AUSTRALIA’S newest coking coal mine, the $1.76b Byerwen coalmine, officially opened on September 17.

Currently operating at 3mtpa, it will ramp up to its nameplate capacity of 10mtpa coking coal after a significant site expansion.

The open cut mine in the Northern Bowen Basin, about 20km west of Glenden, has employed about 1000 people during construction and the mine will have a permanent workforce of more than 500 people during operations.

The mine comprises four mining areas with a total of 18 open-cut pits, two coal handling and preparation plants, two train loading facilities, including rail loop and spur lines, connected to the existing line to Abbot Point, and an augmented power supply.

It is a JV between QCoal and JFE Steel 80:20 respectively, and has been five years in the making, with first approval from the Queensland Coordinator General granted in July 2014, and Federal approval granted in October 2014.

The first mine lease was granted to the company in April 2015, and it has an expected mine life of more than 50 years.

Queensland Resources Council (QRC) Chief executive Ian Macfarlane said that the opening of the Byerwen coal mine in North Queensland was testament to the strength and diversity of the state’s mining sector.

“This is a milestone not only for QCoal Group, but for all Queenslanders,” he said.

“Every new mining job in Queensland leads to at least another four jobs in associated industries and adds to the budget bottom line.

“Mines are part of the local community and during both construction and operations QCoal Group has kept track of its local spending and employment.

“Almost half of the spend during construction was in Queensland and in operations more than three quarters of the spend is in our state.

“More than half of the workers currently at the mine are from the Isaac, Whitsunday and Mackay regions.”

Coal mined at Byerwen will be exported to Japan, Europe, India and South East Asia.

“Queensland’s resources industry benefits all of us, from the workers at the mine site, to regional communities and down to the South East corner.”

A haul truck at Byerwen. Image Hastings Deeing – Facebook.

The opening day

Resources and Northern Australia Minister Matt Canavan said the official opening of the mine was symbolic of the resilience of Queensland’s coal industry, and that it would deliver more than $3b in direct wages, $3.8b in royalties.

“This mine has already contributed significantly to the region’s job numbers and will continue to do so over its potential 50-year lifespan,” he said.

“It also enhances our trade relationships with other nations which rely on our high-quality coking coal to produce the steel they need to grow and prosper.”

Speaking to attendants at the opening ceremony, in a somewhat bizarre rant, Mr Canavan launched into an anti-protester tirade.

“The history of the Australian mining industry is a reminder that dreams still come true,” he said.

“And today’s opening shows that we should still dream about a bigger and brighter future for the Australian mining industry.

“Today those dreamers have the modern problem of fighting a bunch of hypocritical, self-indulgent activists who like to enjoy all of the conveniences of modern life powered by our mining sector while campaigning against the very industry that makes this happen.

“The modern protest movement has become some kind of perverted take on the medieval purchase of indulgences.”

The Byerwen coalmine location. Image: Byerwen Coal Project.

Outlook

JFE Steel is one of Australia’s biggest trading partners, according to Queensland premier Annastacia Palaszczuk.

As the world’s largest producer of coking coal, Australia has seen a sharp decline in the price of coking coal.

The Resources and Energy Quarterly September 2019  said that rising supply, combined with falling demand, is expected to drive an easing of the average price from US$186/t in 2019 to US$158/t in 2021, while Australia’s exports are predicted to grow from 183mt over 2018-2019 to 198mt by 2020-21.

“The price has declined more sharply than previously anticipated, driven by a combination of factors,” it said.

“Demand growth has been relatively muted against a background of a deteriorating global economic outlook (see the macroeconomic outlook chapter) and weak global steel production outside of China.

“While Chinese imports of metallurgical coal have been strong, there has been growing negative sentiment impacting on buying from Chinese steel mills, due to multiple drivers.

“These include slowing demand, declining steel margins and an expected tightening in coal imports.”

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