Located 10 kilometres south of the town of Blackwater in Central Queensland, the Minyango project covers 3325 hectares near Caledon’s Cook colliery and BHP Billiton Mitsubishi Alliance’s Blackwater open cut mine.
London-based and dual-listed Caledon detailed the project’s parameters in a recent federal environmental application.
Mining of the 2.5-3 metre-thick Aries and Pollux seams in the Rangal coal measures is slated to produce metallurgical and thermal coal at a ratio of around 62:38 for a 25-year mine life, including rehabilitation.
While other seams are not deemed suitable for economic extraction, the two target seams collectively hold 192.9 million tonnes of resources, including 43.5Mt in the measured category.
From the 55Mt ROM of probable reserves, Caledon expects 46.6Mt of saleable coal but more exploration and evaluation will take place this year to underpin a full feasibility study.
Mining is expected to consist of longwall extraction supported by bord and pillar operations to initially produce 3.5Mtpa ROM.
Further evaluation will identify the preferred production method, such as whether continuous miners will be used just for first workings or for partial and full extraction.
Preferred mining layouts and equipment configurations also need to be established.
An estimated mine plan submitted to the federal government already contained 44 panels.
Project construction is slated for 2014 and is expected to create 500 jobs over 18 months.
There is scope for a second-stage expansion, which would lift the operational workforce to 450 for 7.5Mtpa of saleable coal production.
Detailed design work for construction is yet to be done and further investigations will determine whether infrastructure from nearby operations can be used.
“In particular, the project has the option of using an upgraded coal handling and preparation plant and the existing rail load-out at the nearby Caledon-operated Leichardt area [approximately 6km south of the project area],” the company said.
“Use of Leichardt facilities would necessitate transport of coal from the project area to Leichardt via road transport, conveyor or pipeline.”
A rail spur from the Leichardt CHPP already runs through the project, providing plenty of options for a rail load-out facility.
The project has easy access to powerlines and there is also a water pipeline across the area.
The federal application was made to meet the requirements of the Environment Protection and Biodiversity Conservation Act.
Most of the land in the project is primarily used for cattle grazing and Caledon expects very few, if any, potential effects on EPBC-listed species and ecosystems from the proposed development.
Caledon has previously flagged the possibility the Minyango project would share wash plant and rail infrastructure with the Cook mine to make a substantial mining complex.
