PERTH (miningweekly.com) – The Queensland government has approved plans by coal miner Yancoal to expand its Cameby Downs mine, increasing production and expanding the mine life.
Mines Minister Dr Anthony Lynham noted that Cameby Downs has been producing thermal coal for export since mid-2010, at the current run-of-mine rate of 2.8-million tonnes a year.
The expansion will increase production to 3.5-million tonnes a year and will extend the mine’s life to 75 years based on the increased approval limit. Production ramp-up is expected to start immediately, with peak production to be achieved within 12 months.
“This is a vote of confidence by Yancoal in Queensland’s world-class resources, our infrastructure and our skilled resources workforce,” Lynham said.
“For Western Downs communities like Miles and Chinchilla, it means greater opportunities for the current and future generations of locals to benefit from a strong resources sector in their region.”
The Queensland Resources Council has welcomed the approval of the mining lease to extend the Cameby Downs mine life, with CEO Ian Macfarlane saying that it would secure jobs, exports and royalties for the state, and confirmed the long-term role for coal.
Meanwhile, Lynham noted, separately, that new owner Sojitz Corporation has announced it will re-start production at the Gregory Crinum coal mine, later this year.
Sojitz acquired the mothballed project from the BHP/Mitsubishi joint venture for A$100-million. The site comprises the Crinum underground mine and Gregory opencut mine.
BHP in May last year announced the sale of the six-million-tonne-a-year coking coal asset, which placed on care and maintenance at the start of 2016.
Sojitz also owns Minerva coal mine in the same area, and expects to employ 200 to 300 workers by the end of the year across all of its sites.