australia's identified mineral resources 2005 - Geoscience Australia

AUSTRALIA’S IDENTIFIED MINERAL RESOURCES 2005
World Ranking
Australia has 5% of the world’s recoverable black coal EDR and ranks sixth behind USA (28%), Russia
(20%), China (13%), India (12%) and South Africa (7%). It produced about 7% of the world’s saleable
black coal in 2004 and ranked fourth after China (37%), USA (22%) and India (8%).
INDUSTRY DEVELOPMENTS – QUEENSLAND
Pacific Coal: At Hail Creek a $300 million expansion from 5.5 to 8 Mtpa is scheduled to be
completed by mid-2006 with the introduction of a second dragline. Underground longwall mining
commenced in the Ti Tree zone at the Kestrel mine. The $400 million Clermont open-cut thermal
coal project is being investigated as a replacement for the 12 Mtpa Blair Athol mine when operations
cease in about 2009. A decision on whether to proceed is expected in 2005.
BHP Billiton Mitsubishi Alliance (BMA): At Blackwater, construction commenced in early 2004
on a US$180 million 14 Mtpa coal handling and preparation plant. The plant will process the entire
production from Blackwater and replace existing high cost plants. Commissioning is scheduled for
late 2005. In April 2004, development driveage commenced at the Broadmeadow punch longwall
project following completion of highwall preparation. The 3.5 Mtpa mine is expected to commence
in mid-2005.
In March 2004, BMA announced plans to increase coking coal production from 52 to 57 Mtpa by
mid-2005 at a cost of US$94 million. The plan includes purchasing additional equipment for Saraji,
Peak Downs and Goonyella mines, upgrades to processing plants at Saraji and Peak Downs and
awarding of overburden stripping contracts. The next stage is estimated to cost $US75 million and
increase production to 59 Mtpa by mid-2006 and includes acquisition of additional stripping and
mining equipment and awarding an overburden stripping contract at Saraji.
Xstrata Coal: The $290 million Rolleston open-cut thermal coal project commenced construction in
early 2004 and initial production of 1 Mtpa is expected in 2005. Full production of 6 Mtpa of export
and 2 Mtpa of domestic product is scheduled for 2008. The operation is expected to have a mine life
in excess of 20 years and has further expansion potential to 12 Mtpa with minor additional capital.
At Newlands, development continued on the Northern underground punch longwall mine with full
production expected in late 2005 to replace production from the existing Southern underground
mine, which is due to close in late 2005. Production commenced at the Suttor Creek and Eastern
Creek open-cut thermal coal mines near the Newlands operation.
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Anglo Coal: Construction at the $250 million Grasstrees underground longwall mine commenced
in 2001 and is due to be commissioned in 2006 at a capacity of 5 Mtpa. The mine is designed to
replace production from the Southern Colliery at the German Creek project. Open-cut production
commenced in early 2004 at the Oak Park open-cut mine near the German Creek project. The Lake
Lindsay open-cut coking and thermal coal project is currently undergoing feasibility studies to
possibly commence mining in 2006. Feasibility studies are continuing on the $500 million 5 Mtpa
Grosvenor underground longwall coking coal project adjacent to the Moranbah North mine. At
Moura, Anglo announced a US$600 million plan to increase production from 7 to 12.7 Mtpa by 2007.
Anglo intends to establish two additional operations near the Moura mine with the new and
expanded operations to be known as the Dawson Complex.
Macarthur Coal: At Coppabella the first coal was mined from the South Pit in early 2004. The new
Moorvale mine was expanded from 1.6 to 2 Mtpa from early 2004. The Olive Downs, Moorvale
West and Codrilla deposits are all being considered as satellite operations to the Moorvale mine.
Development is dependent on the expansion of the Dalrymple Bay Coal Terminal. Macarthur is
undertaking a feasibility study into the West Rolleston open-cut thermal coal project as production
could be shipped through the expanding Port of Gladstone. Construction is proposed to commence
in mid-2006 with first production in 2008. In late 2004, Macarthur announced a feasibility study into
establishing a new generation coke making facility near the Stanwell Power Station in Central
Queensland. The facility will produce 300 MW of electricity and could begin producing coke by
the end of 2007.