Construction on Boggabri Coal mine’s long-awaited expansion project has finally begun – three years after waiting for government approvals.
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Preliminary works began in November last year, including earthworks, dam construction and power upgrades.
Equipment is currently being mobilised to begin work this week on the new Coal Handling and Preparation Plant.
Contractors are also on the ground to start construction on the 17 km rail spur line, which includes bridges over the Namoi River and Kamilaroi Highway.
Both projects are on target for completion in June 2015.
Idemitsu Australia Resources will expand the Boggabri coal mine’s annual production from five to seven million tonnes per annum (mtpa) over 21 years.
The extension, which took three years to be rubber stamped by the State and Federal governments, will increase the mine area by 652 hectares.
It is expected to reach production in 2016.
During the 18-month construction period, 450 jobs will be created during 2014, with 100 employees already on site.
The company will use mostly specialist staff from across NSW and interstate during the
construction, however is focused on hiring local employees for future production.
“We believe the mines should be manned by as many local employees as possible. That’s the policy we’ve been pursuing,” Idemitsu Australia Resources Chief Operating Officer Rod Bridges said.
He added that the MAC Camp will be used mainly for construction staff and it is not the company’s intention to use the camp-style accommodation for “long term mine employees”.
While construction is on target for the mine expansion, the company has serious concerns about the rail capacity to get coal to port – particularly due to the section of track between Muswellbrook and Narrabri.
Mr Bridges said the Australian Rail Track Corporation (ARTC) is currently upgrading the line which won’t be completed until 2016.
Despite that, future problems are a concern.
“The current restrictions placed upon the rail line and the availability of rail facilities, means that there are restrictions on how many tonnes a year we can get out to the Port of Newcastle,” Mr Bridges said.
“We are working hard to expand the capacity of the rail link and we are working closely with rail
service providers to increase efficiency and production of the rail link, specifically Pacific National.”
Mr Bridges said eventually the pressure will move from the mines who deliver the coal, to the logistics chain and that’s where the company’s concerns lie.
Idemitsu is working with the Federal Government to resolve the issues, with calls for 30 tonne axle loads, upgrades to bridges to handle the extra loads and improved operational efficiency.
