Queensland Treasurer, State Development and Trade Minister Andrew Fraser was in Tokyo yesterday to brief 20% joint venture partner JFE Steel on the progress.
“Japan-based JFE Steel is one of Queensland’s largest export customers, and has long supported the Queensland economy,” Fraser said.
“The proposed $1.5 billion project is expected to produce up to 10 million tonnes per annum of high-quality, metallurgical coking coal primarily for the Japanese and Asian export market over a lifespan of 50 years.
“Up to 500 jobs could be created during construction and up to 1000 jobs at its full operational stage. If approved, this will be a substantial investment for Queensland and will ensure the longer-term future of townships in the area that rely on mining for their survival.”
Fraser added that the significant project declaration will allow QCoal and JFE Steel to work on the environmental impact statement for the project, which consists of six mining leases over mostly cleared cattle grazing land.
Located immediately west of Xstrata’s Newlands mine and about 20 kilometres west of the township of Glenden, the project will take advantage of existing rail infrastructure in the region.
The JV aims to mine through a “combination of open cut and underground developments” and establish two coal handling facilities and a rail loading facility.
While open cut mining is likely to take place through conventional excavator and truck methods, with a possibility of introducing electric rope shovels and draglines, the underground methods might even involve longwall top coal caving.
“Underground mining is likely to be by longwall extraction with potential for longwall top coal caving in some areas,” Byerwen Coal previously said.
“The final pit designs, mining methods and schedules will be determined once detailed mine planning is complete.”
Construction is expected to begin in 2012, with first coal in 2013.
Run-of-mine production is expected to reach as high as 15Mtpa, while the products will consist of high quality coking coal along with thermal coal.
A progressive ramp-up is aimed to hit 10Mtpa of product coal within the first three years of operation.
QCoal, a private company led by geologist and mining magnate Chris Wallin, owns 80% of the project.
