PERTH (miningweekly.com) – The Queensland state government has awarded Metroof Minerals and Sojitz Coal exploration rights to a total of about 13 100 ha between Middlemount and Blackwater, to explore for coal.

Mines Minister Dr Anthony Lynham said on Thursday that awarding the tenders was another positive result from the state’s first yearly exploration programme.

“Potentially, these tenders could be our next generation of coal development in an area with a history of successful coal development for export and electricity generation,” he said.

“The Bowen basin contains the majority of Queensland’s coking, metallurgical and thermal coal reserves, which are ripe for export. This demonstrates the government’s ongoing commitment to keeping the resources industry moving, creating jobs and generating royalties.”

Metroof Minerals has been awarded an exploration authority for 86 km², 60 km south-east of Middlemount, while Sojitz Coal has been awarded an exploration authority to explore 45 km², 25 km south-east of Middlemount.

The two companies must now negotiate land access agreements and fulfil any existing environmental and Native Title requirements before the exploration authority is granted and work can begin.

The Queensland resources sector on Thursday welcomed the award of the exploration tenders, with the Queensland Resources Council’s (QRC’s) CEO, Ian Macfarlane, saying the commitment was crucial for new investment, additional jobs and ultimately royalties paid to the Queensland government.

“The government understands the need to responsibly explore highly prospective land and produce our resources - whether it is metallurgical or thermal coal, gas or metals - for the benefit of all Queenslanders,” he said.

“Combined our metallurgical and thermal coal exports topped 210-million tonnes last year and were delivered to 37 countries around the world. On top of this, coal provided the state Budget with an extra A$3.4-billion in royalties to help pay for schools and teachers, hospitals, doctors, nurses and midwives, and police stations.”

Queensland Exploration Council (QEC) chairperson Brad John said it was encouraging to see junior explorers awarded the tenders in the coal-rich basin.  

“A lot of people talk about diversity in our sector in terms of employment, but we also need diversity in the size of the companies involved in exploring,” John said. 

The Queensland resources sector now provides one in every A$6 in the Queensland economy, sustains one in eight Queensland jobs, and supports more than 16 400 businesses across the state, with nearly 7 000 businesses in the Greater Brisbane region, all from 0.1% of Queensland’s land mass, Macfarlane pointed out.

He noted that the QRC’s current data showed that in 2016/17, Queensland’s coal industry contributed A$37.8-billion to the state’s economy and supported 189 995 full time jobs.

Meanwhile, a petroleum and gas exploration tender is under way, closing at the end of May, for 12 parcels of land across 17 826 km² and another round of minerals exploration tenders is also due to open this month over 1 107 km².