COLTON COAL PTY LTD ACN 140 768 636 COLTON MINE PROJECT MINING LEASE ...

25 Pages·2014·1.8 MB·English

ACN081244395
COLTON COAL PTY LTD ACN 140 768 636
COLTON MINE PROJECT
MINING LEASE APPLICATIONS
COLTON A, COLTON B and COLTON C
over Prospecting Permits
50818, 50819, 50820, 50821, 50822 and 50823
And EPC 923 and EPC 1082
AMENDED INITIAL DEVELOPMENT PLAN or IDP1
PART 15.3 OF THE APPLICATION
S318DToftheMineralResourcesAct1989
Ss318DT,318DU,318DVand318DWoftheMineralResourcesAct1989(Qld)
1ThisdocumentcontainsonlytheInitialDevelopmentPlanrequiredunders318DToftheMineralResourcesAct1989(Qld)
andalsoaddressescertainrequirementsofsections318DU,318DVand318DWoftheMineralResourcesAct1989. Itdoes
notprovidefortheCSGStatementorCSGAssessmentCriteria,whicharesubjecttoadifferentsetofrulesandarelocatedin
part15.3Bofthisapplication.
CHECKLISTOFLEGISLATIVEREQUIREMENTS
Document Section(MR Requirement Sectionref
Act)
Initial 318DT(1)(a) anoverviewoftheactivitiesproposedtobecarriedout 1.1
Development undertheproposedminingleaseduringallofitsproposed
Plan term
318DT(1)(b) foreachyearoftheplanperiod: 1.2
 the nature and extent of activities to be carried out
under the proposed mining lease during the year;
and
 wheretheactivitiesareproposedtobecarriedout
foreachmineraltheapplicantproposedtomineunderthe
318DT(1)(c)
proposedmininglease,eachofthefollowing:
 the location and estimate of the resources of the
2
mineral in the area, or proposed area, of the mining
lease
 the standards and procedures used to make the
3
estimate
 therateandamountoftheproposedmining
4
 approximatelywhentheproposedminingistostart
5.1
 a schedule for the proposed mining during the plan
5.2
period
318DT(1)(d) mapsthatshowthemattersmentionedinparagraphs 1.2
(b)and(c)(i),(iii)and(iv)
318DT(1)(e) anyotherinformationrelevanttothecriteriamentionedin formattersrelevant
s318EF totheCSG
statementand
CSGassessment
criteriaseepart
15..3Bofthis
application
318DT(1)(f) reasonswhytheplanisconsideredappropriate 6
318DT(1)(g) anothermatterprescribedunderaregulation noneidentified
218DU statetheperiodoftheproposedplan 1.1
318DV statement of howthe effects on, and the interests of, any 7
relevant overlapping or adjacent petroleum tenure holder
have,orhavenot,beenconsideredhavingregardto:
 themainpurposesofthispart;and
 the CSG assessment criteria, other than the initial
developmentplanrequirements
318DW requirementthat theactivitiesprovidedforunderthe 8
proposedplanmustseektooptimisetheuseofincidental
coalseamgasinasafeandefficientwayifitis
commerciallyandtechnicallyfeasibletodoso
Nb:Inthispartofthisminingleaseapplication,MRActmeansMineralResourcesAct1989(Qld).
1. Overview of theactivities proposedto becarried out
1.1 Overview
Thissectionaddressess318DT(1)(a)and(b)oftheMRAct
ColtonCoalPtyLtdACN 140768636(ColtonCoal)ismakingthreecontiguous mininglease
applications (MLAs) for the Colton Mine Project (Project) that this Amended Initial
Development Plan (IDP) describes. The MLAs cover Parcel Prospecting Permits (PPs)
numbers 50818, 50819, 50820, 50821, 50822 and 59823 and 50847. These MLAs are each
an application for a mining lease under section 234(1) of the Mineral Resources Act 1989
(Qld) (MR Act). These MLAs are to provide for mine excavation, coal processing and
infrastructurefortheProject.TheMLAscoveracombinedareaof1,025.1hectares(ha).
The term of this IDP is proposed as two years from the date of grant of the Project MLAs on
the assumption that all of the Project MLAs will be granted from a common date. Notionally,
the term is from 1 October, 2012 to 31 November 2014 to allow for site preparation,
constructionofinfrastructureandcommencementofproductionoperationsattheProject.
The Project is located in the Fraser Coast Regional Council area in southern Queensland,
approximately 10 km north of Maryborough and 300 km north of Brisbane. Access to the
project area is via the Churchill Mine Road from the Torbanlea to Pialba Road, and from the
BruceHighway-seeFigure1.
The Project consists of the development of a ~16.8 Million tonne (Mt) indicated and inferred
Resource of coking coal within the Burrum Coal Measures in the Maryborough Basin. The
Project is planned to mine up to 1.1 Mt of Run of Mine (ROM) coal per annum (pa) by open
cutmethods toproduce on average 0.5 Mtpaof productcoalfor export. Project production life
is anticipated to be 8 -10 years based on current economic assessment of the resource.
However, continuing exploration success should extend the known resource and hence the
durationoftheProject.
The mining leases term applied for is twenty (20) years, to allow for construction time prior to
commencing production activities, potential extension of the mining activities as resources
information is refined and allowance for close down and final rehabilitation of the site at the
end of mining. Colton Coal anticipates that the activities described in sections 1.1 and 1.2 will
continuetobecarriedoutovertheentiretermofthemininglease.
The target commencement date for start of overburden removal is subject to the grant of the
mining leases and environmental authority for the Project. The start of coal production
operations is also dependent on the availability of services and infrastructure for the Project
and for coal transportation to port. The Project construction period on site prior to start of coal
production is anticipated to be6 – 9months withfirstrailings expected inmid2013(basedon
grantoftheminingleaseinOctober2012).
The Project will involve open cut mining using truck and excavator methods. Topsoil stripped
prior to mining will be stockpiled for later use in rehabilitation. Overburden will be relocated
from above the coal seams to in-pit dumps, and in out-of-pit spoil dumps located on site and
contiguouswiththepitexcavations.
A coal handling and preparation plant (CHPP) and associated mine infrastructure –
workshops, offices, train loading and rail balloon loop and waste storage areas - will be
required for the Project. Processing will involve crushing, screening and washing to separate
coal from waste materials. Waste rejects will be de-watered, with water recycled to the
processingplantandsolidsdisposedofwithinspeciallyconstructedstorageareasandinspoil
dumps.
Product coal will be transported by rail from the Project to Gladstone Port along Queensland
Rail Network’s North Coast Line where it will initially be exported through the Barney Point
Coal Terminal and later through the Wiggins Island Coal Terminal once capacity at that
terminalbecomesavailabletotheProject.
Figure1: ColtonProjectLocationandMiningTenements
DuringconstructionandthenatfullproductiontheProjectis estimatedtoprovideemployment
forupto100fulltimeemployeeswithflowoneffectstoanother80-100positions.
Of the three MLAs which comprise the Project one MLA (referred to as "Colton A") is over
granted Authority to Prospect (ATP) 613 which impacts on the southern part of the Project
area.Thesecond MLA(referredto as "Colton B") is over ATPApplication 733 which impacts
on the northern part of the Project area. The third MLA (referred to as “Colton C”) is also
over ATP613. This IDP describes the Project in total given that it sits across the three MLAs.
SeeFigure2andsection7ofthisIDPfordetailsoftheoverlappingpetroleumtenures.
Figure2:ColtonProjectMiningandPetroleumTenures
ProjectProponent
Colton Coal is the Project proponent. Colton Coal is a wholly owned subsidiary of Northern
Energy Corporation Limited ABN 90 081 244 395 (NEC), which is in turn a wholly owned
subsidiary of New Hope Corporation Limited ABN 38 010 653 844 (NHC). NHC is a
Queensland based coal exploration, project development and coal mining company listed on
the Australian Stock Exchange – ASX Company Code - NHC. NEC was a publically listed
company that was taken over by NHC in February 2011 and fully absorbed in November
2011.
At the time of making the mining lease aplicationa and lodgeing the first initial development
PlanNEC’sofficeislocatedat:
Level5
60EdwardStreet
Brisbane,Qld.
GPOBox5283
Phone:[phone]
Facsimile:(61)733030601
Website: www.northernenergy.com.au
Asof27January,2012,NEC’s–readColtonCoal–officewaslocatedat
Level6
316AdelaideStreet
Brisbane,Qld.
Phone:[phone]
Facsimile:(61)730146409
Website: www.northernerergy.com.au
Taroom Coal Proprietary Limited ACN 079 251 442 (Taroom Coal) is also a wholly owned
subsidiary of NEC. NEC is the manager of and the responsible entity for all business activity
carried out on and in connection with Taroom Coal's tenures. The Project area is within the
areaofExplorationPermitCoal(EPC)923andEPC1082bothheldbyTaroomCoal.
ProjectTenements
SummarydetailsoftheColtonCoalsPPsareshowninTable1followingandwithreferenceto
theSurveyPlanswhichaccompanytheMLAs.
Table1:ColtonCoalPtyLtdParcelProspectingPermits
Permit Lot Plan Owner Address
Number Number
50818 Lot31 SP104950 QueenslandRail C/-FacilitiesManager
POBox198,Rockhampton,Q4700
50819 Lot14 USL34733 StateofQueensland DeptEnvironment&ResourceManagement
PoBox212,Maryborough.Q4650
50820 Lot1 USL34852 StateofQueensland AsforLot14USL34733
50821 Road#62 StateofQueensland AsforLot14USL34733
50822 Lot7 USL34860 StateofQueensland AsforLot14USL34733
50823 Lot1 AP6551 StateofQueensland AsforLot14USL34733
Colton Coal's PPs numbers 50818, 50819, 50820, 50821, 59822 and 59823 overlap with
TaroomCoal'sEPC923andinthecaseofPP50819withTaroomCoal'sEPC1082aswell.
Both EPC 923 and 1082 have subsequent to the making of the mining lease applications
been transferred to Colton Coal. Therefore at the time of making this Amended initial
Development Plan Colton Coal holds the following exploration tenements associated with the
Project:
 thePPslistedabove;
 EPC923;and
 EPC1082.
EPC 923 was first granted to Taroom Coal from October 2005 and was renewed after
relinquishment in October 2008 for a further 5 years. On renewal the tenure contained 64
exploration sub blocks. EPC 1082 was granted to Taroom Coal in November 2007 for 3
years. It contains 3 sub blocks. EPC1082 was renewed in November 2010 for a further 2
years.
Colton Coal's exploration tenures overlap with oil and gas exploration tenures Authority to
Prospect 613 (ATP 613) and ATP applications (ATPA) 733 and ATPA 674, all registered to
Magellan Petroleum (Eastern) Pty Ltd (Magellan). Magellan has a Farm-in Agreement with
Eureka Petroleum Pty Ltd (Eureka), a wholly owned subsidiary of Blue Energy Limited (Blue
Energy)under whichEurekacanearna75% interestinthetenuresoncompletionofaNative
Title Agreement process. ATP 613 was granted on 23 March, 1995 for a term to 31 March,
2019. NEC has initiated discussions with Blue Energy towards making a co-development
agreement. Colton Coal wishes to negotiate a co-development agreement that provides for
efficient and expedited processes under which the parties may each beneficially utilise their
respective tenements. As noted above the Project comprises at this stage two contiguous
MLAs-oneoverlappingwithATP613andanotheroverlappingwithATPA733.
1.2 Descriptionofproposedactivities
Thissectionalsoaddressess318DT(1)(b)oftheMRAct
The construction of the mining operation and the CHPP, stockpiling and transportation
facilities, maintenance workshops and servicing plant and administration buildings within the
ColtonA,ColtonBandColtonCMLAareasareallpartoftheproposaltodeveloptheProject.
Themainelementsoftheproposeddevelopmenttobeconstructedandoperatedare:
 Openpitcoalminingexcavations;
 HaulroadfrommineareaandROMcoalreceivalareaandstockpile;
 ROMdumphopperandprimarysizingstation;
 Secondarysizingstationandlinkingconveyors;
 Coalprocessingplantcomprisingasinglemoduleof350tphcapacity;
 Productcoalconveyorsandstockpile;
 Trainloadingarea;
 RailballoonloopandreconstructionofpartoftheoldPialbaRailCorridortrack;
 Plantrejectmaterialstorageareas;
 Heavyequipmentworkshopandvehicleservicingareas;
 Warehouse;
 Administrationbuildingandchangerooms;
 Fuel,lubricantsandtyrestores;
 Lightandheavyvehicleparkinghardstands;
 Accessroads;
 Rawwaterstorageandwatermanagementdamsandpipelines;and
 Electricalpowergeneration,substationanddistributionnetwork.
The general layout of the main infrastructure is shown in Figure 3. As currently planned
mining activities are planned predominantly within the Colton A MLA area with some of the
coal processing and related tasks including train loading located within the Colton B MLA
area. Mining activities are also a possibility within the Colton B area at a later stage if/when
miningcommencesonthenorthsideoftherailcorridor.
Figure3:ProjectMajorInfrastructureGeneralLayout(ColtonMLAareas)
The following table outlines the nature and extent of the activities proposed to be carried out,
includingtheproposedlocationofactivitiesduringthetermofthisIDP.
Table1:NatureandExtentofActivities
NatureandExtentof Activities LocationofActivities
Year1 ConstructionandProduction Seefigure3forIndustrialArea
Year2 Production See figure 4 for mine excavation outline at
endyear2
Figure4 -MineExcavationandSpoilAreasatendofyear2
2. Locationand estimateof theresourcesinthearea of theML
Thissectionaddressessection318DT(1)(c)(i)oftheMRAct
2.1 Locationandestimate
NEC for Taroom Coal/Colton Coal had undertaken exploration programs within EPC
923 since it was granted in December, 2006. This work has comprised a review of
regional geological information and information available on public record from
extensive exploration carried out bythe Queensland Government in the area as well as
itsownfieldexplorationprograms.
Data from the Queensland government drilled boreholes (NS series) has been
subject to several campaigns of validation including twinning of holes, re-survey of