Callide sale imminent

ANGLO American Metallurgical Coal is expected to announce the sale of one of its two thermal coal mines in Australia – the Callide mine in Queensland.
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Callide mine, courtesy Anglo Coal.

Lou Caruana

The mine’s performance has been overshadowed by Anglo’s other high-profile global operations including Zibulo, a 6.6 million tonne per annum low-cost thermal coal mine in South Africa, which reached commercial production in October and Cerrejon in Colombia, which exceeded nameplate capacity of 32Mtpa despite significant rainfall in the year to December 2011.

The company is also expected to focus on developing its coking coal operations especially around its $US1.7 billion Grosvenor project in the Bowen Basin.

“The Callide mine sale process is progressing,” an Anglo American spokesperson confirmed to ILN.

Callide is an open cut mining operation providing low sulphur, sub-bituminous thermal coal primarily for Queensland’s domestic power generation.

Coal reserves at Callide mine are estimated at approximately 225Mt.

Annual production is 10Mt of saleable coal.

The coal fields cover an area of and contain seams up to 26m thick.

Coal is sold under long-term contracts to the nearby Callide power stations and transported via overland conveyor or by train to customers at Gladstone.

Callide consists of four major pits, with the southern area of the mine consists of Dunn Creek, Trap Gully and The Hut pits.

The fourth pit, Boundary Hill, is located 20km to the northwest.

Callide employs approximately 450 people (excluding contractors).

The mine uses both dragline and truck and shovel methods of overburden removal.