CHDC Central Highlands Mining Industry

Page 1

Mining

$9.4billion output

Coal Type The Central Highlands is More than 60 percent of coal produced located in the heart of the is metallurgical, including coking Bowen Basin, Australia’s coal and pulverised coal for injection largest coal reserve, and is (PCI). Metallurgical coal is higher in carbon, typically low in moisture and home to 12 operating mines. is an essential part of the steel making The region produces more process. The remaining coal is thermal, than 62 million tonnes of coal used for making steam and generating electricity. per annum, which represents 28 percent of Queensland’s Markets total production. A majority (90%) of the region’s coal is Central Highlands Coal Export Markets

exported overseas, via the Gladstone ports of RG Tanna and the Wiggins Island Coal Export Terminal. More than 55 million tonnes are exported annually, to customers in Japan, India and Korea. Coal is also railed to domestic markets, including power stations (Stanwell and Gladstone), steel manufacturers and smaller users such as meat processors and road transport.

Employment

30% Japan

5% Vietnam

27% India

5% Taiwan

9% Korea

5% South Korea

5% Singapore

7% Other

Mining is the largest employer in the Central Highlands, with a direct workforce exceeding 6,000 people. Half (55%) of those workers are nonresidents, commuting by road and air from Rockhampton, Mackay and South East Queensland. Ninety percent of nonresident workers stay in accommodation villages and 10 percent in other accommodation such as motels, hotels and caravan parks.

Mining Equipment, Technology and Services Beyond the pit, the Central Highlands has a thriving and well established mining equipment, technology and services (METS) sector, servicing the Bowen and Galilee Basins. Businesses are active across the complete mining supply chain, including mine development, training, equipment supply, consultancy and rehabilitation. Once a transactional relationship, METS companies are now partnering with mining organisations to develop innovative, commercially viable and environmentally sustainable solutions. One such solution is the Fairbairn Dam Soil Salvage Project, which aims to recover 10 million tonnes of natural soil from the Fairbairn Dam to reuse in coal mine rehabilitation. Some mines across Central Queensland have not preserved sufficient soil to rehabilitate all mined land. The project will provide a large, local and reliable source of soil over the next 15 years. As an added benefit, the project will increase the storage of the dam by approximately 8,000 megalitres and create up to 60 full time jobs.


Coal Mines Publicly announced

Strong coal prices and global demand have underpinned recent activity, including the recommissioning of Cook Colliery, and Crinum and Bluff mines.

Feasibility

Five mines are in varying stages of extension projects.

Commenced

Project

Mine

Blackwater South Coking Coal

Blackwater

Life of Mine Extension

Ensham

Kestrel West

Kestrel

M-Block Extension

Gregory Crinum

Central North Extension

Jellinbah East

2 9

10

13

Tieri

Rubyvale Sapphire

8

Washpool Taroborah

Emerald

Anakie

6

Blackwater

Minyango

Bluff

Belview

Comet

Gregory Hwy

Bogantungan

Wilton Fairhill

d

Valeria

11

F it zro

wy yH gor Gre

5

a ev R o yD

Capella

Gemini

4 Dingo Capri corn Hwy

Duaringa

Springsure Creek

Da ws on

3

7

Comet Ridge

1

Hw y

Rolleston

Fitz roy De vR oad

Springsure

Bauhinia

12

Arcadia Valley

Open cut coal mine Underground coal mine Open cut and underground coal mine Identified coal deposit Railway (electrified) Railway (non-electrified)

EIS

Environmental Impact Statement

LOM

Life of Mine*

METS

Mining Equipment, Technology and Services

Mt

Million tonnes

Mtpa

Million tonnes per annum

TOR

Terms of Reference

Workforce figures include employees and contractors. *LOM is a nominated planning figure used by mining companies. While some companies derive the figure from the total reserve, others base it on a smaller, defined area and will extend operations over time. The figure, therefore, does not necessarily mean the end of operations or economic resource.


1

5

Blackwater

9

Gregory Crinum

Owners

BHP Billiton (50%), Mitsubishi (50%)

Owners

Sojitz Blue

Operator

Crinum

Operator

BHP Billiton Mitsubishi Alliance (BMA)

Gregory

Type Coal

Open cut Metallurgical (95%) Thermal (5%)

Production

14.9 Mtpa

Workforce

800

Reserve

375 Mt

LOM

2046

BMA’s Blackwater South Coking Coal project was identified as a Queensland Government Coordinated Project in 2022. Work has commenced on the Terms of Reference (TOR) for the Environmental Impact Statement (EIS).

2

Ensham

Owners

Idemistu Australia (85%), Bowen Investment (15%)

Operator

Ensham Resources

Type

Open cut and underground

Coal

Thermal

Production

4.5 Mtpa

Workforce

600

Reserve

720 Mt

LOM

2028

Ensham’s Life of Mine extension proposes to move the underground mining operations to the west, extending the life of the mine to 2037. The project is waiting on approvals due in 2022 and 2024.

3

Meteor Downs South

Owners

U & D Mining (50%), Sojitz Blue (50%)

Metallurgical

Metallurgical

Production

2 Mtpa

1.5 Mtpa

Coal

Workforce

400

300

Reserve

110 Mt

20 Mt

Production

4 Mtpa

LOM

2039

2038

Workforce

660

Reserve

240 Mt

LOM

2030

Crinum Mine was recommissioned in 2021. Once the remaining underground resource is extracted, mining will move to M-Block, an area west of the existing mining area. Open cut methods will be used for the first three years before going underground.

6

Minerva

Owners

Sojitz Blue (96%), Korea Resources (4%)

Operator

Sojitz Blue

Type

Open cut

Coal

Thermal

Production

1.5 Mtpa

Workforce

0

Reserve

76 Mt

LOM

2024

Minerva mine has gone into care and maintenance.

7

Cook Colliery

Owners

Q Coal

Operator

Mastermyne

Type

Underground

Coal

Metallurgical (85%) 1.1 Mtpa

Coal

Thermal

180

Production

Workforce

1.5 Mtpa

75 Mt

Workforce

Reserve

70

LOM

2027*

Reserve

13 Mt

Cook Colliery was recommissioned in 2021.

LOM

2030

*Mastermyne were appointed mine operator for 6 years.

8 HSE Mining

Type

Open cut

Coal

Metallurgical

Production

1 Mtpa

Workforce

150

Reserve

13.5 Mt

LOM

2028

Bluff Mine was recommissioned in 2022.

Open cut and underground

Coal

Production

Bowen PCI

Glencore

Type

Underground

Open cut

Operator

Operator

Mastermyne

Open cut

Type

Owners

Glencore (55%), Sumisho Coal (25%), Itochu Coal Resources (10%), ICRA OC (10%)

Sojitz Blue

Sojitz Blue

Bluff

Owners

Type

Operator

4

Oaky Creek

Thermal (15%)

Jellinbah East

Thermal (50%)

Curragh

Owners

Coronado Global Resources

Operator

Coronado Global Resources, Theiss, NRW Holdings

Type

Open cut

Coal

Metallurgical (70%) Thermal (30%)

Production

11.3 Mtpa

Workforce

2030

Reserve

266 Mt

LOM

2041

Curragh has plans to expand to 13.5 Mtpa saleable production by 2025.

11

Kestrel

Owners

EMR Capital & Adaro Energy (80%), Mitsui Investment (20%)

Operator

Kestrel Coal Resources

Type

Underground

Coal

Metallurgical (90%) Thermal (10%)

Production

7 Mtpa

Workforce

650

Reserve

190 Mt

LOM

2033

Kestrel has commenced feasibility definition study of the Kestrel West project area. If approved, the project would extend the life of mine to 2049.

12

Rolleston

Owners

Glencore

Operator

Glencore

Jellinbah Mining

Type

Open cut

Open cut

Coal

Thermal

Metallurgical (95%)

Production

15 Mtpa

Workforce

800

Reserve

175 Mt

LOM

2045

Owners

Jellinbah Group (70%), Marubeni Coal (15%), Sojitz Blue (15%)

Operator Type Coal

10

Metallurgical (50%)

Thermal (5%)

Production

5.2 Mtpa

Workforce

460

Reserve

185 Mt

LOM

2055

Jellinbah commenced the Central North extension in 2022, using local civil earthworks contractors to develop the infrastructure required. It has been integrated into Jellinbah Central pit and mining is occurring in this area.

13

Yarrabee

Owners

Yancoal

Operator

Yancoal

Type

Open cut

Coal

Metallurgical

Production

3.5 Mtpa

Workforce

460

Reserve

81 Mt

LOM

2060


Pipeline Projects

Local Procurement Strategies

There are nine greenfield coal projects in the local pipeline, with potential to convert into mining activity.

The Central Highlands mining industry spends over $790 million on local goods and services, which is estimated to be 30 percent of total spend.

Publicly announced

Feasibility

Project

Company

Capacity Mtpa

Belview

Stanmore Coal

2.6

Comet Ridge

Bowen Coking Coal

0.5

Gemini

Magnetic South

1.8

Minyango

Bounty Mining

7

Springsure Creek

Adamelia Resources

7

Community Support Programs

Taroborah

Shenhuo Group

5.7

Valeria

Glencore

20

Washpool

Aquila Resources

2.6

Wilton Fairhill

Futura Resources

2.6

Going beyond their role as an employer, mining companies invest in partnerships, sponsorships and funding programs to strengthen the communities in which they operate. Most programs are targeted at community and not for profit groups, and have specific criteria and deadlines. Scan the QR Code for links to programs and contact details.

These projects have not been committed to, and are only potential investments that may occur under the appropriate conditions. Projects that are deemed as ‘possible’ to proceed, based on recent development activity, include Valeria and Wilton Fairhill.

Mining companies have procurement strategies to optimise opportunities for local businesses. Scan the QR Code for supplier registration information and contact details.

Investment Opportunities Strategically located to service the Bowen and Galilee Basins, and well supported by existing infrastructure and logistics, the Central Highlands is a prime destination for companies servicing the mining industry.

Valeria Coal Sponsor

Glencore

Type

Open cut

Coal

Metallurgical and Thermal

LOM

35 years

Workforce

1250

Status

The project is currently undergoing Queensland State and Commonwealth assessment processes. The TOR are expected to be completed this year, the EIS in 2023 and project determination in 2024. Depending on the outcome of these processes, construction could begin as early as 2025 and operations in late 2027.

$3.1 billion of goods and services are imported from the rest of Australia by local mining companies, representing gaps in the local supply chain. These imports indicate opportunities for import replacement, increased value-adding and supply chain development. Central Highlands Import Replacement Opportunities

Wilton Fairhill Project Sponsor

Futura Resources

Type

Open cut

Coal

Metallurgical

LOM

20+ years

Workforce

300

Status

Final environmental approvals have been received and the project is awaiting the final investment decision to progress to a mining lease grant. The operation will utilise nearby infrastructure, such as that of the Gregory Crinum complex, to process and rail product coal.

26% Manufacturing 18% Mining The information has been sourced and compiled by Central Highlands Development Corporation. Every care is taken to ensure the content is current and factual at the time of release. CHDC take no responsibility for errors, changes or omissions. Published August 2022.

9% Financial Services

11% Transport

6% Construction

10% Professional Services

16% Other

4% Wholesale Trade

Central Highlands Development Corporation 76 Egerton Street Emerald Q 4720

T 07 4982 4386 F 07 4982 4068

E enquiries@chdc.com.au W chdc.com.au

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