Published in the January 2006 Australia’s Mining Monthly

With demand for coal reaching new highs, the massive capacity expansion continues at the Dalrymple Bay Coal Terminal (DBCT), near Mackay. Already one of the biggest coal terminals in the world, the DBCT expansion is on target to reach a planned capacity of 85 million tonnes per annum, an ambitious jump from its current 60Mtpa capacity.

DBCT’s stockyard is the industrious scene for some major terminal expansion busy work. New machinery, infrastructure and the upgrading and redeployment of some existing machinery all form part of the grand plan.

Voest Alpine Materials Handling won the contract to supply the major yard pieces. No new shiploaders will be added but the existing ones will be upgraded.

Linked to the Bowen Basin coal mines via Queensland Rail’s electric rail network, the DBCT is 38km south of Mackay at the port of Hay Point. The driving force behind the terminal expansion is infrastructure company Babcock and Brown Infrastructure, which operates the port under a 99-year lease from leaseholder DBCT Holdings Pty Ltd (a state government-owned company).

BBI group projects director Eric Kolatchew told Australia’s Mining Monthly that expansion was on schedule. “All phases are now underway, having received full approval from the QCA [Queensland Competition Authority],” he said.

Following the August 2006 completion of the terminal’s Short Gain Expansion, the RL1 reclaimer (which had collapsed in 2004) was replaced and capacity lifted to 59Mtpa.

The project now moves into the major chapter of expansion, which Kolatchew explained comprised three development phases. Phase 1 is targeted at 68Mtpa with completion expected by the end of this year; and the combined Phase 2-3, which aims for a capacity of 85Mtpa by the end of 2008.

As well as bringing in new stockloading machinery and introducing engineering and construction development, work is underway to boost both stockyard capacity and outloading capacity.

Building of an extra coal storage row, taking the number to seven rows, has been part of the expansion, while coal machinery and transport will be boosted with the addition of three more machinery bunds. Bund 5A has been completed and the third and final bund (4A) is due for completion by September, making eight bunds in total numbered 1-6 plus bunds 4A and 5A.

Voest supplied the expansion with all major yard machinery, with the stockyard now boasting a new stacker ST3 (the name reflecting the respective bund location) and a stacker reclaimer SR4A, complete with a 65m boom. The new year should herald an additional stacker reclaimer SR3A.

In 2007, plans are for the existing stacker reclaimer SR4 to be rebuilt on bund 6 as reclaimer RL2 by March. Into 2008 and the existing SR3 is scheduled to join the revamped reclaimer on bund 6, and a new stacker ST4 is planned to be serve bund 4 by early 2008.

According to Kolatchew, there are no new shiploaders in development but the company has plans to upgrade two existing shiploaders.

He estimates the costs for the stockloading side of the expansion to be around $250 million of the total $1.1 billion terminal expansion (excluding financing costs).

In addition to planned modifications to the sampling plant, the expansion involves plans to increase outloading capacity through additions and extensions to the conveyor system.

Connell Hatch, a joint venture between engineering players Connell Wagner and Hatch, has been put in charge of the design, procurement and construction management of major expansion engineering works, including development of the existing conveyor system. Connell Hatch project manager Wain Lawrence described the process of procurement and contracting as “a mammoth task”, but said he is pleased with the way the expansion is progressing.

DBCT currently has two onshore outloading conveyors and two offshore conveyors servicing three shipping berths. Expansion plans include the building of a third onshore and a third offshore outloading conveyor, enabling more coal to be shipped to market.

Lawrence told AMM that John Holland had been secured for the offshore expansion. Jetty widening construction is scheduled for late 2007 and early 2008. Higher reclaim rates from the new reclaimers should be further enhanced through increased speed of outloading conveyors. The conveying systems are designed and constructed by Connell Hatch, with some smaller components, such as transformers, being sourced from suppliers.

BBI had originally planned for the building of a fourth shipping berth if customer demand justified it. As demand for coal continues its ride to the top, Lawrence confirmed that the additional berth is “now no longer optional”

While the expansion is on schedule, both Kolatchew and Lawrence said the expansion had come up against problems associated with the current boom conditions.

Kolatchew said: “The most significant challenge to the expansion project is the volatility of the current market brought on by the concurrent infrastructure and mining boom.”

Lawrence supported this view and said tight market conditions made labour hire an ongoing concern.

“It’s a tough environment at the moment. All the contractors are busy and with the current tight market that we’ve got at the moment, getting the right people is a major issue,” he said.

Because of the difficulty in finding local staff, Lawrence said the expansion project has had to look into offshore fabrication options, with some steel equipment being manufactured in South Korea.

A surprising challenge the expansion faces comes in the form of the dreaded a-word: audit. As the DBCT is a regulated asset under the QCA act, the expansion project is subject to auditing by the state regulatory body.

“We weren’t expecting it, that’s true,” admitted Lawrence. “And it’s become a more detailed public government process rather than the sort of private operation that we’re more used to.”

Despite such feelings, Lawrence is taking the audit along with other expansion hurdles that arise in his stride.

DBCT continues to make its mark in the region with the main users of the terminal including Blair Athol, German Creek, Riverside, Oaky Creek, North Goonyella, Moranbah North, Burton, Hail Creek, Coppabella and Moorvale Foxleigh mines.

The final phase of the expansion is scheduled for completion by the end of 2008.