Where’s Callide headed?
Wednesday 01 March 2017
Three months after private company Batchfire Resources took control of the Callide mine near Biloela, it remains unclear what the future holds.
In November last year, Batchfire purchased the mine from Anglo American on a private walk-in-walk-out basis, which included all plant and equipment.
However, in response to queries from Shift Miner as to how the transition was going, a spokesperson said that being a private company they were: “happiest flying under the radar”.
Callide is an open cut Dragline, truck and excavator operation comprising four pits: Dunn Creek, Trap Gully, The Hut and Boundary Hill.
Run of Mine reserves are approximately 220 Mt of domestic and export thermal quality coal, with an additional 525 Mt of mineable in-situ resources outside the current mine layout.
Between 400 and 500 miners plus contractors are employed at the mine, making it one of Biloela’ biggest employers.
Back in late 2015, the mines former owners Anglo American sacked 40 miners and stopped work on the Boundary Hill expansion which would have extended mine life by around 20 years.
Batchfire isn’t releasing details to Shift Miner on whether it plans to resume that development work.
However, Chief Executive Officer, Peter Westerhuis did say late last year they met with their workforce to provide details about where they're headed.
“Batchfire’s acquisition is on a ‘walk-out, walk-in’ basis meaning that Callide Mine will continue to operate uninterrupted,” Mr Westerhuis said in 2016.
“Our priority is to engage with the Callide workforce, contractors, suppliers and the broader community to ensure the smoothest possible transition after six years of uncertainty over the mine’s future direction, which I can assure them is positive.”
The callide operation is unique in Central Queensland mining, in so far that most of the coal it produces is sold under contract to CS Energy for generating electricity at the Callide Power Station.
The contract price (which was recently renegotiated) is linked to global coal prices, so new owners Batchfire Resources will have enjoyed a significant rally in their contract price since they bought the mine.
- Callide deal finalised Wednesday 02 November 2016
- WILL sale ever settle? Wednesday 19 October 2016
- One sale and Callide likely Tuesday 30 August 2016
- Mine sale still in the air Wednesday 01 June 2016
- Tax Office applies to wind up contractor Thursday 14 April 2016
- Batchfire in talks with government Wednesday 02 March 2016
- Anglo mine workforce in limbo Wednesday 27 January 2016
- Work stops at Boundary Hill Wednesday 09 December 2015
- 130 jobs for CQ shutdown Wednesday 13 May 2015
- Callide to play part in US emissions Tuesday 03 June 2014