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Coal juniors quell SCL concerns

SURAT Basin explorers MetroCoal, Stanmore Coal and Endocoal are not expecting any major impacts f...

Blair Price
Coal juniors quell SCL concerns

MetroCoal aims to introduce longwall mining to the Surat Basin and yesterday the explorer “rejected media speculation” that its projects in the region would be adversely impacted.

The company said the tenement of its key Bundi project was not within a protected SCL zone.

However, MetroCoal said a “relatively insignificant section” of the tenement housing its Columboola joint venture project with SinoCoal was in a proposed SCL area.

MetroCoal is still determining the impact on its Dalby West project in EPC 1166, which appears to be partially within a protected zone.

Company chairman David Barwick stressed there was a positive relationship with landholders in the Surat Basin communities it operated in.

He also emphasised the smaller disturbances from underground mining.

“Under the strategic cropping land guidelines, our tenements lie primarily in managed zones, rather than protected areas and we are committed to coexisting with agricultural land users for the benefits of surrounding communities and the Queensland economy,’’ Barwick said.

“Importantly, by accessing the resources through underground mining MetroCoal will minimise its footprint in the area.”

“Compared to other mining methods, underground mining leaves a very small footprint on the environment, with minimal impact on agriculture and other activities within the region.

“It should also be pointed out that the mechanics of subsidence caused by mining is very well understood and will be clearly identified once the mine plan is finalised.”

Yesterday Endocoal announced its key Orion Downs, Rockwood, Talwood and Pretoria Hill tenements were unlikely to be affected by the SCL legislation.

Grazing is the main land use in these areas but Endocoal said its activities were not located on broad expanse cropping land, river flats or irrigated farmlands.

“In all dealings Endocoal will continue to seek a positive working relationship with the landholder to ensure agricultural activities, as well as exploration and mine development planning activities, proceed in the most constructive way for both parties,” Endocoal chief executive officer Tim Hedley said.

Stanmore announced this morning that five of its seven main projects were outside of SCL protection areas, including its key The Range project near Wandoan which holds 219 million tonnes of inferred resources.

However, the company’s Mackenzie project covers a strike length of 23 kilometres and Stanmore expects the SCL criteria to affect about 10% of the project’s 99Mt of inferred resources.

Stanmore said it would work with the state government on the potential to upgrade surrounding land as a “mitigating offset” under the new cropping policy if this area of the project was confirmed to qualify as SCL.

The company’s Tennyson underground coal project falls in the proposed SCL protection area.

“The Tennyson project is currently being drilled and results to date indicate the possibility for definition of a substantial underground coal deposit,” Stanmore said.

“Stanmore maintains that while strategic cropping attributes may exist at the surface, an underground development would not permanently alienate that land for cropping activities.”

This week the Queensland government released the final maps for areas it deems unsuitable for future coal mining development in its SCL policy, which will be introduced into parliament later this year.

About 42 million hectares, or 24%, of Queensland’s total land area falls under the SCL policy including a total of 4.78 million hectares in the two strategic cropping protection areas which encompass parts of the Bowen and Surat Basins.

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