Recent studies have found that about 10 coal mines in the Hunter and Newcastle coal fields will have depleted their reserves and be shut down over the next 10 years, but by 2012-13 more than half of the state’s production could be coming from new mines and extensions.

 

The industry profile also found there would be an increased reliance on new opencut coal operations in the Upper Hunter region, as a number of small underground mines are due to close down for lack of reserves.

 

Some of the new projects are already well underway, with Whitehaven’s Werris Creek opencut mine now producing up to 1.5 million tonnes per annum as raw coal for the export market.

 

The Caroona coal project in the Gunnedah Basin is now in its early stages and is estimated to contain more than 500Mt in situ of potentially mineable underground coal that may produce a high quality, exportable thermal coal.

 

The industry profile also reported that as at June 2006, there were 30 underground coal mines producing in NSW and 28 opencut mines.

 

Since 2003, coal production from the Southern and Western coal fields has increased, and as the larger mine proposals come on board over the next decade, this upwards trend looks set to continue.