Re-opened Wilkie Creek coal mine clears the way to the start of operations
In a climate where there is doubt on the future of new coal mines, one has been reopened in Queensland and is preparing to start exporting within the next few months.
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The reopened Wilkie Creek coal mine is expected to start exporting in a few months after the project ticked off a string of critical milestones, clearing the way for the start of full operations.
The project near Dalby, about 250km west of Brisbane, is forecast to produce about 2.4 million tonnes a year of high-quality thermal coal, destined for markets in Asia.
The open cut mine was previously operated by Peabody Energy and has been in care and maintenance since 2014.
Peabody Energy sold it to New Wilkie Energy in July 2021, which kickstarted its revival in a climate where there is speculation on the future of new coal mines.
The company’s managing director Gary Williams said a significant milestone has been reached with Queensland Rail receiving Ministerial approval and has signed the Access Agreement to enable the first shipment of NWE coal early in the second half of the year, using the West Moreton Coal rail system servicing the Port of Brisbane.
“We have also signed the Rail Haulage Agreement with Aurizon. QR, Aurizon and Queensland Bulk Handling (Port of Brisbane) are our strategic partners in our logistics infrastructure,” he said.
“Now that critical milestones have been attained, finance for the project is expected to close shortly as arranged by Archibald Capital and Imperial Capital. We’re looking forward to entering into long term agreements with Asian power stations.”
Australia, one of the world’s largest coal exporters, is now committed to cutting carbon emissions by 43 per cent by 2030 from 2005 levels, on a path to reaching net-zero emissions by 2050.
There is speculation that there will be no new coal mines in Australia and in March the federal government blocked a planned coal mine by billionaire Clive Palmer because it would endanger the Great Barrier Reef.
But the government has rejected calls from environmental groups for a ban on all new mining projects, saying each must be judged on its merits.
Queensland Resources Council chief executive Ian Macfarlane was unavailable for comment.
Mr Williams said he expected the mine to last for at least 30 years and the project currently employs about 300 full time staff and contractors. Capital works are continuing and expected to be completed over the coming months and the workforce is expected to increase to 350 in the next 12 to 18-month period.
Parent company New Wilkie Energy Group Limited also holds the Corvus Coal metallurgical coal project near Emerald in central Queensland and the Horse Creek Exploration Permit north of Chinchilla.
NWE intends to be a platform for sustainable energy through the development of coal mining assets in conjunction with renewable energy projects.
The company’s vision is to become an Australian energy producer that offsets the carbon emissions inherent in the coal business with large scale renewable energy projects over the longer term.
It intends to use former mining areas at Wilkie Creek as the initial renewables (solar) development project. NWE is a substantial land owner at Wilkie Creek. It is exploring wind and solar approvals to operate in the southern Queensland renewable energy zone.
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Originally published as Re-opened Wilkie Creek coal mine clears the way to the start of operations
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