Rolleston Coal is a joint venture between Xstrata Coal Queensland Pty Ltd, (75%), Sumisho Coal Australia Pty Ltd and IRCA Rolleston (both 12.5%).

Located 275 kilometres due west of Gladstone in the resource rich Bowen Basin, Rolleston Coal is the newest mine in Xstrata Coal’s Australian portfolio. The mine is 16 kilometres from the town of Rolleston in the Central Highlands Regional Council area.

With a mine life in excess of 20 years, Rolleston Coal is an open cut thermal coal mine, with current approved production levels of 6 million tonnes per annum for export out of the Port of Gladstone and 2 million tonnes per annum for domestic use. Rolleston Coal commenced operations in September 2005 and in its first four months, produced more than 1 million tonnes of coal.

The coal mined at Rolleston is characterised by its low ash content and coupled with the mine’s low strip ratio, positions Rolleston Coal in the lowest cost quartile of Australian coal producers.

On the 24th June 2003 Xstrata plc acquired MIM and the Rolleston Coal Project was put on hold for 12 months while Xstrata undertook a detailed evaluation of the project. On the 24th of February 2004 Xstrata plc approved the full scale development of the Rolleston Coal Project at 8mtpa with construction to begin shortly thereafter.

The new Rolleston thermal coal mine is located in the South-West of the Bowen Basin some 28 kilometers by road to the north from the town of Rolleston and 58 kilometers by road to the south of the town of Springsure. Coal is exported through the port of Gladstone some 423 kilometers by rail from the mine. The current economic coal reserves to be mined at Rolleston are 173 million tonnes with further exploration planned. The coal is low in ash at approximately 8% with moderate energy. The coal is sold to customers in the Asian region and to the local Gladstone Power Station for power generation.

Rolleston Coal expansion project

Xstrata Coal, together with its joint venture partners Sumisho Coal Australia Pty Ltd and IRCA Rolleston, is examining the feasibility of expanding the existing Rolleston Coal mine. The Rolleston Coal Expansion Project would extend the life of the mine by approximately 20 years to 2045 and increase production up to a total of 20 million tonnes per annum. The new Mining Lease Application areas cover 8,895 ha.

The development and operation of Rolleston Coal is expected to generate significant economic benefits of around $170 million each year or some $3.4 billion over the life of the mine. It is anticipated that at full production, an average of 150 jobs will be created, with a further flow-on effect of numerous additional jobs in the local community.

Rolleston Coal works in partnership with the local community on a number of initiatives including:

• The Rolleston Open Cut Community Fund (download form here)
• A Community Reference Group to facilitate communications between the company and community groups.
• A Community Benefit Fund to provide project funding for local organisations, administered by the Central Highlands Regional Council.
• Environmental improvement projects in cooperation with local government and volunteers.

Environment

Rolleston Coal is undertaking an ecosystem restoration project as part of its project consent conditions. The program commits the company, which is located adjacent to a National Park to the reinstatement of significant native grassland communities as part of the mine’s rehabilitation strategy.

Economic benefits