AUSTRALIAN CAPABILITY ACROSS THE COAL SUPPLY CHAIN CONTENTS Overview 03 Industry Strengths 04 Industry and Research Organisations 27 About Austrade 28 References 28 Disclaimer Copyright © Commonwealth of Australia 2018 This report has been prepared by the Commonwealth of Australia represented by the Australian Trade and Investment Commission (Austrade). The report is a general overview and is not intended to The material in this document is licensed under a Creative Commons provide exhaustive coverage of the topic. 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Acknowledgment Austrade would like to acknowledge the contributions and assistance of the NSW Department of Industry and Hunternet in the preparation of this Industry Capability Report. AUSTRALIAN CAPABILITY ACROSS THE COAL SUPPLY CHAIN 01 02 AUSTRALIAN CAPABILITY ACROSS THE COAL SUPPLY CHAIN OVERVIEW Australia’s coal sector offers leading products and services that span the entire supply chain, as well as research and innovation to help maximise productivity, efficiency and sustainability. Australia’s coal industry has been built on over 200 mines, transport systems and loading facilities, as well years of growth and innovation. Through continuous as training, technical support and project management. developments in mining technology, health and safety Australian companies can offer high-level equipment, and environmental management, the Australian coal technology and services across the entire coal supply sector has established itself as a sophisticated, high- chain, including in: tech industry. Australia is a leading global supplier of high-quality thermal and metallurgical coals. › exploration Coal mining began in New South Wales (NSW) in the › mine development – design, construction and 1790s. Today, Newcastle is the world’s largest coal operation of underground and open-cut coal mines export port and is considered the pricing benchmark for seaborne thermal coal in the Asia-Pacific region.1 › engineering The surrounding Hunter region of NSW is one of › mineral processing Australia’s major mining regions, accounting for over › rail transport, pit-to-port handling and logistics half of NSW’s black coal production.2 Mining and mining equipment, technology and services activity in › port operations the Hunter region directly and indirectly contributed an power generation estimated $15.2 billion and 93,554 full-time equivalent › 3 jobs to the regional economy in 2015–16. › technical support and project management The Bowen-Surat region in central and south-west › safety Queensland is the other leading black coal region of Australia, directly and indirectly contributing $11.3 billion › environmental management to the regional economy and supporting around 49,200 › community engagement employees in 2015–16. Most of Queensland’s operating coal mines are in the Bowen Basin4, which contains › research and development (R&D) Australia’s largest reserves of coal, particularly high- education and training quality metallurgical coal. A number of ports, including › Abbot Point, Hay Point and Gladstone, service the › automation and digital solutions. region, helping make Queensland the world’s largest 5 exporter of seaborne-traded metallurgical coal. In addition, Australia’s strong economy, proximity to the energy-hungry markets of Asia, the country’s rich Australia also has significant brown coal resources, intellectual capital and a supportive government, although these have much lower energy content. make Australia attractive to investors and new market Brown coal is located mainly in Victoria. entrants seeking sustainable, long-term returns. Australia’s position as a major coal producer and exporter is underpinned by a thriving equipment and Talk to your local Austrade representative for tailored services sector. Australia is globally recognised for information about connecting and partnering with the expertise in the design, construction and operation of Australian coal supply chain industry. AUSTRALIAN CAPABILITY ACROSS THE COAL SUPPLY CHAIN 03 INDUSTRY STRENGTHS While global energy markets are undergoing rapid Australia’s high-energy, low-ash coal is valued for its changes, coal power plants remain a significant suitability for advanced coal-generation technologies, contributor to baseload energy for the foreseeable low levels of other elements and reduced emissions future. Australia’s coal industry has a wide range of per unit of energy produced. Australian metallurgical capabilities that are increasingly important in the current coal is considered to be among the best options for global environment. These span the whole of the coal steelmaking, yielding strong cokes with low reactivity supply chain, from surface and underground operations, and low levels of sulphur and phosphorus.11 through to coal preparation and materials handling, port and logistics technologies and power generation. The Bowen Basin The industry has earned an international reputation not The Bowen Basin is an area of coal reserves and only for resilience, but also for its demonstrated ability mining-related communities that extends over to boost production, reduce costs, improve safety and approximately 60,000 square kilometres of central environmental performance, and eliminate bottlenecks Queensland. across the entire coal supply chain.6 The Bowen Basin is the largest coal reserve in Australia. It For a detailed listing of Australian companies with contains most of Queensland’s high-quality metallurgical capability across the coal supply chain (including coal reserves, as well as significant deposits of thermal rail and port), read the Company Directory. coal. As of June 2016, there were 41 active coal-mining austrade.gov.au/mets operations and two metalliferous mines. In 2016, the Bowen Basin mines exported a record 221 million metric 12 Coal production and export tonnes of coal , which represented 83 per cent of Queensland’s total coal production. In 2017–18, Australian metallurgical coal exports are In addition, the Carmichael coal mine project in the forecast to be 192 million tonnes, with export earnings north Galilee Basin is set to become Australia’s largest of $35.3 billion.7 Australia’s exports of thermal coal are thermal coal mine. The Carmichael project will be built forecast at 203 million tonnes in 2018–19, with export on the world’s largest single coal tenement, with the earnings forecast to rise by 7.7 per cent in 2017–18 to capacity to produce up to 60 million tonnes per annum $20.4 billion.8 at full production.13 It is scheduled to make its first coal Australia has the fourth largest share of coal reserves shipment by early 2021. The project will be linked by a in the world, estimated at more than 100 years of new 388-kilometre standard gauge rail line to Abbot production for black coal and over 400 years for lignite Point Port near Bowen. (brown coal).9 The Port of Hay Point is one of the largest coal export The majority of Australian coal production is exported. ports in the world14, and is situated about 40 kilometres Australia is a leading supplier of high-quality coal to south of Mackay. The port comprises two separate both mature and emerging markets, supplying an coal export terminals with a combined capacity of estimated 54 per cent of world trade in metallurgical 140 million tonnes per annum. Mines are linked to the coal and 24 per cent of world trade in thermal coal.10 port terminals through an integrated rail port network. 04 AUSTRALIAN CAPABILITY ACROSS THE COAL SUPPLY CHAIN AUSTRALIA’S MAJOR COAL PRODUCING REGIONS Black Coal Deposits in Queensland (in-situ resources) 0 Scale 1:5 500 000 250km GEOGRAPHIC PROJECTION Geocentric Datum of Australia Basin with black coal resources Major railway Coal-related railway 200 Bathymetry (depth in metres) Coal port Note: Coal-related railways shown on the map are preliminary and is subject to confirmation and possible amendment. 0 – 0.5 0.5 – 1.0 1.0 – 2.5 2.5 – 3.0 3.0 – 5.0 >5.0 © Commonwealth of Australia (Geoscience) 2014. With the exception of the Commonwealth Coat of Arms and where otherwise noted, all material in this publication is provided under a Creative Commons Attribution 3.0 Australia Licence. http://creativecommons/licenses/by/3.0/au Black Coal Deposits in New South Wales (in-situ resources) 0 Scale 1:4 500 000 200km GEOGRAPHIC PROJECTION Geocentric Datum of Australia Basin with black coal resources Major railway Coal-related railway 200 Bathymetry (depth in metres) Coal port Note: Coal-related railways shown on the map are preliminary and is subject to confirmation and possible amendment.