Coal Mines QLD

Home to some of the world’s largest resources, coal mining is Queensland’s largest industry. The majority of coal mines Queensland are clustered in the Bowen Basin.

Exports out of Coal mines QLD are among the country’s largest. Producers rely on a strong supply chain to support mining production, processing and logistics to deliver thermal and metallurgical coal to international markets for power generation and steel making applications.

To help keep the sector moving, iQ Industry Queensland joins with professionals and supply chain partners to offer the latest news, updates and information on coal mines QLD wide. This to help readers stay at the cutting edge of coal mining QLD, and ensure business is positioned to take advantage of a changing industry.

Content

History & Background

Queensland is home to vast coalfields. Government estimates put the inventory at around 34 billion tonnes.

Metallurgical coal, including coking coal and PCI or pulverised coal injection product, makes up around a quarter of combined reserves and resources, half of which is considered accessible by open cut mining.

Most mining and most reserves are presented in the Bowen Basin. Other mining takes place in the Clarence-Moreton and Surat Basins in the south east.

The Galilee Basin, generally located west of the Bowen Basin, is an emerging coal mining province.

It currently hosts one site, Adani’s Carmichael mine.

There are more than 50 coal mines in Queensland, mostly owned by multinational corporations.

There has been a trend away from coal mining ownership in line with carbon-neutral public sentiment and smaller companies are increasingly picking up operating sites.

There is also an incidence of ‘mine-mouth’ operations in Queensland where mines are located next to the power stations they feed. These include Tarong and Callide.

The first recorded instance of coal mining in Queensland was in the 1840s. Mining grew significantly in the late 19th century and operations around Ipswich in the state’s south-east became major producers.

The discovery of large coal deposits in the Bowen Basin led to the establishment of several coal mines.

By the early 20th century, the state had become a major producer of coal, with exports primarily destined for the United Kingdom.

In the 1960s and 1970s, the industry faced several challenges, including competition from cheaper imported coal, the introduction of new technologies that reduced the demand for coal, and increasing concerns about the environmental impact of coal mining.

In recent years, the industry has faced growing pressure from environmental groups, who are concerned about the impacts of coal mining on the environment, particularly the release of greenhouse gases.

The Queensland Government has responded by introducing a range of policies aimed at reducing the environmental impact of the industry, including the use of clean coal technologies and the development of renewable energy sources.

The coal mining industry remains a major contributor to the state’s economy, and is likely to continue to play an important role in Queensland’s future.

Coal Mining Process

In Queensland, coal mining is primarily carried out using two methods: open-cut mining and underground mining.

Open-cut mining is the more common method and involves removing the surface layers of soil and rock to expose the coal seams. Once the coal is exposed, it is extracted using large equipment, such as draglines and trucks.

The removed material, known as overburden, is typically placed back in the mined area to help restore the land to its pre-mining state.

Underground mining involves the excavation of tunnels and shafts to access the coal seams.

This method is typically used when the coal seams are located at deeper levels, and the overburden is too thick to be removed using open-cut methods. In underground mining, the coal is extracted using equipment such as continuous miners and conveyor belts.

In both methods, the extracted coal is then transported to a processing plant, where it is crushed, screened and washed to remove impurities.

Types of Coal Mined

Coal mines in Queensland fall primarily into two categories: thermal and coking coal.

Thermal coal, also known as steaming coal, is used to generate electricity. It has a lower carbon content and higher moisture content compared to coking coal, and burns at a lower temperature.

Thermal coal is mainly exported to countries in Asia.

Coking coal, also known as metallurgical coal, is used in the production of steel. It has a higher carbon content and lower moisture content compared to thermal coal, and is required to undergo a process to produce ‘coke’, which is used in steel production.

Coking coal is mainly exported to countries in Asia and Europe.

The Bowen Basin contains significant reserves of both thermal and coking coal, making it an important contributor to the state’s economy and to the global coal market.

There is a third type of coal making up the inventory in Queensland. That’s PCI coal, or pulverized coal injection coal, which is a type of coal that is finely ground and used as a fuel in steel production.

PCI coal is typically a type of coking coal, which is known for its high carbon content and low ash and sulphur content.

QLD Coal Mines & Operations List

Coal Operations List

  • Aquila – Aquila mine achieved its first longwall shear of coal in 2022. The project is jointly owned by Anglo American and Mitsui Coal Holdings. www.angloamerican.com
  • Baralaba North – Baralaba Coal Company owns this mine which produces an ultra-low volatile pulverised coal (PCI).
    www.baralabacoal.com.au
  • Blackwater – Owned by BHP Billiton Mitsubishi Alliance (BMA), this open-cut operation produces coking and thermal.
    www.bhp.com
  • Blair Athol – Owned by TerraCom, who acquired it in 2017, this mine exports up to 3Mtpa of thermal coal a year.
    terracomresources.com
  • Bluff – Bowen Coking Coal bought this ultra-low volatile pulverised coal injection (PCI) mine from MACA Limited in 2021 and resumed exports in 2022.
    www.bowencokingcoal.com.au
  • Broadlea – Small open-cut metallurgical coal operation campaign mined by Fitzroy Australia Resources.
    fitzroyoz.com.au
  • Broadmeadow – Owned and operated by BHP Billiton Mitsubishi Alliance (BMA), this underground coking coal mine uses longwall top coal caving technology.
    www.bhp.com
  • Broadmeadow East – Bowen Coking Coal completed acquisition of this coking coal project from Peabody Energy in September 2020, and began mining in 2022.
    www.bowencokingcoal.com.au
  • Byerwen – QCoal developed this open-cut mine with Japan’s JFE Steel Corporation. Macmahon Holdings is the mining contractor. www.qcoal.com.au
  • Callide – Batchfire Resources owns this mine, which produces thermal coal primarily for Queensland’s domestic power generation. www.batchfire.com.au
  • Cameby Downs – Managed by Yancoal Australia on behalf of its majority shareholder Yanzhou Coal Mining Company, this open-cut operation produces thermal coal.
    www.yancoal.com.au
  • Capcoal – This complex consists of the Capcoal open-cut and Grasstree mines near Middlemount, owned by Anglo American. These mines produce hard coking coal.
    www.angloamerican.com
  • Carborough Downs – Fitzroy Australia Resources own this underground longwall mine east of Moranbah, which produces mainly coking coal, with PCI coal as a secondary product.
    fitzroyoz.com.au
  • Carmichael – Bravus Mining and Resources (formerly Adani Australia) kicked off mining in 2021 at this 10Mtpa capacity thermal coal mine. The project also includes a 200km rail line to connect the Carmichael mine to the Abbot Point Port via existing rail infrastructure.
    adanigroup.com
  • Caval Ridge – This BMA-owned open-cut mine produces coking coal. It was developed at a cost of $US3.4billion and opened in late 2014.
    www.bhp.com
  • Clermont – Glencore took over management of this open-cut thermal coal mine from former majority owner Rio Tinto Coal Australia in 2014. It produced more than 12 million tonnes in 2019.
    www.glencore.com.au
  • Collinsville Coal – Part of the NCA Project involving Glencore, Itochu Coal Resources and Sumitomo, this open-cut thermal coal mine is Queensland’s oldest.
    www.glencore.com.au
  • Commodore – Owned by InterGen Australia, Daelim and GE, this open-cut mine provides thermal coal for the Millmerran power station. BUMA has the mining contract.
    www.intergen.com
  • Cook – This mine was bought by QCoal in 2020 after previous owner Bounty Mining went into voluntary administration in December 2019. www.qcoal.com.au
  • Coppabella – Peabody Energy is majority owner of this open-cut metallurgical coal mine.
    www.peabodyenergy.com
  • Curragh – Coronado purchased this mine from Wesfarmers Resources in 2017. Curragh is an open-cut operation which provides thermal coal to the Stanwell power station and metallurgical coal for export.
    coronadoglobal.com.au/australia
  • Daunia – Production began in 2013 from this $US1.4b BMA project. The open-cut operation produces semi-hard coking coal, thermal coal and PCI.
    www.bhp.com
  • Dawson – An open-cut metallurgical and export thermal mine (formerly known as Moura mine), it is jointly owned by Anglo American and Mitsui Coal Holdings.
    www.angloamerican.com
  • Ensham – The Ensham Resources operation comprises one active open-cut coal mining pit and an underground mine (bord and pillar). The operation is being sold by Idemitsu Australia Resources to a consortium of South African coal company Thungela Resources (75 per cent), Mayfair Corporations Group (12.5 per cent) and Audley Energy (12.5 per cent).
    www.idemitsu.com.au
  • Goonyella Riverside – This BMA-owned open-cut mine produces high quality coking coal.
    www.bhp.com
  • Gregory Crinum – BMA sold the mothballed Crinum underground mine and Gregory open-cut mine in 2019. New owner Sojitz Blue has restarted open-cut production at Gregory and has plans to restart underground mining as well.
    www.sojitzblue.com.au
  • Grosvenor – Mining at Anglo American’s Grosvenor longwall metallurgical operation was suspended after an explosion in May 2020 injured five workers. It resumed production in early 2022.
    www.angloamerican.com
  • Hail Creek – Managed by Glencore, this open-cut mine produces hard and thermal coal for export. Glencore acquired Rio Tinto’s 82 per cent stake in Hail Creek in 2018.
    www.glencore.com.au
  • Isaac Plains Complex – Stanmore Coal bought the Isaac Plains open-cut operation from Sumitomo Corporation and Vale, who had placed it in care and maintenance in 2014. Operations restarted in May 2016, and transitioned to the Isaac Plains East mine in 2018 and then to Isaac Downs in 2022.
    stanmore.net.au
  • Jellinbah – Jellinbah Group has a 70 per cent interest in this open-cut operation which produces metallurgical coal. Marubeni Coal and Sojitz Coal hold the remaining 30 per cent stake equally. It produced five million tonnes in 2019/20.
    www.jellinbah.com.au
  • Kestrel – An underground mine which uses the longwall and continuous miner method to produce hard coking coal. Kestrel Coal Mine is a joint venture between Kestrel Coal Resources (80 per cent) and Mitsui Investments (20 per cent).
    kestrelcoal.com
  • Kogan Creek – Owned by CS Energy and operated by Golding Contractors, this open-cut mine supplies thermal coal to CS Energy’s Kogan Creek power station.
    www.csenergy.com.au
  • Lake Vermont – Managed by Jellinbah Resources for the Lake Vermont Joint Venture, this open-cut mine produces hard coking coal and low volatile PCI coal.
    jellinbah.com.au
  • Kestrel – An underground mine which uses the longwall and continuous miner method to produce hard coking coal. Kestrel Coal Mine is a joint venture between Kestrel Coal Resources (80 per cent) and Mitsui Investments (20 per cent).
    kestrelcoal.com
  • Kogan Creek – Owned by CS Energy and operated by Golding Contractors, this open-cut mine supplies thermal coal to CS Energy’s Kogan Creek power station.
    www.csenergy.com.au
  • Lake Vermont – Managed by Jellinbah Resources for the Lake Vermont Joint Venture, this open-cut mine produces hard coking coal and low volatile PCI coal.
    jellinbah.com.au
  • Meandu – This mine has the capacity to supply up to seven million tonnes of coal a year to the adjacent Tarong power stations.
    www.stanwell.com
  • Meteor Downs South – Sojitz Blue and U&D Mining developed this thermal coal mine in joint venture, with first coal produced in 2018.
    www.sojitzblue.com.au
  • Middlemount – This mine is owned by a joint venture between Yancoal and Peabody Energy and produces low-volatile pulverized coal injection (PCI) coal and semi-hard coking coal.
    www.yancoal.com.au
  • Millennium and Mavis Downs – New owners MetRes – a joint venture of M Resources and Stanmore Resources – restarted coal exports from this site in 2021.
    stanmore.net.au
  • Minerva – Majority owned by Sojitz Blue, this open-cut mine produces about 400,000tpa thermal and PCI coal using the terrace mining method.
    www.sojitzblue.com.au
  • Moorvale – Peabody Energy is majority owner of this open-cut metallurgical and thermal coal mine.
    www.peabodyenergy.com
  • Moranbah North – An underground longwall which produces hard coking coal for steel manufacturers in Japan, Korea, Taiwan, India and Europe.  It is managed and operated by majority owner Anglo American.
    www.angloamerican.com
  • New Acland – New Acland mine’s stage 3 extension was approved in 2022 after years of court action.
    www.newhopegroup.com.au
  • Newlands – The underground operation here reached the end of its scheduled mine life in June 2016 and the open-pit operation is winding down in 2023.
    www.glencore.com.au
  • North Goonyella – Owned by Peabody Energy, the North Goonyella longwall mine is no longer operating after an underground fire in September 2018.
    www.peabodyenergy.com
  • Oaky North – Glencore is the majority owner of the Oaky North underground mine. https://www.glencore.com.au
    www.glencore.com.au
  • Peak Downs – This BMA-owned open-cut mining operation produces high-quality coking coal. In 2019/20 it produced more than 5.7 million tonnes of saleable product. 
    www.bhp.com
  • Poitrel – Stanmore Resources took 100 per cent ownership of this former BHP Mitsui Coal asset in 2022. The open-cut mine produces coking coal, thermal coal and PCI coal.
    stanmore.net.au
  • QCoal Northern Hub – The Sonoma mine near Collinsville is operated in a joint venture by QCoal, JFE, China Steel and Watami Trading. The hub also includes the nearby Cows, Drake and Jax mines.
    www.qcoal.com.au
  • Rolleston – The Rolleston open-cut mine is owned by Glencore (75 per cent) and Sumitomo and ICRA Rolleston (12.5 per cent each). www.glencore.com.au
  • Saraji – Owned and operated by BHP Billiton Mitsubishi Coal Alliance (BMA), this open-cut mine produces high quality coking coal. 
    www.bhp.com
  • South Walker Creek – Stanmore Resources took 100 per cent ownership of this former BHP Mitsui Coal asset in 2022r. This open-cut mine produces thermal coal and PCI coal.
    stanmore.net.au
  • Vulcan – Vitrinite owns this open-cut coal mine, with production commencing in 2021 and a capacity of 2Mtpa premium hard coking coal. vitrinite.com.au
  • Yarrabee – This open-cut PCI mine is owned by Yancoal Australia.
    www.yancoal.com.au

Advanced Coal Projects List

  • Alpha – This proposed open-cut mine in the southern Galilee Basin would produce 32Mtpa of high-quality thermal coal for export markets. The Queensland Environment Minister issued an Environmental Authority for the mine in 2014. The EA has been subjected to legal challenges. www.gvkhancockcoal.com
  • Baralaba South – Mount Ramsay Coal Company proposes construction and operation of a greenfield, multi-seam, open-cut coal mine extracting up to 5Mtpa run-of-mine coal. It is expected to create up to 275 jobs in construction and about 600 operational. An EIS is underway. www.baralabacoal.com.au
  • Belview – A conceptual mining study was completed in 2015 that proposed a significant underground longwall operation at this coking and PCI coal project. Belview holds a 330Mt JORC Resource (50Mt indicated, 280Mt inferred).
    stanmorecoal.com.au
  • Blackall Project – East Energy Resources holds this project, with JORC total coal resource estimate of 3.44 billion tonnes of thermal quality coal. www.eastenergy.com.au
  • Broughton – U & D Mining lists this coking coal project as a near-term greenfields project in its portfolio. A pre-feasibility study has been finalised for an operation of up to 3Mtpa based on an open-cut pit with associated supporting infrastructure, including a coal handling and processing plant. udmining.com.au
  • Burton/Lenton – Bowen Coking Coal is working to bring its newly acquired Burton mine online and has a CHPP refurbishment program underway. www.bowencokingcoal.com.au
  • CQ Coal Project (formerly Styx) – Central Queensland Coal Project proponents Central Queensland Coal and Fairway Coal are subsidiaries of Waratah Coal. Environment Minister Tanya Plibersek in 2023 rejected the plans for an open-cut coal mine here.
    cqcoal.com.au
  • China Stone – MacMines proposal for a 40Mtpa (product coal) thermal coal mine, including open-cut and underground operations. The proposal includes construction of an on-site power station with a generation capacity of up to 1000MW. The company withdrew its mining lease applications for the project in 2019.
    www.macmines.com
  • Clifford – The Clifford project is targeting thermal coal deposits at depths amenable to open-cut mining. 
    stanmorecoal.com.au
  • Clyde Park – This thermal coal project has an estimated 728Mt coal resource. TerraCom is the major stakeholder in proponent Clyde Park Coal. terracomresources.com
  • Codrilla – Peabody Energy has deferred development of this open-cut metallurgical mine project. Mining leases were granted in 2012.
    www.peabodyenergy.com
  • Colton – proponents Northern Energy Corporation and Colton Coal (which were New Hope subsidiaries) were placed into liquidation by creditors in 2019. 
    www.newhopegroup.com.au
  • Columboola – A joint venture project between Metro Mining and SinoCoal Resources. Columboola has a thermal coal resource estimate of 1216.6 million tonnes.
    www.metromining.com.au
  • Comet Ridge – Bowen Coking Coal acquired the advanced Comet Ridge coking coal project from Acacia Coal. It is an open-pit project with a JORC resource of 57 million tonnes shallower than 50m.
    www.bowencokingcoal.com.au
  • Dawson West – This Civil and Mining Resources thermal coal project has a resource of 852 million tonnes. It would be a potential open-cut and underground mining site.
    www.linkedin.com/company/cmr-coal/about/
  • Dysart East – This proposed Bengal Coal mine would produce 2Mtpa ROM metallurgical coal. It is being project managed by Dysart Mining Group, a privately owned group of companies.
    www.bengalcoal.com
  • Eagle Downs – Eagle Downs is a large metallurgical coal development project owned by South32 and BaoWu Steel Group subsidiary Aquila Resources. The project was placed under care and maintenance in late 2015 after initial development work that delivered site infrastructure including water supply and high voltage systems, office buildings and water and sediment dams. Dual 2km drifts were also about 40 per cent complete. South32 has decided against going ahead with further development.
    www.south32.net
  • Fairhill and Wilton – Sojitz Blue and Futura Resources are continuing their work to bring the Wilton and Fairhill open-cut coking coal projects online. The projects have received all necessary State Government environmental approvals. They comprise two large, near-surface coking coal deposits with a global resource of 2.6bt. Coal would be processed at the Gregory-Crinum complex.
    www.futuraresources.com.au
    www.sojitzblue.com.au
  • Galilee Coal Project – (Previously known as China First) Clive Palmer’s Waratah Coal proposes an open-cut and underground thermal coal mining operation with an output of 40Mtpa product coal.
    www.waratahcoal.com
  • Grosvenor West – This Carabella Resources project would produce hard coking and an export thermal coal. Total JORC resources of 141Mt. www.wrgroup.com.au
  • Hillalong – Bowen Coking Coal holds this project, where Japanese conglomerate Sumitomo Corporation has agreed to spend up to $7.5 million on exploration to earn up to 20 per cent of the project.
    www.bowencokingcoal.com.au
  • Isaac River – Bowen Coking Coal lodged a mining lease application for its Isaac River project in March 2020, followed by its environmental authority application in September. It is expected to be an open-pit metallurgical coal operation using contract mining and generating around 150-200 ongoing jobs.
    www.bowencokingcoal.com.au
  • Ironbark No.1 – Ironbark No.1 is under construction by Fitzroy Resources Australia. The longwall coking coal mine will share major infrastructure with Carborough Downs and is expected to produce up to 6Mtpa (ROM) hard coking coal.
    fiitzroyoz.com.au
  • Karin Basin – Under joint venture with Japanese corporation Itochu, Karin Basin is a developing coking coal project with potential open cut and underground reserves.
    vitrinite.com.au
  • Kevin’s Corner – Proposed combined underground longwall and open-cut mine in the southern Galilee Basin producing up to 30Mtpa of high-quality thermal coal for export.
    www.gvkhancockcoal.com
  • Mackenzie – Stanmore Coal proposes an open-pit operation at this Bowen Basin project producing about 2Mtpa metallurgical coal. Concept study completed 2012.
    stanmorecoal.com.au
  • Minyango – Proposed underground mine development to produce metallurgical and thermal coal. The mining lease has been granted. Proponent Bounty went into administration, but its assets were acquired in 2020 by QCoal.
  • Moorlands – Huaxin Energy project (formerly Cuesta Coal). A proposed open-cut thermal coal mine, producing 1.9 million tonnes a year.
  • Moranbah South – Anglo American (50 per cent owner with Exxaro) has Environmental Approval to develop a greenfield underground hard coking coal mine, located to the south of Grosvenor mine.
    www.angloamerican.com
  • North Surat – New Hope Group has completed a prefeasibility study for this project – which includes the Elimatta, Taroom, Collingwood and Woori thermal coal assets. Elimatta mining leases were granted by the Queensland Government in June 2020.
    www.newhopegroup.com.au
  • Olive Downs Complex – Pembroke Resources has started construction on the $1 billion Olive Downs coking coal project – with mining set to begin mid-2023. The Olive Downs project boasts a JORC resource of some 838 million tonnes, including 514Mt of open-cut JORC reserves of metallurgical coal.
    www.pembrokeresources.com.au
  • Red Hill – As part of the Red Hill Mining Lease Project, BHP Mitsubishi Alliance (BMA) has been assessing a future option for an underground mine project. Studies are looking at the potential for future development and respective timing.
    www.bhp.com
  • Rockwood – U&D Mining holds this potential PCI site, which it lists as a medium-term development in its portfolio of greenfield projects. It has a JORC resource of more than 447 million tonnes.
    udmining.com.au
  • Saraji East – BHP Mitsubishi Alliance (BMA) is seeking approvals to enable development options adjacent to Saraji Mine.
    www.bhp.com
  • South Galilee – Alpha Coal Management (on behalf of AMCI) proposal for an open-cut and underground operation producing 15Mtpa thermal coal. amcigroup.com
  • Springsure Creek – Adamelia Group purchased this thermal coal project from the liquidators of Bandanna Energy in 2016. Springsure Creek coal project is a proposed greenfield underground coal mine, producing up to 11 Mtpa of thermal coal.
  • The Range – A feasibility study has been completed for this thermal coal project supporting an open-pit operation producing 5Mtpa over 26 years. Its timing is tied to the need for a new railway link to be extended between the Moura line and Wandoan area for access to Port of Gladstone. stanmorecoal.com.au
  • Valeria – Glencore announced in late 2022 that it was shelving plans for this $2 billion coal project, proposed to produce up to 20Mtpa run of mine (ROM) metallurgical and thermal coal for a period of 35 years.
    www.glencore.com.au
  • Walton – Magnetic South owns this project, with a potential production rate of up to 2.2 million tonnes per annum of steelmaking coal. www.magnetic-south.com.au
  • Wandoan Project – Glencore has been granted the first mining leases this project, which could produce up to 22Mtpa of high-quality thermal coal. The Wandoan coal project is a joint venture between Glencore (75 per cent owners) along with ICRA Wandoan and Sumisho Coal Australia. www.glencore.com.au
  • Wards Well – BHP Mitsui Coal proposal for an underground metallurgical coal mine. This project has a JORC resource of more than 1373 million tonnes. BHP announced in August that it would pursue options to divest its interests in BHP Mitsui Coal.
  •  Wilkie Creek – New Wilkie Energy (NWE) purchased this Peabody Energy site in 2021 with plans for an export thermal coal mine transitioning to a large-scale renewable energy project.
    nwe.energy
  • Wilson Creek – Vitrinite plans an open cut coal mine with ROM production of up to 2Mtpa commencing in 2022, producing both thermal and coking coal products.
    vitrinite.com.au
  • Winchester South – Whitehaven Coal has upgraded the resource for its Winchester South metallurgical coal project to more than one billion tonnes, with the planned mine now expected to have a throughput of up to 15Mtpa over more than 20 years.
    whitehavencoal.com.au

Production

Queensland mostly produces coking coal and most production comes out of the northern Bowen Basin which accounts for a seven-year average of about 83 million tonnes a year.

The rural centre of the northern Bowen Basin is Moranbah. The regional centre is Mackay. This region produces also more than 15.8mt/year thermal coal.

The southern Bowen Basin has Emerald as its largest dormitory centre and produces more thermal coal than the north, around 42mt/year. It still produces around 5.4mt/year of coking coal. Coal from this area is exported through the Port of Gladstone.

More than 37.2mt/year coking coal is produced in the Central Bowen Basin which also accounted for 24.79mt/year thermal coal production.

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