Mining Projects in Queensland

The following are key projects either underway or due to commence in Queensland.

ALPHA COAL PROJECT

Operators: Hancock Prospecting Pty Ltd

Location: Galilee Basin

Timeframe:   Construction due to commence in 2012 with first shipment for 2014

Cost:  $7.5b

Employment: 2,500 construction jobs and 1,600 permanent jobs

Status: The call for submissions against listed work packages has now been closed.  Described as the jewel in the crown of the Galilee, the Alpha Coal Project will be a 30 Mtpa open-cut coal mine, with the potential for the future development of significant underground reserves. The open-cut operation has an expected mine life of 30 plus years, with sufficient Joint Ore Resources Committee (JORC) compliant resources to extend the project life well beyond 30 years. The project will encompass more than two billion tonnes of JORC compliant resource with a mining regime of 30 Mtpa. Infrastructure will include the construction of approximately 500 km of rail, port facilities, mine infrastructure, process plant, a commercial airstrip and workforce village.  Currently seeking applicants for the senior leadership team.

BHP BILLITON CAVAL RIDGE

Operators: BHP Billiton Mitsubishi Alliance (BMA)

Location:    Bowen Basin, 16km south of Moranbah and 160km south west of Mackay

Timeframe:      First production expected in 2014

Employment:  1,200 construction and 500 operational jobs

Status:  The Caval Ridge project includes the development of a greenfield coal mine in the northern section of the Bowen Basin which will produce high quality hard coking coal.  The project is currently subject to Owner and regulatory approvals and first coal is expected in 2014.

BHP BILLITON DAUNIA 

Operators: BHP Billiton Mitsubishi Alliance (BMA)

Location:    150km south-west of Mackay

Timeframe: 2 year construction timeframe, pending FID (expected in late 2011)

Employment:  450 construction and 300 operational jobs

Status: The Project is a 50-50 joint venture between BHP Billiton and Mitsubishi Development Pty Ltd, managed by BMA.  This project is for the development of a greenfield coal mine, which will produce 4.5 million tonnes per annum of coking coal.  The project has been granted Environmental Approval and has received Commonwealth approval.   

CHINA FIRST COAL PROJECT

Operators:  Waratah Coal

Location:  38kms North West of Alpha (160kms to the west of Emerald)

Timeframe:     Construction to commence 2012, with first production in 2014

Cost:    $8b

Employment:  6,000 construction jobs and 1,500 mine site jobs, with an overall reported roll-on job count of around 45,000 jobs

Status: The Galilee Coal Project was been declared a “Significant Project” by the Queensland Governmentand is expected to be Australia’s largest coal mine.  Chairman of Waratah Coal Pty Ltd, Professor Clive Palmer entered into a memorandum of understanding with one of China’s leading industrial companies, Metallurgical Corporation of China Ltd (MCC), to develop the project. MCC has agreed to be the engineering, procurement and civil (EPC) contractor of the project by providing a fixed price, lump sum construction price for the entire project.  Most awarded contracts have gone to Chinese companies at this stage.

KEVIN’S CORNER 

Operators: Hancock Coal (subsidiary of Hancock Prospecting)

Location:    Galilee Basin

Timeframe:       Expected to commence construction in 2012 with first production in late 2014 (dependant on gaining relevant approvals)

Employment:  2,500 construction jobs

Status:    The Kevin's Corner Project is a recognised thermal coal deposit within the Galilee Basin. This deposit contains very large resources of thermal coal in a premium location of the Basin. Kevin’s Corner Coal Project is adjacent to Hancock’s Alpha Coal Project and both Projects will utilise the proposed multi-user rail and port facilities. This is designed so that at a future point, it will have the potential to transport, load and ship capacity greater than the combined production level of both the Kevin’s Corner and Alpha Coal Projects.  The plans and details released for the residential village on the coast show ‘resort like’ accommodation where families will be well catered for.  Similarly, the plans for the Remote Control Centre are state-of-the-art. 

WANDOAN COAL PROJECT

Operators: The project is being delivered by Xstrata Coal Queensland and funded through a joint venture between Xstrata Coal Queensland (75% ownership), ICRA (Itochu) Pty Ltd (12.5% ownership) and Sumisho Coal Australia (12.5% ownership).

Location:  Wandoan (immediately west of the township) 

Timeframe:     Two to three year construction period from time of FID

Employment:   1,300 jobs required to build the mine infrastructure which will generate up to 210 further jobs in the local region each year.  Once the mine is operational, 754 permanent jobs and 90 contractor maintenance jobs will also be created on the mine site.  In addition, there will be a flow-on effect that will generate 150 to 200 permanent jobs in the local region.  A number of entry level jobs for school leavers, including apprenticeships and traineeships will be created among the long term jobs on the mine site once the mine is operational.  The Xstrata QMEA Education Partnership between Xstrata Coal, Queensland Department of Education and the Queensland Minerals and Energy Academy will provide $720,000 over three years for funding, equipment, curricula enrichment and school industry liaison to Wandoan State School, and Taroom State School and Miles High School.

Status:   Xstrata Coal's Wandoan Coal Project received conditional environmental approval from the Federal Government in March 2011. The environmental approval follows consideration of the project’s Environmental Impact Statement (EIS), Supplementary EIS, and the Queensland Coordinator-General’s report for the Wandoan Coal Project by the Commonwealth Department of Sustainability, Environment, Water, Population and Communities. The approval is a significant milestone for the development of the Project, and it allows Xstrata Coal to proceed with the final stage of the Mining Lease application.