Market outlook
On the Horizon Bowen Basin – mining lease grants, changing operators and projects expecting first coal in 2020/21
COOK COLLIERY
MINYANGO
MACKENZIE NORTH
Fast Facts
Fast Facts
Fast Facts
Proponent: Constellation Mining (a subsidiary of QCoal Group) Coal Type: Metallurgical/Thermal Production: 1 Mtpa
Proponent: Constellation Mining (a subsidiary of QCoal Group) Coal Type: Metallurgical/Thermal Production: 1.5 Mtpa
Proponent: Jellinbah Group Coal Type: PCI Production: 1 – 2.5 Mtpa
Cook Colliery is by no means a new operation, but has been in care and maintenance since December 2019. The site is expected to once again commence operations in 2021 with a subsidiary of QCoal as operator, following the acquisition of mining tenements from Bounty Mining.
Following Bounty’s voluntary administration in 2019, QCoal also purchased the permits for the greenfields Minyango site, with the transfer approved in late 2020. Located 5km south of Blackwater, the Minyango project neighbours Cook Colliery and is expected to employ 300 people during construction and 250 in operations.
GREGORY CRINUM
OLIVE DOWNS
WINCHESTER DOWNS
Fast Facts
Fast Facts
Fast Facts
Proponent: Sojitz Coal Type: Metallurgical Production: 3.5 Mtpa
Proponent: Pembroke Coal Type: Metallurgical/PCI Production: 6 Mtpa (up to 20 Mtpa in Stage 2)
Proponent: Whitehaven Coal Type: Metallurgical Production: 15 Mtpa
While the open-cut (Gregory) operation exported first coal for Sojitz in late 2019, the underground (Crinum) operation is still finalising feasibility studies. Production is expected to commence in 2021. The site’s CHPP has capacity to process up to 8 Mtpa of coal, with exports through the Port of Gladstone.
The Olive Downs mining leases were granted in late 2020, with the project set to commence construction in early 2021. Representing one of the biggest projects and investments in the Bowen Basin for some time, the project will employ nearly 1000 people in the construction phase, and up to 1600 in operations. Coal will be exported through the Dalrymple Bay Coal Terminal.
The Mackenzie North JV project is located north of Blackwater. An extension of the Jellinbah mine, the project will ensure the production rates of the Jellinbah project can be maintained. The project is expected to start removing overburden in 2020, with full production reached in 2022.
Winchester Downs is a little further down the pipeline, as the first investment in Queensland coal by Whitehaven. The project will be a $1 billion investment, expected to transition into production by FY24. All-new infrastructure for the greenfields project will include a rail loop, train load out and CHPP.
Exploration and pre-mining lease projects
ISAAC RIVER
VULCAN COMPLEX
SAINT ELMO PROJECT
Fast Facts
Fast Facts
Fast Facts
Proponent: Bowen Coking Coal Coal Type: Metallurgical Resource Estimate: 5.3 Mt
Proponent: Vitrinite Coal Type: Metallurgical Production: 1.95 Mtpa
Proponent: Multicom Resources Coal Type: Vanadium Production: 10,000 tpa
Isaac River completed a study in late 2019, upgrading the expected quality of coal at their site (which borders Daunia, Moorvale West and Winchester South). Now in the pre-feasibility study stage, Isaac River is undertaking another phase of exploration, coal quality investigation and geotechnical analysis.
The Vulcan Complex, located on the other side of the Goonyella Rail Line from Saraji, Peak Downs and Norwich Park, is an advanced project nearing mining lease application. Drilling so far has uncovered premium hard coking coal, after Vitrinite acquired the asset in September 2018. When the mine begins operations, it is expected to employ around 100 locals in a truck and shovel operation.
The Saint Elmo Project is one of many new projects in the North West Minerals Province, and there’s plenty of opportunity for coal suppliers to also work with minerals projects. The Project has lodged a Mining Lease Application, for a mine expected to process 6.5Mt of ROM material per year to refine the necessary vanadium. It’s unique in that the maximum depth of resources is 20 metres, making the Project a shallow mining operation. The Project will employ 250 people in construction, and around 150 in operations.
BBMC Yearbook 2020
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