Department of Employment, Economic Development and Innovation Queensland Mining and Petroleum Operations

Department of Employment, Economic Development and Innovation

Queensland Mining and Petroleum Operations

2© The State of Queensland, Department of Employment, Economic Development and Innovation, 2011

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


Main Interacting Legislation

• Environmental Protection Act 1994;

• Land Court Act 2000;

• Commonwealth Native Title Act 1993;

• Aboriginal Cultural Heritage Act 2003.


Districts and Regions within Queensland


Whole of Mine Life Cycle

Stewardship of Minerals & Petroleum Resources

Legacy of Mining (Abandoned Mines

& Contaminated Land)

Information & Knowledge (products &

services)

Mine Closure (Rehabilitation &

Future Use)

Mining Development & Production

Exploration (Access to

Land & Resources)

Infrastructure Provision

Distribution of Wealth

Land Use Planning

Acceptance of Mining & Social Licence to

Operate

Pre- Development (Feasibility)


GeothermalPetroleumMineral and Coal

Queensland Tenure – Terminology and Hierarchy

Application forms available at: www.dme.qld.gov.au/mines/land_access_and_tenure_forms.cfm

Authority to Prospect (A to P or EPP) Exploration

Exploration Permit for Minerals (EPM) Exploration Permit

for Coal (EPC)

Potential Commercial Area (PCA)Development Mineral Development

Licence (MDL)

Petroleum Lease (PL)Production

Mining Lease (ML)

Geothermal Lease (GL)

(Proposed Mid-2011)

Potential Geothermal Commercial Area

(PGCA)

Geothermal Exploration

Permit (GEM)


EXPLORATION PERMITS


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.


0

10

20

30

40

50

60

70

80

90

Coal

Selectedbase metals

Copper

Gold

Total other

Queensland Mineral Exploration Expenditure by Mineral Sought - 2005 to 2010

Source: ABS (8412.0 - Mineral and Petroleum Exploration, Australia, Jun 2010)

A$

Mill

ion

s

GFC

Wet


Current Queensland Exploration and Development Activity

473

315260

760

100

200

300

400

500

600

Grassroots Exploration AdvancedExploration

Feasibility Study

Source: Intierra – September 2010

No. of Projects

Coal (70 companies)

Minerals (258 companies)96

4289

19


MINING LEASE (ML)


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.


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.


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.


Galilee Basin Bowen Basin

Surat Basin

Clarence-Moreton Basin

Queensland Coal Basins


Queensland Coal

• 34 billion tonnes of proven coal resources34 billion tonnes of proven coal resources

(45% of Australia’s total) (45% of Australia’s total)

• Largest seaborne exporter of coal in the worldLargest seaborne exporter of coal in the world

(almost 20% of total seaborne trade) (almost 20% of total seaborne trade)

• 54 operating coal mines 54 operating coal mines

• Produced ~207 Mt of saleable coal in 2009-10Produced ~207 Mt of saleable coal in 2009-10


55

24.2

61

25.7

62

31.8

74

31

81

36.6

86

36.9

87

42.3

90

44.8

106

40.0

100

42.8

110

43.1

112

39.7

109.6

49.7

125

58

0

20

40

60

80

100

120

140

160

180

200

1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010

THERMAL

COKING

Year ending 30 June

Million tonnes Coal exports 2009-10 = 183 Mt*

* Provisional figures subject to revision

Queensland Coal Exports by Type– Thermal and Metallurgical


Queensland Coal Export

Destinations 2009-10

Total coal exports 2009-10 = 183 million tonnes


Major Infrastructure Developments

Rail

Northern Missing Link(GAPE Project) (New)

Mount Isa – Townsville

Rail (Upgrade)Capacity: Approx 7.5 Mtpa

More details at www.dip.qld.gov.au/projects

Surat Basin Railway Project (New)

Ports

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


Queensland Coal and CSG Basins

Galilee Basin

Bowen Basin

Surat Basin

Clarence-Moreton Basin

~ 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


Mr Jim Grundy

General Manager

Mining and Petroleum Operations

Phone: +61 7 3237 0210

Email: [email protected]

Web: www.deedi.qld.gov.au

Documents

Department of Employment, Economic Development and Innovation Queensland Mining and Petroleum Operations