Archived News for Industry Professionals

The first industry-wide analysis of lost coal production resulting from severe flooding in Queensland has reinforced the gravity of the disaster on the economy.

Releasing the Queensland Resources Council’s quarterly State of the Sector report in Brisbane, QRC chief exective Michael Roche said the extent of losses to the industry and Queensland in the form of foregone coal royalties would be determined by the speed at which normal production can resume.

‘The emptying of coal pits full of rainwater and the restoration of rail and road transport are central to ensuring losses are minimised,’ Mr Roche said.

‘It’s not a pretty outlook for the industry or Queensland.

‘However, as the coal industry demonstrated after the 2008 floods in central Queensland and during the global financial crisis, it can bounce back and must, in the interests of the Queensland and Australian taxpayers.’

Against a quarterly ‘business as usual’ baseline of 51 million tonnes of coal production (export and domestic) in Queensland, QRC analysis reveals that production in the March 2011 quarter is expected to fall by at least 25 percent and up to 50 percent under a ‘high impact’ scenario.

‘The translation of the lost production data into lost earnings is a daunting reminder of the size of the challenge confronting Queensland and Australia,’ Mr Roche said.

‘The state government will be missing out on coal industry royalties of between $1.6 and $2.9 million a day for the rest of the financial year.

‘The analysis is also forecasting a hit to Queensland’s Gross State Product in 2010-11 of $4.5-$8 billion.

‘To put that into perspective, Queensland’s GSP grew by $5.6 billion between 2008-09 and 2009-10, meaning that even at the lower end of the scale, the impact of the floods could see almost a whole year’s worth of Queensland’s economic growth lost.’

Mr Roche said that while prevailing high prices for coal would provide incentive for Queensland miners to move back into production quickly, the price benefits could flow straight to global export competitors if a concerted effort was not directed at de-watering Queensland mines and restoring transport links.

Airborne survey produces world first

Newly acquired data from an Airborne Electromagnetic (AEM) survey has revealed geological features to depths below the Earth’s surface well beyond any previously recorded by airborne systems.

Cougar Energy puzzled by UCG site closure

Cougar Energy says it cannot understand why the Queensland Government shut down its underground coal gasification (UCG) site on environmental grounds when breaches have occurred at coal seam gas projects.

Kanmantoo copper mine to open later this year

Construction is on track for the Kanmantoo copper mine in the Adelaide Hills to reopen later in the year.

Mining by-products effective in fight against algal blooms

CSIRO research has shown that some mining by-products can be effective in preventing nutrients from entering river systems, thereby reducing the potential for algal blooms.

Review of offshore oil and gas facilities announced

The Federal Government has commissioned the first ever comprehensive review into the security of the nation’s offshore oil and gas facilities.

Skills shortage hits resources sector

THE skills shortage is hitting Australia’s mining states hard with close to half of all businesses in Western Australia and Queensland directly affected, according to new data.

Queensland coal industry moves forward after floods

Despite the prospect of an estimated $2.3 billion worth of lost sales from wet season events beginning early December 2010, Queensland’s export coal industry is moving with determination to restore the state’s leading income earner.

Reporting to the state government’s economic recovery coordination taskforce, Queensland Resources Council Chief Executive Michael Roche said that many of the state’s 57 producing coal mines were working around the clock on removing floodwater from mine sites and securing access to rail transport.

‘QRC estimates that about 15 per cent of the state’s coal mines are in full production, with 60 per cent operating under restrictions and a further 25 per cent yet to resume normal operations.

‘At full production, the coal industry is worth $8.5 million a day to Queensland taxpayers through royalties paid to the state government.

‘It’s essential that the industry is given every opportunity to get back on its feet to restore that flow of much-needed funds to the state government after such a horrendous start to the wet season.

‘Until December 2010, the coal industry was on target to deliver the production volumes underpinning Queensland Treasury’s forecast of $2.8 billion in royalties to Queensland taxpayers this financial year.’

Mr Roche praised the efforts of both the state government and coal rail network owner QR National in supporting the coal industry’s recovery.

‘QR National has restored the Moura line to Gladstone and we are hoping for similar good news for the Blackwater system later this week.

‘However, it is also clear that the restoration of rail services to mines west of Brisbane and in the Surat Basin are going to take much longer.’

Mr Roche said that to take full advantage of the prospective return of rail services, coal mines and some coal seam gas sites need further dispensation from the Department of Environment and Resource Management (DERM) to pump flood water into nearby creeks that feed strongly flowing watercourses.

NSW report of management of dust from coal mines released

The Department of Environment, Climate Change and Water (DECCW), Department of Planning (DoP) and Industry & Investment NSW (I&I NSW) have completed joint NSW government agency environmental compliance and performance audits focused on the management of dust from coal mines to help improve environmental performance.