Department of Employment, Economic Development and Innovation Queensland Mining and Petroleum Operations 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 © The State of Queensland, Department of Employment, Economic Development and Innovation, 2011 2 Main Interacting Legislation • Environmental Protection Act 1994; • Land Court Act 2000; • Commonwealth Native Title Act 1993; • Aboriginal Cultural Heritage Act 2003. © The State of Queensland, Department of Employment, Economic Development and Innovation, 2011 3 Districts and Regions within Queensland © The State of Queensland, Department of Employment, Economic Development and Innovation, 2011 4 Whole of Mine Life Cycle Infrastructure Provision Legacy of Mining (Abandoned Mines & Contaminated Land) Mine Closure (Rehabilitation & Future Use) Information & Knowledge (products & services) Stewardship of Minerals & Petroleum Resources Mining Development & Production Distribution of Wealth © The State of Queensland, Department of Employment, Economic Development and Innovation, 2011 Land Use Planning Exploration (Access to Land & Resources) PreDevelopment (Feasibility) Acceptance of Mining & Social Licence to Operate 5 Queensland Tenure – Terminology and Hierarchy Mineral and Coal Petroleum Geothermal Production Mining Lease (ML) Petroleum Lease (PL) Geothermal Lease (GL) (Proposed Mid-2011) Development Mineral Development Licence (MDL) Potential Commercial Area (PCA) Potential Geothermal Commercial Area (PGCA) Exploration Exploration Permit for Minerals (EPM) Exploration Permit for Coal (EPC) Authority to Prospect (A to P or EPP) Geothermal Exploration Permit (GEM) Application forms available at: www.dme.qld.gov.au/mines/land_access_and_tenure_forms.cfm © The State of Queensland, Department of Employment, Economic Development and Innovation, 2011 6 EXPLORATION PERMITS © The State of Queensland, Department of Employment, Economic Development and Innovation, 2011 7 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. © The State of Queensland, Department of Employment, Economic Development and Innovation, 2011 8 Queensland Mineral Exploration Expenditure by Mineral Sought - 2005 to 2010 90 Wet 80 70 Coal GFC A$ Millions 60 Selected base metals 50 Copper 40 30 Gold 20 Total other 10 Ju n0 Se 5 p0 De 5 c0 M 5 ar -0 Ju 6 n0 Se 6 p0 De 6 c0 M 6 ar -0 Ju 7 n0 Se 7 p0 De 7 c0 M 7 ar -0 Ju 8 n0 Se 8 pDe 08 c0 M 8 ar -0 Ju 9 n0 Se 9 p0 De 9 c0 M 9 ar -1 Ju 0 n10 0 Source: ABS (8412.0 - Mineral and Petroleum Exploration, Australia, Jun 2010) © The State of Queensland, Department of Employment, Economic Development and Innovation, 2011 9 Current Queensland Exploration and Development Activity Coal (70 companies) 600 500 Minerals (258 companies) 96 400 No. of Projects 300 200 42 89 473 315 100 260 19 76 0 Grassroots Exploration © The State of Queensland, Department of Employment, Economic Development and Innovation, 2011 Advanced Exploration Feasibility Study Source: Intierra – September 2010 10 MINING LEASE (ML) © The State of Queensland, Department of Employment, Economic Development and Innovation, 2011 11 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. © The State of Queensland, Department of Employment, Economic Development and Innovation, 2011 12 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. © The State of Queensland, Department of Employment, Economic Development and Innovation, 2011 13 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. © The State of Queensland, Department of Employment, Economic Development and Innovation, 2011 14 Queensland Coal Basins Galilee Basin Bowen Basin Surat Basin Clarence-Moreton Basin © The State of Queensland, Department of Employment, Economic Development and Innovation, 2011 15 Queensland Coal • 34 billion tonnes of proven coal resources (45% of Australia’s total) • Largest seaborne exporter of coal in the world (almost 20% of total seaborne trade) • 54 operating coal mines • Produced ~207 Mt of saleable coal in 2009-10 © The State of Queensland, Department of Employment, Economic Development and Innovation, 2011 16 Queensland Coal Exports by Type – Thermal and Metallurgical Million tonnes 200 Coal exports 2009-10 = 183 Mt* THERMAL COKING 180 160 58 140 40.0 120 100 36.6 36.9 42.3 43.1 39.7 49.7 110 112 109.6 42.8 44.8 31 80 25.7 31.8 24.2 60 106 40 55 61 62 74 81 86 87 90 100 125 20 0 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 Year ending 30 June * Provisional figures subject to revision © The State of Queensland, Department of Employment, Economic Development and Innovation, 2011 17 Queensland Coal Export Destinations 2009-10 Total coal exports 2009-10 = 183 million tonnes KOREA 23.7 Mt 12.9% EUROPE 16.7 Mt 9.0% TAIWAN 13.7 Mt 7.6% INDIA 28.1 Mt 15.2% © The State of Queensland, Department of Employment, Economic Development and Innovation, 2011 CHINA 30.8 Mt 16.7% OTHER EAST ASIA AMERICAS WEST AFRICA 3.0 Mt 6.8 Mt ASIA 1.9 Mt 1.6% 4.0% 1.7 Mt 1.0% 0.9% JAPAN 57.1 Mt 31.1% 18 Major Infrastructure Developments Ports Rail Abbot Point (Upgrade) Capacity: 50 Mtpa Completion target: 2011 Balaclava Island (New) Capacity: Approx. 35 Mtpa Completion target: Jun 2014 Mount Isa – Townsville Rail (Upgrade) Wiggins Island (New) Capacity: 30Mtpa Completion: 2014 Capacity: Approx 7.5 Mtpa Northern Missing Link (GAPE Project) (New) Surat Basin Railway Project (New) More details at www.dip.qld.gov.au/projects © The State of Queensland, Department of Employment, Economic Development and Innovation, 2011 19 Queensland Coal and CSG Basins ~ 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 • Galilee Basin Bowen Basin • high volatile thermal coals for export, domestic markets conversion coal Galilee Basin • Surat Basin ClarenceMoreton Basin © The State of Queensland, Department of Employment, Economic Development and Innovation, 2011 planned, large-scale, open-cut mining projects to supply high volatile thermal coal to the export market 20 Mr Jim Grundy General Manager Mining and Petroleum Operations Phone: Email: Web: +61 7 3237 0210 jim.grundy@deedi.qld.gov.au www.deedi.qld.gov.au © The State of Queensland, Department of Employment, Economic Development and Innovation, 2011 21