Mining operations start at Rio Tinto's newest Queensland coal mine

Queensland Premier Anna Bligh and Minister for Mines and Energy Geoff Wilson have signalled the start of mining operations at the A$950 million Clermont Mine, Rio Tinto Coal Australia's newest mine project in the state.

Today the Premier and Minister joined Rio Tinto Coal Australia's managing director, Hubie van Dalsen, at an onsite ceremony to mark the start of earthworks for the thermal coal open-cut mine.

The Clermont Mine will employ 400 people in the construction phase and approximately 380 during operations. It is located 15 kilometres east of RTCA's Blair Athol Mine, in the Bowen Basin region of Central Queensland.

In a show of confidence in the Queensland resource sector, Mr van Dalsen said that Rio Tinto Coal Australia aims to make a multi-billion dollar investment in Queensland within the next seven years to double its coal exports.

"Our aim is to lift our Queensland production from 21 million tonnes (Mt) of thermal and coking last year, to 40Mt per annum by 2015," Mr van Dalsen said.

"We believe we have the resources and reserves base to do this.

"We will pursue organic growth opportunities at all of our operations - Kestrel, Hail Creek and Clermont - and we are evaluating Greenfield opportunities in the region."

Mr van Dalsen said if this growth plan was achieved, it would increase Rio Tinto Coal Australia's royalty payments, trigger hundreds of new jobs in the mining sector as well as flow-on industries, and add further strength to the regional economies of Queensland.

"We have developed this growth plan based on publicly announced infrastructure expansions that are either underway or are scheduled to occur over the next seven years in Queensland," Mr van Dalsen said.

"The planned new rail track, new rolling stock, port expansions and the work by the Goonyella Coal Chain central co-ordinator are vital to underpin this growth in the mining industry.

"We have confidence in the long term market demand for thermal and coking coal and we believe that advances in technology will enable coal to retain its relevance in a carbon-constrained world."

Mr van Dalsen said the Clermont Mine is expected to mine its first coal in early 2010.

"When the Clermont Mine reaches full capacity, expected in 2013, it will produce up to 12.2Mt of high quality thermal coal each year," Mr van Dalsen said.

As the Clermont Mine ramps up production, it will gradually replace the capacity of the nearby Blair Athol Mine (also operated by Rio Tinto Coal Australia), which is due to close in 2015.

The Clermont Mine, which has Reserves of 189Mt , is expected to have a mine life of around 17 years.

"This step today reinforces Rio Tinto Coal Australia's long term commitment to the Clermont region. We have been a member of this community for more than 20 years and we are very pleased we can continue our strong relationships with the people and the region," Mr van Dalsen said.

Rio Tinto Coal Australia's joint venture partners in the Clermont open cut mine are Mitsubishi Development Pty Ltd (31.4 per cent), J-Power Australia Pty Ltd (15 per cent) and JCD Australia Pty Ltd (3.5 per cent).

Meanwhile, Rio Tinto Coal Australia is currently progressing approvals for its next major investment in Queensland - the Kestrel Mine Extension. This project represents a further 20 year commitment to the Bowen Basin and is a strong vote of confidence in the Asian coal market.

"The Kestrel Mine Extension will enable us to tap into 136Mt of high quality hard and semi-hard coking coal and thermal coal for export from 2012," Mr van Dalsen said.

ENDS

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Quick facts about Clermont Mine:
• Clermont Mine will be an open cut truck/shovel operation with an in-pit crushing and conveying system.
• Coal will be transported on a 13 kilometre conveyor to the existing product stockyards, stacker/reclaimers and train loadout facilities at Blair Athol Mine. The coal will be railed 278 kilometres to the Dalrymple Bay Coal Terminal.
• Sustainable development has been central in the mine's design, as the in-pit crusher and conveyor system will halve haul truck use. The mine's mobile fleet will use fuel efficient engines.
• RTCA will continue to work with the community to ensure the Blair Athol Mine closure process is well managed and the site rehabilitated.
• The Clermont Mine will be operated by Rio Tinto Coal Australia, which also manages Hail Creek Mine, Blair Athol Mine and Kestrel Mine, all in Queensland. In New South Wales, Rio Tinto Coal Australia manages Coal & Allied, which operates Hunter Valley Operations, Mount Thorley Warkworth and Bengalla mines.

Mining operations start at Rio Tinto's newest Queensland coal mine [PDF: 39 KB]