Name of the Project
New Acland Stage 3 coal mine expansion project.

Location
Queensland, Australia.

Client
New Acland Coal (NAC), a subsidiary of the New Hope Group.

Project Description
NAC currently operates the existing New Acland coal mine as a 4.8-million-tonne-a-year opencut coal mine on mining lease (ML) 50170 and ML 50216. The mine has reserves that will allow for current operations to continue until about 2017.

The project will expand the mine’s yearly output from 4.8-million tonnes to 7.5-million tonnes and will extend the operation’s life beyond the current end-date of 2017/18.

The revised coal project proposes to develop Stage 3 of the New Acland mine, which involves the extension of the mine’s operating life to about 2029, including the progressive development of two new resource areas within the area covered by Mining Development Licence 244, also covered by ML Application 50232.

The two resource areas will be developed sequentially and combined with the current operations to supply up to 7.5-million tonnes a year of saleable product coal for the export and domestic markets until about 2029.

Key features of the project include:
• developing parts of the Manning Vale and Willeroo resource areas;
• upgrading the existing coal handling and preparation plant and supporting infrastructure;
• constructing a new coal load-out facility on the mining lease and an estimated 8 km rail spur, as a result of the relocation of the existing Jondaryan coal load-out facility; and
• roadworks and constructing water management structures, as well as relocating and potentially upgrading the power supply to the revised project.

The Acland town area, including Tom Doherty park, the War Memorial and the Acland No 2 colliery and utility services, will be maintained over the life of the revised project.

The closest point of potential mining operations will be at least 10 km away from Oakey, compared with the 7 km previously proposed.

The land disturbed for mining activities will be reduced by more than half, compared with the original Stage 3 proposal.

Veneering to coat all transported coal leaving the mine by train as a measure to reduce the potential for coal dust coming from trains will continue.

Lagoon Creek will not be diverted as previously proposed. Operations will continue to be self-sufficient for water, with water continuing to be bought from Toowoomba’s Wetalla wastewater reclamation facility. Only about 20% of the Wetalla water is bought by NAC.

Production levels from the New Acland mine will be reduced by at least 25% to 7.5-million tonnes a year, from the originally proposed ten-million tonnes a year.

Potential Job Creation
The expanded operation will result in employment for 260 people employed at the mine, and ongoing employment of up to 435 jobs, and, indirectly, 2 300 jobs.

Net Present Value/Internal Rate of Return
Not stated.

Value
A$900-million.

Duration
About 2.5 years will be required to complete the design, build and other related activities to facilitate the revised project.

Latest Developments
The New Acland Stage 3 expansion project could deliver about A$7-billion in additional economic activity, a new report by advisory firm Ernst & Young (EY) has found.

The EY report outlines more than A$8.1-billion in payments that the New Acland coal project will make to stakeholders over the 12-year life of the expanded mine, compared with the A$1.3-billion in economic activity if the project is not approved, and the mine is forced to close in 2020.

MD Shane Stephan has indicated that the figures in the EY report reflects that the New Acland operation contributes almost to A$500-million a year in economic activity.

New Hope called for a judicial review of the Queensland Land Court’s decision not to support the grant of a mining lease and environmental authority for the Stage 3 expansion in June this year, after the Land Court raised concerns in May about the impact of the proposed expansion on groundwater in the region, recommending that the mining lease and environmental authority not be granted.

Stephan has warned that if the Stage 3 expansion is not approved, 535 existing full time jobs will be lost at the mine, while a further 405 jobs in construction and ongoing operations will not be created.

However, should the expansion be approved, yearly payments to stakeholders will peak at about A$800-million in 2020, as the construction of the expansion is completed, with the mine’s contribution to the local economy expected to remain steady at about A$575-million a year for a decade, to 2031.

Key Contracts and Suppliers
Not stated.

On Budget and on Time?
Not stated.

Contact Details for Project Information
New Acland Coal, tel +61 7 3418 0500, fax +61 7 3418 0355 or email aclandinfo@newhopegroup.com.au.