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

This case study by Ember examines the underreporting of methane emissions at the Hail Creek coal mine in Australia and the resulting supply chain risks for major steel companies, specifically ArcelorMittal, POSCO, and Nippon Steel.

• Independent studies have consistently found that methane emissions from the Hail Creek coal mine are significantly higher than the figures reported by the operator. In 2021, satellite data indicated emissions were up to 35 times higher than reported, while a UN International Methane Emissions Observatory airborne study estimated emissions were six times higher than official figures in 2022 and four to five times higher in 2023. Even after the operator updated its emissions factor for FY2024, airborne estimates remained roughly double the reported emissions.
• Three 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 methane emissions were not captured by official data, meaning these companies may have imported more than three times the methane emissions than reported.
• The underreporting of methane at Hail Creek poses a regulatory risk for importers under the EU Methane Regulation adopted in 2024. Starting in 2027, foreign coal suppliers must meet monitoring and reporting standards equivalent to EU mines, and by 2030, imported coal must comply with a maximum methane intensity or face fees. While Hail Creek's reported methane intensity of 4.8 tonnes CH4/kt is below the 2027 limit for thermal coal, independent studies indicate the actual 2023 intensity exceeded 9.5 tonnes CH4/kt, which would surpass proposed EU limits.

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} }