WorleyParsons and Ausenco have won a significant contract to manage the delivery of Hancock Coal’s A$7.5 billion Alpha Coal Project in Queensland. WorleyParsons and Ausenco will provide program management services to the project in a 50% joint venture throughout the next four years. Hancock Coal and Hancock Galilee are focused on the Alpha Coal and Kevin’s Corner Projects in the Galilee Basin. The projects include development of two adjacent 30 Mt/y thermal coal mines.
In the 1970s, resource exploration commenced in the Galilee Basin, which was considered to be uneconomic due to the lack of associated infrastructure on Australia’s east coast. Now, some 30 years later, with more developed rail and port infrastructure coupled with the global demand for coal fired power, there is an exciting opportunity for this area of regional Queensland. This project includes associated port and rail infrastructure. Each mine has an expected life of 30-plus years.
The Alpha Coal and Kevin’s Corner projects moved into the Bankable Feasibility Study (BFS) phase earlier this year. This work is continuing along with the Environmental Impact Statement (EIS) studies currently being undertaken for both projects.
In April, the North Queensland Bulk Ports Corporation (NQBP) announced the awarding of Preferred Developer status to Hancock Coal and BHP Billiton for two major expansions at the Port of Abbot Point. The preferred developers were chosen following a competitive process whereby they were able to demonstrate that they offer the best opportunity to optimise the use of the land and achieve the best tonnage throughput. The Queensland Government endorsed the proposals from the two companies to build two new coal terminals at Abbot Point to export an estimated 110 Mt/y of coal.
On the July 2 2010, Premier Anna Bligh announced the Declaration by the Coordinator-General of the proposed Hancock rail corridor, an essential milestone towards the Alpha coal mine. The corridor has been declared an Infrastructure Facility of Significance (IFS). The proposed 495 km standard gauge railway will run from Hancock’s Alpha mine to the Port at Abbot Point. The Kevin’s Corner mine will also use the railway. The approval was significant in that it can only be sought by projects which meet the strict definition of an infrastructure facility and also have the potential to contribute to the State through economic growth and job creation.
The port and rail infrastructure associated with the Hancock projects will directly contribute to the State’s economy. The development of the Hancock railway from the Alpha and Kevin’s Corner projects to Abbot Point near Bowen is an integral requirement for the development of the mines.
In September, Hancock Coal commenced work on a temporary bulk coal sample project at its Alpha coal tenement approximately 60 km northwest of the town of Alpha. The bulk sample project plays an important role in securing the long-term viability of the two proposed future coal projects.
Hancock’s Bulk Sample Project will extract up to 450,000 t of thermal coal from the bulk sample pit site near Alpha, with the first stage being 120,000 t. As part of the project, Hancock will wash the coal prior to export.
Hancock’s current plan is for the transportation of coal by truck from Alpha to an offsite coal preparation plant near Blackwater for washing, before trucking to an en route rail loading facility for rail transport to the coal terminal near Gladstone. The road transportation component of the project will take approximately four months starting early in 2011. All loads will be covered as an added measure. The transportation by road will only apply to the Bulk Sample Project. Future projects, Alpha Coal and Kevin’s Corner operations will rely on the proposed Alpha to Abbot Point railway line.
Paul Mulder, Managing Director of Hancock Coal announced the appointment of Thiess as the Bulk Sample Pit operator, and Wagners as the transport contractor. “Both companies place safety and the environment as key priorities” he said.