Coronado Resources CEO Douglas Thompson details plans for Curragh mine

Coronado Resources has a new CEO and big plans for its Central Queensland-based mine that will bring new jobs to the region.

Douglas Thompson was appointed the new CEO of Coronado Resources, which owns the Curragh coal mine.

The expansion of one of Central Queensland’s major coal mines, the potential acquisition of two more and helping to provide the materials to make future renewable energy infrastructure are just some of the focuses for Coronado Resources.

The company, which owns the Curragh metallurgical coal mine near Blackwater, recently held its 2023 AGM detailing plans and performance.

At this year’s meeting its new CEO was also appointed.

Douglas Thompson, who was previously the company’s chief operating officer Australia, was appointed the new Coronado Resources CEO, taking over from Gerry Spindler who transitioned to the company’s executive chair role.

Mr Thompson has been with the company since 2021, and has previously held the role of managing director of CIMIC Group and was also previously CEO of Thiess.

Coronado Resources acquired the Curragh mine in 2018 for $700 million in its largest acquisition to date.

Since the company acquired the site, the mine has produced $57 million tonnes of product and generated earnings of more than $1.4 billion.

AGM material revealed that in 2022 alone the Curragh Mine paid the Queensland Government, and State Government affiliated company Stanwell Corporation, a total of US $494 million in royalties in rebates, three times the amount in 2021.

“It (the coal royalties) is a cost burden that’s come to the business and that’s why we’ve highlighted the cost,” Mr Thompson said.

“The fact it was brought into the industry at limited consultation is not helpful because it scares investors.

Coronado Resources Curragh coal mine in Queensland. Picture: Supplied.

“But I’m very pleased to say dialogue between industry and government has opened up and government and us are talking about how we can encourage investment back into the sector, so that is encouraging going forward.”

Mr Thompson said, despite the coal royalties, the company had an “exciting future” with plans to expand the Curragh Mine, which is an open cut site, to include underground operations.

The expansion is part of the company’s strategic plan to grow Curragh to 13.5 million tonnes by 2025.

It is envisaged the Curragh North Underground project will achieve first coal in late 2024, and will produce a quality of met coal similar to the existing open cut operation.

Mr Thompson said while it was too early to say exactly how many jobs the new expansion would create, there would be new jobs for local people.

“We are a proud employer of local people, we’ve had that employment model all the way through our employment of people in the United States and in Queensland and that will continue so there will be additional jobs created for regional Queensland,” he said.

“Some of the jobs and skills will require, particularly in the engineering and start up phase, highly specialised technical skills so we will bring in some migrant skills from our team in the United States, but that will be very small in number.”

Coronado was also recently listed as one of the companies eyeing off BHP’s Blackwater and Daunia mines which were put on the market earlier this year.

While he couldn’t go into too much detail as processes were ongoing, he said the company would make its evaluations and would move forward if they met the necessary requirements.

“Our track record is that business of acquiring assets ensuring that’ there’s a high quality product that can reach markets need and be scalable or has an opportunity for us to invest in or make more of,” he said.

“These opportunities will be evaluated the same way and if they meet those requirements then we’ll move forward.”

Misbelief surrounding different types of coal

Mr Thompson said some of the challenges going into the future would be attracting high quality skilled workers and the misunderstanding between thermal and metallurgical coal.

“The industry needs to attract high quality people, it’s complex and you need complex problem solvers and we need people with the skill sets and ability to do that and ensure the industry is attractive for people to join,” he said.

“We’ve got an advantage in our strategy, being based in the US and Australia, we can move skills as required between the two locations. For example with the underground we’re proposing to build, we’ve got a very experienced underground team in the United States, so we’ll leverage those skills into Australia to help with the start up.

“I think the other challenge is around the way in which our commodity is understood to be different to energy coal, I think there’s far too much misunderstanding where we’re put into the same bucket.”

Mr Thompson said he believed thermal coal had a “good and strong future” but metallurgical coal would be needed to make the steel that will build infrastructure for renewable energy projects.

“Steel touches every element of our lives every single day … to build an offshore wind turbine you need 700 tonnes of steel and that’s 700 tonnes of met coal to produce the steel for it.

“So we’re in a commodity that touches everyday life today and is going to be exacerbated in demand with the transition people are looking for.”

Originally published as Coronado Resources CEO Douglas Thompson details plans for Curragh mine