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Bowen Basin line up

SHRUGGING off a wave of production and job cuts early this year, Queensland's Bowen Basin still h...

Blair Price
Bowen Basin line up

A week ago Vale’s Carborough Downs produced its first coal with its $A130 million longwall system, which incorporates one of the first commercial installations of Longwall Automation Steering Committee technology.

Part of a $400 million expansion from bord and pillar mining to a longwall operation, the mine is expected to reach 4.9 million tonnes per annum.

Rio Tinto Coal Australia’s Kestrel mine extension is underway, having not suffered any setbacks despite the tough times a few months ago when the steel market slump was hurting the region’s industry.

The KME project aims to lift production to 5.7Mtpa from 2012, extend the mine life to 2031, increase the longwall face width to 375m and create up to 250 jobs in the construction process.

Ensham Resources is striving to start up its $250 million Ensham Central project at the beginning of 2010, but is awaiting Queensland government approval.

The move into underground mining aims to lessen the environmental impact and also comes from lessons learned in the 2008 flooding, with the natural disaster perhaps best symbolised by Ensham’s submerged 3000t Bucyrus 8050 dragline, which was brought back to service months later in January this year.

Most of the underground production will come from longwall mining, but bord and pillar mining is also planned.

Maximum output capacity is expected to remain the same at 12Mtpa, but underground mining is aiming for 6-8Mtpa to maintain the production rate while open cut resources are depleted.

In August, Aquila Resources completed a feasibility study for its Eagle Downs project, with the first longwall targeting 4.6Mtpa of hard coking coal by 2014.

Mine construction is scheduled to start in 2011 with first coal mined in 2012, and output is expected to reach 8Mtpa with the installation of a second longwall in 2020.

Vale could increase its longwall mining presence in the Bowen Basin by taking up an option to acquire the remaining 24.5% stake of the Belvedere project held by Aquila.

The Brazilian mining giant first purchased a majority stake in the project back in 2007 but holds the option to acquire 100% at fair market value as of December.

Prefeasibility studies for the project are looking at two longwalls producing up to 7Mtpa from two seams. Aquila says potential production could be 9Mtpa.

Should the project go ahead, first exports could start in 2014.

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