Coal is expected to start leaving Glencore's Integra underground operations by mid-year.
Subscribe now for unlimited access.
$0/
(min cost $0)
or signup to continue reading
And in other good news for the coal mining industry the company is also planning to investigate the extent of the coal resource at the mine with the aim to extend the life of the project.
When Glencore announced the reopening of the mine in November 2016 it said at the time they expected to be extracting coal for two years but now they are thinking the mine has the potential to operate beyond that initial timeframe.
No doubt a resurgent coking coal price last year that saw it reach its highest level in five years is behind the decision by the mining giant to not only restart the project but also look to extract as much of the resource as possible.
Integra formerly owned by the Brazilian miner Vale was a complex that consisted of Glennies Creek underground mine and the Camberwell open cut. The two mines were placed in care and maintenance June 2014.
At the time Vale cited deteriorating economic returns on the operation for its virtual closure and the loss of nearly 500 jobs at the two mines.
In August 2015 Glennies Creek was bought by Glencore and renamed Integra while Camberwell was bought by the Bloomfield Group and is now called Rix’s Creek North. Rix’s Creek North reopened for business in October last year.
Glencore says it is on schedule to resume operations at the Integra in the first quarter of the year.
Since announcing the re-opening of the mine, a new management team has been preparing for the restart that will involve mining one longwall block already formed and completing a second longwall block that had been partially developed by former owners.
Recruitment of up to 275 people is underway with Delta SBD having received more than 300 applications in just three weeks for 122 operator and trades positions, the vast majority experienced black coal operators from local areas.
An engineering review and overhaul of the mine’s diesel fleet, continuous miners, conveyors and longwall is in progress, as is design and planning for development work, longwall mining and gas drainage.
“We hope to receive approvals that will enable development work to start in the first quarter of the year with first coal from the longwall expected by mid-year,” Operations Manager Peter Ostermann said.
Integra is expected to produce 1.3million tonnes of high fluidity saleable coking coal for 2017.
Mr Ostermann said a drilling program across the mine lease would also be initiated next month as part of a planning exercise that is looking at longer term options for Integra.
“Glencore have agreed to support our capital request for up to $5million to learn more about the resource that’s available on the combined lease footprint between the Integra, Glendell and Mt Owen operations,” he said.
“At the moment, we don’t have sufficient data to make informed decisions on the mine’s future beyond two longwalls and the exploration program will give us the information to make those decisions should the market for coal remain positive.”