Black Coal |
AIMR 2008 |
Content maintained by Ron Sait
Black coal is a sedimentary organic rock consisting of anthracite, bituminous and sub-bituminous rank coals. In Australia, black coal deposits occur in all States and the Northern Territory and range in age from 140 to 225 million years old. Black coal is primarily used as a solid fuel to raise steam to generate electricity and to produce coke for the steel making process. By-products of coke-making include coal tar, ammonia, lights oils and coal gas. Black coal is used also in cement manufacturing, food processing, paper manufacturing and alumina refineries.
In December 2006 there were 118 operating black coal mines in Australia which included 74 open-cut mines and 44 underground mines. The bulk of the mines were in New South Wales (62) and Queensland (49). Most of the coal was produced in New South Wales (41.3%) and Queensland (56.2%) with locally significant operations at Collie (WA), Leigh Creek (SA) and in the Fingal Valley (Tas).
Recoverable EDR in 2007 decreased 1.8% to 38.9 Gt due mainly to a significant decrease of Peabody Pacific's resources and reductions at Mt Arthur, Minerva and New Acland. However, these decreases were not offset by new resources at Carborough Downs, Ellensfield, Exevale, Eagle Downs, Rocklands, Nebo South, Narrabri and Sunnyside. The largest share of recoverable EDR in Australia was in Queensland (53%) and in New South Wales (42%).
In 2007 the recoverable PDR increased 6.7% to 2.2 Gt mainly due to Dartbrook. The recoverable SDR reduced 6.5% to 6.7 Gt mainly due to decreases at Dawson, Myuna and Bulga. The recoverable inferred resources increased 3.6% to 61.1 Gt. Large increases in inferred resources occurred at Curragh North, Minerva, Minyango, Eagle Downs and Rolleston. Inferred resources were included for the first time at North and South Alpha, Yamala, Rocklands and Narrabri.
Almost all black coal EDR is accessible with only a relatively small tonnage at Hill River (WA) being quarantined within State Reserves. At current rates of production the resource life of the Accessible EDR of 38.8 Gt was about 95 years.
JORC reserves are 12.5 Gt or 30% of Accessible EDR and include estimates by Geoscience Australia of reserves at some operating mines which had no reported JORC reserves. This estimate constituted 2.3 Gt or about 18% of JORC reserves. BHP Billiton, Rio Tinto, Xstrata Coal, Peabody Pacific and Anglo Coal manage about 68% of JORC reserves in Australia. The resource life of the JORC reserves of 12.5 Gt is 30 years.
Data published by ABS on coal indicated that exploration expenditure for 2007 totalled $192.6 million, a decrease from $198.7 million in 2006. Expenditure in Queensland was $118.8 million or 62% of the total while $49.8 million was spent in New South Wales, representing 26% of the total. Exploration also occurred in South Australia, Western Australia, Tasmania and Victoria. In 2007 Coal exploration expenditure accounted for 9.3% of the total mineral exploration expenditure in Australia.
In 2007 Australia produced 416 Mt of raw coal (398 Mt in 2006) which yielded 322 Mt of saleable coal (302 Mt in 2006). ABARE has projected that Australia's saleable production will grow to 405 Mt by 2013. Exports of black coal during 2007 was 138 Mt of coking coal valued at $13.9 billion and 112 Mt of steaming coal valued at $6.8 billion. Exports of coking and thermal coals are projected to increase to 173 Mt and 168 Mt respectively by 2013.
Australia has 6% of the world's recoverable black coal EDR and ranks sixth behind USA (31%), Russia (21%), China (13%), India (8%) and South Africa (7%).
Australia produced about 6% of the world's black coal in 2007 and ranked fourth after China (45%), the USA (18%) and India (8%).
Rio Tinto Coal Australia (RTCA): In December 2007 RTCA announced that US$991 million would be spent on the Kestrel mine to extend its life to 2031 and increase production from 4 Mtpa to an average of 5.7 Mtpa. Subject to approvals, construction is due to begin in 2008 and the first coal is expected from the 375 m wide longwall in 2012. A 7 km overland land conveyor will be constructed to the existing coal handling and preparation plant. Reserves from the current mine area are expected to be exhausted in 2014. Construction of the US$750 million Clermont project commenced in March 2007 with production expected in 2010. The open-cut mine will produce 12.2 Mtpa of thermal coal over a planned 17 year mine life. A 15 km conveyor will connect the mine to the current infrastructure at Blair Athol where production is expected to wind down by 2011.
BHP Billiton Mitsubishi Alliance (BMA Coal): In April 2007 the new 14 Mtpa coal handling and preparation plant was commissioned at the Blackwater mine. Mining at the Crinum longwall mine was completed in late 2007. The roof supports were refurbished then installed at Crinum East for mining to begin in early 2008. At the Norwich Park mine the average waiting time for dozers at the draglines has been reduced by 20%. At the Broadmeadow mine new 5 m cutting height equipment was installed into Longwall Block 3 in July 2007. The $40 million project to extend longwall blocks from 200 m wide to 320 m is expected to commence in early 2008 in Longwall Block 4. Under the Energy Excellence Program, BMA Coal has reduced electricity consumption at the South Walker Creek mine by 630 MWh through more efficient working of dragline buckets.
Xstrata Coal: The two Oaky Creek open-cut mines closed in 2007. At Oaky No 1 only one longwall face will operate from 2008 with overall production decreasing to around 5.3 Mtpa. The Oaky North longwall should continue to produce around 5.1 Mtpa of run-of-mine coal until at least 2027. The $70 million Wollombi open-cut project was approved in October 2007. The mine will produce up to 2.5 Mtpa of run-of-mine coal over 15 years. Xstrata is investigating the feasibility of a $1 billion 20 Mtpa open-cut thermal coal mine at Wandoan. A decision on mine development is not expected until late 2009 and, if developed, the project is expected to have a 30 year mine life. A new rail connection will need to be constructed between Wandoan and the existing Moura-Gladstone rail line.
Anglo Coal: In July 2007 Anglo Coal announced a $210 million longwall upgrade for the Moranbah North mine to ensure a 4 Mtpa production rate beyond 2009. A 40 MW mine methane power station is expected to be commissioned at Moranbah North in late 2008. The Dawson expansion project was completed in mid-2007 with a capacity of 12.5 Mtpa of saleable coal and including a 27 km southern overland conveyor. At the Lake Lindsay project a $347 million 4 Mtpa coal handling and preparation plant was due for completion in early 2008. A 21 km long conveyor connects the mine to the infrastructure at German Creek. Anglo Coal began a detailed feasibility study of the Grosvenor project with the view of developing a 6 Mtpa longwall mine in late 2009. An overland conveyor would connect the mine to the Moranbah North infrastructure.
Macarthur Coal: At the Coppabella mine a new P&H4100 electric shovel and six Cat 240 t trucks were commissioned in January 2008. The equipment is expected to save Macarthur Coal about $5 per product tonne from 2009. At Moorvale an expansion was completed in late 2007 with an additional 1 Mtpa of run-of-mine capacity from Pit F and Pits c and D. The Olive Downs open-cut deposit will be developed later as a satellite mine of the Moorvale operation. At the Middlemount project a bulk sample open-cut began in 2007 with plans to produce 1.8 Mtpa of saleable coal by late 2009.
Wesfarmers: The $360 million Curragh North project was completed in 2007 with the commissioning of a new coal handling plant and a 20 km conveyor to the Curragh washplant. Wesfarmers is undertaking a feasibility study on expanding the Curragh mine to between 8 and 8.5 Mtpa of metallurgical coal. The study is due to be completed in mid-2008 and if viable ramp-up could start in late 2009.
Felix Resources: A new excavator started operating at the Yarrabee mine in July 2007. Exploration at Yarrabee is continuing in order to increase the mine life beyond the current six years.
Peabody Australia: In 2007 the Millenium open-cut mine began ramping up production to a planned 3 Mtpa in 2010. At Wilkie Creek, a feasibility study is underway to increase production which would require upgrading the preparation plant and transport infrastructure.
Ensham Resources: The $600 million Ensham Central Project is planned to increase production from 9 to 20 Mtpa. Included is an extension to the life of the current open-cut by six years and an underground bord and pillar operation prior to the introduction of a longwall system capable of producing up to 8 Mtpa over an 11 year mine life. Ensham also is investigating the feasibility of dragline pull back and highwall mining.
Vale: At the Isaac Plains project development of the South deposit is planned for late 2008 subject to approvals. Production is expected to increase from 1.2 to 2.8 Mtpa. A BE1370 dragline is due to be relocated from the USA to Isaac Plains during 2008. At the Ellensfield project a 5.5 Mtpa run-of-mine longwall is planned to commence in late 2009 with a mine life of at least 20 years. A pre-feasibility study is underway into the Belvedere project which is planned to produce up to 9 Mtpa of hard coking coal from two longwalls. The $620 million Eagle Downs project is planned to produce 4 Mtpa of hard coking coal. A pre-feasibility study of this longwall project is due in mid-2008.
New Hope Corporation: The Jeebropilly operations closed in February 2007. The $60 million New Acland Stage 2 expansion to 3.65 Mtpa was completed in March 2007. New Acland is to be supplied with recycled water via a 47 km pipeline from the Toowoomba City Councils Wetalla water reclamation facility. The New Saraji longwall project is planned to be a 5 Mtpa coking coal mine commencing in 2012. New Hope is investigating opportunities for coal-to-liquids technologies to be applied to New Acland coal. Detailed design engineering and processing testing started in 2007.
QCoal: The Sonoma project commenced production in late 2007 at an initial rate of 2 Mtpa with plans to expand to up to 7 Mtpa once the Abbott Point coal terminal expansion has been completed.
CSEnergy: The $1.2 billion Kogan Creek power station and open-cut mine opened during 2007. The 2.8 Mtpa open-cut mine is connected to the 750 MW power station by a 4 km conveyor.
Tarong Energy: The Meandu mine will be operated from January 2008 by Tarong Energy until the new Kunioon mine is operational in 2011. The proposed 7 Mtpa Kunioon open-cut mine will be connected to Tarong's two power stations by a 16 km conveyor.
Caledon Resources plc: At the Cook Colliery a coal production rate of 1.5 Mtpa is expected for 2008 by the introduction of continuous bolter-miner equipment with a continuous haulage system. Caledon has a detailed mine plan for the next 10 years.
Lake Vermont Resources Pty Ltd: Construction of the $176 million Lake Vermont project commenced in 2007. The open-cut mine is due to start production at a rate of 4 Mtpa of coking coal in 2008.
BHP Billiton: Development of a $20 million adit commenced in 2007 in the Woodlands Hill seam at the Mt Arthur mine. About 5 km of roadway will be developed from an open-cut highwall to investigate underground geological conditions. The adit is expected to be completed in late 2008 and, if viable, longwall production is expected to commence in 2011 at a rate of 6 to 8 Mtpa. BHP Billiton also is planning to extend the southern pit at Mt Arthur by 2 km to expand production by 3 Mtpa. At the Appin Colliery, extraction of longwall block 409 has been approved while development of longwall panels continues in Area 7 at the Douglas mine.
Coal and Allied (CA) (75% Rio Tinto): At the Hunter Valley Operations South, which includes the Cheshunt, Riverview and Lemington pits, CA is seeking approval for a 21 year project life. At HVO South, CA plans to increase mining and processing capacity to 16 Mtpa and construct a new load out facility on the Wambo rail spur. At Bengalla CA is planning to spend $21 million to extend mining operations into the Wantana pit. CA is continuing feasibility studies to increase run-of-mine production from 8.7 to 10.7 Mtpa. At the US$ 600 million Mount Pleasant project a mine plan was completed during 2007 which consists of mining two pits at a rate of 10.5 Mtpa.
Xstrata Coal: The $350 million South Blakefield project is planned to replace the Beltana operation at the Bulga complex. A new 400 m wide longwall will extract semi-soft coking coal from 2009. Approval has been granted for a $91 million expansion at the Liddell open-cut mine from 4.5 to 8 Mtpa. The Cumnock open-cut mine is due to cease production in 2008. A third processing plant module currently under construction is expected to increase capacity from 10 to 15 Mtpa at Mt Owen to handle coal from the Glendell open-cut mine. The Glendell Environmental Assessment document was on display from August to October 2007. In late 2007 Xstrata purchased the Anvil Hill project and the Tahmoor Colliery from Centennial Coal for a total of $1.1 billion. The Anvil Hill open-cut project was granted approval during 2007. The $240 million project is expected to produce up to 10.5 Mtpa run-of-mine from 2009 over a 20 year mine life.
Anglo Coal: Anglo plan to extend the mine life at the Drayton open-cut mine to 2017 and increase production from 5.5 to 8 Mtpa run-of-mine. At Dartbrook a project team is assessing future options for the mine which currently is on care and maintenance. At the proposed Saddlers Creek project studies have been completed on a combined open-cut and underground mine.
Centennial Coal: At the Charbon mine Centennial is investigating options to extend the mine's operating life. The new Angus Place longwall supports on a widened 280 m face are expected to commence operation in June 2008 at a rate of 3 Mtpa. At Springvale, a mine lease extension approval has increased reserves to 75 Mt. In late 2007 the Springvale longwall was successfully commissioned following a major overhaul. A Springvale optimisation plan is being undertaken to increase exports. At the Myuna mine production is expected to increase from 1.5 to 2 Mtpa with a new mining unit installed in the Wallarah seam. The Myuna mine currently operates within three seams to maximise production and product quality. The Mandalong mine is planned to expand to 4.4 Mtpa in 2008 and to 5 Mtpa in 2009. The Stage 1 Mandalong Export project feasibility study is due in late 2008 with construction expected to be completed in late 2009. The Stage 2 Mandalong export project involving a rail loop and washery is proposed to be completed in 2010. The Newstan and Mannering mines are both planned to be placed on care and maintenance in mid-2008. Feasibility studies have commenced into a reconfigured mine plan for Newstan. The Awaba mine is planned to close in early 2009 when reserves are exhausted. The new Awaba East longwall mine feasibility study is due to be completed in mid-2009 with operations commencing in 2012.
Peabody Pacific Pty Ltd: Development of the $101 million North Wambo longwall started production in September 2007 at a rate of 3 Mtpa. The $123 million Wilpinjong open-cut mine commenced production in late 2006 and is expected to ramp up to 8 Mtpa by 2011.
Gloucester Coal: In February 2007 Gloucester Coal was granted approval to mine the Roseville West pit. A $2 million secondary flotation plant was completed in October 2007 which is expected to increase yield by 2%. A $30 million washery upgrade from 3.2 to 4 Mtpa is expected to be completed in late 2009.
Felix Resources: The 2 Mtpa Ashton underground longwall mine was commissioned in March 2007. The Ashton coal preparation plant was expanded with the addition of a second module in March 2007. In September 2007 Felix gained approval for Stage 1 of the $220 million Moolarben project. Construction is expected to start in mid-2008 with commissioning due in late 2010. Felix is planning a 4 Mtpa underground longwall mine at Moolarben after the open-cut has reached full capacity. Felix expects to be producing about 10 Mtpa over a 25 year mine life.
Resource Pacific Holdings: The 4 Mtpa Newpac No 1 longwall commenced operation in January 2007. New development equipment was delivered in mid-2007 to reduce delays between longwall blocks.
Gujarat NRE Resources: Gujarat purchased the Elouera mine from BHP Billiton in late 2007 for $49 million which will allow access to the Avondale NRE Colliery utilising the Elouera infrastructure. A mine plan is being prepared for a 1.5 Mtpa longwall to start operations in 2011. At the NRE No 1 Colliery, a $1.5 million feasibility study is being undertaken into a 4 Mtpa multi-seam longwall operation to commence production in 2012.
Yancoal Australia Pty Ltd: The planned $80 million Stage 3 Austar Longwall Top Coal Caving (LTCC) mine extension project proposes to start extracting coal in 2010 from an area east of the current operation.
Integra Coal Operations Pty Ltd: In 2007 a subsistence management plan was submitted for the Glennies Creek longwall to extract 12.5 Mt of coal from underneath Xstrata's Mount Owen and Ravensworth East mines.
Donaldson Coal Pty Ltd: The $84 million Abel bord and pillar mine is planned to extract 4.5 Mtpa over a 21 year mine life starting in 2009. Coal will be transferred to the existing Bloomfield coal processing plant.
Whitehaven Coal Mining Ltd: Construction of the Narrabri North project began in early 2008. The $140 million Stage 1 project consists of a 2.5 Mtpa continuous miner operation that is due to commence in mid-2009. The $90 million Stage 2 project consists of a 7 Mtpa longwall that is planned to begin production in 2011. The $15 million Sunnyside open-cut mine is expected to commence during 2008 at a production rate of 1 Mtpa. The proposed $35 million Belmont open-cut is expected to start operations in late 2009 at a rate of 1.5 Mtpa.
Wyong Areas Coal Joint Venture (Kores Australia 82.25%): The $550 million Wallarah 2 Coal Project is planned to produce 4 to 5 Mtpa of export quality thermal coal over a 40 year period. The initial development coal is expected to be produced in 2009 with longwall coal production in 2010.
Hydrogen Energy International Ltd: In 2007 BP and Rio Tinto began a feasibility study into establishing a $2 billion 500 MW clean coal power station at Kwinana in Western Australia. The plan is to gasify Collie coal to produce hydrogen and carbon dioxide. A development decision is due in 2011 with operations starting in 2014.
Aviva Corporation Ltd: Aviva plans to develop the $1 billion 400 MW Coolimba base load power station 20 km south of Eneabba in Western Australia. The nearby Central West coal deposit is expected to provide 2 Mtpa over 30 to 40 years. The feasibility is due for completion in 2008 with start-up in 2012.
The Griffin Group: In Western Australia, The Griffin Group plans to spend $240 million over the next three years on the development of the Ewington 1 and 2 coal mines and refurbishment and expansion of the charring plant and coal drying facilities.
Altona Resources plc: Altona is conducting a feasibility study into the development of an integrated 10 million barrels a year coal-to-liquids plant with a 560 MW cogeneration power station located near the Wintinna coal deposit in South Australia.
Flinders Power: At the Leigh Creek mine in South Australia, Flinders Power is investigating the feasibility of extending the life of the open-cut from 2017 to 2025.
Abbott Point Coal Terminal: The $116 million Stage 2 expansion from 15 to 21 Mtpa was opened in November 2007. The $770 million Stage 3 expansion to 50 Mtpa is dependent on the construction of the Northern Missing Link Rail Line.
Dalrymple Bay Coal Terminal: The $590 million Phase 1 expansion from 60 to 68 Mtpa is due to be completed in March 2008. The $640 million Phase 2 and Phase 3 expansions to 85 Mtpa are expected to be completed in 2009.
Hay Point Coal Terminal: The Phase 2 expansion from 40 to 44 Mtpa was completed in 2007. A $500 million Phase 3 expansion to 55 Mtpa is planned.
Port of Gladstone: The $700 million R.g. Tanna Coal Terminal expansion from 40 to 68 Mtpa was completed in 2007. Construction of the $3 billion Wiggins Island Coal Terminal is expected to commence in 2009 with an initial capacity of 25 Mtpa and is due to come on line in 2012. The ultimate capacity is planned to be 84 Mtpa.
Port Alma: Xstrata and the Central Queensland Ports Authority are conducting a conceptual study into a $1 billion 30 Mtpa coal terminal to facilitate the development of the Wandoan coal project.
Port of Newcastle: The $170 million expansion of the Koorangang Island Coal Terminal from 89 to 102 Mtpa was completed in 2007. A further $78 million is being spent on increasing capacity to 120 Mtpa in 2009. In January 2008, construction began on the $1 billion Newcastle Coal Infrastructure Group's (NCIG) Coal Terminal. An initial capacity of 30 Mtpa is due for completion in 2010.
Queensland Rail: Capacity is being increased from 175 to 255 Mtpa by 2011 through the expenditure of $3.5 billion. The projects include:
Australian Rail and Track Corporation: The Hunter Valley rail network is planned to be expanded to 120 Mtpa by mid-2009 and 150 Mtpa by 2011 at a cost of $207 million.
SunWater: The $300 million 220 km pipeline delivering 17,000 Mega litres of water per annum from the Burdekin Falls Dam to Moranbah opened in August 2007.
CSEnergy: The 120 MW Callide A power station is planned to be retrofitted with oxyfuel combustion technology. Construction of the $200 million retrofit project is expected to begin in 2008 and be operational in mid-2009.
Delta Electricity and CSIRO: A $5 million post carbon capture pilot facility will be built at the Munmorah power station. The facility will use ammonia absorption technology and is expected to be in operation in mid-2008. The pilot facility will determine whether a larger $150 million demonstration plant should proceed.
ZeroGen Pty Ltd: A 100 MW Integrated Gasification Combined Cycle demonstration plant is planned to be built at Stanwell, with a decision expected in mid-2009.
Western Australian State Government: $300,000 is planned to be spent on a series of coal gasification trials on Collie coal.
Linc Energy: In 2007 construction began on a demonstration gas-to-liquids plant at the Chinchilla Underground Coal gasification project. The plant is expected to commence production in early 2008.
Carbon Energy: Approximately $19 million is planned to be spent on an Underground Coal Gasification trial at Bloodwood Creek. The trial is expected to start in mid-2008.
Cougar Energy: In 2008 Cougar plans to trial Underground Coal Gasification near Kingaroy.
Anglo Coal: During 2007 Anglo Coal carried out trials using DRYSCAN technology at the Callide mine. The technology uses lasers to identify and reject the undesirable material from the coal feed and to minimise the need for water in the processing plant.
University of New South Wales and Coal Services Pty Ltd: Realistic virtual reality technology of underground and surface mining environments has been developed by the School of Mining Engineering. It is planned to use the technology to provide enhanced safety training.
