Newcastle, city, southeastern Australia, in the state of New South Wales. Newcastle lies along the mouth of the Hunter River on the Tasman Sea. It is the chief port for Australia's extensive Hunter coalfield and one of the nation's principal manufacturing centers. Products include iron and steel, machinery, ships, chemicals, and textiles. Coal, wool, wheat, and dairy products are exported. The University of Newcastle (1965) is here. The modern Cultural Centre is a major landmark. Founded in 1801 as a British penal colony, Newcastle was a shipping and commercial center by the 1860s. Industrialization increased after iron and steel mills were established in 1915. A moderate earthquake struck Newcastle in 1989. Population (1999 estimate) 479,300.