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- 2.3 Conceptual modelling for the Galilee subregion
- 2.3.4 Baseline and coal resource development pathway
- 2.3.4.1 Developing the coal resource development pathway
2.3.4.1.1 Introduction
The coal resource development pathway (CRDP) is a fundamental concept in bioregional assessments (BA), and an important initial step in the model-data analysis component of any BA. It defines the most likely future that includes all coal mines and coal seam gas (CSG) fields commercially producing as of December 2012 (known as the baseline), as well as those expected to commence production post-2012. The difference in results between the baseline and the CRDP is the change that is primarily reported in a BA, and this is due to the additional coal resource development. The additional coal resource development is defined as all coal mines and CSG fields, including expansions of baseline operations, which are considered most likely to begin commercial production after December 2012.
The general input data and analysis required to develop the CRDP are outlined in companion submethodology M04 (as listed in Table 1) for developing a coal resource development pathway (Lewis, 2014). This section explains the specific application of this BA submethodology to the Galilee subregion, and builds upon the coal and CSG resource assessment provided in companion product 1.2 for the Galilee subregion (Lewis et al., 2014). In particular, the catalogue of potential coal resource developments (Section 1.2.4 in companion product 1.2) provides the starting inventory for assessment of the CRDP. This catalogue lists 20 identified coal resources from the Galilee subregion with a combined thermal coal tonnage of about 36 billion tonnes, as well as three CSG projects with contingent (2C and 3C) resources.
The CRDP for the Galilee subregion is based on the Assessment team’s analysis of relevant coal resource information for each project in the catalogue of potential coal resource developments. The data and information used to inform this analysis comprised publicly available material as of December 2014. An important step in finalising the CRDP for the Galilee subregion was the critical discussion and expert input received at an external participant workshop held in Brisbane in October 2014. Representatives from the Australian Government Department of the Environment, CSIRO, Geoscience Australia, and the Queensland Government, as well as the Queensland Resources Council (QRC) and various coal and CSG development companies with interests in the Galilee subregion, all participated in this CRDP workshop. Following the discussion and information-sharing that occurred at this event, the Assessment team was able to finalise the CRDP in December 2014 and ‘lock it in’ as the basis for the future hydrological modelling in the BA (as reported in the surface water modelling (companion product 2.6.1 (Karim et al., 2018)) and groundwater modelling (companion product 2.6.2 (Peeters et al., 2018) for the Galilee subregion)).
2.3.4.1.2 Coal resource development pathway for the Galilee subregion
As documented in companion product 1.2 for the Galilee subregion (Lewis et al., 2014) there were no coal mines or CSG fields in commercial production as of December 2012. Consequently, for the purposes of the BA, the modelled baseline does not include any coal resource developments.
In contrast to the baseline, the CRDP for the Galilee subregion consists of 17 proposed new coal and CSG resource developments (Table 10). Most of the developments in the CRDP are for new large-scale coal mines that target thermal coal resources hosted within upper Permian strata, such as the Betts Creek beds (companion product 1.1 for the Galilee subregion (Evans et al., 2014)). These proposed coal mines mainly occur close to the northern and eastern margins of the geological Galilee Basin (Figure 27), where the coal-bearing Permian rocks are relatively close to the surface (i.e. generally within several hundred metres), and thus amenable to future mining development.
On the basis of information available as of December 2014, the proposed coal mining operations included in the CRDP consist of:
- three open-cut coal mines (Alpha, Hyde Park and Blackall[1])
- two underground coal mines (Alpha West and Hughenden)
- five combined open-cut and underground coal mining operations (Carmichael, China First, China Stone, Kevin’s Corner and South Galilee)
- four coal mines of currently unknown type (Clyde Park, Milray, Pentland and West Pentland).
There are also three early-stage CSG projects included in the CRDP (Galilee Gas Project, focused on the Glenaras pilot site; Gunn pilot site; and Blue Energy’s CSG project in Exploration Permit for Petroleum (EPP) 812). The locations of the proposed coal mines and CSG developments in the CRDP are shown in Figure 27. Summary information about each development listed in the CRDP is provided in Table 10, including company name, total identified resources and expected start year and duration of mining. Further details about each of these proposed operations, including plans of several mine sites, are available in companion product 1.2 for the Galilee subregion (Lewis et al., 2014).
Section 2.3.4.1.2.1 and Section 2.3.4.1.2.2 respectively provide details on coal resource developments in the CRDP that are included in the quantitative or qualitative assessment of hydrological changes.
Table 10 Coal resource development pathway for the Galilee subregion as determined at December 2014
The primary activity in bioregional assessments (BAs) is the comparison of two potential futures: (i) the baseline coal resource development (baseline), a future that includes all coal mines and coal seam gas (CSG) fields that are commercially producing as of December 2012; and (ii) the coal resource development pathway (CRDP), a future that includes all coal mines and CSG fields that are in the baseline as well as those that are expected to begin commercial production after December 2012. The difference in results between CRDP and baseline is the change that is primarily reported in a BA. This change is due to the additional coal resource development – all coal mines and CSG fields, including expansions of baseline operations, which are expected to begin commercial production after December 2012.
Name of existing operation or proposed development |
Coal mine or coal seam gas (CSG) operation |
Company |
Included in the baseline? |
Included in the coal resource development pathway (CRDP)? (modelled or commentary) |
Start of mining operations or estimated project start |
Expected duration of commercial operations |
Total coal resources (Mt) (for coal mining) or gas resources (PJ) (for CSG) |
Comments |
---|---|---|---|---|---|---|---|---|
Alpha Coal Project |
Open-cut coal mine |
GVK Hancock Coal |
No |
Yes – modelled |
2018 |
30 years |
1821 Mt |
Total coal resource is 821 Mt measured, 700 Mt indicated and 300 Mt inferred, and is mostly from the C and D coal seams of the Betts Creek beds. Geology and coal resource information in Hancock Prospecting (2010) |
Carmichael Coal Mine and Rail Project |
Combined open-cut and underground coal mine |
Adani Mining Pty Ltd |
No |
Yes – modelled |
2019 |
60 years |
7800 Mt |
Total coal resource is 500 Mt indicated and 7300 Mt inferred, and is mostly in AB and D coal seams. Coal resource information in Adani Mining (2012) |
China First Coal Project |
Combined open-cut and underground coal mine |
Waratah Coal Pty Ltd |
No |
Yes – modelled |
2021 |
30 years |
3680 Mt |
Total coal resource is 1975 Mt measured, 565 Mt indicated and 1140 Mt inferred. Coal resource information in Waratah Coal (2011) |
China Stone Coal Project |
Combined open-cut and underground coal mine |
Macmines Austasia Pty Ltd |
No |
Yes – modelled |
2022 |
50 years |
5590 Mt |
Total coal resource is 830 Mt measured, 1230 Mt indicated and 3530 Mt inferred. Coal resource and geology information in Hansen Bailey (2015) |
Hyde Park Coal Project |
Open-cut coal mine |
Resolve Coal Pty Ltd |
No |
Yes – modelled |
2022 |
30+ years |
1625 Mt |
Pre-feasibility study underway as of 2016. Total coal resource is 315 Mt indicated and 1310 Mt inferred, and is mostly in A and B, and C and D coal seams. Coal resource and geology information at Resolve Coal (2016) |
Kevin's Corner Coal Project |
Combined open-cut and underground mine |
GVK Hancock Coal |
No |
Yes – modelled |
2020 |
30 years |
4269 Mt |
Total coal resource is 229 Mt measured, 1040 Mt indicated and 3000 Mt inferred, to be mined from the A, B, C and D coal seams. Geology and coal resource data in Hancock Galilee (2011) |
South Galilee Coal Project |
Combined open-cut and underground coal mine |
Alpha Coal Management Pty Ltd, on behalf of AMCI and Alpha Coal Pty Ltd |
No |
Yes – modelled |
2021 |
33 years |
1179 Mt |
Total coal resource is 167 Mt measured, 206 Mt indicated and 806 Mt inferred, within the D1 and D2 coal seams. Coal resource and geology information in Alpha Coal (2012) |
Alpha West Coal Project |
Underground coal mine |
GVK Hancock Coal |
No |
Yes – commentary |
Unknown |
Unknown |
1800 Mt |
Not able to be modelled for this iteration of Galilee subregion. Total coal resource is 500 Mt indicated and 1300 Mt inferred. Located immediately west of Alpha, initial concept plan indicates an underground longwall mining operation (Mulder, 2013) |
Blackall Coal Project |
Open-cut coal mine |
East Energy Resources Limited |
No |
Yes – commentary |
Unknown |
Unknown |
3445 Mt |
Not able to be modelled for this iteration for the Galilee subregion. Total coal resource hosted in Cretaceous Winton Formation (Eromanga Basin) is 628 Mt indicated and 2817 Mt inferred. Coal resource information in EER (2014) |
Clyde Park Coal Project |
Coal mine of unknown type |
TerraCom Limited (formerly Guildford Coal Limited) |
No |
Yes – commentary |
Unknown |
Unknown |
728 Mt |
Total coal resource is 51 Mt indicated and 677 Mt inferred. There is also a 40 to 815 Mt exploration target in adjacent tenement. Not able to be modelled for this iteration for the Galilee subregion. Coal resource information at TerraCom (2016) |
Hughenden Project |
Underground coal mine |
TerraCom Limited (formerly Guildford Coal Limited) |
No |
Yes – commentary |
Unknown |
Unknown |
1209 Mt |
Total coal resource is 133 Mt indicated and 1076 Mt inferred. Not able to be modelled for this iteration for the Galilee subregion. Coal resource information at TerraCom (2016) |
Pentland Coal Project |
Coal mine of unknown type |
Glencore Coal Queensland Pty Ltd |
No |
Yes – commentary |
Unknown |
Unknown |
100 Mt |
Total coal resource is 65 Mt measured, 15 Mt indicated and 20 Mt inferred. Not able to be modelled for this iteration for the Galilee subregion. Coal resource information in GA and BREE (2013) |
Milray |
Coal mine of unknown type |
Glencore Coal Queensland Pty Ltd |
No |
Yes – commentary |
Unknown |
Unknown |
610 Mt |
Inferred resource defined only. Not able to be modelled for this iteration of Galilee subregion |
West Pentland Coal Project |
Possibly open-cut coal mine, but no development plans as yet |
United Queensland Resources Pty Limited (previously owned by New Emerald Coal Ltd) |
No |
Yes – commentary |
Unknown |
Unknown |
266 Mt |
Total coal resource is 176 Mt indicated and 90 Mt inferred, contained in five mineable seams. United Queensland Resources Pty Ltd gained ownership of New Emerald Coal Ltd in May 2015. Not able to be modelled for this iteration for the Galilee subregion. Coal resource information in Xenith (2013) |
Galilee Gas Project (Glenaras site) |
CSG |
Galilee Energy Limited |
No |
Yes – commentary |
Unknown |
Unknown |
2C resource of 2508 PJ and 3C resource of 5314 PJ |
CSG resource is in part of exploration permit for petroleum (EPP) 529, and focused on the Glenaras production pilot which has a number of test wells. Not able to be modelled for this iteration for the Galilee subregion. CSG resource information at Galilee Energy (2016) |
Gunn Project |
CSG |
Comet Ridge Limited |
No |
Yes – commentary |
Unknown |
Unknown |
2C resource of 67 PJ and 3C resource of 1870 PJ |
CSG resource is in part of EPP 744, in which there is also an identified 597 PJ of prospective resources. CSG production test well and exploration site. Not able to be modelled for this iteration for the Galilee subregion. CSG resource information at Comet Ridge (2016) |
Blue Energy's CSG exploration project EPP 813 |
CSG |
Blue Energy Limited |
No |
Yes – commentary |
Unknown |
Unknown |
2C resources of 62 PJ and 3C resource of 838 PJ |
Resource is in part of CSG exploration project in EPP 813 in central Galilee Basin, in which there is also an identified 1142 PJ of prospective CSG resource. Not able to be modelled for this iteration for the Galilee subregion. CSG resource information at Blue Energy (2016) |
Some coal and CSG resource figures for projects in this table differ from the resource figures previously published in companion product 1.2 for the Galilee subregion (Lewis et al., 2014). Examples include the China Stone Coal Project, Galilee Gas Project and Blue Energy’s CSG exploration project. These differences reflect updated coal and CSG resource data published by the project owners since the October 2014 release of companion product 1.2 for the Galilee subregion (Lewis et al., 2014). As far as possible, the most recent coal and CSG resource figures publicly available for each development project have been included in this table.
The coal mine and CSG developments in the CRDP are the sum of those in the baseline and in the additional coal resource development. Because there are no coal resource developments in the baseline for the Galilee subregion, the CRDP only includes the proposed coal mine and CSG developments.
Data: Geoscience Australia (Dataset 1)
2.3.4.1.2.1 Quantitative assessment of hydrological changes of the coal resource development pathway
The CRDP for the Galilee subregion describes the most likely future (post 2012) for coal resource development, based on the Assessment team’s analysis of publicly available information and expert consultation undertaken in late 2014 (and ‘locked-in’ as of December 2014). This CRDP then forms the basis for the subsequent hydrological modelling for the BA (of both surface water and groundwater), which attempts to quantify the hydrological changes of the expected coal resource development. However, in order to undertake the type of numerical hydrological modelling specified for the BAs (see companion submethodology M06 for surface water modelling (Viney, 2016) and companion submethodology M07 for groundwater modelling (Crosbie et al., 2016) as listed in Table 1), there are minimum levels of data and information required for each of the coal resource developments in the CRDP.
The data requirements for both surface water and groundwater modelling in BAs are outlined in companion submethodology M04 (as listed in Table 1) for developing a coal resource development pathway (refer to Table 9 in Lewis, 2014). Important information required for hydrological modelling in BAs includes details of the type of coal resource extraction operation (e.g. open-cut, underground or combined development mine), time-series of the progression of mining and associated infrastructure areas (both in area and with depth), and the nature of the mine-site stratigraphy and depth to watertable.
Of the 17 coal resource developments in the CRDP, there are seven coal mines that are considered by the Assessment team to have sufficient information available to be quantitatively assessed through hydrological modelling. These proposed coal mines are: Alpha, Carmichael, China First, China Stone, Hyde Park, Kevin’s Corner and South Galilee (Figure 27). These seven coal mines are the most advanced mining developments in the Galilee subregion in terms of progressing through the various environmental and mining-related approvals processes that apply under relevant Queensland and Australian Government legislation. Most of these mines have previously undertaken very detailed planning and development studies to determine optimal mining and production methods. Importantly, much of the required information for BA modelling purposes has been made publicly available as part of environmental impact statements (EISs) for the individual mines (DSD, 2016).
The expected mine life and production rates for the seven mines that will be modelled in the BA are shown in Table 11. A simplified mine development schedule for the modelled CRDP has also been compiled based on available information. This is shown in Figure 28 and includes major stages such as the initial construction period, open-cut and/or underground mining operations, and the final rehabilitation and closure phase. These seven coal mines will be the focus for the later-stage quantitative assessment components of the BA including surface water modelling (companion product 2.6.1), groundwater modelling (companion product 2.6.2), receptor impact modelling (product 2.7), and impact and risk analysis (product 3-4).
Table 11 Production rates for coal mines in the coal resource development pathway that will be quantitatively assessed for the Galilee subregion
aRun-of-mine (ROM) coal refers to the tonnage of coal delivered from the mining area to the coal handling and preparation plant (CHPP). This is essentially the raw mining material prior to processing and, in addition to coal, may include other rock types, minerals or contaminants.
bProduct coal refers to the tonnage of coal produced following processing at a coal handling and preparation plant. Coal processing may involve crushing, screening and washing to separate any non-coal materials that may have been present in the ROM coal stockpile (prior to processing).
cPre-feasibility study is underway for Hyde Park, so the estimated production rates and mine life is less certain than for the other six coal mines in the modelled coal resource development pathway.
2.3.4.1.2.2 Qualitative assessment of hydrological changes of the coal resource development pathway
Of the 14 proposed coal mines in the CRDP, 7 are currently much less advanced in their development mine planning and assessment studies under the relevant regulatory approvals processes. These seven coal mines are: Alpha West, Blackall, Clyde Park, Hughenden, Milray, Pentland and West Pentland. They have all been included in the CRDP, consistent with the methods outlined in companion submethodology M04 (as listed in Table 1) for developing the coal resource development pathway (Lewis, 2014), and aided by additional information provided at or immediately after the Galilee external CRDP workshop held in October 2014. However, as there is scant information publicly available about the nature and time frame of future development plans at these proposed mining sites, it is not possible to include these seven mines specifically in the hydrological modelling for the BA. Thus, the assessment of the impacts of these CRDP mines will be limited to qualitative assessment in companion product 3-4 (impact and risk analysis) for the Galilee subregion.
The three CSG projects in the Galilee subregion all have current estimates for contingent gas resources (2C and 3C resources defined, based on the guideline from the Society of Petroleum Engineers Petroleum Resources Management System, SPE, 2011). There are no proved, probable or possible CSG reserves defined in the Galilee Basin, and the most advanced CSG projects at Glenaras and Gunn are at the stage of initial pilot well testing and appraisal. There are currently no publicly available plans to progress any CSG projects to full-scale commercial operation in the Galilee subregion. Consequently, although the Assessment team has included the three CSG projects in the CRDP, the projects are not sufficiently mature to be able to provide the type of data required for inclusion in hydrological modelling. Instead, assessment of CSG development impacts in this iteration of the BA will be restricted to qualitative assessment and commentary.
Finally, it is worthwhile to note that not all of the projects listed in the catalogue of potential coal resource developments (see Figure 12 and Table 12 in Section 1.2.4 of companion product 1.2 for the Galilee subregion (Lewis et al., 2014)) have been included in the CRDP. This mainly reflects that for some coal resources in the Galilee subregion, mine development planning may not yet have been undertaken, and there remains a high level of uncertainty around the likelihood, scope and nature of any future operations. This may be due to various reasons, such as the coal resource having only been recently discovered and thus requiring significant further appraisal of the magnitude, quality and suitability for mining. In other cases, there may be compelling economic or company-specific evidence that has been used by the Assessment team to help determine that the project should not be included in the CRDP.
In these cases, the Assessment team has considered that, on the basis of available information, it is not likely that future commercial production from these coal resources will occur within the next 10 to 15 years. Of course, this does not imply that these resources will not be mined at some later stage in the future, particularly if further assessment studies are undertaken to better understand the geology of the deposit and the economic feasibility of extraction. A summary of salient information used by the Assessment team to develop and justify the CRDP for the Galilee subregion is provided in Table 12. This table provides information that may have been used to exclude some proposed projects from the CRDP, as well as information relevant to decisions to include the project in future hydrological modelling for the BA.
Table 12 Rationale for including or not including projects in the coal resource development pathway (CRDP) for the Galilee subregion
aOn 5 August 2015 the Federal Court overturned the Australian Government’s approval of the Carmichael Coal Mine, requiring it to be reassessed. The mine is included in the CRDP as it is based on information available as of December 2014. On 14 October 2015 Carmichael Coal Mine was re-approved by the Federal Environment Minister with 36 conditions.
AEIS = additional environmental impact statement, BA = bioregional assessment, EDR = economic demonstrated resource, EIS = environmental impact statement, EPBC Act = Commonwealth’s Environment Protection and Biodiversity Conservation Act 1999, EPP = exploration permit for petroleum, MDL = mineral development licence, ML = mining lease, SEIS = supplementary environmental impact statement
Dates as shown on Figure 26 represent best available estimates as at December 2014. Actual operational start and end dates and production time frames may change due to various factors.
Product Finalisation date
- 2.3.1 Methods
- 2.3.2 Summary of key system components, processes and interactions
- 2.3.3 Ecosystems
- 2.3.4 Baseline and coal resource development pathway
- 2.3.5 Conceptual model of causal pathways
- Citation
- Acknowledgements
- Currency of scientific results
- Contributors to the Technical Programme
- About this technical product