, 2024; Nikbin et al., 2025).

Mine operations can also identify opportunities to implement abatement technologies, which involve reducing and capturing emissions at the source before they are released into the environment. Coal seams naturally contain methane, which can be released during and after mine operations (International Energy Agency, 2023). Early planning to implement abatement technologies, such as degasification systems, allows methane emissions to be captured (International Energy Agency, 2023). Degasification wells and drainage boreholes can reduce coal-seam emissions during production, and can be implemented in active mines before operations move to new exploration areas or after operations have ceased in that area (International Energy Agency, 2023).

Okane’s Approach

At Okane, we support clients in identifying and developing mine plans and design solutions that facilitate future pit extensions and unlock resources that would otherwise be sterilized. In our experience, we have supported a number of coal operations add value through integrated mine and closure planning.

Metallurgical Coal Mine in British Columbia, Canada

Okane was engaged to design and develop source terms for multiple scenarios involving backfilled non-acid generating (NAG) mine rock using a bottom-up construction approach with overburden covers. To limit oxygen and water ingress, and minimize the potential release of contaminants like selenium and sulfate into the environment, we used advanced numerical models, including a one-dimensional soil-plant-atmosphere model, a two-dimensional oxidation model, a three-dimensional GoldSim oxidation model, and geochemical modelling, to develop precise source terms.

Our modelling results demonstrated a decrease in dissolved selenium and sulfate levels from the NAG backfill, which was an improvement upon previous estimates. As a result, our refined source term models will be integrated into the site-wide load balance model to quantify impacts of the backfill design on water quality. Read more about the project here: Suboxic Evaluation of In-Pit NAG Mine Rock Backfill.

Coal Mine in NSW, Australia

Okane was engaged to assess and optimize cover system designs for mine rock management, supporting long-term rehabilitation objectives and compatibility with surrounding landforms and post-mining land uses. Our work involved comprehensive field investigations, laboratory material characterization, contaminant load assessment, numerical modelling, and developing proposed cover trials.

Based on these results, four field-scale cover system trials are proposed to validate the conceptual cover designs, assess erosion potential, confirm vegetation establishment, and evaluate long-term stability under site-specific conditions. Our integrated approach provides a robust framework for sustainable rehabilitation at the site while meeting environmental, operational, and regulatory objectives.

Okane is passionate about helping create a better tomorrow in the mining industry, and we believe that it’s never too soon or too late to start integrating closure into mine plans. Through collaboration with clients, regulators, rightsholders, and community members, we develop responsibly optimized mine and closure plans. Our interdisciplinary, risk-based approach leverages best practices from a range of jurisdictional regulations and industry standards to help sites reduce environmental liabilities at any phase of the mine lifecycle.

To explore tailored mine plans and integrated closure strategies that optimize your coal operations and support responsible resource development, connect with us at info@okaneconsultants.com.

References

Intergovernmental Forum on Mining, Minerals, Metals and Sustainable Development (IGF). (2021). Current status of mine closure readiness: Are governments prepared? IGF Resources.

International Energy Agency. (2023). Strategies to reduce emissions from coal supply. Global Methane Tracker. https://www.iea.org/reports/global-methane-tracker-2023/strategies-to-reduce-emissions-from-coal-supply

Natural Resources Canada. (2026). Coal facts. Government of Canada. https://natural-resources.canada.ca/minerals-mining/mining-data-statistics-analysis/minerals-metals-facts/coal-facts

New South Wales (NSW) Government. (2026). NSW coal industry 2026-50. https://www.nsw.gov.au/regional-and-primary-industries/nsw-coal-industry-2026-50

Nikbin, R., Bagherpour, R., Purhamadani, E., & Taherinia, A. (2025). Enhancing sustainability in mining by reducing hauling energy consumption through optimization of distance and slope with semi-mobile in-pit crushers and conveyors. Scientific Reports 15. https://doi.org/10.1038/s41598-025-06534-4

Rahnema, M. (2024). Sustainable open pit mining through GHG-conscious short-term production scheduling. Laval University.