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Department of Employment, Economic Development and Innovation Queensland Mining and Petroleum Operations.

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Presentation on theme: "Department of Employment, Economic Development and Innovation Queensland Mining and Petroleum Operations."— Presentation transcript:

1 Department of Employment, Economic Development and Innovation Queensland Mining and Petroleum Operations

2 2 © The State of Queensland, Department of Employment, Economic Development and Innovation, 2011 Resources Legislation administered by Mines, DEEDI Exploration and Production –Petroleum Act 1923 –Mineral Resources Act 1989 –Petroleum and Gas (Production and Safety) Act 2004 –Greenhouse Gas Storage Act 2009 –Geothermal Energy Act 2010 Authorise access to land for exploring for and production of petroleum, mineral, gas, geothermal and greenhouse gas resources

3 3 © The State of Queensland, Department of Employment, Economic Development and Innovation, 2011 Main Interacting Legislation Environmental Protection Act 1994; Land Court Act 2000; Commonwealth Native Title Act 1993; Aboriginal Cultural Heritage Act 2003.

4 4 © The State of Queensland, Department of Employment, Economic Development and Innovation, 2011 Districts and Regions within Queensland

5 5 © The State of Queensland, Department of Employment, Economic Development and Innovation, 2011 Whole of Mine Life Cycle Stewardship of Minerals & Petroleum Resources Legacy of Mining (Abandoned Mines & Contaminated Land) Information & Knowledge (products & services) Mine Closure (Rehabilitation & Future Use) Mining Development & Production Exploration (Access to Land & Resources) Infrastructure Provision Distribution of Wealth Land Use Planning Acceptance of Mining & Social Licence to Operate Pre- Development (Feasibility)

6 6 © The State of Queensland, Department of Employment, Economic Development and Innovation, 2011 Geothermal Petroleum Mineral and Coal Queensland Tenure – Terminology and Hierarchy Application forms available at: Authority to Prospect (A to P or EPP) Exploration Exploration Permit for Minerals (EPM) Exploration Permit for Coal (EPC) Potential Commercial Area (PCA) Development Mineral Development Licence (MDL) Petroleum Lease (PL) Production Mining Lease (ML) Geothermal Lease (GL) (Proposed Mid-2011) Potential Geothermal Commercial Area (PGCA) Geothermal Exploration Permit (GEM)

7 7 © The State of Queensland, Department of Employment, Economic Development and Innovation, 2011 EXPLORATION PERMITS

8 8 © The State of Queensland, Department of Employment, Economic Development and Innovation, 2011 EXPLORATION Exploration permits are the main exploration tenement used by the mining industry throughout the State. They are issued for first-stage, broad-scale exploration. Exploration usually involves activities with no significant or lasting impacts, but these may be followed by more intensive activities such as trenching and close-spaced drilling. Allows the holder to take action to determine the existence, quality and quantity of minerals on, in or under land by methods which include prospecting, geophysical surveys, drilling and sampling and testing of minerals to determine mineral bearing capacity or properties of mineralisation.

9 9 © The State of Queensland, Department of Employment, Economic Development and Innovation, 2011 Queensland Mineral Exploration Expenditure by Mineral Sought to 2010 Source: ABS ( Mineral and Petroleum Exploration, Australia, Jun 2010) A$ Millions GFC Wet

10 10 © The State of Queensland, Department of Employment, Economic Development and Innovation, 2011 Current Queensland Exploration and Development Activity Source: Intierra – September 2010 No. of Projects Coal (70 companies) Minerals (258 companies)

11 11 © The State of Queensland, Department of Employment, Economic Development and Innovation, 2011 MINING LEASE (ML)

12 12 © The State of Queensland, Department of Employment, Economic Development and Innovation, 2011 MINING LEASE (ML) Mining leases are granted for the purposes of carrying out mining operations and are the main production tenure. They are used by a wide range of holders from the individual prospector to the largest mining companies and may be for any term and have no size restrictions, except in specified restricted areas. Term – no restriction on term however the term sought must be justified. Holder has a right to apply for renewal of term. Mining leases require a Prospecting Permit, an Exploration Permit or a Mineral Development Licence as a prerequisite. There are provisions for notification of applications and objections from any person, and any objections are heard in the land Court. Environmental conditions are set by the Environmental Protection Agency after various impact assessment processes which depend on the size and nature of the operation proposed.

13 13 © The State of Queensland, Department of Employment, Economic Development and Innovation, 2011 MINING LEASE (ML) Before a mining lease is granted, compensation to landowners must be determined, either by negotiated agreement or determination in the Land Court. Mining leases may also be granted for infrastructure purposes associated with mining. The application fee is prescribed in the Mineral Resources Regulation No maximum or minimum area. May require survey. Rental is calculated by multiplying the number of hectares contained in the lease, by the prescribed rent date as detailed in the Mineral Resources Regulation 2003.

14 14 © The State of Queensland, Department of Employment, Economic Development and Innovation, 2011 COAL MINING AND COAL SEAM EXTRACTION A petroleum authority and a coal tenement may co-exist over the same area of land (overlapping tenures). Commercial production of petroleum (coal seam gas) must be undertaken under a petroleum lease. Coal miners retain a right to use – “incidental coal seam gas”. Legislation requires the two parties to engage in a consultation process. IMPACTS –The applicant for a petroleum lease must identify possible impacts on the coal resources and consult with the coal mining lease holder. –This consultation process ensures that the extraction techniques for the coal seam gas also optimise coal production.

15 15 © The State of Queensland, Department of Employment, Economic Development and Innovation, 2011 Galilee Basin Bowen Basin Surat Basin Clarence-Moreton Basin Queensland Coal Basins

16 16 © The State of Queensland, Department of Employment, Economic Development and Innovation, 2011 Queensland Coal 34 billion tonnes of proven coal resources (45% of Australia’s total) Largest seaborne exporter of coal in the world (almost 20% of total seaborne trade) Largest seaborne exporter of coal in the world (almost 20% of total seaborne trade) 54 operating coal mines 54 operating coal mines Produced ~207 Mt of saleable coal in Produced ~207 Mt of saleable coal in

17 17 © The State of Queensland, Department of Employment, Economic Development and Innovation, 2011 Year ending 30 June Million tonnes Coal exports = 183 Mt* * Provisional figures subject to revision Queensland Coal Exports by Type – Thermal and Metallurgical

18 18 © The State of Queensland, Department of Employment, Economic Development and Innovation, 2011 Queensland Coal Export Destinations Total coal exports = 183 million tonnes

19 19 © The State of Queensland, Department of Employment, Economic Development and Innovation, 2011 Major Infrastructure Developments Rail Northern Missing Link (GAPE Project) (New) Mount Isa – Townsville Rail (Upgrade) Capacity: Approx 7.5 Mtpa More details at Surat Basin Railway Project (New) Ports Abbot Point (Upgrade) Capacity: 50 Mtpa Completion target: 2011 Balaclava Island (New) Capacity: Approx. 35 Mtpa Completion target: Jun 2014 Wiggins Island (New) Capacity: 30Mtpa Completion: 2014

20 20 © The State of Queensland, Department of Employment, Economic Development and Innovation, 2011 Queensland Coal and CSG Basins Galilee Basin Bowen Basin Surat Basin Clarence- Moreton Basin ~ 34 billion tonnes of proven coal resources ~ 28,000 Petajoules of 2P Coal Seam Gas reserves Bowen Basin major source of export coal all of Queensland’s export coking coal Surat and Clarence Moreton Basins high volatile thermal coals for export, domestic markets conversion coal Galilee Basin planned, large-scale, open-cut mining projects to supply high volatile thermal coal to the export market

21 21 © The State of Queensland, Department of Employment, Economic Development and Innovation, 2011 Mr Jim Grundy General Manager Mining and Petroleum Operations Phone: Web:


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