Wednesday, 8 August 2012

Rio to close Blair Athol mine

By: Esmarie Swanepoel
8th August 2012
KALGOORLIE (mining weekly)
- Mining giant Rio Tinto on Wednesday announced that it would cease operations at its Blair Athol coal mine, in Central Queensland, by the end of the year.

The operation has been in production for nearly 30 years, and at its peak, the operation was Australia’s largest exporter of thermal coal.

GM for the Claremont region of Queensland, Dawid Pretorius said on Wednesday that the mine had been progressively scaling back production in a transition towards closure since 2010.

“After close to three decades, Blair Athol Mine’s coal seams are largely mined out and the time has come to finish production,” he said.

Rio’s plans to close the mine date back to 2005, said Pretorius, with the company undertaking community consultation. However, he noted that as coal prices increased in recent times, the company had looked to extend the mine life by mining a poorer quality coal, and harder-to-reach seam.

“Unfortunately, the recent significant drop in thermal coal prices, and other factors such as rising costs and the foreign exchange rate mean this is no longer a feasible option and we will keep to the original plan to finish production in 2012,” Pretorius said.

“The final day of production at Blair Athol mine will depend on the progress of mining operations over coming months, but we expect it will be before December.”

There were currently around 170 employees and contractors working at the operation, and only around 30 roles would be retained after production ceased. These will include work in the coal handling and preparation plant and rail load-out facilities, which will continue to be used for coal from the nearby Clermont mine, as well as care and maintenance work in the lead up to a rehabilitation programme.

“We have been planning for the eventual closure of Blair Athol mine for many years, as we know it will be a significant adjustment for our workers, their families and the local community,” said Pretorius.

“Rio Tinto is committed to providing support for employees and will continue to contribute to the strength of the local community through its nearby Clermont mine and ongoing investment in a wide range of partnerships,” he added.

Planning for a rehabilitation programme for the Blair Athol site was under way and further details of the programme, including the final landform and use, would be determined in consultation with the Queensland government over the coming months.

Edited by: Creamer Media Reporter

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