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Working for Anglo American

Operations and projects

A responsible supply

Intro

Our portfolio of metallurgical and thermal coal mining operations consists of Moranbah North, Grosvenor, Dawson and Capcoal. Ongoing projects include Aquila [part of Capcoal] and Moranbah South. Find out more detailed information below.

Operation: Capcoal

The Capcoal complex consists of the Grasstree longwall operation, the Aquila underground mine - currently under care and maintenance with approval underway to develop the operation as a future longwall mine [see more below] - and two open-cut mines: Lake Lindsay and Oak Park, located in the Bowen Basin, Central Queensland.

Together these mines produce quality hard coking coal for export steel markets. The majority of coal is mined from the German Creek Formation, which contains five coal seam intervals known as the German Creek, Corvus, Tieri, Aquila and Pleiades seams. Mining leases controlled by Capcoal cover 33,513 hectares.

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Grasstree is an underground longwall operation. Through a series of business optimisation projects we have lifted productivity at Grasstree to deliver world-leading longwall performance.

Capcoal plays an important role in the township of Middlemount supporting community events and assisting with the provision of important services. In recent years, Capcoal completed a $2.6 million upgrade of shopping centre facilities and invested $25 million to upgrade 100 homes.

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Operation: Dawson

Our operation in Dawson Central Queensland has been underway since 1960 and is made up of three operating pits; North, Central and South. First mined in 1961 for export coal to Japan, it was the first mine to introduce draglines into its operation in 1963.

Each year, Dawson mine produces coking, soft coking and thermal coal, using open cut and highwall mining methods. Coal is railed to Gladstone for export to Japan, South Korea, Taiwan and India.

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A key feature of Dawson is the development of Cultural Heritage Agreements for Dawson North and South. These agreements have established a co-operative framework to help minimise impacts for areas covered by Native Title or Cultural Heritage guidelines at Dawson North, Central and South developments. At Dawson North and Central, we created a Cultural Heritage Investigation and Management Agreement in consultation with the Gangulu People, who are the Traditional Owners of the development area and custodial owners of the cultural heritage in the area.

At Dawson South, Cultural Heritage Agreements have been agreed separately with Traditional Owners of the development area – the Gangulu and the Wulli Wulli people.

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Operation: Moranbah North

Moranbah North is an underground longwall mine which began operating in 1998. Moranbah North's hard coking coal is mined from the Goonyella Middle Seam mainly for export to Japan, Korea, Taiwan, India Brazil and Europe.

Moranbah North is 88% owned by Anglo American, with the remaining 12% owned by joint venture partners. The mining operation employs more than 600 people, with Moranbah North estimated to have a mine life of 15 years.

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Operating the Moranbah North mine while constructing the Grosvenor longwall project, Anglo American is a major employer in the Moranbah region and as a result we have built a strong presence in the community. We intend to make a positive difference to the local township and we actively contribute to improving services and facilities in the area.

Moranbah South is a joint venture project with Exarro, which you can find out more about in the ‘Projects’ section.

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Operation: Grosvenor

The Grosvenor metallurgical coal mine in Queensland, Australia, produced its first longwall coal in May 2016, seven months ahead of schedule and more than $100 million under its total capital budget.

The site is located approximately 190 kilometres south-west of Mackay, and uses the longwall mining method to mine coal with an anticipated mine life in excess of 30 years.

Operation: Drayton

Mining activities at Drayton ceased in 2016, following a recommendation from the Planning Assessment Commission (PAC) in November 2015 that the Drayton South project should not proceed.

Learn more about the PAC recommendation, our response, and download related resources.

In 2016, we announced that we had entered into a Sale and Purchase Agreement with Malabar Coal Limited to sell our 88.17% interest in both the Drayton thermal coal mine and Drayton South project.

Mark Cutifani, Chief Executive of Anglo American, said: "The agreement to sell the Drayton thermal coal mine marks further progress as we focus our global portfolio around our largest and most competitive assets."

Project: Aquila

Aquila is a longwall mining project in Queensland jointly owned by Anglo American and Mitsui Coal Holdings Pty Ltd with Anglo American as the managing company. A feasibility study commenced in October 2013, which highlighted significant potential in the Aquila resource with standalone longwall mining identified as the best future method.

The project involves the construction of surface infrastructure, the development of longwall panels and underground infrastructure to support the operation. The operation will target two seams, the Aquila and Aquila Lower coal seams.

We estimate Aquila has the potential to produce an average 3.5 million run-of-mine (ROM) tonnes per annum, peaking at 4.9 million tonnes per annum.

Project: Moranbah South

Moranbah South is a future 50% joint venture project between Anglo American and Exxaro in Central Queensland, south of our Grosvenor project. In mid-2014 we received the draft environmental approval from the Queensland Government and in November 2014 we received approval from the Australian Federal Government.

The resource consists of high quality coking coal and the project would involve developing a brand new underground longwall operation. The timings for project development are still to be determined and will be adjusted to suit favourable market conditions. In the meantime our focus has been on securing the environmental approvals for the project, providing us with the flexibility to progress the project when conditions improve.

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