BRIGHT IDEAS
Fitzroy Australia Resources
SINCE Fitzroy Australia Resources (Fitzroy) acquired the Carborough Downs mine in 2016, more than 2 million tonnes of coking coal has been produced and a 10-year mine life has been achieved by opening up northern reserves.
The mine, formerly owned by Brazilian mining giant Vale, had encountered a number of issues since it began production– with various geological problems, rock faulting, and dangerous levels of carbon monoxide causing a force majeure in 2012.
Before the acquisition, Vale intended to put Carborough Downs into care and maintenance, but Fitzroy had other plans for the project, as well as the nearby Broadlea open cut mine, which was already mothballed.
Fitzroy Australia Resources chief executive Grant Polwarth said that turning the Broadlea and Carborough mines around and increasing production by 33 per cent was due to “thinking outside the box”.
“Upon acquisition of Carborough Downs, there was a major fault structure prohibiting access to the mine’s northern resources, which would have resulted in a longwall discontinuity of over 12 months,” Mr Polwarth said.
“We challenged the mine plan and industry norms to optimise the plan and unlock several smaller remnant longwall panels and diversified the mining mix by implementing bord and pillar mining.
“The fault traverse was approached differently and was conquered within 10 months of acquisition – this unlocked a 10-year mine life in the northern reserves and delivered longwall continuity.”
Ironbark No.1
The lessons learned through the revival of Carborough Downs can only add to Fitzroy’s recently approved Ironbark No.1 project, also in the Bowen Basin, 35km north-east of Moranbah.
The new project will share existing infrastructure at Carborough including the coal handling preparation plant (CHPP) and rail load out facilities – making it both low impact and capital efficient.
“Ironbark No. 1 will be a new, modern, underground longwall and bord and pillar operation,” Mr Polwarth said.
“It will mine the same seam and utilise the same mining methodologies as Carborough Downs,” he said.
Mr Polwarth said the right culture helped in the Carborough Downs revival and that the team’s experience will be vital to the new project.
“We were fortunate to have great people – we needed to get the culture right: back to basics coal mining where we are proud of what we do and have conviction in ourselves and each other,” he said.
“We will take over 10 years of learnings, the experience and expertise of our team, and continue to challenge industry norms at Ironbark No.1.”
Economic Benefits
Queensland Resources Council (QRC) chief executive Ian Macfarlane said he was thrilled the Palaszczuk Government issued a mining lease for the Ironbark No.1 project.
“Around 160 jobs will be needed for construction to build the greenfield mine, which will produce metallurgical coal for export in early 2020,” Mr Macfarlane said.
“It’s more good news for the coal industry and is another example of the Queensland Government’s commitment to responsibly develop the State’s rich mineral deposits to the benefit of all Queenslanders.
“Resources are a major contributor to Queensland’s economy creating a job every 40 minutes, investing $1 million every hour and exporting $1 billion each week.”
The project provided the opportunity for up to 6 million tonnes of coking coal production annually, and the possibility of 350 jobs on site from the first quarter of 2020.
“The economic benefits extend beyond the significant royalties to the State – this development will further strengthen our already strong presence in the local community and region more broadly,” Mr Polwarth said.
“At Fitzroy, we pride ourselves on being a people business that mines coal, and the construction of Ironbark No.1 will see that vision continued.
Queensland Mines minister Dr Anthony Lynham was equally enthusiastic about the economic potential of the project.
“Ironbark No.1 comes on top of the 13 committed resources projects in Queensland with a combined capital value of more than $9.4 billion across multiple commodities,” Dr Lynham said.
“Another 42 projects are at feasibility stage, with a combined capital value of more than $65 billion, again, across multiple commodities.
“Queensland remains a global resources investment magnet, as our $56 billion resources sector generates thousands of jobs and business opportunities and royalties to pay for our teachers, doctors and nurses.”
The Queensland resources sector now provides one in every six dollars in the Queensland economy, sustains one in eight Queensland jobs, and supports more than 16,400 businesses across the State all from 0.1 per cent of Queensland’s land mass – so the project will be a shot in the arm for the local economy.
“This is great news for Mackay and coalfields families, and businesses, especially those affected by the recent job losses at Hail Creek,” Member for Mackay and Assistant State Development minister Julieanne Gilbert said.
“It shows that the resources sector continues to offer bright prospects for our region well into the future.”
Skilled Workers
The Ironbark No.1 project will also focus on training and upskilling new workers for a long and rewarding career in coal.
“We are excited to be providing the opportunity to employ in excess of 50 per cent of the workforce as new industry entrants – training and engagement will be a primary focus as we bring the team together,” Mr Polwarth said.
“This will be a once in a career opportunity to be part of building a new mine, new team and the broader Fitzroy journey.”
Digital skills will be vital to the future workforce and Fitzroy was committed to trialing new technologies and ensuring that digitizing operations will improve both safety and productivity of the new employees.
“We believe connectivity to the coal face will have immense benefits to safety and efficiency, and we’re working to try and deliver the coal mine of the future,” Mr Polwarth said.
“Our lives have been transformed by the power of digital communications and technology – imagine being able to video-conference the longwall deputy on the face from thousands of kilometres away and see what they are seeing, as an example.”
“We trialled, and will be deploying this technology at Carborough Downs in early 2019 – the possibilities are endless.”
Global Outlook
In a recent report commissioned by the Minerals Council of Australia, Market Demand Study: Australian Metallurgical Coal, data showed rapid growth in Australian metallurgical coal exports from the Bowen Basin — generally considered to be the best metallurgical coal in the world.
“Metallurgical coal import demand is expected to grow more than 95mt over the period [2018-2030], from 275mt in 2017 to 372mt in 2030. This is equivalent to 2.3 per cent growth per annum, or around 7.5mt,” the report stated.
“The forecast growth in metallurgical coal import demand from 2018-30 is approximately 56 per cent of current Australian metallurgical coal exports, therefore representing a large potential growth opportunity for the sector.”
Mr Polwarth said the company was well on its way to becoming a key player in Australia’s coal industry.
“We aspire to build the next great Australian mining house,” he said.
“With over 98,000ha of tenement in the central Bowen Basin, the imminent Ironbark No.1 coal mine project and a centralised hub of world class infrastructure, we are well-placed to realise that vision.”
Construction was planned to commence at Ironbark No.1 in 2019, with first coal from the underground operation in Q1 2020 and first longwall coal in Q3/Q4 of 2021.
“Ironbark No.1 will be a new, modern, underground longwall and bord and pillar operation”