Anglo American marks new milestones on Aquila coking coal project in QLD

Monica Gameng   |   August 3, 2019

Anglo American’s Board has given the approval to develop the Aquila Hard Coking Coal project located in the Bowen Basin near Middlemount in Central Queensland, extending the mine life of the Capcoal underground / Grasstree mine operations for another six years.

The company will be investing approximately $325 million to restart operations at the mine after it was put into care and maintenance in 2013.

“Aquila offers us a high margin six-year life extension to our Grasstree mine, with an average annual saleable production of 3.5 million tonnes (attributable) of premium quality hard coking coal,” Anglo American CEO of Bulk Commodities Seamus French said.

“The project benefits from low capital intensity as we can use the existing infrastructure and systems from our adjacent Grasstree mine that is coming towards the end of its economic life, as well as providing continuity of employment for our workforce.”

In addition, Mastermyne Group Limited has been awarded a two-year contract valued at $95 million for development and outbye services at the Aquila operations.

Scope of works under this contract include roadway development at mains and gate road as well as all outbye services related to the delivery of a new longwall operation. Mastermyne has also been engaged to provide development equipment from its fleet and deploy continuous miner and ancillary development equipment.

Mastermyne has commence pre-mobilisation activities on site, with the first phase of mobilisation to begin in September. Full mobilisation on site is set for the end of November 2019.

Approximately 160 workers are expected to be employed for the entire duration of this contract.

“The company is very pleased to have secured this new project and our proven track record in delivering major underground infrastructure and roadways safely and efficiently positioned us well for this work. We look forward to working with Anglo American to deliver this new longwall project producing premium high quality hard coking coal,” Mastermyne CEO Tony Caruso said.

Construction is set to commence in September, with first production from the new longwall operation expected in 2022.

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Source: Anglo American; Mastermyne Group Limited; Australian Mining (1, 2); International Mining

Monica Gameng
As Felix's Marketing Assistant since 2015, Monica is responsible for researching and sharing new and progressing projects within the construction and mining sectors in Australia. It's no surprise that Monica has her finger on the pulse of Australian major projects given she has produced more than 1,000 posts. She truly is an industry expert.
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