Green shoots emerging in Australia’s coal sector as Glencore reopens Collinsville

PERTH (miningweekly.com) – Diversified miner Glencore is planning a restart of operations at its Collinsville coal mine, in Queensland, where it scaled back production earlier this year owing to a sharp decline in prices.

Glencore’s head of opencut coal in Queensland, Tony Galvin, said on Tuesday that the company would restart operations as demand from South East Asia for the specific type of coal produced at Collinsville was improving.

“Our Collinsville mine has made material progress in increasing operational efficiencies and reducing costs in the current market and the decision to return to production is positive news for the local community and the wider region,” he said.

Galvin reported that Glencore had continued to assess a range of options for the mine during the downtime.

“This year there has been a focus on rehabilitation work and management of mine water. We have also continued to support a number of community initiatives, including the funding of a revitalisation master plan that aims to increase tourism in Collinsville and surrounding areas.”

Glencore has now started a recruitment process looking for 200 staff to man Collinsville.

The Queensland Resources Council (QRC) said on Tuesday that a return of production at Collinsville was another sign of the green shoots that were sprouting in the coal sector.

“We are very pleased today to hear that Glencore is returning the Collinsville mine to production, which will employ hundreds of people and bolster state revenue through royalties and taxes,” QRC CEO Michael Roche said.

“It follows on from the good news about Stanmore Coal’s successful reopening of its Isaac Plains mine and the recent sale and planned reopening of Blair Athol mine.”

Roche said it was no secret the coal industry had been hit with a downturn in recent years after a decade-long mining boom.

“Queensland coal companies have stepped up to the bar during the downturn and transformed their cost structures and productivity. The run of good news around mine reopenings, stronger coal prices and vocal support from state and federal government leaders is helping to inject renewed confidence in the coal industry while giving a lie to the “end of coal” rhetoric from green politicians and activists.”

Production at Collinsville is not expected to increase Glencore’s overall coal export tonnes from Australia given the recent closures of the company’s underground mines at Newlands and West Wallsend.