Zero to five million in three years despite headwinds

Bowen Coking Coal has a model to go from zero to five million tonnes of export coking coal in less than three years. The Queensland company has the runs on the board. It acquired the Broadmeadow East project in 2020 followed by Burton/New Lenton and the mothballed Bluff PCI mine in late 2021. The first coal was shipped from Bluff last year and then Broadmeadow East in October 2022. A recent aerial view of the Broadmeadow East pit. The company recently started mining at the Ellensfield South pit on the Burton mine complex, marking the third active mine. This is part of a rolling commencement of smaller, potent resources that can be brought online with economies of scale as part of the Burton mine complex, about 120km west-southwest of Mackay. Enter the Federal Government. The deadline for Federal Environment Minister Tanya Plibersek to make a decision on approving Bowen Coking Coal’s Isaac River mine has been extended for the third time. The proposed mine, about 28km east of Moranbah, is expected to produce about 500,000 tonnes per annum of metallurgical coal for the export market. The Queensland Government has granted Isaac River a site-specific Environmental Authority (EA) and approved a Progressive Rehabilitation and Closure Plan. Bowen Coking Coal executive chairman Nick Jorss. The only outstanding item for the mining licence is federal environmental approval under the EPBC Act. The decision to approve the mine has been postponed to May 19. The argument weighed on the side of the producer, Bowen Coking Coal executive chairman Nick Jorss said. World demand for coal was increasing along with a reset on the viability of renewable energy to meet community supply standards, he said. Related: Coal site celebrations as miner targets growth Speaking at the official re-opening of Burton mine, Mr Jorss said Queensland could lead the world in supplying minerals in a number of high-demand industries including coal should it get the policy settings right. “One year ago, Bowen (Coking Coal) was yet to produce its first tonne of coal. Today we have produced over 1.3 million run-of-mine (ROM) tonnes from our first two operations, with a third well underway,” Mr Jorss said. “In that short time, we have created over 700 regional jobs across our mining operations. This represents a small but important fraction of the 40,000 Queenslanders directly employed in coal mining and the one in five jobs in our state that rely on the mining industry. “As a company, we’ve invested over $200 million to acquire and restart the Burton complex and Bluff mine. “Much of this was wages received by employees and spending with local suppliers and contractors. Our royalties to the Queensland Government to date have already totalled $22 million.” They would become a major contributor to the State budget heading towards a steady-state target of five million tonnes of ROM coal next year, Mr Jorss said. “Across Queensland, the coal industry is expected to contribute at least $10.7 billion in coal royalties this year, representing around 13 per cent of the State’s revenue. The Bluff coal mine near Blackwater. “That makes our industry an engine room of the economy, funding education, roads and transport, hospitals, police and much more. “I am confident about the potentialfor a very bright future for the Queensland coal industry, including the coking coal that Bowen proudly produces here.” Queensland’s steelmaking coal made up more than 80 per cent of the value of its current coal exports, Mr Jorss said. Coal would make big contribution to solving wider social issues, he said. “Steel and low-cost energy underpin all modern societies and will be in high demand as third-world nations modernise, dragging populations out of poverty," he said. “We’ve seen that in China in recent decades, and it’s well underway in India, both of which are seeing record growth in coal demand. “Steel also drives decarbonisation. The production of wind farms, solar farms and related transmission depends on low-cost steel and energy.” Related: QRC warns on Bowen Basin coal royalty tax blow Recent imposts on the industry included the federal safeguard mechanism, domestic reservation policy, price caps and new regulatory hurdles such as the proposed new, second EPA, Mr Jorss said. “All of this puts our critical industry, employees, suppliers, and contractors at risk.” he said. “I hope we can read the warning signs and create more certainty and stability for our resource development. “We need to move away from those with the loudest megaphone driving our energy and resource policy.”

Zero to five million in three years despite headwinds

Industry Queensland

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