Coal seam gas project to power open cut mine

Coal haulage truck. | Newsreel
Demand for coal will be driven by global megatrends. | Photo: Cuhrig (iStock)

Gas-capture technology will be used for the first time in an open cut coal mine in Queensland to meet the ongoing power needs of the operation.

Queensland Deputy Premier and Minister for Trade and Investment Cameron Dick said the State Government would invest in the project at Stanmore Resources’ South Walker Creek metallurgical coal mine near Nebo, in North Queensland.

Minister Dick said the emissions reduction project would be the first to be funded through the $520 million Low Emissions Investment Partnerships (LEIP) program.

He said it aimed to capture coal seam methane at the mine, west of Mackay, and transform it into electricity.

“Underground coal mining already traps fugitive gas prior to coal extraction and Stanmore is now applying the same technology at an open cut mine,” Minister Dick said.

“If successful, the project could pave the way for a faster emissions reduction across the broader coal sector.”

Minister Dick said the project would operate for at least 15 years, with construction of a new 20-megawatt coal seam gas-fired power station at the mine expected to be completed by 2027.

He said the power station would offset South Walker Creek’s entire electricity requirements and employ 30 people during construction, on top of the mine’s existing workforce of 1200.

“Queensland’s high-quality metallurgical coal is a vital element in producing the world’s renewable energy infrastructure such as wind turbines and electric vehicles,” he said.

“The application of proven technologies to capture and convert gas at South Walker Creek has the potential to accelerate Queensland’s decarbonisation.”