Name and Location
Moolarben coal mine Stage 2 and Stage 1 modification (MOD 3) project, New South Wales, Australia.

Client
Moolarben Coal Mines (MCM), a joint venture between YanCoal Australia (80%), Kores Australia Moolarben Coal (10%) and Sojitz Moolarben Resources (10%).

Project Description
Stage 1 of Moolarben was approved in 2007 and started operating in 2010.

Together with the Ulan and Wilpinjong mines, Moolarben forms part of a large coal mining complex in the region that is currently allowed to extract up to 47-million tonnes of run-of-mine (RoM) coal a year, process it at existing coal handling and preparation plants, and export it to domestic and export markets using the Gulgong to Sandy Hollow railway line. The Stage 1 approval allows for extraction of up to 12-million tonnes a year of RoM coal from three opencut pits and one underground mining deposit.

The permitted extraction currently comprises eight-million tonnes from the opencut operations, with a further four-million tonnes a year possibly being sourced from the yet-to-be commissioned underground mine.

MCM is proposing to expand its mining operations further to the east and develop two additional underground mining domains and one additional large opencut mining pit. The proposal – known as the Moolarben coal mine Stage 2 project – involves the extraction of an additional 16-million tonnes of RoM coal a year for 24 years. It also involves the construction of a range of associated infrastructure, including RoM coal facilities, surface conveyors, support facilities and utilities.

Net Present Value/Internal Rate of Return
Not stated.

Value
The project will involve a capital investment of $120-million.

Duration
Not stated.

Latest Developments
The New South Wales Planning Assessment Commission (PAC) has approved Yancoal’s development of the Stage 2 expansion of its Moolarben mine. In its assessment, the PAC says the project will have significant economic benefit in terms of regional employment and royalties to the state of New South Wales. However, the PAC points out that the Stage 2 development will have some adverse impacts on the local community in the vicinity of the mine site, and has imposed conditions on Yancoal to limit the impact of noise and air quality. The PAC has also provided acquisition and mitigation rights in accordance with government policy.

Key Contracts and Suppliers
None stated.

On Budget and on Time?
Not stated.

Contact Details for Project Information
Yancoal Australia, tel +61 2 8583 5300.