Coal in Australia

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Australian Energy resources and major export ports as of 2008
Coal reserves in BTUs as of 2009
File:Australia Coal Production.png
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 most of the coal mined in Australia is exported, mostly to eastern Asia. In fiscal year 2013/14, 430.9 million tonnes of coal were mined, and 375.1 million tonnes were exported.[1] Coal provides about 69% of Australia's electricity production.[2] In fiscal year 2008/09, 487 million tonnes of coal was mined, and 261 million tonnes exported.[3] In 2013, Australia was the world's fifth-largest coal producer, after China, the United States, India, and Indonesia. However, in terms of proportion of production exported, Australia is the world's second largest coal exporter, as it exports roughly 73% of its coal production. Indonesia exports about 87% of its coal production.[2]

Coal mining in Australia is often subject to criticism from members of the environmental movement,[4][5] due to the release of carbon dioxide during combustion. This criticism is primarily directed at thermal coal, for its connection to coal-fired power stations, with some authors linking this carbon dioxide release to climate change 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.[10][11] Many of these arguments specifically ignore the differentiation between thermal and metallurgical coal, and the different application they play in modern society. 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.[12][13][14]

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

Australia is the fifth largest producer of coal, and by proportion exported, Australia is the second largest exporter of coal in the world,[2] 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.[15]

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.[16] 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.[17]

According to the Australian Bureau of Agricultural and Resource Economics and Sciences [18] 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.[19]

Major mines

The following table lists the major Australian Coal mines.[20][not in citation given]

Mine State Location Ultimate Owner Lat & Long Type of Coal Million Tons Mined PA Million Tons Exported PA Major Buyers Major Method
Anglesea VIC Anglesea Alcoa of Australia Lua error in package.lua at line 80: module 'strict' not found. Lignite ? nil Anglesea Power Station Open Cut
Beltana NSW Singleton Xstrata Lua error in package.lua at line 80: module 'strict' not found. Thermal 7.6 ? ? Underground
Bengalla NSW Muswellbrook Coal and Allied Lua error in package.lua at line 80: module 'strict' not found. Thermal ? ? ? Open Cut
Callide QLD Callide (Biloela) Anglo American [2] Lua error in package.lua at line 80: module 'strict' not found. Thermal 8.5 ? ? Open Cut
Capcoal QLD Middlemount Anglo American Lua error in package.lua at line 80: module 'strict' not found. Hard Coking Coal & PCI 7 ? ? Open Cut & Underground
Dawson QLD Dawson (Moura) Anglo Coal Lua error in package.lua at line 80: module 'strict' not found. Soft Coking & Thermal 7 ? ? Open Cut
Drayton NSW Hunter Valley Anglo Coal Lua error in package.lua at line 80: module 'strict' not found. Soft Coking & Thermal 7 ? ? Open Cut
Broadmeadows QLD Moranbah BMA Lua error in package.lua at line 80: module 'strict' not found. Hard Coking Coal 4 ? ? Underground
Blackwater QLD Blackwater BMA Lua error in package.lua at line 80: module 'strict' not found. Thermal/Coking 13 ? ? Open Cut
Blair Athol QLD Clermont Rio Tinto Lua error in package.lua at line 80: module 'strict' not found. Thermal 12 ? ? Open Cut
Burton QLD Nebo Peabody Energy Australia Lua error in package.lua at line 80: module 'strict' not found. Thermal/Coking 4 ? ? Open Cut
Callide QLD Biloela Anglo American Lua error in package.lua at line 80: module 'strict' not found. ? 4 ? ? Open Cut
Collinsville QLD Collinsville Xstrata Lua error in package.lua at line 80: module 'strict' not found. Thermal/Coking 5 ? ? Open Cut
Coppabella QLD Coppabella Peabody Energy Australia Lua error in package.lua at line 80: module 'strict' not found. ? 7 ? ? Open Cut
Curragh QLD Blackwater Wesfarmers Lua error in package.lua at line 80: module 'strict' not found. Thermal/Coking 7 ? ? Open Cut
Goonyella/Riverside QLD Moranbah BMA Lua error in package.lua at line 80: module 'strict' not found. Hard Coking Coal 11 ? ? Open Cut/Underground
Griffin Coal WA Collie LANCO Infratech Lua error in package.lua at line 80: module 'strict' not found. Bitumous 5 nil Bluewaters Power, Synergy Power Open Cut
Hail Creek QLD Nebo Rio Tinto Coal Australia (RTCA) Lua error in package.lua at line 80: module 'strict' not found. Hard Coking Coal 4.5 all ? Open Cut
Jellinbah QLD Bluff, Queensland Jellinbah Group Lua error in package.lua at line 80: module 'strict' not found. PCI and Soft Coking 4.6 4.6 Various steelmakers - Japan, China, India and Brazil Open Cut
Lake Vermont QLD Dysart, Queensland Jellinbah Group Lua error in package.lua at line 80: module 'strict' not found. Hard Coking Coal and PCI 8.0 8.0 Various steelmakers - Japan, China, India and Brazil Open Cut
Loy Yang VIC Traralgon Loy Yang Power Lua error in package.lua at line 80: module 'strict' not found. Lignite ? nil Loy Yang Power Station Open Cut
Moorvale QLD Moranbah Peabody Energy Australia Lua error in package.lua at line 80: module 'strict' not found. Thermal/PCI ? ? ? Open Cut
Mount Arthur Coal (MAC) NSW Muswellbrook BHP Billiton Lua error in package.lua at line 80: module 'strict' not found. Thermal 15 12 ? Open Cut
Mount Thorley Warkworth (MTW) NSW Singleton Coal & Allied Lua error in package.lua at line 80: module 'strict' not found. Thermal/Coking ? ? ? Open Cut
Moranbah North QLD Moranbah Anglo American Lua error in package.lua at line 80: module 'strict' not found. Hard Coking Coal 4.5 ? ? Underground
Morwell VIC Morwell International Power Lua error in package.lua at line 80: module 'strict' not found. Lignite 20 nil Hazelwood Power Station,
Energy Brix
Open Cut
Norwich Park QLD Dysart BMA Lua error in package.lua at line 80: module 'strict' not found. Soft Coking Coal 6 all ? Open Cut
Newlands QLD Glenden Xstrata Lua error in package.lua at line 80: module 'strict' not found. Thermal/Coking 12 ? ? Open Cut & Underground
Peak Downs QLD Moranbah BMA Lua error in package.lua at line 80: module 'strict' not found. Hard Coking Coal 13 all ? Open Cut
Saraji QLD Dysart BMA Lua error in package.lua at line 80: module 'strict' not found. Hard Coking Coal 7.5 all ? Open Cut
Ulan NSW Ulan via Mudgee Xstrata Lua error in package.lua at line 80: module 'strict' not found. Thermal 5 ? ? Open Cut & Underground
Wesfarmers Premier Coal WA Collie Wesfarmers Lua error in package.lua at line 80: module 'strict' not found. Bitumous 3.5 nil Synergy Power Open Cut
Yallourn VIC Yallourn TRUenergy Lua error in package.lua at line 80: module 'strict' not found. Lignite ? nil Yallourn Power Station Open Cut
Bulga Coal NSW Singleton Oakbridge Group (Managed by Xstrata Coal) Lua error in package.lua at line 80: module 'strict' not found. Thermal/Coking 10.8 All Japan, Nippon Steel, Nippon Oil Open 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 43.3 61.5 104.8 1 39.8
Korea (ROK) 15.1 27.9 43.1 2 16.4
Taiwan 6.1 20.0 26.1 3 9.9
China 15.5 9.5 25.0 4 9.5
India 23.8 0.9 24.7 5 9.4
Europe 18.6 2.3 20.9 6 7.9

Major coal export ports

Major Australian Coal Export Ports
Port State Million Tons
2009
Million Tons
2008
Newcastle[21] NSW 92.8 91.4
Hay Point[22] QLD 82.4 80.4
Gladstone[22] QLD 56.2 54.1
Abbot Point[22] QLD 14.4 12.5
Port Kembla[23] NSW 13.7 13.3
Brisbane[24]
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 Singleton 0.88
BHP Billiton - Hunter Valley Energy Coal Mount Arthur Coal, Muswellbrook, Hunter Valley NSW[25] 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, Australia 1.2
Cornwall Coal Company NE Tasmania 0.725
Enhance Place Pty Ltd Colliery near Lithgow, NSW 0.2
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 operation 9.0
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 Basin 3.9
Foxleigh Joint Venture Central Queensland ?
Yancoal Australia Donaldson, Gloucester Basin, Monash, Middlemount, Yarrabee, Ashton, Moolarben, Austar 14
Idemitsu Australia Resources Pty Ltd western Bowen Basin 8.0
BHPBilliton Illawarra Coal Appin, Westcliff & Dendrobium Collieries in the Illawarra and Wollondilly regions south of Sydney, New South Wales 8
Jellinbah Group Pty Ltd Jellinbah and Lake Vermont Mines in the Bowen Basin of central Queensland 8.6
Lithgow Coal Company Pty Ltd Cullen Valley Mine located in the Western Coalfield of New South Wales 1.0
Macarthur Coal Limited Queensland's Bowen Basin 5.5
Muswellbrook Coal Company Ltd a. 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 Ipswich 3.92
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 Basin n/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 Bengalla 5.8
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 Wales 1.0
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

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The Australian community is understandably concerned about any mining activity that could place private or public property or valuable landscapes at risk.[citation needed] 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.[26]

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.[27][28]

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.[29]

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).[30]

Queensland

Clean coal technologies

The Federal Government has, as part of its pledge to mitigate global warming,[31] 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,[32] but the Federal Labor government argues that it is a vital technology given Australia's reliance on coal-fired electricity.[33] The merits of "clean coal" have been highly disputed by technical experts [34] and environment awareness groups [35]

See also

References

  1. Lua error in package.lua at line 80: module 'strict' not found.
  2. 2.0 2.1 2.2 Lua error in package.lua at line 80: module 'strict' not found.
  3. Lua error in package.lua at line 80: module 'strict' not found.
  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.
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  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.
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  11. 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.
  12. GE's ecomagination™ Certified Jenbacher Power Plant Commissioned at Australian Coal Mine to Help Reduce Greenhouse Gas Emissions. General Electric. Accessed 14 April 2011.
  13. Queensland Government Inaugurates Alternative Energy Plant Powered by GE's Jenbacher Waste Coal Mine Gas Engines. www.v1energy.com. Accessed 11/05/2011.
  14. Clarke Generates Interest at Blackwater. Clarke Energy article in www.gastoday.com.au, Accessed 11/05/2011.
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  17. Lua error in package.lua at line 80: module 'strict' not found.
  18. Energy in Australia - 2011. ABARES. Commonwealth of Australia. Retrieved on 23 January 2013.
  19. Australian Energy Resource Assessment. Chapter 5: Coal. Retrieved on 23 January 2013.
  20. Australian Coal Association. Retrieved on 23 January 2013.
  21. http://www.pwcs.com.au/display/assets/download.php?id=384
  22. 22.0 22.1 22.2 http://www.transport.qld.gov.au/resources/file/eb3e0c4a36b1d25/Pdf_port_of_abbot_point_cape_flattery.pdf Cite error: Invalid <ref> tag; name "Queensland_Department_of_Transport" defined multiple times with different content
  23. Trade & Cargo. Port Kembla Port Corporation. Retrieved on 23 January 2013.
  24. Members. Australian Coal Association. Retrieved on 23 January 2013.
  25. (24 July 2009). BHP Billiton Approves Expansion Of Mt Arthur Coal Mine. BHP Billiton. Retrieved on 23 January 2013.
  26. Reducing the Environmental Impacts of Coal Mining[dead link]
  27. (1 December 2006). Australian coal mine blocked over climate impact. New Scientist. Retrieved on 23 January 2013.
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  29. Lua error in package.lua at line 80: module 'strict' not found.
  30. Protection Of The Environment Operations Act 1997 - Schedule 1. New South Wales Consolidated Acts. AustLII. Retrieved on 23 January 2013.
  31. http://www.ret.gov.au/energy/energy%20programs/cei/ccsfp/Pages/default.aspx
  32. Lua error in package.lua at line 80: module 'strict' not found.
  33. Lua error in package.lua at line 80: module 'strict' not found.
  34. Template:Cite url=http://www.popularmechanics.com/science/energy/a4947/4339171/"
  35. Template:Cite url=http://www.coal-is-dirty.com/top-5-clean-coal-myths

External links