An operator at Capcoal mine
Capcoal operates two underground mines, and two open-cut mines in the heart of the Bowen Basin in Central Queensland.
Together these mines produce premium quality hard coking coal for export steel markets. The majority of coal is mined from the German Creek Formation, noted for containing hard coking coal of exceptionally high quality. The German Creek Sequence contains five coal seam intervals known as the German Creek, Corvus, Tieri, Aquila and Pleiades seams. Mining leases controlled by Capcoal cover 27,343 hectares and estimated coal resources are in excess of 1 billion tonnes, with in-situ mineable reserves of 125 Mt.
About 900 permanent people are employed at Capcoal.
Location
Capcoal is located 25 kilometres south-west of Middlemount (population 3,000) and 240 kilometres south-west of Mackay. It also is within a comfortable driving distance of the major regional cities of Emerald and Rockhampton.
Coal production and resources
Capcoal mines 11.8 Mt (million tonnes) of coal annually to produce in excess of 8.5 Mt of prime quality hard coking coal and PCI coal. After processing, coal is transported 360 kilometres north-east by rail to the Dalrymple Bay Coal Terminal for export.
Completion of the Lake Lindsay project
On 29 September 2009, Group Chief Executive Cynthia Carroll officially opened the new module of the Coal Handing Processing Plant (CHPP) at Capcoal surface operations to celebrate the completion of the under-budget $AU850 million Lake Lindsay growth project.
The new CHPP operates at a capacity of 700 tonnes per hour, and complements the existing processing facility at Capcoal, giving a combined sales output of more than nine million tonnes. It’s a key component of the Lake Lindsay project, which will enable our Capcoal operations to continue to deliver high-quality metallurgical coal to its valued customers, world-leading steel manufacturers in all parts of the world including Asia, India, South America and Europe.
Construction started on the Lake Lindsay growth project in 2006, with a scope of works including the CHPP and a new overland conveyor to accommodate a major expansion of open-cut mining within the Capcoal complex. About 75 million tonnes of saleable reserves are contained within the Lake Lindsay mining area, and this addition will extend the mine’s life span by 20 years. Peak mining activities at Lake Lindsay will be reached in 2010, making saleable production five million tonnes per annum (Mtpa), consisting of 2.3Mt of hard coking coal, 1.7Mt of PCI specification coal and 1.0Mt of thermal coal.
Ownership and operation
Capcoal is owned by us (70%) in joint venture with Mitsui Coal Holdings Australia (30%). The mine is operated and managed by us.
Regional profile
The majority of Capcoal employees live in Middlemount, which has excellent educational, community and sporting facilities. Apart from mining, the main industries of the region are cattle and grain crop farming.
Environmental issues
Capcoal has continued to meet its commitment to subsidence rehabilitation to be half a panel behind mining at any one time. The operation also is involved in a number of programmes and studies relating to biodiversity and environmental management initiatives.
Community relations
Ongoing interaction with the local community is maintained through a range of formal and informal communications. Capcoal plays an important role in the township of Middlemount supporting community events and assisting with the provision of important services. In 2008 and 2009, Capcoal completed a $2.6 million upgrade of shopping centre facilities and invested $25 million to upgrade 100 homes. Capcoal continues to invest in and contribute to the local community, through direct financial and other support to local initiatives and associations.
Cultural heritage
A Cultural Heritage Management Plan has been established between Capcoal and traditional owners (the Barada Barna Kabalbara and Yetimarla People).