Expansion of Coronado Global Resources’ (ASX : CRN) Curragh coal mining complex in Central Queensland is now underway after four more coal mines were approved by the Queensland Government, which is counter to the global shift to clean energy sources
The Mammoth coal development at Curragh, 14km from Blackwater, will add an additional 41 million tonnes (Mt) ROM of metallurgical coal reserves to Coronado’s operations.
The $165 million capex on Mammoth will deliver an incremental 1.5-2 million tonnes per annumn of saleable coal in its first phase, with project completion expected by May next year, providing an additional 259 full-time jobs to the region.
Coronado managing director Douglas Thompson said the development of Mammoth would mark the company’s first foray into underground coal mining in Australia.
“We have combined our well-established expertise and heritage in underground mining from our U.S. operations with industry leading local partnerships to deliver this mine,” Thompson said.
“Mammoth is expected to continue our strong track record of realising value from our existing assets.”
Against the winds of change
The opening of Mammoth goes against Federal Government and voter-supported moves away from coal production.
Queensland has more coal mines than ever, with 58 in operation this year, according to State Government data.
Australia is moving to cut emissions in line with the global shift to cleaner energy sources and the Australian Energy Market Operator (AEMO) expects coal plants across the nation to shut down by 2034.
Endowed with the world’s third-largest reserves (14.3%), Australia is set to leave coal with a significant role in the energy mix until then and the plant shutdowns are not expected to affect exports of the commodity .
Economic boost
Queensland Minister for Natural Resources and Mines Dale Last, speaking at the mine earlier this week, said the additional production showed Queensland’s resources sector was “open for business” and that Mammoth highlighted the ongoing success of its coal industry.
“This is a significant investment by Coronado, demonstrating the confidence in Queensland’s coal industry," Last said.
“The Curragh mine complex has been operating in the Blackwater region for more than 40 years, supplying metallurgical coal for export and thermal coal directly to Stanwell Energy’s power station to provide electricity for our state.
“The opening of the underground operations ensures future employment security and will deliver additional royalties and taxes to the Queensland Government to fund essential services like schools, hospitals and roads.”