Drayton South Open-Cut Coal Mine
Better productivity for less
Anglo American Metallurgical Coal
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Australia
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2009–2014
5.95 Mtpa ROM; 4.7 Mtpa Hunter Valley thermal coal product.
17-km haul road and a light vehicle road.
25-m span bridge suitable for multiple loaded mine-haul trucks.
New 66 kV HV power supply and site reticulation.
Challenges
- Anglo American’s Metallurgical Coal business unit wanted to triple its metallurgical production by 2020, while pursuing thermal markets for exporting its New South Wales Hunter Valley assets.
- The replacement mine was to be integrated with the existing brownfield operations and infrastructure, with limited access through existing mine operations.
- There were tight environmental and community requirements due to the site's proximity to other industries and agricultural enterprises.
Solutions
- Concept, prefeasibility, and feasibility studies, as well as a detailed engineering and execution plan were developed. Engineering of the surface infrastructure and coal-handling plant were included.
- The design was revised to delete the raw coal stockpile. Two reclaimers were able to be upgraded, saving the A$20 million cost of constructing a new, third reclaimer.
- Re-engineering, consolidation of size, and better local and overseas sourcing of HDPE pipes for the water reticulation system resulted in CAPEX savings of approximately A$14 million.
- Water balance modeling determined that instead of a new dam, a series of low-cost retention ponds could be constructed as the mine developed, saving A$4 million.
Highlights
- The Drayton South feasibility study received one of Anglo’s best Independent Project Analysis (IPA) review scores; FEL Index and rating of 4.75 “Best Practical".
- A previous recommendation to increase capacity by increasing the belt width on load-out conveyors was challenged. Instead, load-out was improved by increasing speed, enabling existing belts and structures to be retained and saving A$10 million.
- Restricted access to the site to a single entry point through the existing operating mine. Adapted additional remote access gates for use during construction, a productivity improvement that saved between A$5 million and A$8 million.
- Chose a rolled steel arch as a bridge solution that was suitable for the limited life expectation required, saving A$5 million.
“The Hatch team provided the needed expertise and experience for a project of this nature and demonstrated the flexibility required to adjust in an environment of significant regulatory approval uncertainty in New South Wales.”
Project numbers
5-km public road relocationNew 66 kV HV power supply and site reticulation
A$500 million estimated capital cost
500 jobs maintained with transition to replacement mine