KPMG Griffin Coal consultancy contract value increases by $2m, extended to June 2026

The bill for KPMG’s consultancy services to the State Government for the closure of the Griffin Coal mine will exceed $3 million and run though to mid-2026, it was revealed in Parliament last week. Fielding a question from South West MLC Steve Thomas on the Griffin Coal consultancy fees during Legislative Council question time, Labor MLC Stephen Dawson confirmed the contract value increase. “KPMG’s contract has been extended to June 2026. The new contract value is $3,080,000,” he said. “As of 14 November, $1,528,443 has been paid to KPMG for services to support the administration of the Griffin Coal process agreement. “KPMG has provided written and verbal advice to the Department of the Premier and Cabinet on a range of matters relating to the administration of the Griffin Coal process agreement. “Details of those reports are confidential and commercially sensitive.” The increase in contract value means the amount paid for consultancy and legal advice will reach at least $4.95m without taking into account further payments to other firms, of which as of September there were two. Dr Thomas said the situation was a “disaster”. “The contract with KPMG for advice on how the Government should manage this unmitigated disaster started at $240,000 in June 2023 has blown out 13-fold to $3,080,000,” he said. “The only result of that money I have seen has been a recommendation that the price for coal goes up to reflect the price of production, which would significantly impact retail power prices.” A State Government spokesperson said the contract was changed to allow for advice to be given through to 2026. “The WA Government last year announced it would provide funding support to Griffin Coal to 2026, to support local jobs and keep WA’s electricity system reliable and affordable,” they said “The State’s contract with KPMG has been varied so that it can continue to provide expert financial, and mine operations advice to the WA Government as it relates to the funding the WA Government provides to Griffin Coal until the 2026 funding expiry date.” The update comes as the State Government has now paid more than half of its pledged $220 million to keep Griffin Coal operating until June 2026. As of November 13, $123.9 million has been paid to keep the facility running.