Valeria coal project

From Global Energy Monitor

The Valeria coal project is a proposed mine, operated by Glencore, to produce 16 million tonnes per annum, near Emerald, Queensland, Australia.[1]

Location

The map below shows the approximate location of the mine, 25 km north west of Emerald, Queensland, Australia.[1]

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Background

Rio Tinto Coal Australia once held a 71.2% interest in the Valeria project, but Glencore has since taken ownership. The project has the potential to produce approximately 4% of Australia’s thermal and metallurgical coal.[2]

In September 2020, Australian pension fund UniSuper, which holds an indirect 15% stake in the project, announced that it had formally informed project partners that it was unable to support the development of the coal mine on economic grounds. Speaking to an audience of UniSuper members, John Pearce, the chief investment officer of the AU$80 billion fund, said, "We don’t believe the economics of [Valeria] stack up. We think thermal coal is bound to be a stranded asset."[3] Glencore immediately disputed that UniSuper approval was needed for the project to proceed due to the fund only having an indirect minority interest. According to Pearce, however, "You might think that, well 15%, how can you stop it? Well it turns out that some of the decisions require 100%, so it could be fairly problematic for those."[2]

Project Details

  • Sponsor: Valeria Coal Holdings
  • Parent Company: Glencore
  • Location: 25 km North West of Emerald, Queensland, Australia
  • GPS Coordinates: -23.470142, 148.033559 (approximate)
  • Status: Proposed
  • Production Capacity: 16 mtpa[1]
  • Total Reserve: 762 mt[4]
  • Minable Reserves:
  • Coal type:
  • Mine Size:
  • Mine Type: surface
  • Mining Method: opencut
  • Start Year: 2026[5]
  • Source of Financing:

Articles and resources

References

  1. 1.0 1.1 1.2 Glencore, Valeria Environmental Authority Application, accessed June 17, 2020
  2. 2.0 2.1 Matthew Burgess, "Giant Glencore Mine Faces Threat as Fund Refuses Backing", Bloomberg, Sep. 18, 2020
  3. James Fernyhough, "UniSuper blocks development of Glencore coal mine", The Australian Financial Review, Sep. 18, 2020
  4. Rio Tinto Coal Australia, 2009 Annual Report: Mineral resources", Rio Tinto, 2010.
  5. Glencore, Valeria Project – Initial Advice Statement, accessed September 18, 2020

Related GEM.wiki articles

External resources

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