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World Coal
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December 2015
Our continued focus on productivity
improvements through the Step Change
Productivity (SCP) initiative ensures a
competitive advantage. It is a key platform
for our sustainability. The ultimate goal for
the SCP programme is to maximise our
mining processes to deliver efficiencies.
Reviewing processes and identifying
improvement initiatives guarantees best
practice.
As we look to the future, the company
is well placed to maintain its unique
position of strength in the Australian coal
industry. We have set our ‘Vision 2020’,
which aligns sustainability with our core
business. Our strategic goals and targets
will deliver business value and help us
achieve our vision to be a leading and
sustainable coal supplier.
Looking back over the past
5 yr or so, the Australian
coal industry has had to
deal with a number of major
changes to the regulatory
and taxation regimes, as
well as legal challenges
to mine development and
expansion projects. Is
Australia still a good place
to be a coal miner?
Centennial’s operations are based in New
South Wales, which has not been an easy
place to do business over the last few years.
As an industry, we accept there needs to be
regulation around how we operate, all we
ask of government is for certainty and for
the goalposts to stop being moved.
Our most recent experience of this
constant changing of the goalposts is with
our Springvale mine in Lithgow – a mine
that has been operating for more than
20 yr and is seeking a consent renewal to
allow it to continue mining for a further
13 yr. It has taken more than 3 yr, in excess
of AUS$2.5 million and seven changes to
the goalposts since we started the process.
The most recent change to the goal
posts was a change to the Mining SEPP,
which has resulted in an additional delay
being introduced to the assessment
process on an already time critical project.
As a direct result of this delay, the majority
of our 300 employees at Springvale have
been stood down until such time as the
appropriate approvals have been secured.
This is hugely unfair, disruptive and
unnecessary. (
Editor’s note: since the time of
writing, Centennial Coal has received approval
for the Springvale mine extension, allowing the
miners to return to work.
)
Like any business, we need certainty to
ensure we can continue to grow and invest
in our business, providing jobs for our
employees, coal to the local power plant
and revenue to the state.
What do you see as the
future for the Australian
coal industry?
The Australian coal industry will remain
an important part of the global market.
Australia will continue to provide coal to
those requiring quality and reliable thermal
coal for power generation in countries such
as Japan, Korea and Taiwan.
Where would you like to see
Centennial in the next year?
Centennial is a natural and long-term
provider of coal to our local power plants
and will continue to sustain regional
employment, while also making a
significant contribution to the state’s
economy. It also provides quality coal to
the premium export markets. The next
12 months will see Centennial continuing
to strengthen our core, to position ourself
for further growth as the market recovers
into the future.
Coal News
Quick facts... Australia
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Australia is the sixth largest
country in the world by area but
only the 56
th
by population.
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Australia mined 246 million t of
thermal coal and 188 million t
of metallurgical coal in the
12 months to June 2015, according
to government estimates.
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Of this, 186 million t of
metallurgical coal and
201 million t of thermal coal was
exported, ranking Australia as one
of the top global coal exporters.
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Australia is also set to become a
significant exporter of liquified
natural gas (LNG) with a number
of projects based on coalbed
methane coming online in 2015
and 2016.
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LNG exports are expected to
be worth AUS$24.4 billion in
the 12 months to June 2016, up
from AUS$18.0 billion on the
12 months to June 2015.
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In addition to coal and natural
gas, Australian resource exports
include zinc, nickel, copper,
bauxite, alumina, aluminium,
gold and, of course, iron ore
of which it the worlds largest
exporter.
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As a result, mineral resources
made up 70.9% of Australia’s
merchandise exports in the
12 months to June 2014 and 58%
of its goods and services exports.
