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Queensland Mining and Petroleum Operations

Queensland Mining and Petroleum Operations. 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

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Queensland Mining and Petroleum Operations

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  1. Queensland Mining and Petroleum Operations

  2. 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. Main Interacting Legislation • Environmental Protection Act 1994; • Land Court Act 2000; • Commonwealth Native Title Act 1993; • Aboriginal Cultural Heritage Act 2003.

  4. Districts and Regions within Queensland

  5. Whole of Mine Life Cycle Infrastructure Provision Land Use Planning Information & Knowledge (products & services) Legacy of Mining (Abandoned Mines & Contaminated Land) Exploration (Access to Land & Resources) Stewardship of Minerals & Petroleum Resources Mine Closure (Rehabilitation & Future Use) Pre- Development (Feasibility) Mining Development & Production Acceptance of Mining & Social Licence to Operate Distribution of Wealth

  6. Queensland Tenure – Terminology and Hierarchy Petroleum Geothermal Mineral and Coal Geothermal Lease (GL)(Proposed Mid-2011) Mining Lease (ML) Petroleum Lease (PL) Production Potential Geothermal Commercial Area(PGCA) Mineral Development Licence (MDL) Potential Commercial Area (PCA) Development Exploration Permit for Minerals (EPM) Geothermal Exploration Permit (GEM) Authority to Prospect (A to P or EPP) Exploration Exploration Permit for Coal (EPC) Application forms available at: www.dme.qld.gov.au/mines/land_access_and_tenure_forms.cfm

  7. EXPLORATION PERMITS

  8. 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. Queensland Mineral Exploration Expenditure by Mineral Sought - 2005 to 2010 Wet GFC A$ Millions Source: ABS (8412.0 - Mineral and Petroleum Exploration, Australia, Jun 2010)

  10. Current Queensland Exploration and Development Activity Coal (70 companies) Minerals (258 companies) 96 No. of Projects 42 89 19 Source: Intierra – September 2010

  11. MINING LEASE (ML)

  12. 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. 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 2003. • 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. 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. Galilee Basin Bowen Basin Surat Basin Clarence-Moreton Basin Queensland Coal Basins

  16. 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) • 54 operating coal mines • Produced ~207 Mt of saleable coal in 2009-10

  17. Queensland Coal Exports by Type – Thermal and Metallurgical Million tonnes Coal exports 2009-10 = 183 Mt* Year ending 30 June *Provisional figures subject to revision

  18. Queensland Coal Export Destinations 2009-10 Total coal exports 2009-10 = 183 million tonnes

  19. Rail Ports Major Infrastructure Developments 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 Mount Isa – Townsville Rail (Upgrade) Capacity: Approx 7.5 Mtpa Northern Missing Link(GAPE Project) (New) Surat Basin Railway Project (New) More details at www.dip.qld.gov.au/projects

  20. Galilee Basin Bowen Basin Surat Basin Clarence-Moreton Basin Queensland Coal and CSG Basins ~ 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. Mr Jim Grundy General Manager Mining and Petroleum Operations Phone: +61 7 3237 0210 Email:jim.grundy@deedi.qld.gov.au Web:www.deedi.qld.gov.au

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