Coal in Australia

Australian Energy resources and major export ports
Coal reserves in BTUs as of 2009
Full-time employment in coal mining since 1984 (thousands of people)
Australian coal production (red) and exports (black), 1980-2012

Coal in Australia is mined primarily in Queensland, New South Wales and Victoria. It is used to generate electricity and 54% of the coal mined in Australia is exported, mostly to eastern Asia. In 2000/01, 258.5 million tonnes of coal were mined, and 193.6 million tonnes were exported. Coal provides about 85% of Australia's electricity production.[1] In fiscal year 2008/09, 487 million tonnes of coal was mined, and 261 million tonnes exported.[2] In 2010, Australia was the world's fourth-largest coal producer, after China, the United States, and India. However, in terms of proportion of production exported, Australia is the world's largest coal exporter, as it exports roughly 70% of coal production.[3]

Coal Mining in Australia has been the subject of criticism from members of the environmental movement,[4][5] because of its impact on the rural landscape and burning coal releases carbon dioxide, which is generally understood to contribute to climate change, global warming, sea level rise and the effects of global warming on Australia.[6] The burning of coal produces 42.1% of Australia's greenhouse gas emissions, excluding export coal, based on 2004 GHG inventory.[7]

Both Greenpeace Australia Pacific (Energy [R]evolution[8] and Beyond Zero Emissions (Zero Carbon Australia 2020[9] have produced reports claiming a transition can be made to renewable energy and Greenpeace has called for a just transition for coal based communities,[8] but others argue at present there is no strong evidence of a viable alternative for the vast majority of Australia's electricity generation, or for the significant economic and social benefits coal mining delivers to regional communities.[1][10] Coal Seam Gas, methane-based gas associated with deposits of coal has historically been flared, however over the past 10 years has been recovered and used to generate further electricity.[11][12][13]

The Carbon Pollution Reduction Scheme, which followed the draft report of the Garnaut Climate Change Review, has placed a price on carbon emissions through a reducing cap and trade emissions trading scheme and this would be likely to impact most heavily on brown coal usage within Australia (particularly in the Latrobe Valley in Victoria) for power generation.

Forms of coal

Two forms of coal are mined in Australia, depending on the region: high-quality bituminous coal (black coal) and lower-quality lignite (brown coal).

Bituminous coal is mined in Queensland and New South Wales, and is used for both domestic power generation and for export overseas. It is mined underground or open-cut before being transported by rail to power stations, or to export shipping terminals. Bituminous coal was also once exported to other Australian states for power generation and industrial boilers.

Lignite is mined in Victoria and South Australia, and is of lower quality due to a higher ash and water content. As a result Victoria adopted German power station and briquette technology in the 1920s to utilise the lignite reserves of the Latrobe Valley. Today there are three open cut lignite coal mines in Victoria used for baseload power generation.

Production and reserves

Australian coal and coke quarterly exports ($Millions) since 1988

Australia is the fourth largest producer of coal, and by proportion exported, Australia is the largest exporter of coal in the world,[3] with most of the exports going to Japan. Total production of bituminous coal in Australia in the financial year 2010-11 was 405 million tonnes (Mt.), down from 471 Mt. in 2009-10. This drop was largely as a result of the Queensland floods of January 2011 where production declined from an expected 200 Mt. to 163 Mt.[14]

Coal exports are Australia’s second-largest source of export income, after iron ore exports. In 2011, coal exports were worth 47 billion Australian dollars, or $USD 47.8 billion, with $USD 15.6 billion coming from exports of thermal coal for power stations.[15] Coking coal generated $22.4 billion of export revenue in 2012/13 financial year with thermal coal bringing in $16.1 billion during the same period.[16]

According to the Australian Bureau of Agricultural and Resource Economics and Sciences [17] the economically demonstrated reserves to production ratios for bituminous coal and lignite in Australia are 111 years and 539 years respectively, however these figures do not account for growth in production. Growth of bituminous coal exports in Australia has been growing at a rate of 5% (on average of the last 20 years). If this rate of growth was maintained to extinction all current economically demonstrated black coal in the country would be depleted in under 40 years, however continued growth at that rate is unlikely to occur for such a long period, and this estimate does not reflect growth in the demonstrated resource. Explorations in the last decade has resulted in a significant increase in inferred coal resources which are now almost double the economically demonstrated resource.[18]

Major mines

The following table lists the major Australian Coal mines.[19]

Mine State Location Ultimate Owner Lat & Long Type of Coal Million Tons Mined PA Million Tons Exported PA Major Buyers Major Method
Anglesea VICAngleseaAlcoa of Australia38°23′42″S 144°09′58″E / 38.395°S 144.166°ELignite?nilAnglesea Power StationOpen Cut
Beltana NSWSingletonXstrata32°39′22″S 151°07′16″E / 32.656°S 151.121°EThermal7.6??Underground
Bengalla NSWMuswellbrookCoal and Allied32°19′24″S 150°51′29″E / 32.3234°S 150.8581°EThermal???Open Cut
Callide QLDCallide (Biloela)Anglo American 24°19′38″S 150°37′04″E / 24.327292°S 150.617906°EThermal???Open Cut
Capcoal QLDMiddlemountAnglo American22°57′50″S 148°33′00″E / 22.964°S 148.55006°EHard Coking Coal & PCI7??Open Cut & Underground
Dawson QLDDawson (Moura)Anglo Coal24°17′46″S 151°06′47″E / 24.296°S 151.113°ESoft Coking & Thermal7??Open Cut
Drayton NSWHunter ValleyAnglo Coal32°20′46″S 150°54′40″E / 32.346°S 150.911°ESoft Coking & Thermal7??Open Cut
Broadmeadows QLDMoranbahBMA21°44′35″S 147°58′15″E / 21.743°S 147.97077°EHard Coking Coal4??Underground
Blackwater QLDBlackwaterBMA23°42′36″S 147°33′00″E / 23.710°S 147.55006°EThermal/Coking13??Open Cut
Blair Athol QLDClermontRio Tinto22°41′28″S 147°31′59″E / 22.691°S 147.5331°EThermal12??Open Cut
Burton QLDNeboPeabody Energy Australia21°34′12″S 148°10′59″E / 21.570°S 148.183°EThermal/Coking4??Open Cut
Callide QLDBiloelaAnglo American24°19′01″S 150°37′23″E / 24.317°S 150.623°E?4??Open Cut
Collinsville QLDCollinsvilleXstrata20°29′31″S 147°47′02″E / 20.492°S 147.784°EThermal/Coking5??Open Cut
Coppabella QLDCoppabellaPeabody Energy Australia21°50′56″S 148°25′59″E / 21.849°S 148.433°E?7??Open Cut
Curragh QLDBlackwaterWesfarmers23°28′30″S 148°51′43″E / 23.475°S 148.862°EThermal/Coking7??Open Cut
Goonyella/Riverside QLDMoranbahBMA21°43′48″S 147°58′44″E / 21.730°S 147.979°EHard Coking Coal11??Open Cut/Underground
Griffin Coal WA Collie LANCO Infratech 33°21′32″S 116°09′11″E / 33.359°S 116.153°EBitumous5nilBluewaters Power, Synergy PowerOpen Cut
Hail Creek QLDNeboRio Tinto Coal Australia (RTCA)21°29′06″S 148°22′05″E / 21.485°S 148.368°EHard Coking Coal4.5all?Open Cut
Jellinbah QLDBluff, QueenslandJellinbah Group 23°30′15″S 148°52′59″E / 23.504168°S 148.88307°EPCI and Soft Coking4.64.6Various steelmakers - Japan, China, India and BrazilOpen Cut
Lake VermontQLDDysart, QueenslandJellinbah Group 22°26′58″S 148°25′21″E / 22.449491°S 148.422491°EHard Coking Coal and PCI8.08.0Various steelmakers - Japan, China, India and BrazilOpen Cut
Leigh Creek SALeigh CreekNRG Flinders 30°30′11″S 138°25′26″E / 30.503°S 138.42394°ELignite??Port Augusta Power StationsOpen Cut
Loy YangVICTraralgonLoy Yang Power38°15′07″S 146°34′26″E / 38.252°S 146.574°ELignite?nilLoy Yang Power StationOpen Cut
MoorvaleQLDMoranbahPeabody Energy Australia21°59′24″S 148°21′14″E / 21.990°S 148.354°EThermal/PCI???Open Cut
Mount Arthur Coal (MAC)NSWMuswellbrookBHP Billiton32°20′01″S 151°52′36″E / 32.3335°S 151.87667°EThermal1512?Open Cut
Mount Thorley Warkworth (MTW)NSWSingletonCoal & Allied32°37′30″S 151°05′24″E / 32.625°S 151.090°EThermal/Coking???Open Cut
Moranbah North QLDMoranbahAnglo American21°52′26″S 147°57′50″E / 21.874°S 147.964°EHard Coking Coal4.5??Underground
Morwell VICMorwellInternational Power38°16′22″S 146°23′30″E / 38.272705°S 146.391662°ELignite20nilHazelwood Power Station,
Energy Brix		Open Cut
Norwich Park QLDDysartBMA22°46′48″S 148°28′48″E / 22.78°S 148.480°ESoft Coking Coal6all?Open Cut
Newlands QLD Glenden Xstrata 21°12′43″S 147°53′24″E / 21.212°S 147.890°EThermal/Coking12??Open Cut & Underground
Peak Downs QLDMoranbahBMA22°14′13″S 148°00′43″E / 22.237°S 148.012°EHard Coking Coal13all?Open Cut
Saraji QLDDysartBMA22°21′43″S 148°17′24″E / 22.362°S 148.290°EHard Coking Coal7.5all?Open Cut
Ulan NSWUlan via MudgeeXstrata32°14′38″S 149°44′56″E / 32.244°S 149.749°EThermal5??Open Cut & Underground
Wesfarmers Premier Coal WACollieWesfarmers33°24′40″S 116°14′20″E / 33.411°S 116.239°EBitumous3.5nilSynergy PowerOpen Cut
Yallourn VICYallournTRUenergy38°10′42″S 146°20′21″E / 38.1784°S 146.3391°ELignite?nilYallourn Power StationOpen Cut
Bulga CoalNSWSingletonOakbridge Group (Managed by Xstrata Coal)32°39′S 151°04′E / 32.65°S 151.07°EThermal/Coking10.8AllJapan, Nippon Steel, Nippon OilOpen Cut

Major export markets for Australian coal

Major Export Markets For Australian Coal (2008–2009)
Country/Area Million Tons Coking Million Tons Steaming Million Tons Total Rank % of exports
Japan 43.361.5104.8139.8
Korea (ROK) 15.127.943.1216.4
Taiwan 6.120.026.139.9
China 15.59.525.049.5
India23.80.924.759.4
Europe 18.62.320.967.9

Major coal export ports

Major Australian Coal Export Ports
Port State Million Tons
2009		 Million Tons
2008
Newcastle[20]NSW92.891.4
Hay Point[21]QLD82.480.4
Gladstone[21]QLD56.254.1
Abbot Point[21]QLD14.412.5
Port Kembla[22]NSW13.713.3
Brisbane<ref name="Queensland Department of Transport"/QLD6.35.5

Major coal mining companies

Major Australian Coal Mining Companies)[23]
Company Main Mines Total Coal Mined (Million Tons)
Anglo American Metallurgical Coal Ltd a. Anglo Coal Callide Mine, Queensland b. Anglo Coal Capcoal Mine Via Middlemount Middlemount QLD c. Anglo Coal Dartbrook Mine PO Box 517 Muswellbrook NSW 2333 d. Anglo Coal Drayton Mine PMB 9 Muswellbrook NSW e. Anglo Coal Foxleigh Mine PO Box 21 Middlemount QLD f. Anglo Coal Grasstree Mine Via Middlemount Private Mail Bag Middlemount QLD g. Anglo Coal Moranbah North Mine PO Box 172 Moranbah QLD h Dawson mine, one of Queensland’s leading export coal operations, is owned by the Moura Joint Venture, comprising Anglo Coal Australia Pty Ltd (51%) and Mitsui Coal Holdings Pty Ltd (49%)32.0
Bloomfield Collieries Pty Ltd Bloomfield at East Maitland and Rix’s Creek at Singleton0.88
BHP Billiton - Hunter Valley Energy CoalMount Arthur Coal, Muswellbrook, Hunter Valley NSW[24] 15.0 (FY2009 est.)
BHP Billiton Mitsubishi Alliance (BMA) Coal Operations Pty Ltd a. Blackwater b.Broadmeadow Mine c. Goonyella Riverside d. Gregory Crinum e. Peak Downs Mine f. Saraji Mine g. South Walker Creek Mine h. Poitrel Mine is situated south-east of the town of Moranbah i. Hay Point Coal Terminal, located 38 km south of Mackay 58.0
Centennial Coal Company Ltd Newstan, Awaba (Closed), Myuna, Mandalong, Mannering, Angus Place, Springvale, Charbon, Berrima, Clarence, Cooranbong (Closed), Munmorah (Closed)20
Coalpac Pty Ltd Cullen Valley Mine located in the Western Coalfield of New South Wales, Australia1.2
Cornwall Coal Company NE Tasmania0.725
Enhance Place Pty Ltd Colliery near Lithgow, NSW0.2
Ensham Resources Pty Ltd Pits A,B,C & D either side of the Nogoa River - referred to as the ‘Ensham Project’ - and the ‘Yongala’ pit, which is located approximately 5 km to the north of the main Ensham operation9.0
Felix Resources Limited a. Singleton in the Hunter Valley b. Central Queensland’s Bowen Basin c. Emerald in Queensland’s Bowen Basin d. The Moolarben coal project is a world class coal asset located 40 km east of Mudgee in the Upper Hunter Valley e.Harrybrandt exploration project, near Nebo in Queensland’s Bowen Basin3.9
Foxleigh Joint Venture Central Queensland?
Yancoal Australia Donaldson, Gloucester Basin, Monash, Middlemount, Yarrabee, Ashton, Moolarben, Austar 14
Idemitsu Australia Resources Pty Ltd western Bowen Basin8.0
BHPBilliton Illawarra Coal Appin, Westcliff & Dendrobium Collieries in the Illawarra and Wollondilly regions south of Sydney, New South Wales8
Jellinbah Group Pty Ltd Jellinbah and Lake Vermont Mines in the Bowen Basin of central Queensland8.6
Lithgow Coal Company Pty Ltd Cullen Valley Mine located in the Western Coalfield of New South Wales1.0
Macarthur Coal Limited Queensland's Bowen Basin5.5
Muswellbrook Coal Company Ltda. Drayton Mine – is an open-cut coal mine operated by Anglo Coal (Drayton Management) Pty Ltd. It is located approximately 13 kilometres south east of Muswellbrook?
New Hope Corporation Ltd Acland on the Darling Downs and at Rosewood near Ipswich3.92
Peabody Pacific Pty Ltd a.Burton mine is located in the Bowen Basin b. North Goonyella underground and Eaglefield open-cut mines are located at the northern end of the Bowen Basin c. Millennium mine is located near the town of Moranbah in the Bowen Basin d. Wilkie Creek mine is located in the Surat Basin of south-east Queensland e. Wilpinjong mine is located 10 kilometres south-east of Ulan mine and 40 kilometres north-east of Mudgee f.Wambo is one of Peabody's largest operating mines and is located in the Hunter Valley g. Chain Valley is located in the Newcastle coalfield on the southern shore of Lake Macquarie h. Metropolitan is located in the Southern coalfields, about 50 kilometres south of Sydney.22.0
QCoal owns or co-own five mines within the Bowen Basinn/a
Rio Tinto Coal Australia Pty Ltd Blair Athol, Hail Creek and Kestrel Mines and is currently constructing the Clermont Mine Project, all in Queensland and in New South Wales, Rio Tinto Coal Australia manages Coal & Allied's operations at Mount Thorley Warkworth, Hunter Valley Operations and Bengalla5.8
Vale (a) Integra Coal, Hunter Valley, open cast and underground mines, 61.2% owned by Vale. (b) Carborough Downs Mine, Central Queensland, underground longwall mine owned 80% by Vale. (c) Isaac Plains Joint Venture, Central Queensland, open cast mine owned 50% by Vale.8.0
Wesfarmers Coal Ltd a. Curragh mine in Queensland’s Bowen Basin b. Premier Coal mine at Collie in Western Australia’s south west c. Bengalla mine in the Hunter Valley of New South Wales 2.157
Whitehaven Coal Mining Pty Ltd Gunnedah Region of New South Wales1.0
Xstrata Coal Pty Ltd a. Westside, New South Wales, Australia b. West Wallsend, New South Wales Australia c. Bulga, New South Wales d. Beltana, New South Wales e. Narama, New South Wales f.Mangoola, Hunter Valley, New South Wales g.Mount Owen - The Mount Owen Complex consists of the Mount Owen, Ravensworth East and Glendell open cut coal mines h.Ravensworth, New South Wales i.Ulan Coal m. Baal Bone, New South Wales j. Cumnock, New South Wales k. Narama, New South Wales 29.3

Environmental impacts

The Australian community is understandably concerned about any mining activity that could place private or public property or valuable landscapes at risk. The coal industry claims however that extensive rehabilitation of areas mined helps to ensure that land capability, after coal mining, meets agreed and appropriate standards.[25]

Coal is the principal fossil fuel used in power generation not only in Australia but in many other countries. Links between coal mining, coal burning, and climate change are being discussed widely in Australia.[26][27]

On 27 November 2006 the Land and Environment Court of New South Wales judge Justice Nicola Pain made the historic decision to set aside the Director-General's acceptance of the Environmental Assessment for the Anvil Hill coal mine, on the grounds that it did not include a comprehensive greenhouse gas assessment, even though the proposed mining of coal was for export. However, on 7 June 2007 the planning minister for NSW Frank Sartor reversed this decision and approved the mine, attaching a list of 80 conditions to the mines operation including conservation offsets.[28]

Environmental regulation of coal mining

Commonwealth law

The main Commonwealth environmental laws potentially applicable to coal mining are the Environment Protection and Biodiversity Conservation Act 1999 EPBC Act and the Clean Energy Act 2011. The EPBC Act will only be triggered if a proposed action is likely to have a significant impact on a matter of national environmental significance, for example federally listed threatened species.

State law

New South Wales

Relevant laws are mining law, land use planning law, biodiversity law and water law.

Pollution law

Coal mining requires a pollution control ('environment protection') licence under the Protection of the Environment Operations Act 1997 (NSW) if it exceeds the following thresholds set out in Schedule 1 of the Act: if it is mining, processing or handling of coal (including tailings and chitter) at underground mines or open cut mines and (a) it has a capacity to produce more than 500 tonnes of coal per day, or (b) it has disturbed, is disturbing or will disturb a total surface area of more than 4 hectares of land by: (i) clearing or excavating, or (ii) constructing dams, ponds, drains, roads, railways or conveyors, or (iii) storing or depositing overburden or coal (including tailings and chitter).[29]

Clean coal technologies

The Federal Government has, as part of its pledge to mitigate global warming,[30] committed A$100 million to commission a climate change-fighting "clean coal" and carbon sequestration research institute to make Australia a leader in this emerging technology. Carbon sequestration technology is not expected to be commercially viable for at least 5 to 10 years, but the Federal Labor government argues that it is a vital technology given Australia's reliance on coal-fired electricity.[31]

See also

References

  1. ↑ 1.0 1.1 "The Importance of Coal in the Modern World - Australia". Gladstone Center for Clean Coal. Archived from the original on 8 February 2007. Retrieved 17 March 2007.
  2. ↑ "Australia Mineral Statistics 2009- June Quarter" (PDF). Australian Bureau of Agricultural and Resource Economics. Retrieved 3 October 2009.
  3. ↑ 3.0 3.1 EIA (25 November 2011). "Australia world's largest coal exporter, fourth-largest liquefied natural gas exporter". Today in Energy. U.S. Energy Information Administration. Retrieved 3 October 2012.
  4. ↑ Coal and Coal Seam Gas. The Greens NSW. Retrieved on 23 January 2013.
  5. ↑ Greens Queensland. (13 April 2010). Upper Hunter Valley coal mining shows dangers for Queensland. Media Release. Retrieved on 23 January 2013.
  6. ↑ Preston, B.L. and Jones, R.N Climate Change Impacts on Australia and the Benefits of Early Action to Reduce Global Greenhouse Gas Emissions. CSIRO. Retrieved on 23 January 2013.
  7. ↑
  8. ↑ 8.0 8.1 Energy [R]evolution. Greenpeace. Retrieved on 23 January 2013.
  9. ↑ Beyond Zero Emissions. Zero Carbon Australia. Retrieved on 23 January 2013.
  10. ↑ NSW Department of Planning. 2008. Impacts of underground coal mining on natural features in the Southern Coalfield: strategic review. State of New South Wales. Retrieved on 23 January 2013.
  11. ↑ GE's ecomagination™ Certified Jenbacher Power Plant Commissioned at Australian Coal Mine to Help Reduce Greenhouse Gas Emissions. General Electric. Accessed 14 April 2011.
  12. ↑ Queensland Government Inaugurates Alternative Energy Plant Powered by GE's Jenbacher Waste Coal Mine Gas Engines. www.v1energy.com. Accessed 11/05/2011.
  13. ↑ Clarke Generates Interest at Blackwater. Clarke Energy article in www.gastoday.com.au, Accessed 11/05/2011.
  14. ↑ "High cost of floods confirmed". Queensland Resources Council. 21 July 2011. Retrieved 23 January 2013.
  15. ↑ Reuters (5 September 2012). "New Frontier in Australian Mining Under Threat". The New York Times. Retrieved 4 October 2012.
  16. ↑ Matt Chambers (28 April 2014). "More mines to shut as coal woes deepen". The Australian (News Limited). Retrieved 22 July 2014.
  17. ↑ Energy in Australia - 2011. ABARES. Commonwealth of Australia. Retrieved on 23 January 2013.
  18. ↑ Australian Energy Resource Assessment. Chapter 5: Coal. Retrieved on 23 January 2013.
  19. ↑ Australian Coal Association. Retrieved on 23 January 2013.
  20. ↑ http://www.pwcs.com.au/display/assets/download.php?id=384
  21. ↑ 21.0 21.1 21.2 http://www.transport.qld.gov.au/resources/file/eb3e0c4a36b1d25/Pdf_port_of_abbot_point_cape_flattery.pdf
  22. ↑ Trade & Cargo. Port Kembla Port Corporation. Retrieved on 23 January 2013.
  23. ↑ Members. Australian Coal Association. Retrieved on 23 January 2013.
  24. ↑ (24 July 2009). BHP Billiton Approves Expansion Of Mt Arthur Coal Mine. BHP Billiton. Retrieved on 23 January 2013.
  25. ↑ Reducing the Environmental Impacts of Coal Mining
  26. ↑ (1 December 2006). Australian coal mine blocked over climate impact. New Scientist. Retrieved on 23 January 2013.
  27. ↑ Scott Bevan (2 November 2006). "Climate concerns fuel coal mine opposition campaign". 7:30 Report (Australian Broadcasting Corporation). Retrieved 23 January 2013.
  28. ↑ "NSW Govt approves Anvil Hill coal mine". ABC News (Australian Broadcasting Corporation). 7 June 2007. Retrieved 23 January 2013.
  29. ↑ Protection Of The Environment Operations Act 1997 - Schedule 1. New South Wales Consolidated Acts. AustLII. Retrieved on 23 January 2013.
  30. ↑ http://www.ret.gov.au/energy/energy%20programs/cei/ccsfp/Pages/default.aspx
  31. ↑ "Kevin Rudd's $100m clean coal plan". The Australian. 19 September 2008.

External links