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Queensland Coal Presented by Peter Donaghy Director for Coal Queensland Mineral and Energy Resources Department of Natural Resources Mines and Energy July 2018
107

Queensland Coal Industry and...Queensland’s Coal • There are approximately 50 Coal mines in Qld –37 of them are metallurgical (met) coal mines in the Bowen Basin, i.e. 74% •

Jul 04, 2020

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Page 1: Queensland Coal Industry and...Queensland’s Coal • There are approximately 50 Coal mines in Qld –37 of them are metallurgical (met) coal mines in the Bowen Basin, i.e. 74% •

Queensland Coal

Presented by Peter DonaghyDirector for Coal Queensland

Mineral and Energy Resources

Department of Natural Resources Mines and Energy

July 2018

Page 2: Queensland Coal Industry and...Queensland’s Coal • There are approximately 50 Coal mines in Qld –37 of them are metallurgical (met) coal mines in the Bowen Basin, i.e. 74% •

Queensland’s Coal

• There are approximately 50 Coal mines in Qld

– 37 of them are metallurgical (met) coal mines in the

Bowen Basin, i.e. 74%

• >70% of Qld’s coal exports are met coal (~ 163 Mt in 2015-

16)

• Queensland has some of the highest quality met coal in the

world and supplies >50% of global exports

Know Your Coal

2

Page 3: Queensland Coal Industry and...Queensland’s Coal • There are approximately 50 Coal mines in Qld –37 of them are metallurgical (met) coal mines in the Bowen Basin, i.e. 74% •

Direct benefits in 2016-17:

• $2.7 billion paid in wages

• >21,000 full time employees

• $3.4 billion paid in royalties

Indirect benefits:

• supports over 168,000 indirect full time jobs

• contributes $37.8 billion to gross regional product

• underwrites Queensland’s port and rail networks

Value to Queensland

3

Page 4: Queensland Coal Industry and...Queensland’s Coal • There are approximately 50 Coal mines in Qld –37 of them are metallurgical (met) coal mines in the Bowen Basin, i.e. 74% •

We describe our mining industry by province or basin.

• There are 3 main coal basins in Queensland:– Bowen Basin

– Surat Basin

– Galilee Basin

• There are ~40 advanced coal projects in Queensland

– 25 Greenfields or new projects

– 15 Brownfields extensions, expansions or 2nd stages

– Of these most are in the Bowen Basin 30

Queensland Coal Mining Industry

4

Page 5: Queensland Coal Industry and...Queensland’s Coal • There are approximately 50 Coal mines in Qld –37 of them are metallurgical (met) coal mines in the Bowen Basin, i.e. 74% •

Bowen Basin

5

Wandoan

Glencore Coal

Open cut

Thermal

Proposed 1st coal late 2017-2018

Capital Expenditure $46 m

Employment: construction 40; operational 60

Production: 1.5 Mtpa ROM; 1-1.5 Mtpa

Saleable

Jellinbah Plains

(Extension)

Jellinbah Coal

Open cut

Pulverised Coal Injection (PCI)

Proposed 1st coal 2023

Capital Expenditure ~$100 m

Employment: construction 100;

operational continuation of existing workforce

Production: Continuation of: 3

Mtpa ROM; 2.5 Mtpa Saleable

Stanmore Isaac Plains

(Extension)

Carabella Resources Pty Ltd

Open cut

Pulverized Coal Injection (PCI)

Proposed 1st coal Q4 2017

Capital Expenditure ~$100 m

Employment: construction <100;

operational 118

Production: 1.4 Mtpa ROM; 1.2 Mtpa

Saleable

Dysart

Bengal Coal

Underground

Coking

Proposed 1st Coal 2019

Employment:

Construction 200

Operational 180

Production: 2.0 Mtpa ROM

Boundary Hill South

(Extension)

Batchfire Resources

Open Cut

Thermal

Continued employment of

approximately 450

7.5 mtpa saleable (whole of Callide

Mine)

Granted

Page 6: Queensland Coal Industry and...Queensland’s Coal • There are approximately 50 Coal mines in Qld –37 of them are metallurgical (met) coal mines in the Bowen Basin, i.e. 74% •

Surat Basin

6

Page 7: Queensland Coal Industry and...Queensland’s Coal • There are approximately 50 Coal mines in Qld –37 of them are metallurgical (met) coal mines in the Bowen Basin, i.e. 74% •

Carmichael Mine

Adani Mining Ltd

• Open cut & Underground

• Coal type thermal

• Proposed 1st Coal – 2019

– (peak by 2026)

• Capital Expenditure– Mine $16.5 b

– Rail $2.2 b

– Mine, Rail & Port $21.5 b

• Employment– Construction 1150

– Operational 3000

• Production– ROM start at 2 Mtpa 2019 (up to

60 Mtpa by 2026)

– Saleable start at 1.9 Mtpa 2019 (up to 53 Mtpa by 2026)

Galilee Basin

Alpha Coal Project

GVK, Hancock Coal Ltd

• Open cut

• Coal type thermal

• Proposed 1st Coal Q4 2021

• Capital Expenditure– Mine $ 5.8 b

– Rail $ 3.1 b

– Mine, Rail & Port $10.6 b

• Employment– Construction (mine, rail & port

4800 at peak)

– Operational (mine, rail & port 1970 at peak)

• Production– ROM up to 45 Mtpa

– Saleable up to 32 Mtpa

Kevin’s Corner

GVK

• Open cut & Underground

• Coal type thermal

• Proposed 1st Coal Q4 2024

• Capital Expenditure– Mine $4 b

• Employment– Construction 2000

– Operational 1600

• Production– ROM up to 45 Mtpa

– Saleable up to 30 Mtpa

7

Page 8: Queensland Coal Industry and...Queensland’s Coal • There are approximately 50 Coal mines in Qld –37 of them are metallurgical (met) coal mines in the Bowen Basin, i.e. 74% •

8

Coal Recovery

Granted:Coal Mining Leases

2015 2016 2017 2018 (@ 30 June)

10 13 18 7

In 2017-18 Queensland coal exports (by terminal) comprise:Abbot Point: 28.14Mt, a 10.9% increase on 2016-17. • DBCT: 70.57Mt, an 11.8% increase on 2016-17.• HPSCT: 49.72Mt, a 14.3% increase on 2016-17.• RGTCT: 57.11Mt, a 4.3% decrease on 2016-17.• WICET: 9.63Mt, a 4.8% increase on 2016-17.• Brisbane: 7.31Mt, a 10.1% increase on 2016-17.

• TMR’s forecast for 2018-19 Queensland coal exports is 228Mt, a 2.5% increase on 2017-18.

2015 2016 2017 2018 (@ 30 June)

9 7 4 12

Applications Lodged for: Coal Mining Leases

Page 9: Queensland Coal Industry and...Queensland’s Coal • There are approximately 50 Coal mines in Qld –37 of them are metallurgical (met) coal mines in the Bowen Basin, i.e. 74% •

ISAAC PLAINS

9

Page 10: Queensland Coal Industry and...Queensland’s Coal • There are approximately 50 Coal mines in Qld –37 of them are metallurgical (met) coal mines in the Bowen Basin, i.e. 74% •

RED HILL

10

Page 11: Queensland Coal Industry and...Queensland’s Coal • There are approximately 50 Coal mines in Qld –37 of them are metallurgical (met) coal mines in the Bowen Basin, i.e. 74% •

OLIVE DOWNS

11

Page 12: Queensland Coal Industry and...Queensland’s Coal • There are approximately 50 Coal mines in Qld –37 of them are metallurgical (met) coal mines in the Bowen Basin, i.e. 74% •

WINCHESTER

12

Page 13: Queensland Coal Industry and...Queensland’s Coal • There are approximately 50 Coal mines in Qld –37 of them are metallurgical (met) coal mines in the Bowen Basin, i.e. 74% •

NEW LENTON

13

Page 14: Queensland Coal Industry and...Queensland’s Coal • There are approximately 50 Coal mines in Qld –37 of them are metallurgical (met) coal mines in the Bowen Basin, i.e. 74% •

GREGORY CRINUM

14

Page 15: Queensland Coal Industry and...Queensland’s Coal • There are approximately 50 Coal mines in Qld –37 of them are metallurgical (met) coal mines in the Bowen Basin, i.e. 74% •

SPRINGSURE CREEK COAL MINE

15

Page 16: Queensland Coal Industry and...Queensland’s Coal • There are approximately 50 Coal mines in Qld –37 of them are metallurgical (met) coal mines in the Bowen Basin, i.e. 74% •

BLUFF

16

Page 17: Queensland Coal Industry and...Queensland’s Coal • There are approximately 50 Coal mines in Qld –37 of them are metallurgical (met) coal mines in the Bowen Basin, i.e. 74% •

• Queensland Coal Projects Table

• Email Coal Hub [email protected]

• Search for resource authorities

• https://www.business.qld.gov.au/industries/mining-energy-water/resources/online-services/searches

• Coal industry statistical tables

• https://data.qld.gov.au/dataset/coal-industry-review-statistical-tables

• Mine worker numbers

• https://www.business.qld.gov.au/industries/mining-energy-water/resources/safety-health/mining/accidents-incidents/safety-performance

• Coal resources

• https://www.business.qld.gov.au/industries/invest/mining/resources-potential/mineral-resources/coal-resources

• Spatial data

• http://qldspatial.information.qld.gov.au/catalogue/custom/index.page

• MMOL maps

• https://minesonlinemaps.business.qld.gov.au/SilverlightViewer/Viewer.html?Viewer=momapspublic

• Queensland globe

• http://qldspatial.information.qld.gov.au/catalogue/custom/search.page?q=%22Queensland+Globe%22&fq%5B%5D=id.table_s:table.docindex

Useful online information

17

Page 18: Queensland Coal Industry and...Queensland’s Coal • There are approximately 50 Coal mines in Qld –37 of them are metallurgical (met) coal mines in the Bowen Basin, i.e. 74% •

NERA Industry

Growth Centre Supporting the Energy

Resources Sector

HeadingPaul Hodgson

CHDC Industry and Innovation Forum

18 July 2018

Page 19: Queensland Coal Industry and...Queensland’s Coal • There are approximately 50 Coal mines in Qld –37 of them are metallurgical (met) coal mines in the Bowen Basin, i.e. 74% •

2

Industry Growth

Centres

Industry led and

independent

Trusted brokers of

innovation

Drives productivity &

competitiveness

Transfer investment in knowledge

& capabilities into commercial

value & capacity here in Australia

Connected to global export markets

Page 20: Queensland Coal Industry and...Queensland’s Coal • There are approximately 50 Coal mines in Qld –37 of them are metallurgical (met) coal mines in the Bowen Basin, i.e. 74% •

3

METS Ignited Industry Growth Centre for the

Mining Equipment, Technology and Services sector

1. Bowen Basin Pilot Cluster Program

• METS Ignited with Queensland State Development

• Bringing together METS firms to address industry challenges and

accelerate their commercialisation

• Recipients announced during QME week in Mackay

2. METS Masterclass: Winning More Business

• De-risking your METS business to mining customers

• Delivered Aug-Sep 2018 incl Mackay and Townsville

3. Collaborative Project Funds

• $6m in matched funding – Round #3 of a total of $15m

• Projects responding to industry challenges

• Consortia of 1 customer (eg Miner) + at least 2 METS

• Applications close 31 August… METS Ignited website.

@metsignited

METS Ignited Australia

www.metsignited.org

Contact METS Ignited:

Page 21: Queensland Coal Industry and...Queensland’s Coal • There are approximately 50 Coal mines in Qld –37 of them are metallurgical (met) coal mines in the Bowen Basin, i.e. 74% •

4

NERA’s Role and Strategy

Page 22: Queensland Coal Industry and...Queensland’s Coal • There are approximately 50 Coal mines in Qld –37 of them are metallurgical (met) coal mines in the Bowen Basin, i.e. 74% •

5

NERA’s Sector Competitiveness Plan:

Underpins efforts by the Australian energy

resources sector to address productivity and

competitiveness challenges

Sets out a strategic road map over a 10-year

horizon

Identifies priorities for collaborative action

and innovation to enable the Australian

energy resources sector to transform its

productivity performance, compete globally

and be sustainable

Page 23: Queensland Coal Industry and...Queensland’s Coal • There are approximately 50 Coal mines in Qld –37 of them are metallurgical (met) coal mines in the Bowen Basin, i.e. 74% •

6

Sector at a glance

Page 24: Queensland Coal Industry and...Queensland’s Coal • There are approximately 50 Coal mines in Qld –37 of them are metallurgical (met) coal mines in the Bowen Basin, i.e. 74% •

7

Sector Focus Areas

Decommissioning

Regulation and

Reputation

Digital & Automation

Skills & Workforce

Transition

Low Carbon

Technology

Maintenance & Operational

Optimisation

Industry & Research

Collaboration to

Commercialise

Innovation

Supply Chain Clusters and

Export Hubs

Page 25: Queensland Coal Industry and...Queensland’s Coal • There are approximately 50 Coal mines in Qld –37 of them are metallurgical (met) coal mines in the Bowen Basin, i.e. 74% •

NERA in action

8

Page 26: Queensland Coal Industry and...Queensland’s Coal • There are approximately 50 Coal mines in Qld –37 of them are metallurgical (met) coal mines in the Bowen Basin, i.e. 74% •

9

NERA Project spotlight

Export markets Research + collaboration

Page 27: Queensland Coal Industry and...Queensland’s Coal • There are approximately 50 Coal mines in Qld –37 of them are metallurgical (met) coal mines in the Bowen Basin, i.e. 74% •

10

Western Australia

1. Tropical Cyclone Reanalysis - Industry: Oil & Gas

(Conventional)

2. Exmouth Integrated Artificial Reef - Industry: Oil &

Gas (Conventional)

3. Living Lab Subsea Test Structure – Industry: Oil &

Gas (Conventional)

4. LNG Futures Facility – Industry: Oil & Gas

(Conventional)

5. Baseline Characterisation of the North Perth

Basin - Industry: Oil & Gas (Unconventional &

Conventional)

6. Blacktip Wellhead Platform - Industry: Oil & Gas

(Conventional)

7. Beneficiation - Industry: Uranium

8. Optimisation of the Metallurgical Flowsheet -

Industry: Uranium

9. Hydrate Risk in Subsea Jumpers - Industry: Oil &

Gas (Conventional)

10. Integration of Image Recognition Technology into

water hull cleaning tool – Industry: Oil & Gas

(Conventional)

11. Subsea Innovation Cluster Australia – Industry: Oil

& Gas (Conventional)

12. Core Innovation Hub - Industry: Sector wide

13. Virtual Operating Environment - Industry: Oil & Gas

(Conventional)

Northern Territory

14 Metal 3D Printing for the Supply Chain - Oil & Gas

(Conventional)

South Australia

15. Automating Groundwater Compliance Monitoring

- Industry: Uranium

16. Radiological Risk Assessment Tools - Industry:

Uranium

Queensland

19. Zero Emissions Coal Technology - Industry: Coal

20. Hybrid CSG Wellsite Power - Industry: Oil & Gas

(Unconventional)

21. Unlocking the Toolebuc Formation - Industry: Oil

& Gas (Unconventional)

22. New Geostatistical Technique (Petrel plug-in) -

Industry: Oil & Gas (Unconventional)

23. Identifying Different Sources of Methane in

Groundwater - Industry: Oil & Gas

(Unconventional)

24. Converting Tight Contingent CSG Resources -

Industry: Oil & Gas (Unconventional)

25. Resetting our understanding of the Great

Artesian Basin - Industry: Oil & Gas

(Unconventional)

26. Remote Operating Centre (Coal)

New South Wales

27. Machine learning-based sub-surface geological model -

Industry: Oil and Gas (Unconventional)

28. Scheduling system for coal export terminals – Industry:

(Coal)

29. Bioremediation of Contaminated Sites - Industry:

Oil & Gas (Conventional)

30. Centralised Environmental Plans for Seismic

Operations - Industry: Oil & Gas (Conventional)

31. SME Innovation Vouchers – Industry: Sector wide

32. SMART Australia – Industry: Sector wide

33. Decommissioning Initiative - Industry: Oil & Gas

(Conventional)

34. Open Innovation Platform – NUREKA - Industry:

Oil & Gas

Multi-State

NERA’s Projects across Australia

Page 28: Queensland Coal Industry and...Queensland’s Coal • There are approximately 50 Coal mines in Qld –37 of them are metallurgical (met) coal mines in the Bowen Basin, i.e. 74% •

11

Case Study: Hybrid CSG Wellsite Power

NERA is supporting the demonstration

of technical and commercial value of

Hybrid Wellsite Solar Battery Generator

packages for CSG wellsite power.

The project is proposing to combine

three key elements for the trial:

➢ Generator 40KVa with gas fuelled

reciprocating engine

➢ Synchronising switchboard with

dual power input

➢ Solar battery hybrid container

The solar hybrid package would deliver

a nominal 8kW of power from either the

solar and battery power supply and up to

32kW from the gas generator for

potential high load situations.

Impact:

Reduction in generator operating hours

and maintenance costs

Improved service life of generation

equipment

Lower system use gas

Increased field capacity increase due to

higher power availability

Lower carbon and noise emissions

Improved flexibility with generator

maintenance

Page 29: Queensland Coal Industry and...Queensland’s Coal • There are approximately 50 Coal mines in Qld –37 of them are metallurgical (met) coal mines in the Bowen Basin, i.e. 74% •

12

Case Study: Zero Emissions Coal

TechnologyNERA is supporting the installation of a

newly patented Dynamic Goaf Balancing

System that can concentrate and

capture methane for beneficial use or

destruction.

This Project aims to provide Australian

underground coal mines with a

technically viable method to drastically

reduce fugitive greenhouse gas

emissions during their operations.

The system provides a safe and

environmentally sustainable alternative

to the venting of fugitive GHG to the

atmosphere through the mine ventilation

system.

Impact:

New methane capture technology has

the potential to drastically reduce GHG

emissions from Australian underground

coal mines.

Page 30: Queensland Coal Industry and...Queensland’s Coal • There are approximately 50 Coal mines in Qld –37 of them are metallurgical (met) coal mines in the Bowen Basin, i.e. 74% •

13

Case Study: Scheduling System for

Coal Export TerminalsShort term planning (2-3 day horizon)

and operations scheduling (24hr

horizon) decisions at coal export

terminals are fundamentally manual

processes.

This project aims to create proof-of-

concept scheduling software that

optimises coal export terminal

operations.

The project will further develop and

deploy the solution to automate and

optimise planning and scheduling of

terminal equipment.

Impact:

Initial proof-of-concept suggest

potential export terminal capacity

improvements of up to 10% could be

achieved per port.

These improvements could be realised

for the majority of Australian coal

export terminals.

Page 31: Queensland Coal Industry and...Queensland’s Coal • There are approximately 50 Coal mines in Qld –37 of them are metallurgical (met) coal mines in the Bowen Basin, i.e. 74% •

14

And likewise innovators, researchers and start-

ups can showcase their solutions to a global oil

and gas market

Solutions driven

Driven by your needs and challenges – these can

be both complex or simple – allowing you access to

a previously untapped resource

Industry driven

Provides you access to challenges and seek

solutions from within the oil and gas industry and

from other sectors - i.e. manufacturing,

materials, processing etc.

Open source

Global access

Ensures your identity, data and confidential

information is secure and private

Security

Facilitates collaboration enabling you access to

operators, suppliers, innovators and researchers

to co-create, develop and apply solutions to your

business challenges

Collaboration

Nureka

Allows you to generate and post innovation

and/or collaboration opportunities and

challenges from anywhere in the world

Nureka is a collaboration between NERA and Eureka Platform Pty Ltd

NERA and Eureka saw an opportunity to help advance the energy

resources innovation culture across Australia through development of an

open source platform, providing both innovation and collaboration

capability within a single platform structure, for users across the entire oil

and gas ecosystem.

Page 32: Queensland Coal Industry and...Queensland’s Coal • There are approximately 50 Coal mines in Qld –37 of them are metallurgical (met) coal mines in the Bowen Basin, i.e. 74% •

16

Continue to grow our energy

resources industry into a global

energy powerhouse

Lead the global digital technology

race

Support the transition to a low

carbon future

16

Through industry collaboration Australia can:

Page 33: Queensland Coal Industry and...Queensland’s Coal • There are approximately 50 Coal mines in Qld –37 of them are metallurgical (met) coal mines in the Bowen Basin, i.e. 74% •
Page 34: Queensland Coal Industry and...Queensland’s Coal • There are approximately 50 Coal mines in Qld –37 of them are metallurgical (met) coal mines in the Bowen Basin, i.e. 74% •

James Scotland Emerald July 2018

Page 35: Queensland Coal Industry and...Queensland’s Coal • There are approximately 50 Coal mines in Qld –37 of them are metallurgical (met) coal mines in the Bowen Basin, i.e. 74% •

Our challenge lies not in

finding new ways of thinking

but in letting go of old ways of

thinking”

- W. Edwards Deming

Page 36: Queensland Coal Industry and...Queensland’s Coal • There are approximately 50 Coal mines in Qld –37 of them are metallurgical (met) coal mines in the Bowen Basin, i.e. 74% •

If we do business

TODAYThe way we did business

YESTERDAY We'll be out of business

T O M O R R O W

‘THE 5 OF THE FUTURE’

Page 37: Queensland Coal Industry and...Queensland’s Coal • There are approximately 50 Coal mines in Qld –37 of them are metallurgical (met) coal mines in the Bowen Basin, i.e. 74% •
Page 38: Queensland Coal Industry and...Queensland’s Coal • There are approximately 50 Coal mines in Qld –37 of them are metallurgical (met) coal mines in the Bowen Basin, i.e. 74% •

Volvo Trucks CUTS Production Time &

Costs By

with Stratasys 3D Printing Systems

94%

Page 39: Queensland Coal Industry and...Queensland’s Coal • There are approximately 50 Coal mines in Qld –37 of them are metallurgical (met) coal mines in the Bowen Basin, i.e. 74% •
Page 40: Queensland Coal Industry and...Queensland’s Coal • There are approximately 50 Coal mines in Qld –37 of them are metallurgical (met) coal mines in the Bowen Basin, i.e. 74% •
Page 41: Queensland Coal Industry and...Queensland’s Coal • There are approximately 50 Coal mines in Qld –37 of them are metallurgical (met) coal mines in the Bowen Basin, i.e. 74% •

If we do business

TODAYThe way we did business

YESTERDAY We'll be out of business

T O M O R R O W

Page 42: Queensland Coal Industry and...Queensland’s Coal • There are approximately 50 Coal mines in Qld –37 of them are metallurgical (met) coal mines in the Bowen Basin, i.e. 74% •

Strong structures, PREDICTABLE outcomes

Fluid, Flexible, Adaptive

Page 43: Queensland Coal Industry and...Queensland’s Coal • There are approximately 50 Coal mines in Qld –37 of them are metallurgical (met) coal mines in the Bowen Basin, i.e. 74% •

GET READY

GET CONNECTED

GET BRANDED

GET IT

RIGHT

GET FLEXIBLE

‘THE 5 OF THE FUTURE’

Page 44: Queensland Coal Industry and...Queensland’s Coal • There are approximately 50 Coal mines in Qld –37 of them are metallurgical (met) coal mines in the Bowen Basin, i.e. 74% •

GET

READY

GET CONNECTED

GET BRANDED

GET IT RIGHT

GET FLEXIBLE

‘THE 5 OF THE FUTURE’

Page 45: Queensland Coal Industry and...Queensland’s Coal • There are approximately 50 Coal mines in Qld –37 of them are metallurgical (met) coal mines in the Bowen Basin, i.e. 74% •

GET READY

GET CONNECTED

GET

BRANDED

GET IT RIGHT

GET FLEXIBLE

‘THE 5 OF THE FUTURE’

Page 46: Queensland Coal Industry and...Queensland’s Coal • There are approximately 50 Coal mines in Qld –37 of them are metallurgical (met) coal mines in the Bowen Basin, i.e. 74% •

GET READY

GET CONNECTED

GET BRANDED

GET IT RIGHT

GET

FLEXIBLE

‘THE 5 OF THE FUTURE’

Page 47: Queensland Coal Industry and...Queensland’s Coal • There are approximately 50 Coal mines in Qld –37 of them are metallurgical (met) coal mines in the Bowen Basin, i.e. 74% •

Apple Inc; $158.8bn of cash/ equivalents

Microsoft : $ 83.7bn

U.K. Government - $70.0bn

U.S. Government - $48.5bn

Page 48: Queensland Coal Industry and...Queensland’s Coal • There are approximately 50 Coal mines in Qld –37 of them are metallurgical (met) coal mines in the Bowen Basin, i.e. 74% •

GET READY

GET

CONNECTED

GET BRANDED

GET IT RIGHT

GET FLEXIBLE

‘THE 5 OF THE FUTURE’

Page 49: Queensland Coal Industry and...Queensland’s Coal • There are approximately 50 Coal mines in Qld –37 of them are metallurgical (met) coal mines in the Bowen Basin, i.e. 74% •
Page 50: Queensland Coal Industry and...Queensland’s Coal • There are approximately 50 Coal mines in Qld –37 of them are metallurgical (met) coal mines in the Bowen Basin, i.e. 74% •

GET READY

GET CONNECTED

GET BRANDED

GET FLEXIBLE

‘THE 5 OF THE FUTURE’

GET IT RIGHT

Page 51: Queensland Coal Industry and...Queensland’s Coal • There are approximately 50 Coal mines in Qld –37 of them are metallurgical (met) coal mines in the Bowen Basin, i.e. 74% •
Page 52: Queensland Coal Industry and...Queensland’s Coal • There are approximately 50 Coal mines in Qld –37 of them are metallurgical (met) coal mines in the Bowen Basin, i.e. 74% •

JAMES SCOTLAND0437 490 110 // 0400 46 47 66

‘THE 5 OF THE FUTURE’

Page 53: Queensland Coal Industry and...Queensland’s Coal • There are approximately 50 Coal mines in Qld –37 of them are metallurgical (met) coal mines in the Bowen Basin, i.e. 74% •

Santos – upstream developments

CHDC Industry and Innovation Forum – July 2018

Irrigation at Fairview

Page 54: Queensland Coal Industry and...Queensland’s Coal • There are approximately 50 Coal mines in Qld –37 of them are metallurgical (met) coal mines in the Bowen Basin, i.e. 74% •

+ This presentation contains forward looking statements that are subject to risk factors associated with the oil and gas industry. It is believed that the expectations reflected in these statements are reasonable, but they may be affected by a range of variables which could cause actual results or trends to differ materially, including but not limited to: price fluctuations, actual demand, currency fluctuations, geotechnical factors, drilling and production results, gas commercialisation, development progress, operating results, engineering estimates, reserve estimates, loss of market, industry competition, environmental risks, physical risks, legislative, fiscal and regulatory developments, economic and financial markets conditions in various countries, approvals and cost estimates.

+ All references to dollars, cents or $ in this document are to Australian currency, unless otherwise stated.

Disclaimer

Page 55: Queensland Coal Industry and...Queensland’s Coal • There are approximately 50 Coal mines in Qld –37 of them are metallurgical (met) coal mines in the Bowen Basin, i.e. 74% •

+ Australian company providing gas from Roma for more than 50 years

+ The Santos GLNG Project has completed over 1,000 wells and delivered its 200th LNG cargo

+ Lowest cost on-shore developer with strong safety record

+ Existing hubs at Roma, Fairview and Scotia

+ Expansion planned for Roma East and Arcadia

An Australian energy pioneer

Santos in Queensland

Page 56: Queensland Coal Industry and...Queensland’s Coal • There are approximately 50 Coal mines in Qld –37 of them are metallurgical (met) coal mines in the Bowen Basin, i.e. 74% •

+ Continual review and optimisation of surface and sub-surface designs

+ 83% reduction in costs and 68% reduction in drill cycle times enabled by:

+ Bringing drilling and completion in house

+ Fit for purpose design and eliminating waste

+ Adopting a fast learning cycle

+ Rig execution strategy – adopting lightweight hybrid coil

+ Night rig moves

+ Continuing to optimise drill bit selection

+ High volume of sequential and repeatable scope

Roma Drilling

Average days (rig release to rig release)

Roma Phase 1 (pre-2015)

Roma-3A (2017)Roma-2B (2016)Roma-2A (2015)

-83%

4

56

11

Roma-3A (2017)Roma-2B (2016)

-68%

Roma Phase 1 (pre-2015)

Roma-2A (2015)

US$million per well

Roma drill, complete, connect

GLNG transformation journey

4

Lowest cost onshore developer

5.2

3.2

1.60.9

Page 57: Queensland Coal Industry and...Queensland’s Coal • There are approximately 50 Coal mines in Qld –37 of them are metallurgical (met) coal mines in the Bowen Basin, i.e. 74% •

Upstream investments

5

2018 plans

+ $900 million capital investment during 2018

New projects

+ Roma East – 3 year, $750m development sanctioned in February

+ Scotia – successfully commissioned ahead of schedule in April

+ Arcadia – 2 year, $400m development sanctioned in May

Ongoing activity

+ Fairview

+ Roma

Scotia plant

Page 58: Queensland Coal Industry and...Queensland’s Coal • There are approximately 50 Coal mines in Qld –37 of them are metallurgical (met) coal mines in the Bowen Basin, i.e. 74% •

Investing in economic and social infrastructure

6

Ongoing community investment

+ Since the beginning of the project, we have made significant contributions to the communities in which we operate including:

+ $210 million to upgrade rural roads in regional Queensland

+ $2.5 million contribution in 2011 for the upgrade and expansion of Roma airport

+ $20 million over the life of the GLNG Project to the CareFlight aeromedical service

+ In 2017 Santos supported 62 community initiatives across our upstream footprint

Page 59: Queensland Coal Industry and...Queensland’s Coal • There are approximately 50 Coal mines in Qld –37 of them are metallurgical (met) coal mines in the Bowen Basin, i.e. 74% •

Sanctioned May 2018

Arcadia development

+ $400 million investment over 2 years

+ Located ~310km north of Roma

+ Project scope:

+ 137 new wells and surface infrastructure

+ ~140km gas and water gathering network

+ Construction of two 4G communication towers

+ New compression station

+ Reverse osmosis plant for a capacity of 4ML/d

+ Gas fired power station for a capacity of 5MW

+ Associated access roads and material laydown yard.

Arcadia 2018

Arcadia 2020

Page 60: Queensland Coal Industry and...Queensland’s Coal • There are approximately 50 Coal mines in Qld –37 of them are metallurgical (met) coal mines in the Bowen Basin, i.e. 74% •

Maintaining our strong local presence

8

Supporting local communities

In the Arcadia Valley:

+ Sponsorship and support for school and community events

+ Telstra 4G network installations

+ AM/FM radio

+ Access to medic and training opportunities in camps

+ Meals available in camps

+ Road improvements – Lonesome jump-up and CHRC roads

Working bee at Wallumbilla

Page 61: Queensland Coal Industry and...Queensland’s Coal • There are approximately 50 Coal mines in Qld –37 of them are metallurgical (met) coal mines in the Bowen Basin, i.e. 74% •

2 year development timeframe

Arcadia indicative development timeline

2018/19

2021/23

2023/26

Arcadia 2020

Page 62: Queensland Coal Industry and...Queensland’s Coal • There are approximately 50 Coal mines in Qld –37 of them are metallurgical (met) coal mines in the Bowen Basin, i.e. 74% •

Local participation

10

Working with us

+ Santos encourages local industry participation

+ Santos has purchased material and services totalling more than $16.6 billion Australia wide since 2011

+ This includes $9.0 billion in Queensland and $1.5 billion with regional Queensland businesses

+ Opportunities exist throughout the supply chain

Contractors at Fairview + For further information:

+ Call the Santos Community Information Hotline 1800 761 113

+ Visit us at 72 Kimbler Rd, Roma (near the Ironbark Raceway/Stocklick)

+ Email: [email protected]

Page 63: Queensland Coal Industry and...Queensland’s Coal • There are approximately 50 Coal mines in Qld –37 of them are metallurgical (met) coal mines in the Bowen Basin, i.e. 74% •

Thank you & questions

Page 64: Queensland Coal Industry and...Queensland’s Coal • There are approximately 50 Coal mines in Qld –37 of them are metallurgical (met) coal mines in the Bowen Basin, i.e. 74% •

Innovation Engaging regional businesses

to develop innovative mindsets

Tracey Cuttriss-Smith

CEO

18 July 2018

CH Innovation & Industry Forum

Page 65: Queensland Coal Industry and...Queensland’s Coal • There are approximately 50 Coal mines in Qld –37 of them are metallurgical (met) coal mines in the Bowen Basin, i.e. 74% •

Business

Model

Page 66: Queensland Coal Industry and...Queensland’s Coal • There are approximately 50 Coal mines in Qld –37 of them are metallurgical (met) coal mines in the Bowen Basin, i.e. 74% •
Page 67: Queensland Coal Industry and...Queensland’s Coal • There are approximately 50 Coal mines in Qld –37 of them are metallurgical (met) coal mines in the Bowen Basin, i.e. 74% •

BHP OD

BHP WAIO

BMABMC

BHP NSWEC

Page 68: Queensland Coal Industry and...Queensland’s Coal • There are approximately 50 Coal mines in Qld –37 of them are metallurgical (met) coal mines in the Bowen Basin, i.e. 74% •

LBP Summary (FY13 – FY18)

$94,859,499

$0

$10,000,000

$20,000,000

$30,000,000

$40,000,000

$50,000,000

$60,000,000

$70,000,000

$80,000,000

$90,000,000

$100,000,000

FY13 FY14 FY15 FY16 FY17 FY18

Approved Spend per Year PTD

8071

0

1000

2000

3000

4000

5000

6000

7000

8000

9000

FY13 FY14 FY15 FY16 FY17 FY18

Work Opportunities per Year PTD

1161

0

200

400

600

800

1000

1200

1400

FY13 FY14 FY15 FY16 FY17 FY18

Supplier Registrations

14220

0

2000

4000

6000

8000

10000

12000

14000

16000

FY13 FY14 FY15 FY16 FY17 FY18

Claims Paid per Year PTD

Page 69: Queensland Coal Industry and...Queensland’s Coal • There are approximately 50 Coal mines in Qld –37 of them are metallurgical (met) coal mines in the Bowen Basin, i.e. 74% •

Phone 1800 536 663 Email [email protected] Web www.localbuyingfoundation.com.au

Recent projects funded for CH providing

opportunities for regional businesses …..

• Connectivity Hub (CHRRUP)

• HACK CQ (CHDC)

• Grown in the Central Highlands:

Understanding Local Food & Produce

Consumption – Research (CHDC)

• UWorkin Platform – Talent Communities

(CHDC)

• CH Heroes Campaign (CHDC)

• Economic Futures Forums (CHDC)

• BBBDI Strategy 2018-2019 (LBF Initiative)

• Tap into Tenders (CHDC)

• Aviation for Schools Drones Project (CH

VET Cluster Network)

• Bridging the Boundaries: Business

Facilitator Program (CHDC & GW3)

86

Projects

$2,014,148

Total value of Projects Funded

$2,797,385

Total fundingreceived

Page 70: Queensland Coal Industry and...Queensland’s Coal • There are approximately 50 Coal mines in Qld –37 of them are metallurgical (met) coal mines in the Bowen Basin, i.e. 74% •
Page 71: Queensland Coal Industry and...Queensland’s Coal • There are approximately 50 Coal mines in Qld –37 of them are metallurgical (met) coal mines in the Bowen Basin, i.e. 74% •

Denis Glacken

• Central Highland Regional Council

Page 72: Queensland Coal Industry and...Queensland’s Coal • There are approximately 50 Coal mines in Qld –37 of them are metallurgical (met) coal mines in the Bowen Basin, i.e. 74% •

2017/2018 Local Procurement

$104,080,099.62 spent in procurement 2017/2018

40% of council spend is with local suppliers contractors.

69% of all Purchase Orders raised where within the Central Highland Regional Area.

Local Preference Policy gives local suppliers/contractors a weighting of 15% up to $200,000 and a 5% weighting over $200,000.

With tenders over $200,000 a demonstrated spend of 30% must be submitted in tender response detailing local spend.

Page 73: Queensland Coal Industry and...Queensland’s Coal • There are approximately 50 Coal mines in Qld –37 of them are metallurgical (met) coal mines in the Bowen Basin, i.e. 74% •

2017/2018 Spend

Page 74: Queensland Coal Industry and...Queensland’s Coal • There are approximately 50 Coal mines in Qld –37 of them are metallurgical (met) coal mines in the Bowen Basin, i.e. 74% •

Purchase Orders raised

Page 75: Queensland Coal Industry and...Queensland’s Coal • There are approximately 50 Coal mines in Qld –37 of them are metallurgical (met) coal mines in the Bowen Basin, i.e. 74% •

Major Projects

Page 76: Queensland Coal Industry and...Queensland’s Coal • There are approximately 50 Coal mines in Qld –37 of them are metallurgical (met) coal mines in the Bowen Basin, i.e. 74% •

• $91M Capital works program

• $21.8M Rural Roads Maintenance

• $23.6M Community Recreation and Facilities

Looking Forward

Page 77: Queensland Coal Industry and...Queensland’s Coal • There are approximately 50 Coal mines in Qld –37 of them are metallurgical (met) coal mines in the Bowen Basin, i.e. 74% •

• Upgrade Blackgulley STP-Construction $7.5M

• Upgrade Blackgulley STP 14/15 $764K

• Park Avenue inlet structure and chlorine tank

• and switchboard $2.9M

• Blackwater STP-irrigation improvements $2.7M

• Pave and seal –Carnarvon Gorge Road $1.7M

• Pave and seal Mulcahys Road $1.3M

• Reseal Program $1.2M

• Pave and seal Wyuna Road $1.1M

Some of our major projects

Page 78: Queensland Coal Industry and...Queensland’s Coal • There are approximately 50 Coal mines in Qld –37 of them are metallurgical (met) coal mines in the Bowen Basin, i.e. 74% •

• 170kW Solar panel system installed

• $68,177 saving in year 1

• $2,333,154 saving over 25 years

• Payback on outlay 3.8years

• 45% consumption provider by solar

• 11% solar generations exported to grid

SOLAR ARRAY ON MAIN COUNCIL BUILDING

Page 79: Queensland Coal Industry and...Queensland’s Coal • There are approximately 50 Coal mines in Qld –37 of them are metallurgical (met) coal mines in the Bowen Basin, i.e. 74% •
Page 80: Queensland Coal Industry and...Queensland’s Coal • There are approximately 50 Coal mines in Qld –37 of them are metallurgical (met) coal mines in the Bowen Basin, i.e. 74% •

© Queensland Mines Rescue Service

Page 81: Queensland Coal Industry and...Queensland’s Coal • There are approximately 50 Coal mines in Qld –37 of them are metallurgical (met) coal mines in the Bowen Basin, i.e. 74% •

© Queensland Mines Rescue Service

QLD MINES RESCUE SERVICE

BOONAL TRAINING FACILITY

Page 82: Queensland Coal Industry and...Queensland’s Coal • There are approximately 50 Coal mines in Qld –37 of them are metallurgical (met) coal mines in the Bowen Basin, i.e. 74% •

© Queensland Mines Rescue Service

BACKGROUND

• QMRS has a proud 110 history

of serving our mines and

following industry to where

mining occurs.

• Today we focus on both the

Southern and Northern Bowen

basin as the major mining

activity areas in Qld

• The Coal Industry is expanding

Page 83: Queensland Coal Industry and...Queensland’s Coal • There are approximately 50 Coal mines in Qld –37 of them are metallurgical (met) coal mines in the Bowen Basin, i.e. 74% •

© Queensland Mines Rescue Service

BLACKWATER STATION

• Our 42-year old Blackwater station is surrounded by an expanding

community

• The facility is now built out by service stations, fast food outlets,

motels, and housing which means it can’t expand.

• This has also led to operational restrictions at Blackwater

Page 84: Queensland Coal Industry and...Queensland’s Coal • There are approximately 50 Coal mines in Qld –37 of them are metallurgical (met) coal mines in the Bowen Basin, i.e. 74% •

© Queensland Mines Rescue Service

WHY BOONAL SITE?

Located 7km East of

Blackwater

• 10 minute drive from

accommodation

• 52 acres

• Beside existing coal

stockpiles rail loadout

• Site will facilitate

QMRS continuing

support of Central

Highlands businesses

and the community

Page 85: Queensland Coal Industry and...Queensland’s Coal • There are approximately 50 Coal mines in Qld –37 of them are metallurgical (met) coal mines in the Bowen Basin, i.e. 74% •

© Queensland Mines Rescue Service

WHAT WE ARE PROPOSING

A state of the art training

facility

• Administration and

training building

• Simulated

underground mine

• Helicopter access

training

• A surface fire ground

Page 86: Queensland Coal Industry and...Queensland’s Coal • There are approximately 50 Coal mines in Qld –37 of them are metallurgical (met) coal mines in the Bowen Basin, i.e. 74% •

© Queensland Mines Rescue Service

WHAT WE ARE PROPOSING (continued)

A state of the art training facility:

• Surface mine and CHPP training infrastructure

• Road crash rescue facility

• Augmented virtual reality facility

• Vertical rescue training facility

Page 87: Queensland Coal Industry and...Queensland’s Coal • There are approximately 50 Coal mines in Qld –37 of them are metallurgical (met) coal mines in the Bowen Basin, i.e. 74% •

© Queensland Mines Rescue Service

LOCATION

Page 88: Queensland Coal Industry and...Queensland’s Coal • There are approximately 50 Coal mines in Qld –37 of them are metallurgical (met) coal mines in the Bowen Basin, i.e. 74% •

© Queensland Mines Rescue Service

BOONAL SITE PLAN

Page 89: Queensland Coal Industry and...Queensland’s Coal • There are approximately 50 Coal mines in Qld –37 of them are metallurgical (met) coal mines in the Bowen Basin, i.e. 74% •

© Queensland Mines Rescue Service

TRAINING BUILDING AREA

Page 90: Queensland Coal Industry and...Queensland’s Coal • There are approximately 50 Coal mines in Qld –37 of them are metallurgical (met) coal mines in the Bowen Basin, i.e. 74% •

© Queensland Mines Rescue Service

TRAINING AND ADMIN BUILDING

Page 91: Queensland Coal Industry and...Queensland’s Coal • There are approximately 50 Coal mines in Qld –37 of them are metallurgical (met) coal mines in the Bowen Basin, i.e. 74% •

© Queensland Mines Rescue Service

COSTThe capital cost of the project is

$6.5m for:

• purchase of the land - complete

• training and administration

building

• fire ground & UG simulation

• other site works and services

Page 92: Queensland Coal Industry and...Queensland’s Coal • There are approximately 50 Coal mines in Qld –37 of them are metallurgical (met) coal mines in the Bowen Basin, i.e. 74% •

© Queensland Mines Rescue Service

FUNDING

• As QMRS is a not for profit organisation servicing mines we are

seeking:

• Loan funding from the Northern Australian Infrastructure Fund

- Located above the Tropic of Capricorn

- Significant training infrastructure

• Grant funding from the Building Better Regions Fund

Page 93: Queensland Coal Industry and...Queensland’s Coal • There are approximately 50 Coal mines in Qld –37 of them are metallurgical (met) coal mines in the Bowen Basin, i.e. 74% •

© Queensland Mines Rescue Service

COMMUNITY BENEFITS

• Large capital project for the community

• Rescue Training Facility that can be potentially used by

other organisations such as:

- Defence

- Scouts

- SES

• Facilitates growth in employment in the region with

• Construction workforce of approximately 60 people

• Operational training and staff averaging 30 people

Page 94: Queensland Coal Industry and...Queensland’s Coal • There are approximately 50 Coal mines in Qld –37 of them are metallurgical (met) coal mines in the Bowen Basin, i.e. 74% •

© Queensland Mines Rescue Service

CONSULTANTS ENGAGED

Andrew Bell of Murray and Associates

• Survey works

• MCU Application

• Development Application

Neil Richardson

• Quantity Surveying

Prue Saxby

• Funding applications

Page 95: Queensland Coal Industry and...Queensland’s Coal • There are approximately 50 Coal mines in Qld –37 of them are metallurgical (met) coal mines in the Bowen Basin, i.e. 74% •

© Queensland Mines Rescue Service

TIMING

Completed to date:

• Land procured

• Concept design

CHRC and Design timing:

• MCU and Development Application June – Sep 2018

• Detail design and costings July – Oct 2018

• Building application October – December 2018

Page 96: Queensland Coal Industry and...Queensland’s Coal • There are approximately 50 Coal mines in Qld –37 of them are metallurgical (met) coal mines in the Bowen Basin, i.e. 74% •

© Queensland Mines Rescue Service

TIMING (continued)

Funding timing

• NAIF loan funding applications July – March 2019

• BBR grant funding applications October 18 – April 2019

Contracting timing:

• Tender process February – March 2019

• Contracts award March 2019

Construction March 2019 – March 2021

Page 97: Queensland Coal Industry and...Queensland’s Coal • There are approximately 50 Coal mines in Qld –37 of them are metallurgical (met) coal mines in the Bowen Basin, i.e. 74% •

© Queensland Mines Rescue Service

QMRS

Page 98: Queensland Coal Industry and...Queensland’s Coal • There are approximately 50 Coal mines in Qld –37 of them are metallurgical (met) coal mines in the Bowen Basin, i.e. 74% •

INNOVATIONUniversities and the Future of Tertiary

Education

Page 99: Queensland Coal Industry and...Queensland’s Coal • There are approximately 50 Coal mines in Qld –37 of them are metallurgical (met) coal mines in the Bowen Basin, i.e. 74% •

If only we could pull out our brain and use only our eyes.

Pablo Picasso

Page 100: Queensland Coal Industry and...Queensland’s Coal • There are approximately 50 Coal mines in Qld –37 of them are metallurgical (met) coal mines in the Bowen Basin, i.e. 74% •

Challenges and ConsiderationsWhat’s happening in the industry and what do we need to do?

FUNDING• Increased competition• Lowering funding support

TECHNOLOGY• Advances in technology• sers

KNOWLEDGE• Readily available

GENERATIONS• More generations studying• Younger generations study different

MOBILITY• More mobile workforce• Students want to learn where they are

TIME• Students want to learn when they have the

time

Page 101: Queensland Coal Industry and...Queensland’s Coal • There are approximately 50 Coal mines in Qld –37 of them are metallurgical (met) coal mines in the Bowen Basin, i.e. 74% •

<25%The number of students who return to regional, rural and remote areas.

17%Higher cost to deliver education in regional

areas.

Regional Challenges

Page 102: Queensland Coal Industry and...Queensland’s Coal • There are approximately 50 Coal mines in Qld –37 of them are metallurgical (met) coal mines in the Bowen Basin, i.e. 74% •

The Organisation

Current • High level of government involvement• Students enroll in traditional undergrad and

graduate programs• Streamline operations by transforming

administration

Commercial• Low government involvement with regulation• Degrees with high levels of work-integrated

learning• Industry collaboration on teaching and

research

Virtual & Disruptor• Low government involvement- deregulated• Caters for continuous learners and offers on

demand and unbundled courses • High use of technology• Shared digital platforms

Page 103: Queensland Coal Industry and...Queensland’s Coal • There are approximately 50 Coal mines in Qld –37 of them are metallurgical (met) coal mines in the Bowen Basin, i.e. 74% •

KEYS TO SUCCESS

SUCCESS KNOWLEDGE TRANSFER

INDUSTRY&

COMMUNITIES

RESEARCH TEACHING &

LEARNING

Page 104: Queensland Coal Industry and...Queensland’s Coal • There are approximately 50 Coal mines in Qld –37 of them are metallurgical (met) coal mines in the Bowen Basin, i.e. 74% •

RESEARCH IS NOT INNOVATION

INNOVATION SELDOM HAPPENS AT

THE POINT OF INVENTION

Page 105: Queensland Coal Industry and...Queensland’s Coal • There are approximately 50 Coal mines in Qld –37 of them are metallurgical (met) coal mines in the Bowen Basin, i.e. 74% •

Application of Innovation

MOORE’s LAW- 1975

GPS- 1973- 1995 for public use

Internet- 1983

EMAIL- 1972

SIRI- 2007

LIQUID CRYSTAL DISPLAYS- 1970

Page 106: Queensland Coal Industry and...Queensland’s Coal • There are approximately 50 Coal mines in Qld –37 of them are metallurgical (met) coal mines in the Bowen Basin, i.e. 74% •

Learning how to Learn

Machine Learning

Lorem ipsum dolor sit amet,

consectetur Praesent sodales odio sit amet odio

tristique quis tempus odio.

IoT

Page 107: Queensland Coal Industry and...Queensland’s Coal • There are approximately 50 Coal mines in Qld –37 of them are metallurgical (met) coal mines in the Bowen Basin, i.e. 74% •

An organization cannot disrupt itself but it can disrupt an industry.