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$90M longwall positions Gujarat as coking coal leader

THE high quality of the hard coking coal at Gujarat's NRE No.1 mine in New South Wales will make ...

Lou Caruana
$90M longwall positions Gujarat as coking coal leader

The mine will commission a robust and simple longwall system that will deliver low cost tonnages after an initial ramp up period, he told ILN at an open day at the site at Russell Vale yesterday.

“We have not considered the investment at NRE No.1 from the perspective of international investment because our focus has been on the quality of the hard coking coal,” he said.

“Share price is not a true reflector of the investment or the price.

“It is a very scarce resource and my personal view is that the true value of the mines is a multiple of 10 to 20 times of what you see in the stock market.”

Jagatramka said production costs would vary from the longwall site but during development it could go as high as $200 per tonne and at the lower end about $120/t.

Jagatramka said production from Gujarat’s NRE and Wongawilli mine, which are considered viable for at least 30 years, are on target, with each mine targeted to produce around 3Mtpa of coal by 2015.

“By 2015 we anticipate we will be one of Australia’s largest producers of prime quality, hard coking coal,” he said.

The longwall system will have an initial face length of 145 metres, although there is an option that would allow it to be extended to up to 390m within five years.

NRE No. 1 project manager Rhys Brett, a veteran of longwall mining in the southern coalfields, told ILN the company was aware of geotechnical challenges in the future, including an upcoming fault in a longwall block.

“Certainly within a couple of months we expect to reach the full performance of the longwall system,” Brett said. “The challenge for any longwall mine is maintaining longwall continuity, and that certainly is a business challenge for us into the future.”

More than 300 guests witnessed a real-life simulation of the Joy longwall system.

The new longwall equipment, which includes a shearer, 82 powered roof supports, coal clearance system, electrical substation, pump station and retractable monorail, would maximise productivity at the mine, Jagatramka said.

The new equipment will have the capacity to shear, load and transport 3500 tonnes of coking coal per hour.

Two Sandvik MB670 continuous miners are developing the Wonga Mains roadway and completing driveage to install the longwall and associated coal clearance systems.

Three production units were manned for seven-day production during the second quarter following the transfer of an estimated 150 personnel from the No. 4 shaft to the Wonga East site.

Up to 20 Joy contractors in conjunction with NRE employees have been undertaking compatibility and automation trials, while crew undergo extensive training with the new machinery.

Gujarat has engaged Illawarra company Longwall Hydraulics, based at Unanderra, to supply its first longwall monorail for the Australian market. Pirtek Illawarra, of Unanderra, is providing all the hoses for the pump station and monorail system.

Joy will also refurbish and upgrade the existing longwall system at the second mine of the company, NRE Wongawilli, during 2013.

Jagatramka told ILN that Gujarat was prepared to operate under a new carbon tax.

“We are in the process of developing a plan on how to reduce the carbon,” he said.

“From an old mine rehab perspective we need to seal the old goafs and old areas, which we do continuously, and … once we have the new area properly developed we will be doing it.”

More use of flaring would also be employed to keep emissions to a minimum.

Jagatramka estimates that Gujarat’s average carbon tax would be $2.70 per tonne despite its NRE mine encountering more gas it goes deeper.

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