New South Wales – Coal investment profile

The New South Wales (NSW) coal industry has enjoyed a period of extraordinary growth over the last decade with a significant expansion of mines as well as rail and port infrastructure.

NSW has more than 15 billion tonnes of recoverable coal reserves contained within 40 operating mines and colliery holdings, and over 20 major development proposals.

Development of our coal resources continues to deliver significant economic benefits to regional communities and provides a low cost and reliable source of electricity. In NSW, around 80% of the electricity consumed comes from the use of coal as a fuel.

NSW coal sectorThe NSW coal industry directly employs more than 20,000 people and supports a further 90,000 related jobs.

NSW produced 246.8 Mt of raw coal yielding 191 Mt of saleable coal worth nearly $14.6 billion coal in FY15–16.Open cut mines produced 181 Mt and underground mines produced 65.5 Mt.

The coal industry exported 170 Mt of coal in FY15–16 valued at approximately $13 billion and domestic industry consumed 24.7 Mt valued at $1 billion, of which about 20 Mt was used to provide around 80% of electricity generation in NSW.

Coal productCaloric value/CSN

Ash content

Sulphur content

Benchmark Newcastle thermal >6000 NAR <15% <0.6%

Low-ash semi-soft coking coal 5.0 CSN 8.0% <0.6%

Prime hard coking coal 6.5 CSN 9.0% <0.4%

Why invest in NSW?• Stable and diverse economy – 23 years of

consecutive growth aided by resources.

• Sound regulatory environment (approvals and community support) – Outcomes based exploration regulation with an emphasis on risk mitigation for investors through the development process.

• Well-developed mining technology R&D sector – Support of cost efficient production methods in the state and exported across into Asia.

• Access to Asia-Pacific markets – 90% of production is exported into Asia including major buyers Japan, China, Korea, Taiwan, and now India.

• Geology – JORC resource, coal quality and yield – Size and quality of the JORC resource is our primary competitive advantage with low ash, low sulphur, and high caloric thermal coal being attractive to Asian customers looking to reduce coal carbon emissions.

• Access to world class infrastructure – Hunter Valley Coal Chain is the largest coal export operation in the world with sophisticated rail and port infrastructure servicing approximately 1400 export vessels per year.

NSW saleable coal production 2015-16 = 191 million tonnes ($14.6 billion)

191 m

Current project opportunitiesThe following list represents key coal projects within the state that are currently in exploration, planning or development. For more information on investment opportunities please contact us (see details below).

Operator Mine name Coalfield2014–15 ROM Production (Mt) Reserves (Mt) Coal type

BHP Billiton Mt Arthur OC Hunter 19.7 1049 Th

Bloomfield Rix's Creek OC Hunter 1.5 45 Th / SSCC

Centennial Coal Mandalong UG Newcastle 6.3 98 Th

Centennial Coal Springvale UG Western 3.1 48 Th

Glencore Bulga OC / UG Hunter 9.9 360 Th / SSCC

Glencore Mt Owen OC Hunter 8.2 85 Th / SSCC

Glencore Ravensworth North Hunter 6.4 258 Th

Glencore Ulan OC / UG Western 11.6 182 Th

Idemitsu Boggabri OC Gunnedah 6.7 147 Th / SSCC

Peabody Metropolitan UG Southern 2.2 43 HCC

Peabody Wilpinjong OC Western 11.1 198 Th

Rio Tinto Hunter Valley Ops Hunter 13.5 381 Th / SSCC

Rio Tinto Mt Thorley Wark Hunter 11.3 390 Th / SSCC

South 32 Appin UG Southern 3.1 157 HCC

Whitehaven Maules Creek OC Gunnedah 2.6 382 Th / SSCC

Whitehaven Narrabri UG Gunnedah 7.6 234 Th / SSCC

Yancoal Austar UG Newcastle 1.7 48 SSCC

Yancoal Moolarben OC Western 6.4 318 Th

Project Mine name Coalfield StageTotal JORC resource (Mt) Coal type

POSCO Hume UG Southern Exploration 115 Th / SHCC

Idemitsu West Muswellbrrok Hunter Exploration 621 Th / SSCC

Malabar Coal Spur Hill UG Hunter Exploration 626 Th / SSCC

Whitehaven Oaklands North Oaklands Exploration 950 Th

KEPCO Bylong OC / UG Western In Planning 423 Th / SSCC

Shenhua Watermark OC Gunnedah In Planning 932 Th / SSCC

Our servicesThe NSW Department of Industry’s Division of Resources and Energy provides assistance to mining and METS businesses contemplating significant new investment in NSW. We leverage our world class geoscience capabilities, provide investment facilitation services and case management for larger and/or more complex projects, and advise on NSW regulation.

For more information contactNSW Department of Industrywww.industry.nsw.gov.au

NSW Division of Resources & Energywww.resourcesandenergy.nsw.gov.au

Industry Investment & Export SupportExecutive Director: Charlie DowsettPhone: +61 (0)2 9338 6887Email: charlie.dowsett@industry.nsw.gov.auPostal: Industry Investment & Export SupportNSW Department of IndustryGPO Box 5477Sydney NSW 2001

PUB16/482 © State of New South Wales through the Department of Industry, Skills and Regional Development 2016. You may copy, distribute and otherwise freely deal with this publication for any purpose, provided that you attribute the NSW Department of Industry, Skills and Regional Development as the owner.

Disclaimer: The information contained in this publication is based on knowledge and understanding at the time of writing (October 2016). However, because of advances in knowledge, users are reminded of the need to ensure that information upon which they rely is up to date and to check currency of the information with the appropriate officer of the NSW Department of Industry, Skills and Regional Development or the user’s independent advisor.