REGIONAL SPOTLIGHT

COAL HAS A SIGNIFICANT PLACE IN THE FUTURE OF AUSTRALIAN MINING.

THE COAL CAPITAL OF QUEENSLAND

DESPITE CONCERNS ABOUT THE FUTURE OF COAL MINING IN AUSTRALIA, OPERATIONS IN THE QUEENSLAND COAL REGION OF THE BOWEN BASIN CONTINUE TO PERFORM AND PROVIDE FOR LOCAL COMMUNITIES.

The final day of the United Nations’ Climate Change Conference in Glasgow, Scotland, saw strong debate over the wording of the commitments signed onto by almost 200 nations, replacing “phase out” with “phase down” in regard to coal consumption.

Following this signing, British Prime Minister Boris Johnson held a press conference where he said the event was the turning point for coal.

“Together, it is beyond question that Glasgow has sounded the death knell for coal power,” Johnson said.

Despite this proclamation, Australian Prime Minister Scott Morrison responded to questioning at a press conference to say that coal power had a significant place in the future of Australian mining, and that COP26 did not spell the end of coal.

Australia exported 177 million tonnes of metallurgical coal during the 2019–20 financial year, with a majority sourced from Queensland’s Bowen Basin.

Retired metallurgist-cum-marketer for BHP Tony Le Bas told Australian Mining the future of metallurgical coal would be maintained well past 2030.

“Analysts are predicting there will be more steel produced by electric arc furnace by 2040, but there will still be 1.3 billion to be produced by blast furnace. So over the next 20 years I can’t see demand for coking coal decreasing,” Le Bas said.

“We have the best coking coal in the world in Australia, and we produce the most on the seaborne market.”

BHP’s Queensland Coal operations comprises the BHP Mitsubishi Alliance (BMA) and BHP Mitsui Coal (BMC) assets in the Bowen Basin region.

BMA is Australia’s largest producer and supplier of seaborne metallurgical coal and is owned 50:50 by BHP and Mitsubishi Development.

BMA operates seven Bowen Basin mines (Goonyella Riverside, Broadmeadow, Daunia, Peak Downs, Saraji, Blackwater and Caval Ridge) and owns and operates the Hay Point Coal Terminal near Mackay.

BMC owns and operates two opencut metallurgical coal mines in the Bowen Basin (South Walker Creek Mine and Poitrel Mine). BMC is owned by BHP (80 per cent) and Mitsui and Co (20 per cent).

According to BHP’s 2021 annual report, a drop in the average realised coal price affected the operations’ revenue for the past 12 months.

“A spike in uncertainty regarding China’s import policy on Australia origin coals distorted the usual trade flows and had a key influence on the market,” the company stated.

“At Queensland Coal strong operational performance, including record production at Goonyella facilitated by record tonnes from Broadmeadow mine, was offset by significant weather impacts across most operations earlier in the year, as well as planned wash plant maintenance at Saraji and Caval Ridge in the first half of the year.

“At South Walker Creek, despite record stripping, production decreased as a result of higher strip ratios due to ongoing impacts from geotechnical constraints and lower yields.”

In September last year, Vitrinite received approval for its Vulcan mine complex, paving the way for the development of a $160 million metallurgical coal mine in the region.

The lease will unlock the first four years of an expected 15-years-plus mine life, opening the door for more than 150 full-time jobs while delivering a major economic boost to the region.

“Having the Vulcan mining lease approved for Vitrinite is a huge milestone for our company,” Vitrinite founder and managing director Nick Williams said.

“Going from a greenfield to a producing mine is a huge feat for any company and to do it in the time we’ve done it is an amazing feat and we’re very excited.”

Vitrinite first acquired the asset in 2018, quickly accelerating the project into development soon thereafter.

The region has also seen advances in mining technology in recent years, with Glencore using its autonomous longwall technology at the Oaky Creek underground metallurgical coal mine in the Bowen Basin following successful trials.

Developed by the Commonwealth Scientific and Industrial Research Organisation’s (CSIRO) Centre for Advanced Technologies, the underground longwall uses first-of-itskind ExScan technology, enabling the operation to be fully automated.

A control centre above ground is alerted by ExScan’s sensors and transmissions enabling it to operate the longwall using three-dimensional scans of the mining area.

Given the risks associated with methane-rich underground environments, the ExScan technology has been specifically designed for use in explosion risk zones.

The ExScan is contained in an enclosure that’s been certified to International Electrotechnical Commission ‘Ex’ standards for use in volatile underground environments.

According to the CSIRO, the technology helps to make remote operations safer and more accurate by providing situational awareness in explosion risk zones.

It also provides steering information for longwall systems by measuring face creep, retreat and roadway height in

BMC OWNS AND OPERATES SOUTH WALKER CREEK MINE.

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real-time, while creating accurate 3D maps of the underground environment by incorporating camera, radar and other sensor data.

It comes as Federal Minister for Resources and Water Keith Pitt recently visited the mine, with Glencore’s efforts in land rehabilitation and emission reduction also on display at Oaky Creek.

First announced in March last year, the mine has achieved 132.8 hectares of certified rehabilitation and has also cut emissions by up to 840,000 tonnes CO2 in the last year by using methane emissions for electricity generation.

The mining industry also takes time to look after the region.

To mark its 50th year in operation in 2021, BMA’s Goonyella Riverside Mine donated $50,000 in support of Moranbah community initiatives.

“Without the community, we don’t exist, whether it’s the schools or the health services or critical services like CQ Rescue choppers,” Goonyella Riverside Mine general manager Sean Milfull said.

As part of the “50 for 50” campaign, community organisations and local businesses were invited to apply for grants of up to $10,000 for initiatives that improve the liveability and vibrancy of Moranbah in the Bowen Basin.

Goonyella Riverside team members were then called on to vote for the shortlisted community applications and chose to support five initiatives from CQ Rescue Chopper, Moranbah Hawks Football Federation, Moranbah District Support Service, Moranbah State School and ELAM community services.

From building a cyclone shed for sports equipment at the local football club, to disadvantaged youth support programs, as well as funds to keep rescue choppers in the air and saving lives, the donations will reach right across the region.

“It’s almost a symbiotic relationship with the community where we’re feeding off each other,” Milfull said. “For us, it’s absolutely critical that we ensure the sustainability of critical services, whether it be health, education or community groups. And it’s something we’re very passionate about at Goonyella.”

However, it is important to note that coal is not the only thing in abundance in the Bowen Basin region.

A gas pipeline could future-proof gas supply, reduce emissions and help create jobs, a new study has found.

Queensland Resources Minister Scott Stewart last year released the Bowen Basin Pipeline concept study, which found opening the basin to gas development could bring environmental and economic benefits for the state.

“The answer to domestic gas shortages and supporting our manufacturers is more gas production here in Queensland,” Stewart said.

“Developing the Bowen Basin could do this, while also making a valuable addition to our transition to a low carbon economy.”

The concept study investigated potential pipeline pathways and optimisation of the Bowen Basin’s gas reserves to support the east coast gas market for export and domestic use.

The study also investigated opportunities to capture fugitive emissions from underground and opencut coal mines in the Bowen Basin to assist in Queensland’s efforts to reduce greenhouse gas emissions.

Stewart said the project could make meaningful progress towards the State Government’s target of 30 per cent reduction in emissions by 2030 and zero-net emissions by 2050.

“Modelling in the study showed that the reduction in fugitive emissions from coal mine methane capture outweighs the potential emissions impact from CSG (coal seam gas),” he said.

“This means that the pipeline would bring low-emission gas to market, and it could also reduce the emissions impact of coal mines in the area, which is a big win–win for all involved.”

Stewart said the State Government would ensure Queensland is doing the heavy lifting on gas supply and policy.

“Since 2015 the Palaszczuk Government has released more than 80,000 square kilometres of land for gas exploration, over a quarter of it guaranteeing the gas will be for Australian consumers,” he said.

“In a national first, we released land nearly three years ago exclusively for gas for the domestic market to boost essential supply to the east coast market, particularly our manufacturers.”

The Queensland Resources Council (QRC) has welcomed the news as it could help reduce industry emissions, boost the state’s gas supplies and create more regional jobs.

Chief executive Ian Macfarlane said the study followed six months of industry consultation, after the QRC and the Association of Mining and Exploration Companies secured an election commitment to assess the feasibility of building a new gas pipeline in the Bowen Basin.

“Building a pipeline in the Bowen Basin could provide a much better connection from the region’s gas reservoirs to Queensland’s gas markets and deliver a welcome increase in gas supply,” Macfarlane said.

“Gas is an essential input for refining and smelting, so this pipeline could also add value to Queensland’s metals exports, and deliver improved environmental outcomes through better use of waste gas from existing coal mines, which will help lower emissions.

“The QRC is delighted to see infrastructure like this under consideration, and we welcome the State Government’s commitment to work collaboratively with the Commonwealth in funding this important scoping study.”

“If the pipeline proceeded it would provide new jobs and opportunities for Queenslanders, particularly in the regions, and will help our state recover from the long-term impact of the pandemic on the economy.”

While the quest to lower emissions and “phase down” coal will have an impact on the region, operators in the Bowen Basin will continue to thrive for the foreseeable future. AM

HAY POINT EXPORTS COAL FROM BOWEN BASIN MINES.