Kestrel Mine Extension fact sheet - Rio Tinto Coal Australia

MARCH 2008
Kestrel Mine Extension
FACT SHEET
Overview
Rio Tinto Coal Australia (RTCA)
has operated the Kestrel Mine
since 1999, and has been
undertaking detailed studies
and community consultation to
determine the best approach to
access the remaining coal on
its mining leases.
Rio Tinto has approved, subject
to environmental approvals,
the investment of more than
$1.1 billion to extend the
Kestrel Mine.
The extension will eventually
increase mine production to
5.7 million tonnes of coal a
year, with the first longwall
coal expected to ship in 2012.
What will this mean?
The extension project will create up to 250 jobs during construction. When completed in 2012 the project
infrastructure will support 20 years remaining mine life. The extension involves a relocation of mining
activities to better access the underground resource and includes the construction of two mine access points
and surface infrastructure. The existing coal handling and preparation plant and rail system will be upgraded
to take the coal from the new mining area via an overland conveyor.
Community
Rio Tinto Coal Australia (RTCA) has undertaken consultation with the local community. Sustainability of
the local community as well as ongoing community consultation are key considerations to RTCA during the
development, operation and eventual closure of the Kestrel Mine. Rio Tinto Coal Australia recognises its
operations have social, economic and environmental impacts on the communities in which it operates.
In consideration of this, Kestrel Mine has provided more than $1 million over the past five years for the
Kestrel Mine Community Development Fund.
The aim of the Fund is to work in partnership with the local community, build capacity and provide support
for projects that deliver social, economic and environmental benefits to the community. The mine’s near
neighbours have emphasised the importance of mitigating the impact on surface and groundwater, as well as
issues relating to dust, noise, visual impacts and property devaluation.The Kestrel Mine Extension has been
designed to incorporate sustainable development principles, aiming to cut water usage by half and increase
the energy efficiency of buildings.
Kestrel Mine will ensure compliance with the conditions of its environmental authority which deals with
issues such as the control of dust, noise, odour, water and vibration, throughout the construction and
eventual operation of the extension.
This fact sheet is printed on 100 per cent
recycled Revive paper.

Project statistics
Location:
Local government
Area:
Lease size:
Ownership:
Product
Production
Reserves
Construction
Duration
Employment
51km north east of Emerald, in Central Queensland, and 300km
west of Rockhampton
Peak Downs Shire Council.
Central Highlands Regional Council (as of March 2008)
Kestrel Mine Extension has approximately 9500Ha in the mining
lease area and 1800Ha in mineral development licences.
Kestrel Coal Pty Ltd manages the mining operation on behalf of the
Kestrel Joint Venture. The joint venture participants are
• Queensland Coal Pty Limited (QCPL) - 80 per cent
• Mitsui Kestrel Coal Investment - 20 per cent
Hard/semi hard coking coal and thermal coal for export.
About 4 million tonnes per year, rising to average 5.7 million tonnes
per year once the extension is completed.
112 million tonnes
The first phase of construction is expected to take about two and a
half years. Underground development work is expected to take two
years, with Longwall operations commencing in 2012.
Up to 250 contractors will be involved in the construction of new
surface facilities and underground.
Operations
Duration When completed in 2012 the project infrastructure will support 20
years remaining mine life to 2032.
Employment The current workforce will transition to the new extension.
Mining type Longwall mining with 4 per cent of production from development
activities.
Infrastructure Coal will be conveyed 7km to the existing coal handling and
preparation plant.
New infrastructure will include: a workshop, warehouse and storage
facilities, administration building and services.
Mining Equipment The longwall is 375 metres wide extracting the full seam nominally
2.9 metres thick, panel lengths from 2000 metres to 6500 metres.
Development by three continuous miner units.
Personnel and equipment transport with rubber tyred vehicles.
Mine access is drive in drive out via the new drifts.
Export
The majority of the mine’s output will be transported along the
Blackwater line to Gladstone’s RG Tanna Coal Terminal.
This announcement includes “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange
Act of 1934, as amended. All statements other than statements of historical facts included in this announcement, including, without limitation, those regarding Rio Tinto Coal Australia’s
financial position, business strategy, plans and objectives of management for future operations (including development plans and objectives relating to Rio Tinto Coal Australia’s products
and production forecasts), are forward-looking statements. Forward-looking statements are based on numerous assumptions and involve known and unknown risks, uncertainties and
other factors which may cause the actual results, performance or achievements of Rio Tinto Coal Australia, or industry results, to be materially different from any future results, performance
or achievements expressed or implied by such forward-looking statements. These forward-looking statements speak only as of the date of this announcement. Rio Tinto Coal Australia
expressly disclaims any obligation or undertaking (except as required under its applicable legal and regulatory obligations) to release publicly any updates or revisions to any forwardlooking
statement contained herein to reflect any change in Rio Tinto Coal Australia’s expectations with regard thereto or any change in events, conditions or circumstances on which any
such statement is based.