BHP reported that third quarter coal production from Queensland was lower than in September last year largely due to the sale of Moura in August 1999. Production at Blackwater increased but production from the Crinum longwall was down (554,000t for the quarter) because of a minor roof collapse and industrial action in September. During the period, New South Wales Illawarra collieries produced 1.738Mt (1.693Mt September 1999).
BHP also said the South Walker Creek open cut coal operation had sufficient demand to accommodate an increase in PCI coal sales to 3.35Mtpa and thermal coal to 300,000tpa. The expansion will be dependent on the extension of the rail network, which is currently limited to 3.1Mtpa.
Meanwhile, exploration continued at several BHP properties during the quarter towards the potential development of three new underground coal mines.
At the Goonyella exploration adit, at the Goonyella mine in central Queensland, BHP is conducting feasibility studies for a proposed longwall mine. An exploration adit is being driven by contractor Allied Mining in three headings downdip from the Ramp 4 South highwall.
Progress slowed during the quarter due to small scale faulting, pushing out the completion date for the adit to December, about two months behind schedule, and causing a budget overrun of 10%. BHP said results to date confirmed interpretations made from surface drilling and seismic surveys. At the end of September a total of 11,126m metres of development had been completed out of a projected total of 12,460m.
BHP said exploration activities for the Saraji longwall pre-feasibility study (52.1% BHP owned) continued focusing on identifying additional reserves of appropriate quality coking coal.
In the NSW Illawarra coal operations, BHP reported that the Dendrobium project has moved into the feasibility phase.
"This includes carrying out additional exploration to prove up the resource, engineering studies to detail mine design, capital and operating costs; pursuing necessary Government approvals, and firming up the relevant markets," the company said.
See related stories, San Juan, Goonyella adit (URL's below).
