Name of the Project
Valeria coal project.

Location
Bowen basin, in Queensland, Australia.

Project Owner/s
Valeria Coal Holding, a wholly owned subsidiary of Glencore Coal.

Project Description
The proposed project involves the construction of a green­field thermal and metallurgical coal mine with a capacity of up to 20-million tonnes a year of run-of-mine coal over a mine life of 35 years.

The project includes:

• an opencut thermal and metallurgical coal mine;

• mine infrastructure areas, including a coal-handling and processing plant;

• a rail loop and train loadout facility;

• site access roads;

• mine water management dams and storage facilities;

• sewage treatment facilities; and

• office buildings and amenities.

Potential Job Creation
Glencore estimated that up to 1 250 personnel would be employed at the project during its peak, with up to 1 400 jobs available during construction.

Net Present Value/Internal Rate of Return
Not stated.

Capital Expenditure
The project is estimated at $1.5-billion.

Planned Start/End Date
Construction was planned to start in 2025 and first production in 2027.

Latest Developments
Glencore stopped the proposed development of the Valeria coal mine in December 2022, blaming the uncertainty in global markets and the Queensland government’s decision to raise coal royalties without any consultation with the sector.

Glencore will withdraw the Valeria project from the current approvals process and will place the project under review.

A spokesperson for Glencore has told Mining Weekly Online that abrupt decisions, such as the one taken by the Queensland government earlier this year to increase coal royalties, have damaged investor confidence, increased uncertainty and raised red flags with key trading partners.

The state government introduced three new progressive coal royalty tiers earlier this year, which would result in a 20% royalty for prices above A$175/t, 30% for prices above A$225/t, and a 40% tier that would apply when prices exceed A$300/t.

The Queensland Resources Council (QRC) has said that Glencore’s decision to withdraw its development plans for Valeria is a "sign of things to come" in the wake of the royalty hike.

“Companies take into account a broad range of factors when considering multi-decade, large-scale investments in projects like this, and regulatory stability is one of those factors,” QRC CEO Ian Macfarlane said.

Macfarlane has said that the QRC has repeatedly warned government of the long-term impact of its decision to overtax coal producers on investment in resources projects across the board, not just coal.

Key Contracts and Suppliers
None stated.

Contact Details for Project Information
Glencore Coal, email valeria@glencore.com.au.