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Dendrobium Next Domain life extension project, Australia – update

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26th August 2022

By: Sheila Barradas

Creamer Media Research Coordinator & Senior Deputy Editor

     

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Name of the Project
Dendrobium Next Domain (DND) life extension project.

Location
Near Wollongong, in New South Wales, Australia.

Project Owner/s
South32.

Project Description
The New South Wales Independent Planning Commission blocked the expansion plans for the project in February 2021.

The proposed project included an additional 78-million tonnes of run-of-mine coal recovered from two new areas, Areas 5 and 6, comprising 21 longwall panels, and would have extended the mine life until the end of 2048.

Potential Job Creation
Not stated.

Capital Expenditure
A$956-million.

Planned Start/End Date
Coal production from Area 5 was expected to start in 2024, with Area 6 production to follow about 19 years later.

Latest Developments
South32 has announced that it will not pursue the DND project.

The miner has revealed that while recently completed study work and an analysis of alternatives demonstrated the potential to meaningfully extend the life of the Dendrobium mine, the expected return on investment are not sufficient to support an investment relative to alternatives considered for the complex.

South32 will now focus on continuing to optimise Dendrobium and the broader Illawarra metallurgical coal complex to extend the mine life within approved domains. This work includes existing plans for Appin, in which the miner has been investing to support its transition to a single longwall from 2025, adding further operating and capital efficiencies.

Key Contracts, Suppliers and Consultants
None stated.

Contact Details for Project Information
South32, tel +61 8 9324 9000.

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