Burton Mine

From Global Energy Monitor

Burton mine is an open pit mine in Bowen Basin in Queensland that has been on care and maintenance since Decmember2016.[1] It is currently owned by Lenton Joint Venture, though Peabody Energy Australia owned the mine for many years prior. Throughout its time of operation, Burton's coal was shipped to utilities and steelmakers across three continents.[2]

Location

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Background

Mining began at Burton mine in 1996. By 2010, five different coal pits within the Burton mine complex had been dug and utilized. Throughout much of its life, Burton mine produced between 3.5 and 5.7 million tonnes of coal a year, but by the end of its life in 2016, it only produced 1.5 mtpa.[3] [4] Throughout its time of operation, thermal and hard coking coal was exported via the Dalrymple Bay coal terminal and purchased by customers in South America, Europe and Asia.[5]

The Burton coal mine was originally owned by Portman Mining Limited, before being sold to RAG Australia and then Peabody Energy Australia in 2004. Up until late June 2011 Thiess Investments held a 5% stake but this was bought by Peabody for $35 million in 2011..[6]

In February 2016, Peabody Energy reported that it would be placing the mine on "care and maintenance" status by the end of 2016 due to high costs.[1] The mine was put into "care and maintenance in December 2016.[7]

In 2017, Peabody sold the majority of inactive Burton Mine for around $14 million to Lenton Joint Venture, which was made up of the New Hope Group, which owns 90% of the mine, and Formosa Plastics Group, which owns the remaining 10%.[8] A large part of the sale was the offloading of the cost of cleanup onto the New Hope Group from Peabody Energy, which would reduce Peabody’s ‘asset retirement obligation’ by US$53 million.[9]

Project Details

  • Sponsor: Lenton Joint Venture[10]
  • Parent Company: New Hope Group Co. (90%) and Formosa Plastics Group (10%)[10]
  • Location: 150 kilometres south west of Mackay in Bowen Basin in Queensland.[3]
  • GPS Coordinates: -21.6125035, 148.1679992
  • Status: care and maintenance[1]
  • Production Capacity: 1.5 mtpa (2016)[4]
  • Total Resource: 32 Mt[10]
  • Mineable Reserves: 7 million tons[4]
  • Coal type: hard coking coal and thermal coal[11]
  • Mine Size:
  • Mine Type: open pit[10]
  • Start Year: 1996[3]
  • Source of Financing:

Mining Expansion

In 2011, Thiess Pty Ltd was awarded a contract to extend mining operations at Burton mine for 4 more years until 2016.[11]

Articles and resources

Related SourceWatch articles

Coal in Australia

References

  1. 1.0 1.1 1.2 Ben Vevisohn, "Peabody Energy Plunges on Earnings Miss, ‘Challenging’ 2016," "Barron's," February 11, 2016
  2. "Queensland Operations," "Peabody Energy Website," October 2009
  3. 3.0 3.1 3.2 "BURTON," "Mining Link," accessed June 2020.
  4. 4.0 4.1 4.2 "Form 10-K Peabody Energy Corp," "U.S. Securities and Exchange Commission," March 21, 2017.
  5. "Portman Mining Ltd Coal Mine – Burton Coal – Queensland Australia," "Mining Technology," accessed June 2020.
  6. Peabody Energy, "Peabody Energy to Acquire Thiess Investments' 5 Percent Interest in the Burton Mine", Media Release, June 29, 2011.
  7. Mining Weekly, "New Hope's Lenton JV completes Burton Acquision" 27 November 2017
  8. "Peabody Completes Sale Of Majority Of Inactive Burton Mine To Lenton Joint Venture," Cision PR Newswire, November 27, 2017.
  9. "Peabody offloads mine," Shift Miner, September 6, 2017.
  10. 10.0 10.1 10.2 10.3 "Burton Mine", "Mining Data Solution," accessed June 2020.
  11. 11.0 11.1 "Peabody Energy Australia extends Burton coal mine production to 2016," "World Coal," January 19, 2011.