Case study: Hail Creek coal mine shows hidden methane risk in steel supply chains

The Hail Creek coal mine in Australia's Bowen Basin has consistently underreported methane emissions since 2021, with independent airborne studies estimating emissions to be four to six times higher than official figures in 2022 and 2023. Major steel companies ArcelorMittal, Nippon Steel, and POSCO imported at least 4.3 Mt of coal from the mine in 2023 and 2024, potentially importing more than three times the methane emissions reported by the operator. This underreporting creates regulatory risks under the EU Methane Regulation, as actual methane intensity in 2023 (exceeding 9.5 tonnes CH4/kt) likely surpasses proposed EU limits, whereas reported data (4.8 tonnes CH4/kt) suggests compliance.

• Independent studies have consistently found that methane emissions from the Hail Creek mine are significantly higher than those reported by the operator. Satellite data from 2021 suggested emissions were up to 35 times higher than reported, while UN International Methane Emissions Observatory airborne studies estimated emissions were six times higher in 2022 and four to five times higher in 2023.
• Three major steel companies—ArcelorMittal, Nippon Steel, and POSCO—imported at least 4.3 Mt of coal from Hail Creek during 2023 and 2024. While the operator reported 12.9 kt of methane emissions for this coal, an additional 27.6 kt of emissions was not captured, meaning these companies may have imported more than three times the reported methane emissions.
• The underreporting at Hail Creek poses a regulatory risk for importers under the EU Methane Regulation adopted in 2024. While reported methane intensity for the mine was 4.8 tonnes CH4/kt, independent studies indicate the actual 2023 intensity exceeded 9.5 tonnes CH4/kt, which would likely surpass proposed EU limits and could lead to penalties for EU-based steelmakers.
• The EU Methane Regulation will require foreign coal suppliers to meet monitoring and reporting standards equivalent to EU mines starting in 2027. By 2030, imported coal must comply with a maximum methane intensity or face additional fees.

APA

Ember (2025). Case study: Hail Creek coal mine shows hidden methane risk in steel supply chains. https://ember-energy.org/chapter/case-study-hail-creek-coal-mine-shows-hidden-methane-risk-in-steel-supply-chains/

Chicago

Ember. Case study: Hail Creek coal mine shows hidden methane risk in steel supply chains. 2025. https://ember-energy.org/chapter/case-study-hail-creek-coal-mine-shows-hidden-methane-risk-in-steel-supply-chains/.

Wikipedia

{{cite report |author=Ember |title=Case study: Hail Creek coal mine shows hidden methane risk in steel supply chains |date=4 September 2025 |url=https://ember-energy.org/chapter/case-study-hail-creek-coal-mine-shows-hidden-methane-risk-in-steel-supply-chains/ |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{ember2025case, author = {{Ember}}, title = {{Case study: Hail Creek coal mine shows hidden methane risk in steel supply chains}}, institution = {Ember}, year = {2025}, month = sep, url = {https://ember-energy.org/chapter/case-study-hail-creek-coal-mine-shows-hidden-methane-risk-in-steel-supply-chains/}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }