Rio Tinto Completes Construction of Kestrel Mine Expansion in Queensland

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Researched by Industrial Info Resources Australia (Perth, Australia)--Rio Tinto plc (NYSE:RIO) has announced the completion of its Kestrel coal mine expansion project in Queensland. Production has commenced after four years of construction. The project was targeted to add another 20 years to the life of the mine, which is located in the mining town of Emerald.

A new longwall miner was installed 7 kilometres from the original site of the Kestrel mine, and an overland conveyer was constructed for the transport of coal to the coal-handling and preparation plant (CHPP). The original mine site, referred to as Kestrel North, will gradually reduce production in the next few years as the new Kestrel South is expected to reach full capacity by the end of 2014. The project also involved increasing the capacity of the CHPP from the original 4 million tonnes per year to an estimated 7.9 million tonnes per year.

The $2 billion project saw the involvement of several design, engineering and construction firms. Ausenco Limited was awarded the engineering, procurement and construction (EPC) contract for the mine and processing plant. Two different structural, mechanical and piping (SMP) packages were handled by Monadelphous Group (ASX:MND) and O'Donnell Griffin (New South Wales). The supply and installation of a drift conveyor, surge bin and tower and emergency by-pass conveyor also was performed by Monadelphous.

The project also focused on involvement from local suppliers, engaging almost 169 local contractors with contracts worth $130 million. The addition of the mine life will secure the continuing employment of the current 400-strong workforce.

"The mine is expected to produce an average of 5.7 million tonnes per annum of coal for the next 20 years," said John Coughlan, general manager of operations for the Kestrel mine.

Due to the recent slump in global coal prices, a large number of coal mining projects in Queensland and rest of the Australia have been either delayed indefinitely or shelved completely. However, the industry has been shifting its focus from new exploration to construction and production ramp-ups. The remainder of 2013 is expected to see more coal miners try to commence production.

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