Bowen Coking Coal

ADVANCING AUSTRALIAN MINING

BOWEN COKING COAL MINING

E VO K I N G C O K I N G We speak to the Executive Chairman of Bowen Coking Coal, Nick Jorss, about the company’s successful acquisitions and its tenacious efforts in sustainability Writer: Lucy Pilgrim | Project Manager: Eddie Clinton

2 | APAC Outlook Issue 62

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ustralian mining is a highly significant contributor to the country’s exports, whilst also providing substantial opportunities for national employment and local infrastructure. Regionally, Queensland is one of the most prosperous mining states in the country, and the Bowen Basin in central Queensland offers an abundance of coal mining opportunities, which are plentiful and low-cost.

As one of the newest operators in the Bowen Basin, Bowen Coking Coal (Bowen) has taken full advantage of the resource and has grown rapidly via several acquisitions over the previous four years. In the last 12 months, the organisation has brought two of the acquired coking coal mines into production with a third underway, producing over 1.5 million tonnes of run-of-mine (ROM) coal to date.

And yet, despite its recent prosperity, the company still feels

the effects of the challenges that face many mining companies across Queensland, such as regulation, increased government intervention, and environmental activism. However, Bowen is working as a team to overcome these challenges, which is one of the most important parts of the job, according to Executive Chairman, Nick Jorss.

“The industry is cyclical and has faced greater headwinds recently from increased government intervention and environmental activism. The flipside is that, as the

APAC Outlook Issue 62 | 3

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BOWEN COKING COAL MINING

“ W E D O N ’ T M A K E A N Y B I G C A L L S L I G H T LY A N D W E D O N ’ T CHASE GROWTH FOR GROWTH’S SAKE. AS SUCH, WE R E J E C T M A N Y ACQ U I S I T I O N O P P O RT U N I T I E S I F T H E Y D O N ’ T F I T O U R S T R AT E G I C G O A L ” – N I C K J O R SS , E X E C U T I V E C H A I R M A N , B OW E N CO K I N G COA L

APAC OUTLOOK: COULD YOU PROVIDE SOME INSIGHT INTO YOUR CAREER TO DATE? Nick Jorss, Executive Chairman: “My career started as a construction engineer in the early 1990s where the highlight was the construction of Melbourne’s Bolte Bridge, which was considered a bold architectural statement at the time. It’s a landmark for me in part because its architectural simplicity belies the complex engineering and hard work that underlies it.

industry becomes hard for some players to exist in the market, it sometimes creates opportunities for smaller, nimble operators like Bowen,” he opens.

As the industry flourishes, coal demand continues to grow, driven by industrialisation and urbanisation.

Subsequently, there is an increased need for steel and low-cost energy, both of which are supplied by highquality Queensland coal.

“We are resolute that steelmaking coal has a climbing demand trajectory. To make the new steel required for economic growth and decarbonisation we will need more coking coal in the future, and there’s no economical substitute on the near horizon,” Jorss highlights.

Steel is widely regarded as an 6 | APAC Outlook Issue 62

essential component in electrification, and more steel requires more coking coal. Meanwhile, supply is constrained by an effective capital strike, with regulatory and approval pressures having an additional impact.

These dynamics are favourable, however, to coal as an investment commodity. “With the increasing demand for coal and other minerals, Queensland can be a world leader if we encourage investment.

“We maintain some of the world’s highest environmental and safety standards, best geology, and lowest emissions export coals,” Jorss proudly comments.

ADVANCED ACQUISITION Every major investment decision made at Bowen is supported by

“I then transitioned into corporate finance which built my commercial understanding of mergers, acquisitions, and financing of large projects. This experience across these sectors served my entry into the mining industry in 2008 when I formed Stanmore Coal, later Stanmore Resources, with a couple of long-term colleagues.

I have always been interested in business and bulk commodities caught my eye because of the ability to leverage returns on very large volumes. Highly successful coal companies such as Felix, Whitehaven, Excel, MacArthur Coal and New Hope provided inspiration on what could be achieved.”

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Comprised of three divisions, AB Power is an established business in the mining sector, spread across AB Power Electrical, AB Power Civil and AB Power Generation.

Whilst the loss of power can be inconvenient and debilitating, AB Power has various solutions for mining projects that require power generation.

Offering more than just standard generator hire, the high-quality back-up service provided by AB Power is an insurance policy for project owners that require uninterrupted and reliable temporary power supply.

AB Power offers a various range of generators, in customisable sizes to suit all requirements.

All AB Power equipment complies with international and Australian electrical standards to ensure all safety compliance specifications are upheld.

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BOWEN COKING COAL MINING

significant prior work to ensure that assets are well positioned across the pricing cycle. The company never takes any big acquisition lightly, and doesn’t chase growth for growth’s sake. Rather, Bowen rejects acquisition opportunities if they do not align with the specific strategic goal of building more near-term, high-quality and low-cost production assets. Timing is also critical to an investment decision to ensure any assets are acquired at the right time in the cycle, which helps drive long term shareholder value.

Examples of such criteria are evidenced in some of Bowen’s most recent acquisitions, including the Burton Complex, which comprises multiple open pit deposits at Broadmeadow East, Burton and Lenton. The complex, with an annual ROM production target of 3.5 to 4.5 million tonnes, includes a 5.5 million tonne coal handling and preparation plant (CHPP), train loadout facility, 10 | APAC Outlook Issue 62

“ W E M A I N TA I N S O M E O F T H E W O R L D ’ S H I G H E S T E N V I R O N M E N TA L A N D S A F E T Y S TA N D A R D S , B E S T G E O L O G Y, A N D L O W E S T E M I SS I O N S E X P O RT COA L S ” – N I C K J O R SS , E X E C U T I V E C H A I R M A N , B OW E N CO K I N G COA L

350-person camp, haul road, offices and workshops. The site is located near Moranbah in Burton, central Queensland, producing high-quality coking coal and secondary thermal product.

The company has successfully opened the first low-cost mine within the Burton complex named Broadmeadow East, and is currently opening the second. The first module of the CHPP has been refurbished and is now operating at above the nameplate capacity.

Bowen’s other operating asset is the Bluff Mine which is ramping up to

an annual ROM production target of over one million tonnes and produces ultra-low volatile pulverised coal injection (UVPCI). This is located 20 kilometres (km) east of Blackwater in central Queensland.

Further projects under development in Bowen’s portfolio include the Isaac River project, located 30km to the southeast of Moranbah, next to BHP’s giant Daunia mine. Isaac River recently received its important final federal government environmental approval to allow the grant of the mining lease. The Hillalong project, 150km

BOWEN COKING COAL MINING

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In mid-October 2022, Bowen Coking Coal contacted us to see if we could overhaul 11 different items from the Burton Coal Plant that they were starting back up after many years of sitting idle.

The pressure was on as they wanted them back as soon as possible before Christmas.

The first item arrived on the 25/10/2022 and the last one left our workshop on the 20/11/2022. It was a huge effort from our team to complete this work in the required time frame.

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BOWEN COKING COAL MINING

southwest of Mackay, has 87 million tonnes of Total JORC Resource, consisting of low ash coking coal and secondary thermal coal and will form an important extension to the Burton mining complex.

In line with its strategic acquisition choices, Bowen’s employees must also have their hearts in mining.

“There isn’t a lot of ego in the team, just good people wanting to work to create value and have some fun whilst doing it. The ability to work 12 | APAC Outlook Issue 62

in this collaborative and fast-paced environment to strive for the best result is probably the most important criteria in our team.

“We aim to be nimble and able to respond to opportunities as and when they arise,” he tells us.

A BURGEONING SUSTAINABLE FORCE Most recent developments in the global mining industry include an appreciation of mining’s

environmental footprint. The Australian mining landscape is no different, as being environmentally and socially responsible is not just perceived as good business, but the core of business.

Responsible mining solutions for safety, economic development of communities, efficient extraction techniques and technologies, comprehensive environmental safeguards, and community engagement are all part of the

BOWEN COKING COAL MINING

Sarina Crane Hire is a privately owned, family operated business supplying cranes, heavy transport and height access services across Central Queensland. The company commenced in 2007 and under the ownership of Scott Goode, the fleet has grown to approximatively 140 pieces of equipment including Franna cranes, Rough Terrain, All Terrain and Crawler Cranes ranging from 13 tonnes to 250 tonnes together with a fleet of heavy haulage equipment and various types of height access and material handling equipment.

The business prides itself on providing services across a variety of industries in Central Queensland and Bowen Basin regions including mining, construction, rail, sugar mills, marine and ports.

Sarina Crane Hire is pleased to be associated with Bowen Coking Coal in the rebuild of existing Burton Coal Handling and Preparation Plant (CHPP) at Burton Coal Mine/Lenton Joint Venture, supplying crane and transport services in the assembly of new mining equipment.

The business has a modern fleet of Equipment which can either be wet or dry hired, depending on project requirements. SCH has a large number of resources available which clients can call on at any time. The business maintains its fleet of equipment to the highest standards to minimise lost time from breakdowns to maximise productivity and utilisation.

KEY SERVICES INCLUDE: • Wet and dry hire of cranes • Transport and Heavy Haulage Services • Wet and dry hire of material handling and height access equipment • Project management

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company’s planning and operations from the development of mines to their end of life.

Such a commitment is a key driver for Bowen, as guaranteeing a sustainable industry with a minimal environmental footprint is central to the company’s approach. Regional communities around the Bowen mines rely on mining for their existence and benefit from Bowen’s operations through economic development, opportunities and employment.

To date, more than 700 direct jobs and thousands of additional indirect positions have been generated in Queensland, due to Bowen Coking Coal projects. This includes apprentices and trainees, as well as opportunities with very competitive salaries in regional areas.

In addition, efficient extraction of mining resources is important in supporting sustainable operations.

“Queensland is blessed with great

coal resources, and because of this, our industry underpins the global seaborne metallurgical coal market.

Our coal quality is high, and our emissions profile is typically low,” Jorss highlights.

Evidently, mining produces sizeable economic benefits to the local communities, despite only ever occupying a small area of land.

In Queensland, mining occupies approximately less than half a percent of the land but produces half of the export revenue that supports employment and growth in the community.

“The small amount of land we do occupy is returned to mainly productive uses when mining is completed. Progressive rehabilitation of our sites is critical to Bowen’s approach, and this is built in from the beginning of the mine’s planning.”

In continuation of supporting the local community, Bowen works closely with localised suppliers and

contractors. For example, the recent CHPP refurbishment was conducted on time by a highly motivated labour force, who were supported by supplier partners in the local region.

Looking ahead, Bowen’s nearterm focus is on safely and efficiently transforming assets acquired in the last five years and reaching the five million tonnes per annum ROM production target by next year.

“We will continue to grow with acquisitions at the right time, but for now we have a fantastic set of assets we need to work hard on to unlock shareholder value,” Jorss concludes.

BOWEN COKING COAL Tel: +61 7 3191 8413 info@bowencokingcoal.com www.bowencokingcoal.com.au APAC Outlook Issue 62 | 13

BOWEN COKING COAL Tel: +61 7 3191 8413 info@bowencokingcoal.com www.bowencokingcoal.com.au PRODUCED BY APAC OUTLOOK MAGAZINE