Department of mployment, conomic Development and Innovation Overview of Central Queensland Region s Current and Future Mining Projects and Operations in the Bowen and Galilee Basins 2012-13 Central Highlands Conference Investing in our Future 16-17 March 2012 Daunia Curragh June 2011 June 2011 Photo courtesy of Kevin Clough, DDI Photo courtesy of WesFarmers Resources Ltd Phil Ferenczi & Neil.Hoy@deedi.qld.gov.au* Rockhampton *Contact
Central Queensland Mining and Petroleum Operations - 2011 2011 Bowen Basin Prodn (ROM): 202 Mt (10/11) M+I Res: 20,500 Mt (2009) Sustain: 100 years Inferred: 19,600 Mt Carmichael 100 km North lpha Kevin s Corner Tad s Corner China First South Galilee lpha Oil Shale The State of Queensland, Department of mployment, conomic Development and Innovation, 2010 2
CNTRL QUNSLND MINING OPRTIONS (2011) 105 Direct FT 50 Coal mines (mainly large open cut / draglines) 32,600 (Sep11) 25 Mineral mines (Limestone, Gold, Magnesite) 920 (Sep11) 30 med to large size Quarries (construction industry) ~330 (Sep11) SIGNIFCNT MINING PROJCTS 75 (dvanced= 40; coal =36) 23 xpansions (22 coal + 1 mineral) 52 New (46 coal + 5 mineral + 1 shale oil) UNDVLOPD RSOURCS next 20 years Shale Oil (10 deposits containing 15 billion barrels of oil) Mineral resources (Nickel, Gold, Silver, Copper, Zinc, Limestone) > 10 billion tonnes of coal in Bowen Basin with large amounts of CSG The State of Queensland, Department of mployment, conomic Development and Innovation, 2010 3
Source: Wood Mackenzie Coking coal demand to double by 2020 Substantial growth from China and India ustralia to continue as dominant supplier xports: 2010-159 Mt 2020-300 Mt Strong import demand growth from China and India Indonesia and ustralia to maintain their position as the main suppliers ust xports 2010-143 Mt 2020-600 Mt (200-250Mt from Galilee Basin) The State of Queensland, Department of mployment, conomic Development and Innovation, 2010 Source: Wood Mackenzie 4
ISC RGION FITZROY RGION The State of Queensland, Department of mployment, conomic Development and Innovation, 2010 5
IS update for CQ Mining Projects pproved over the past six months (6) ; Codrilla, agle Downs, aglefield xpansion, Grosvenor, Middlemount xpansion and Millennium xpansion Currently under assessment (21): lpha (Tad s Corner), rcturus, Belvedere, Boundary Hill xtension, Byerwen, Carmichael, China First, Drake, ast nd xtension, llensfield, Foxleigh, Kevin s Corner, Minyango, Dingo West, Newlands xtension, Rolleston xpansion, South Galilee, Springsure Creek, Taroom, Teresa and Washpool Projects for IS assessment in 2012 (10): Baralaba South, Jellinbah xtension (Mackenzie North), Red Hill, New Lenton, Sarum, Saraji ast, Monto, Togara North, Wards Well, Taroborah and Willunga Construction Summary Coal mining projects currently under construction (12) totalling $11.5 bn nergy (gas-related) projects currently under construction (8) totalling $45.5 bn Projects likely to commence construction within 12 mnths (20) totalling $10.3 bn dditional mining projects under consideration (30) totalling $32.4 bn The State of Queensland, Department of mployment, conomic Development and Innovation, 2010 6
ISC RGION direct employ nt 30 Sep2011 ~20,560 (32) Mine Mine life mployment Mine Mine life mployment Collinsville 20 600 Millennium 15 400 Newlands 25+ 630 Poitrel 20 310 Burton 6 765 Peak Downs 50+ 1750 Nth Goonyella 5 620 Saraji 50 1620 Goonyella 50+ 2620 Norwich Park 40 1365 Moranbah North 20 990 Carborough Downs 20 490 Hail Creek Isaac Plains 17 370 Oak Park 10 1560 South Walker Lake Vermont 40+ 1200 Grasstree 10 30 690 Lake Lindsay 22 20+ 435 Broadmeadow Coppabella 30+ 560 Foxleigh CPCOL German Creek 21 565 20 390 Moorvale 15 285 aglefield 22 220 Sonoma 25+ 395 Clermont 17 770 = dvanced xpansion/ xtension Project (CONSTRN 2012 or within 12 mths) = Less dvanced The State of Queensland, Department of mployment, conomic Development and Innovation, 2010 7
Coal Mining Projects ISC RGION xpansions / xtensions (10) DVNCD dditional Op WF Newlands Northern (Xstrata Coal) completed Dec 11 (existing) Isaac Plains (quila Res/ Vale ust) completed Dec 11 (80) Burton (Peabody nergy) under construction (existing) Broadmeadow (BM) under construction (650) (existing) Lake Vermont (Lake Vermont Resources) under construction (150) Sonoma (QCoal) Creek diversions & Cows construction 2012 (existing) Millennium (Peabody nergy) IS approved, construction 2012 (160) Peak Downs (BM) construction 2012 (350) aglefield (Peabody nergy) IS approved, construction 2012? (700) North Goonyella (Peabody nergy) Longwall Top Coal Caving The State of Queensland, Department of mployment, conomic Development and Innovation, 2010 8
FITZROY RGION direct employ nt 30 Sep2011 ~12,010 Mine Mine life mployment Mine Mine life mployment Oaky Creek 30 1100 Cook 15 240 Gregory 3 435 Baralaba 3 110 Crinum 30 770 Dawson 30+ 1500 Kestrel 20 600 Callide - Boundary Hill 30 650 nsham 20 495 Blackwater 35 2410 Curragh 30 2160 Rolleston 30 525 Jellinbah ast 20 370 Meridan CSG 10+ 20 Yarrabee 20+ 280 Mungi CSG 10+ 10 Minerva 15 275 Denison Gas 10+ 40 Middlemount 22 340 Fairview CSG 20+ 450 = dvanced xpansion/ xtension Project (UNDR CONSTRN 2012 or within 12 mths) The State of Queensland, Department of mployment, conomic Development and Innovation, 2010 9
Coal Mining Projects FITZROY RGION xpansions / xtensions (10) DVNCD dditional Op WF Curragh (WesFarmers) new CHPP under construction (90) Kestrel (Rio Tinto) under construction (up to 550) (existing) Middlemount (Peabody / Gloucester) under construction (260) Dawson South Stage 2 (nglo mer.) under construction (100e) Yarrabee (Yancoal ust. Ltd) new CHPP completed May09 (100) Curragh West (WesFarmers) ML appln construction 2013? (100) Oaky Creek (Xstrata Coal) open cut redevnt construction 2013? (80e) Jellinbah ast (Mackenzie North) (Jellinbah Grp) ML appln (existing) Rolleston (Xstrata Coal) IS process construction late 2012 (300) Baralaba (Cockatoo Coal) construction 2012 (50e) The State of Queensland, Department of mployment, conomic Development and Innovation, 2010 10
dvanced New Projects (9) ISC RGION Under construction: Daunia OC (BM), agle Downs LW UG (Vale ust. / quila Resources) and Caval Ridge OC (BM), IS pproved or Granted ML : Codrilla OC (Peabody nergy), Grosvenor LW UG (MC) and Olive Downs North OC (Peabody nergy) dvanced IS stage : Jax OC (QCoal), llensfield LW UG (Vale ust.) and Drake OC (QCoal) Draft IS due 2012: Byerwen OC (QCoal), New Lenton OC (New Hope Coal), Sarum OC & UG (Xstrata Coal), Saraji ast LW UG (BM), Carmichael OC & UG (dani) # and Red Hill LW UG (BM) Pre-FS : Moranbah South UG (MC / xxaro ust.), Talwood UG (quila Resources), Moorvale UG (Peabody nergy), Wards Well UG (BM) and Winchester South OC (Rio Tinto Coal), Willunga OC (Peabody nergy) and Moorvale West UG (Peabody nergy) The State of Queensland, Department of mployment, conomic Development and Innovation, 2010 OC = open cut, UG = underground, # Galilee Basin 11
ISC RGION Potential new mines over next 10 years ~9,300 Mine Mine life mployment Mine Mine life mployment Daunia 21 400 llensfield 21 340 Caval Ridge 30 500 Talwood 15 300e Wards Well 20+ 350e Saraji ast 25+ 1400 Grosvenor 25+ 480 Drake 30 250 Moranbah South 28 650 Byerwen 25 1000 Olive Downs North 30 80 Winchester South 20+ 400 Codrilla 20 245 New Lenton 20+ 400e agle Downs 30+ 410 Red Hill 25 1500 Sarum 22 450e Jax 15+ 150 = dvanced New Project; The State of Queensland, Department of mployment, conomic Development and Innovation, 2010 e = unofficial estimate 12
dvanced New Projects (8) FITZROY RGION Under construction: nsham B&P UG (nsham Resources) dv. IS or DFS Stage: Washpool OC (quila Resources), Dingo West OC (Bandanna nergy), Minyango LW UG (Guangdong Rising ust. Ltd), Tads Corner OC (GVK) #, Orion Downs OC & UG (ndocoal), Baralaba North OC (Cockatoo Coal) and Springsure Creek LW UG (Bandanna nergy) IS or Pre-FS : Belvedere LW UG (Vale ust. / quila Resources), rcturus OC & UG (Bandanna nergy), China First OC & LW UG (Waratah Coal) #, South Galilee OC & LW UG (MCI / Bandanna nergy) #, Kevin s Corner OC & LW UG (GVK) #, Monto OC (Peabody nergy), Baralaba South OC (Cockatoo Coal), MDL 162 OC (Peabody nergy), Teresa LW UG (Linc nergy), Taroom OC (Cockatoo Coal), Taroborah OC & UG (Shenhuo International) and Togara North LW UG (Xstrata Coal) OC = open cut, UG = underground, LW = Longwall, B&P = Bord and Pillar, # Galilee Basin The State of Queensland, Department of mployment, conomic Development and Innovation, 2010 13
FITZROY RGION Potential new mines over next 10 years ~4870 Mine Mine life mployment Mine Mine life mployment nsham UG 8 160 rcturus 20 200 Springsure Ck 25 330 Belvedere 30+ 500 Washpool 15+ 370 Togara North 30+ 450e Minyango 25 450 Taroborah 30+ 450e Baralaba Nth 20+ 150e Orion Downs 15 200e Baralaba South 20 150e Mackenzie 20+ 150e MDL 162 20+ 400e Teresa 20+ 380 Dingo West 18 120 Middlemount 22 400 = dvanced New Project; e = unofficial estimate The State of Queensland, Department of mployment, conomic Development and Innovation, 2010 14
Department of mployment, conomic Development and Innovation Blackdown Tableland
XPLORTION COL Clermont Middlemount PC ML MDL lpha merald Duaringa QLD xploration Rolleston $456M 10/11 $94M 05/06 70 km The State of Queensland, Department of mployment, conomic Development and Innovation, 2010 16 http://mines.industry.qld.gov.au/geoscience/interactive-resource-tenure-maps.htm
Galilee Coal Projects ~12,880 Resource stimate/ prodn xpected Start-up Mine Capital xp. Mine mployment Tad s Corner (lpha) 1820 Mt (30 Mtpa) 2015 $3400m 1535 (constr) 1200 (op) Kevin s Corner 4270 Mt (30 Mtpa) 2016 $6600m 2500 (constr) 1500 (op) China First (South lpha) 3684 Mt (40 Mtpa) 2016 $4000m 2500 (constr) 1900 (op) South Galilee 1180 Mt (15 Mtpa) 2015? $4150m 2000 (constr) 1280 (op) Carmichael 7800 Mt (60 Mtpa) 2015? $4100m 5000 (constr) 4000 (op) North lpha 3480 Mt (40 Mtpa) 2017 $1000m N Degulla (PC 1078) 1000 Mt + (30 Mtpa) 2017? $8000m 3000 (constr) 2000 (op) China Stone (PC 987) 3750 Mt (60Mtpa) 2016 $3000m+ N lpha West (GVK) 1800 Mt (20 Mtpa) 2017? 1000+ (op) lpha West (Waratah) The State of Queensland, Department of mployment, conomic Development and Innovation, 2010 17
Pit 6 24.5 km Pit 4 Pit 3 Pit 2 Pit 1 Pit 5 CHPP Tad s Corner (lpha) GVKPIL (79%) & Hancock Coal (21%) Open cut 30 Mtpa (saleable) Draft IS released (Nov2010) Bankable Feasibility Study (Q2 2011) Capx: $3.4 Bn (mine); $2.8 Bn (rail) and $1.7 Bn (port).total: $7.9 Bn Mine Workforce: 1535 (con), 1200 (op) Mine life: 30 years + 6x Draglines, 47 rear-dump trucks Bulk sampling (125,000t to date) Construction: Q4 2012 First Coal: 2015 Test Pit Dec2010 The State of Queensland, Department of mployment, conomic Development and Innovation, 2010 Test Pit Jun2011 18
utonomous and Remote Operations Galilee Basin coal suited to automation Technology is already here RioTinto Mine of the Future Mining - changing by the day Innovation - safer, cleaner, efficient Driverless trucks, drills, trains, tunnelling The State of Queensland, Department of mployment, conomic Development and Innovation, 2010 19
MINING RLTD PROJCTS PORTS bbot Point CT X50: 25 50 Mtpa ($820m) 550 constr completed May 2011 Hay Point CT Phase 3: 45 55 Mtpa ($2.5 bn) 1000 constr in progress Dungeon Point CT 120 Mtpa ($10 bn) 5000 constr IS in progress Wiggins Island CT 27 Mtpa (Stage 1 $2.5 bn) 800 constr in progress Balaclava Island CT 35 Mtpa ($1 bn) up to 800 constr IS in progress RIL Northern Missing Link (69 km) 50 Mtpa ($1.1bn) 800 constr completed Dec11 WICT Rail Blackwater system dupln. ($900m) 800 constr in progress Moura Link & ldoga Rail Yard expansion ($500m) 350 constr commence 2012 Blackwater rail power upgrade 76 85 Mtpa ($140m) 1000 constr in progress GS, WTR ND POWR rrow Bowen Gas pipeline (600 km) $1000m 650 constr IS in progress 4x Surat-Gladstone Gas pipelines (450 km) 500-1000 constr in progress Connors River Dam and water pipeline ($790m) 620 constr IS approved The State of Queensland, Department of mployment, conomic Development and Innovation, 2010 20
State-wide outlook: Qld Master Contractors ssn. 2012 Major Projects Report 9 February 2012 drian Hart from BIS Shrapnel http://www.qmca.com.au/qmca-2012-majorprojects-report-released The State of Queensland, Department of mployment, conomic Development and Innovation, 2010 21
MINING PROJCT INFORMTION DDI CQ xploration and new mining developments http://mines.industry.qld.gov.au/mining/central-qld-info-maps.htm SQ xploration and new mining developments http://mines.industry.qld.gov.au/mining/southern-qld-info-maps.htm Coordinator General s (Significant Projects) http://www.deedi.qld.gov.au/cg/coordinator-general-projects.html DRM (I) Current IS www.derm.qld.gov.au/environmental_management/impact_assessment/eisprocesses/current.html Company websites SX website www.asx.com.au/ BR (ustralia-wide)..major development projects listing Oct 2011 http://bree.gov.au/ (Bureau of Resources and nergy conomics) The State of Queensland, Department of mployment, conomic Development and Innovation, 2010 22
The State of Queensland, Department of mployment, conomic Development and Innovation, 2010 23