Australian coal – the essential resource for building nations and powering economies

Danny McCarthy, Managing Director, Terracom Limited

Against a backdrop of ongoing geopolitical issues, economic headwinds and energy transition challenges, our industry has continued to demonstrate the important role it plays in supporting our communities and our stakeholders.

Coal currently outperforms all other energy sources in terms of supply security, reliability and affordability. There is an energy transition coming, but coal will be around for a lot longer than the media narrative indicates. Coal continues to be in strong demand in our key markets, and we will continue to meet this.

The role of coal in the energy market

“Other than for water, coal has been the most important commodity used by mankind for thousands of years. Over the past 200 years, it has been the greatest contributor to enhancing the lives and lifestyle of everyone on the planet that has had access to it. The great Industrial Revolution that began in the middle of the 19th century would not have happened if cheap and plentiful coal had not been available to power steam engines of the time.

Even in the 20th and 21st centuries when coal was faced with competition from other energy sources like oil, gas, hydropower and even nuclear, it remained the energy source of choice for more than half of the world’s energy needs. Why was that? Its high demand was (and still is) due to its low cost versus its high energy output and its ready availability”.

(Alan G Lawrenson, 2024, p. 51)

The Bowen Basin is a globally renowned coal-producing region with a rich history and today remains Australia’s primary reservoir of coal resources. It continues to be a cornerstone of Queensland’s Permian wealth supporting 554,728 jobs in 2024.

Blair Athol: "The Bedrock"

Blair Athol mine became the first open-cut coal mine in Queensland in 1964. Coal was first discovered there in the 1920s-1930s, initially extracted using underground shaft mining methods. Larger-scale open-cut mining began in 1936, leading to the complete closure of all underground operations.

We’re grateful for the positive reception we've received in the region since taking ownership of Blair Athol and restarting the mine in 2017. We look forward to working together to continue building on the long history of coal mining and positive legacy in the communities in the Bowen Basin.

Fast forward to 2024, TerraCom’s Blair Athol, with a healthy mine life of eight years exports 1.8 million tonnes per annum of high quality, low ash, low impurity thermal coal to primary markets in Japan, Korea and India. Beyond this, we are thrilled to be establishing a larger local presence in Clermont using Blair Athol as an infrastructure, processing and logistics precinct via our agreement to develop and manage the nearby Moorlands Coal Mine. This asset has sufficient resources to support a mine life in excess of 25 years. First coal is expected in 2026.

TerraCom will partner with Wintime Energy Group Co. Ltd, the owner of the Moorlands Coal Mine, to provide full-service development, management, and all mining services. This initiative creates long-term employment opportunities, fosters community prosperity, and invigorates the regional economy. We look forward to creating positive legacies with all stakeholders as we expand our footprint in this coal-producing region for many decades to come.

Coal’s place in the future

We acknowledge we all have a role to play when it comes to reducing or offsetting our environmental impacts but equally, without coal, the lights go off and electricity becomes unaffordable for consumers, producers and manufacturing. And Australia becomes an unattractive place for investment and productivity.

Coal will continue to be a significant contributor to global electricity. Fossil fuel sources contributed 65% of total electricity generation in 2023, including coal (46%), gas (17%) and oil (2%). But by 2030, even based on the International Energy Authority’s conservative forecast, coal will be needed to supply around a 26% share of a much larger and more diverse energy pie. Beyond that, of course, is coal’s criticality in the manufacture of steel, cement, aluminium, fertiliser and allied industries for the foreseeable future.

We endeavour to craft our business proposition around what is important for our stakeholders, whether through our operations, our rehabilitation projects, community engagement, economic contribution or the taxes we pay. Coal mining is not a zero-sum game: there needs to be a net benefit to the community and stakeholders.

Most of the developing world will be burning coal for the next 30-40 years at least, so we need to be better at explaining that the world is better off burning Queensland’s low ash, low impurity, more efficient coal.

A key fact often overlooked or disregarded is that a significant percentage of coal pollutants can be abated, and material efficiency gains can be achieved through existing technologies. Many methods are being investigated and deployed globally, despite the negative sentiment circulated, particularly among the global north.

We’re encouraged by our newly elected Premier of Queensland David Crisafulli’s recent statement: “The notion that by the early 2030s you can turn off Queensland’s baseload power without impacting reliability or people’s hip pocket is fanciful, and even the Government’s own energy department has said so.”

TerraCom joins with all Queenslanders to promote and advocate for the continuing growth and prosperity that realistic, future-focused policy and leadership in the resources sector and the government can sustain for the long term. 