Mining History of Gunnedah

Coal has been mined continually in the Gunnedah region in north west NSW for the past 130 years. Coal mining contributed to the initial development of the town and the area is set to undergo a significant long-term resurgence. 

Gunnedah is located In the Sydney-Gunnedah Basin, which is one of the largest underground coal seams in NSW. The Basin is located roughly 300 kilometres north west of Newcastle and covers an area of 15,000 square kilometres. The coal ranges from high ash thermal coal to exceptional quality low ash thermal coal. The Gunnedah Shire Council reports the mining industry contributes millions of dollars annually to the Shire's economy and provides a significant source of employment  for the population of around 12,800. [1]

The original inhabitants of Gunnedah were the Gunn-e-darr people of the Kamilaroi tribe. There has been a strong connection to this area by Indigenous people and at the 2006 Census there were 931 Indigenous people listed as usual residents, thus representing 12% of Gunnedah’s population. [2]  The preservation of Indigenous culture and history is an integral part of the local Council and Indigenous organisations.

Gunnedah was settled by Europeans in the 1830s when John Johnston built his homestead and woolshed in the area, giving the area the name of ‘The Woolshed.’ The property was later renamed ‘Gunnedah’. The area continued to develop with other settlers joining Johnston and in 1856 the town Gunnedah was officially proclaimed in the Government Gazette. [3]  By 1891 the population of Gunnedah municipality was 1362 [4] and the town continued its expansion with the arrival of the railway in 1879.

Gunnedah has been a source of artistic and literary inspiration. Dorothea Mackellar (1885-1968) an admired poet and writer who wrote the classic ‘My Country’ poem was a frequent visitor to Gunnedah as her family owned several properties in the area. Banjo Paterson (1864-1941) was another famous Australian writer and poet who also spent time in the area.

Coal was discovered by farmers who were boring for water in the Gunnedah region in the 1870s. In 1877, “Melville’s Well” was sunk where good steaming coal was discovered which became known as the Melville Seam. Melville’s Well preceded the establishment of the Gunnedah Colliery No. 1 on the south eastern slopes of Black Jack Mountain in 1895.

Gunnedah Colliery Company Ltd was registered in 1899 and mining at the Gunnedah Colliery continued through to the 1960s. Initially the coal was mined for the local domestic market including for the railways, abattoirs and brickworks. Coal was also supplied to the nearby town of Tamworth, in particular to the regional power station. In 1968, Gollin and Company took over the Gunnedah Colliery Company Ltd and in subsequent years opened new entrances to the Gunnedah Colliery.

Several years after the establishment of the Gunnedah Colliery, a second mine called Preston Colliery commenced operations. Preston Coal Company was formed in 1917 and the Preston Colliery continued operating until 1936. In 1969 Preston Coal Company was taken over by RW Miller Ltd which continued the mining operation.

In the 1980s, there were 550 people directly employed in mines in the Gunnedah Shire. The flow-on effects of the mining industry had a positive impact on the town and on the Shire. Ross Whitaker, a former Gunnedah miner, writes in the CFMEU journal, Common Cause, “the normal ratio of supply and contract people associated with the industry is 3-to-1, so up to 1,500 people in this area derived an income from the industry.” [5]

In the 1980s, Rio Tinto commenced mining in the Gunnedah Shire, opening an underground mine at Red Hill, 20km north of Gunnedah. This developed into the Vickery open cut mine, which had its own coal washery and loading facilities.

In the 1980s, Preston operated an underground mine, an open cut mine and a loading facility, which employed an extra 120 people. The Preston mine was closed in 1998 as the coal reserves at the mine were exhausted. 

Gunnedah Colliery Company operated two underground mines in the 1980s, as well as two open cut mines, a coal washery and a loading facility which employed an additional 350 people. The Gunnedah Colliery ceased its mining operations in 2000, again due to the depletion of coal reserves.

Gunnedah Shire is currently experiencing a renaissance of their economy thanks partly to the resurrection of the mining industry. Daniel Lewis writes in the Sydney Morning Herald, “The [former] Mayor of Gunnedah, Gae Swain, says the area was hit hard when three coal mines closed in the 1990s and the mining boom is helping it get back on its feet.” [6]

There are several mines currently operating in the Gunnedah Shire. 

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