7 minute read
Coal is delivering a sustainable future for our regions.
from BBMC Yearbook 2021
by bbminingclub
Paul Flynn, Managing Director and CEO, Whitehaven Coal
While the COVID-19 pandemic continues to pose major challenges for governments and businesses in a range of industries across Australia, it has also reinforced the vital role of the coal industry – Australia’s second largest commodity export – in sustaining and supporting regional economies through this period of ongoing economic recovery.
For some, sustainability and the coal industry are an unlikely match but the last 12 months have clearly demonstrated the important role coal has to play in providing a sustainable future for our regions.
For Whitehaven Coal, sustainability is about how good assets and good operational practices combine to create enduring value for our stakeholders. Whether it’s a local business supplying our operations, a long-term customer accessing high-quality raw materials or an apprentice learning new skills on which an entire career can be built, sustainability has always been at the heart of our company.
Whitehaven operates four mines in the Gunnedah Coal Basin of NSW, with a 2,500-strong workforce and ROM coal production for FY21 of 20.6Mt. Our operating assets are complemented by two high-quality, near-term development assets – including Winchester South here in the Bowen Basin.
Over our more than 20-year history, including 14 years as a publicly-listed entity on the Australian Securities Exchange (ASX), we are proud to have developed a growing reputation for excellence in project delivery, safe operation, and targeted investment in the local economy and community. We see our purpose as supporting and sustaining regional communities by exporting high-quality thermal and metallurgical coal from Australia to the world.
The benefits of our presence go beyond our workforce and beyond the life of any single mine. Ultimately, we aim to leave an economic and social legacy that outlives our mining operations, and lives on in the areas of education, health, skills and infrastructure.
Alongside other local industries such as agriculture, the opportunities we provide through employment, development and procurement build a more diversified and skilled regional economy. In FY21, Whitehaven spent $344.7 million with local suppliers in North West NSW and regional Queensland. Of this, $5.15 million was spent with 14 Aboriginal and/or Torres Strait Islander businesses for goods and services ranging from on-site training to office supplies. As an Australian company, we have a proud history of prioritising jobs for local communities.
Currently around 75% of our workforce lives in the communities around our NSW operations. Noting the benefit this brings, Whitehaven will seek to maximise local employment for Winchester South here in the Bowen Basin. We believe our experience in NSW has us well-positioned to create a sustainable future for the communities around Winchester South, which is located 30km south-east of Moranbah, between Peak Downs and Poitrel and immediately adjacent to Eagle Downs and Olive Downs.
If approved, Winchester South will involve the construction of a new open-cut coal mine, a coal processing plant and a rail loop to connect with the existing Bowen Basin coal rail network, providing access to multiple ports. At full capacity, the mine is targeting run-of-mine (ROM) production of up to 17 million tonnes per annum of coal to supply the international market for about 30 years.
Winchester South Project highlights include:
• $1 billion investment
• Long-life opportunity to supply international markets for ~30 years with metallurgical coal for steelmaking and thermal coal for energy generation
• 500 construction jobs and 500 operational jobs
• $4.9 billion to Queensland suppliers (NPV terms), $563 million in royalties to the State Government (NPV terms) and $202 million in additional wages into the community (NPV terms).
A draft Environmental Impact Statement (EIS) was recently made available for public comment following years of planning and consultation with stakeholders.
In line with our approach in NSW, Whitehaven is committed to being a responsible operator in the Bowen Basin. That means working with our neighbours, traditional landowners and other stakeholders with openness and transparency, and in a meaningful and respectful way. As Winchester South will be our first development in Queensland, we’ve invested a lot of time and resources into building productive relationships with key stakeholders, such as the community, landowners, local council, government, neighbouring mine owners and the Barada Barna Aboriginal Corporation, all of whom have been critical to developing our proposal.
Our first local agreement was the Cultural Heritage Management Plan with the Barada Barna People, which outlines how we will work together to manage cultural heritage artefacts or sites located within the project area. We will soon be releasing our second Stretch Reconciliation Action Plan, which reflects our vision and commitment to ensuring Aboriginal and Torres Strait Islander peoples stay connected to country, community and culture by obtaining economic independence through long-term and rewarding careers in our mining operations.
When we opened our most recent new mine, Maules Creek near Gunnedah in 2015, our aim was to ensure 10% of the workforce be of Aboriginal and/or Torres Strait Islander (ATSI) descent within five years of operation. It is with great pride that Whitehaven has exceeded that target at Maules Creek every year since, with around 20% of the workforce identifying as ATSI as at the end of FY21.
The enormous success of this initiative has enabled us to extend our commitment beyond direct employment to seek out opportunities in health, education and training, cultural awareness and understanding, economic development and community partnerships. We now work with local Indigenous people in North West NSW to build the tools and develop the skills needed to successfully overcome some of the structural and systemic disadvantages many face in their daily lives.
We are assisting new and developing local ATSI businesses and working with our major contracting companies and suppliers to encourage support for ATSI employment and business development within their spheres of influence. Our intergenerational commitment to educational and employment outcomes reflects the legacy of our long-life mining projects. In time, we hope our workforce will include the children and grandchildren of our current Aboriginal and Torres Strait Islander workers. This is something we are immensely proud of and we look forward to also seeking to maximise ATSI employment here in the Bowen Basin.
As we look ahead, how the world responds to the challenges posed by climate change will likely continue to dominate discussions in the sustainability and Environmental, Social and Governance (ESG) context.
Whitehaven, like many of our stakeholders, understands the complexity of the challenge moving to a carbon-constrained future poses. We believe a multi-faceted response is required, which high-quality Australian coal can be a part of. Demand for our coal is strong due to its unique properties and ability to deliver among the lowest carbon emissions per tonne of coal consumed. More importantly, through exporting high-quality thermal and metallurgical coal from Australia to the world, Whitehaven and our peers in the industry are able to fulfil our purpose of supporting and sustaining regional communities here in Australia. This is what we are most proud of and what we will continue to strive to achieve for years to come. We look forward to the opportunity to play a role in delivering a sustainable future for regional communities here in the Bowen Basin.
