Department of Natural Resources and Mines

Queenslands mining and petroleum industry overview

July 2016

The Queensland Government actively encourages and welcomes

foreign investment in its resources sector. Queensland offers
world standard production of mineral and energy resources,
and large areas of underexplored land to encourage investment
opportunities in existing and new commodities.
Queensland has modern rail, port and pipeline infrastructure
to support mining and petroleum industries and exports into
international markets, with programs in place to expand
infrastructure capacity to meet increasing demand.
We have a highly skilled and productive workforce, with programs
to provide skilled workers to meet the States growing resources
industry.
A subtropical climate, pro-business government, strong and
resilient economy, highly skilled workforce and location in the AsiaPacific region makes Queensland one of the leading destinations in
the world to invest in mining and petroleum projects.

Industry overview
Queensland is rich in natural resources of coal deposits, metallic
and non-metallic minerals and petroleum, notably coal seam gas.
Queensland is in the worlds top five regions for the production of
lead, zinc, bauxite and silver and is one of the largest seaborne
exporters of coal in the world (Figure 1).
Queenslands mining and energy resources contribution to the States
economy generates $20.56 billion or 7.3% of gross state product. It
represents 59% of all State exports, worth over $27.6 billion, with
direct and indirect employment of over 180 000 people. The sector
attracted 53% of all capital investment in Queensland and exploration
expenditure of over $1 billion (201415 figures).
Queensland remains one of the leading destinations to undertake
resource activities. The Government has undertaken to open up
land for exploration, and make geoscientific discoveries and
new data more accessible. It is also opening the door for new
investment opportunities in established and also emerging
resources such as lithium, graphite, cobalt, vanadium, scandium,
rhenium and unconventional petroleum.

Coal industry overview

Queensland has a rich endowment of high-quality coal resources,
with more than 34 billion tonnes (Bt) (raw in-situ) having been
identified. Coking coal accounts for approximately 8.7 Bt, of which
about 4 Bt are considered suitable for open-cut mining. The Bowen
Basin, which contains almost all of the States hard coking coal
reserves, is the most important source of export coal in Queensland
(Figure 2). Queensland currently accounts for almost one eighth of
global metallurgical coal production and about 50% of international
trade in this commodity. Exports of high-volatile thermal coals are

increasing from the Clarence-Moreton and Surat basins which,

along with the Callide and Tarong basins, are also important
sources of thermal coal for domestic power generation (Figure 2).
At approximately 60 million tonnes (Mt), Queensland also accounts
for almost 15% of internationally traded thermal coal.
In 201415,1 Queensland mines extracted about 310 Mt of raw
coal and produced a total of 243.6 Mt of saleable coal. During
this period 217.8 Mt of coal worth $23.5 billion free-on-board, was
exported to over 30 destinations overseas (Figure 3). Markets in
Asia account for over 80% of these sales.
These coal exports comprised 160.2 Mt of metallurgical coal (coking
coal used in iron and steel making and coal used for pulverised coal
injection into blast furnaces) and 57.6 Mt of thermal coal used for
electricity generation and in industrial processes. Figure 4 highlights
the steady increase in exported coking coal since 1997. In 201415,
an additional 22.5 Mt (includes coal from the domestic stockpile)
were supplied to domestic markets in Australia (22.3 Mt to markets
within Queensland).
Coal production in 201415 was contributed to by 41 open-cut
and 13 underground mines, with mine closures in the past few
years offset to a degree by a number of new mining operations
commencing operations in the Bowen Basin. BHP Billiton
Mitsubishi Alliance (BMA) brought the Daunia open-cut mine
into operation in March 2013 and coal production from its Caval
Ridge open-cut mine commenced in March 2014. Both of these
projects formed part of the companys Bowen Basin Coal Growth
Project, which includes the expansion of the mining operations
at Goonyella-Riverside. Both operations have now reached full
production of mainly coking coal for export.
For more information on the Queensland coal industry go to DNRM
or Business industry websites.
A large portion of the Queensland resources industry is now foreign
owned, particularly in coal where by multinational corporations
based in Japan, the United Kingdom, Switzerland, USA, Brazil and
South Korea; and recently China and India are either establishing
new developments, or acquiring substantial equity in projects
throughout Queensland.
1 Coal figures released 17 May 2016.

continued page 5

For further information contact:

Geological Survey of Queensland
Department of Natural Resources and Mines
PO Box 15216, City East, Queensland 4002
Email: geological_info@dnrm.qld.gov.au

www.dnrm.qld.gov.au

CC16-GSQ001

Introduction

Figure 1: Queenslands mineral, coal and petroleum operations and resources

Horn Island Gold

Major mining operations and mineral resources

MINE
(including under construction)

Metals

Ceased production/
care and maintenance

Resource

Bauxite Cobalt Copper Gold Indium Iron Lead Molybdenum

Nickel Scandium Silver Tin Tungsten Uranium Vanadium Zinc

Skardon River Kaolin

Bauxite SKARDON RIVER

Ceased production/
care and maintenance

MINE
(including under construction)

Industrial
minerals
and rocks

Pisolite Hills Bauxite

WEIPA Bauxite
Urquhart Point Mineral sands

Gemstones

South of the Embley Bauxite

Resource

Apatite Bentonite Brick clay Diatomite Dolomite Fluorite Feldspar Gallium

Granite Gypsum Ilmenite Kaolin Limestone Magnesite Magnetite Marble
Potash Perlite Porphyry stone Phosphate Rare earths Rhenium Salt
Sandstone Silica Silica sand Siltstone Slate Sodium bicarbonate Zeolite

Ceased production/
care and maintenance

MINE
Chrysoprase

Aurukun Bauxite
Mineral
sands

Opal

Sapphire

Resource

MINE

Mineral sands

Kendall River Kaolin

Major coal and petroleum operations and resources

CAPE FLATTERY Silica sand

Ceased production/
care and maintenance

MINE
(including under construction)

Coal

Resource

Coal-bearing region
Tin Collingwood
Gold PALMER RIVER
Tungsten Watershed

G
RIVER OF GOLD
Slate
MOUNT CARBINE Tungsten

Silica MOUNT CARBINE

Gold Tregoora

MOUNTT MOLLOY Limestone

Perlite NYCHUM

Karumba
Westmoreland Uranium

Walford Creek Copper Lead Zinc Silver

lin
pe

Pi

Gold Georgetown

LADY LORETTA
Lead Zinc Silver

Copper Gold Silver

LAVA PLAINS Sapphire
Kokomo Nickel Cobalt Scandium
Conjuboy Diatomite
Greenvale Nickel Cobalt Scandium
CHRISTMAS CREEK Limestone
Magnetite MOUNT MOSS

Copper Maitland

Nickel Cobalt Lucky Break

Mount Oxide Copper

Phosphate

Bowen Basin fields

Surat Basin fields

Oil shale

Resource

Pipeline

Oil

LNG

Facility under development

Paradise South Phosphate

Dolomite PAULEESON
Dolomite HILLGROVE

Woolgar Gold

MOUNT GORDON Copper

LADY ANNIE Copper
Leichhardt Copper

Gas

Gas proposed

LNG under development

Coal

Mineral

Cairns Population centre

Mesozoic and Cenozoic basins

Late Paleozoic to Early Mesozoic basins

Railway

Mid Paleozoic Drummond Basin

Townsville

Proposed railway

Paleozoic fold belt

Early Paleozoic Georgina Basin

Ben Lomond

um
Uranium Molybdenum

Gold Brilliant Lode

Gold Great Britain

Gold Granite Castle

Oil and Gas fields

Oil non-operational

Export Port

Gold ROPEWALK
Copper Gold BALCOOMA
Zinc Lead Silver Dry River South
Gold Agate Creek

D-Tree

Gas fields

Coal seam gas

Einasleigh/Kaiser Bill
Zinc Lead Silver Chloe/Jackson

CENTURY Zinc Lead Silver

Phosphate

Oil fields

Lighthouse Silica

Gold Silver Zinc Lead Croydon

rr
Slu

Constance Range Iron

Paradise North

Cairns

Copper TARTANA
Gold Northcote
Zinc King Vol
WOLFRAM CAMP Tungsten Molybdenum
Copper Lead Zinc MUNGANA
Copper Gold Mungana/Red Dome
PHO
PHOENIX
LIME Limestone
Marble Limestone CHILLAGOE
Porphyr stone
Porphyry Porphyry
Tin Kartoum
BAAL GAMMON Copper Tin Silver Indium
Tin MOUNT VETERAN
TE
Mourilyan Silica sand
Zinc Copper Silver MOUNT GARNET
CORALIME Limestone
Tin Mount Garnet
Limestone BUCKLAND
Bell Creek Nickel Cobalt

Conventional
petroleum

Far Fanning

Neoproterozoic fold belt (Anakie Inlier)

INKERMAN LIME Limestone

Bowen

Gold

Middle Proterozoic fold belts

RAVENSWOOD/MOUNT WRIGHT Gold

Mount Carlton Gold Silver Copper

Gold Silver WARRIOR

Roseby Copper Gold
Lead Zinc Silver Dugald River
ERNEST HENRY Copper Gold Magnetite
Zinc Lead Copper Gold Silver VOMACKA
E1 Camp Copper Gold Magnetite
Zinc Lead Copper Gold Silver Liontown
Barbara Copper
McFarlane Oil shale
Julia Creek Vanadium Oil shale
PAJINGO Gold
Zinc Copper Lead Silver Gold Waterloo
COLLINSVILLE
MOUNT ISA/ENTERPRISE/
Monakoff
Silica Spring Creek
Lilyvale Vanadium Molybdenum
SONOMA
BLACK STAR Copper Lead Zinc Copper Gold Magnetite
Lead Silver GEORGE FISHER
(incorporates Drake & Jax)
Lorena Gold
Gypsum HUGHENDEN
Zinc
Mount Isa Silver Gallium
Rocklands Copper
Rare earths Mary Kathleen
GREAT AUSTRALIA Copper
Hughenden
Byerwen
Rare earths Copper Gold Elaine
ELOISE Copper
Mackay
China Stone
Gold SELLHEIM
NEWLANDS
Kalman
MOUNT NORMA Copper
Gold Wirralie
WOLLOMBI/SUTTOR CREEK
Copper Molybdenum Rhenium Gold
Greenmount/Mount McCabe Copper
HAIL CREEK
Gold Mount Coolon
Rare earths Copper Milo
Kuridala/Hampden Copper Gold
Limestone
PART
PARTRIDGE
NORTH GOONY
GOONYELLA/EAGLEFIELD
FIE
BURTON
Mount Dore Copper
Carmichael
GOONYELLA
RIVERSIDE
E
VER
Copper Gold Mount Elliott/Swan
ALKER CREEK
SOUTH WALKER
MERLIN Molybdenum Rhenium
BROADMEADOW UNDERGROUND
NDER
ISAAC
Phosphate Ardmore
KYNUNA Opal
MORANBAH
COPPABE
COPPABELLA
PLAINS
Gold Twin Hills
A NORTH
RTH
NS
Pegmont Lead Zinc
CARBOROUGH DOWNS
MGROSVENOR
Phosphate PHOSPHATE HILL
MOORVALE
CANNINGTON Silver Lead Zinc
Moranbah
Phosphate Rare earths Korella
MILLENNIUM
DAUNIA
Gold Belyando
Starra Line Copper Gold
POITREL
EAGLE DOWNS
OW
OSBORNE Copper Gold
CAVAL RIDGE
PEAK DOWNS
Molybdenum Anthony
LAKE VERMONT
Winton
SARAJI
Gold Miclere
Dysart
Mount
Mackenzie Gold
M
Kevins Corner
BLAIR ATHOL
N
NORWICH PARK
CLERMONT
GUMIGIL Chrysoprase
Gypsum CORK
MIDDLEMOUNT
KUNWARARA Magnesite
CAPCOAL
Alpha
Gypsum MAYNE RIVER
FOXLEIGH
BROLGA Nickel Cobalt
OAKY CREEK
OA
LAKE
K LINDSAY
Gypsum EDEN VALLEY
Yaamba Magnesite Oil shale
CRINUM
GREGORY
R
Marlborough
TANBY 1 Silica sand
Washpool
YARRABEE
RRAB
OPALTON Opal
W
KESTREL
T
Nickel Cobalt
China First
Rockhampton
JELLINBAH
EAST
EAST
Sapphire RUBYVALE
ENSHAM
H
SCOTSMANS FOLLY Sandstone
CURRAGH
Longreach
WS
Zeolite Sapphire WILLOWS
PORT ALMA Salt
Minyango
Copper
Mount
Morgan
Gold
C
Barcaldine
Rundle Oil shale
Emerald
Magnetite Eulogie
COOK
South Galilee
Stuart Oil shale
Marble Limestone BAJOOL/ULAM
MINERVA
Gladstone
Limestone MARMOR
BLACKWATER
IVERAGH Silica sand
Limestone EAST END
Uranium Valhalla

200 kilometres

unt
Mo

Isa

s
Ga

Blackall
Bentonite MANTUAN DOWNS
Boree Salt Potash

n
eli
Pip
e

JUNDAH Opal

Denison
Gas
Fields

GGold MOUNT
N RAWDON
Binjour Bauxite
Siltstone EI
EIDSVOLD
Wa Wateranga

15B/MCPOR_Ed16

Charleville

Roma

Ballera

Roma

Brisbane

Roma
Gas Fields

Surat
Oil and Gas
Fields

Opal KOROIT

Jackson
Moomba

Jackson

Moonie

Bollon

Cunnamulla

YOWAH Opal

Brisbane

Oil

Pipeline

VOLCLAY
Bentonite

G
GURULMUNDI Bentonite

Queensland mining and petroleum industry overview (July 2016)

www.dnrm.qld.gov.au

Maryborough Brick clay

Kaolin NYORA

Miles
MILES
Bentonite

MOFFATDALE Limestone
ime o
COOROY Brick clay

CAMEBY DOWNS

Chinchilla

mit MAIDENWELL
Diatomite
Diato
I
G CREEK
KOGAN
W
WILKIE
CREEK

Dalby

Molybdenum Anduramba
NEW ACLAND
Moonie

Oil Field

WHITEHILL/HIVESVILLE
Dolomite
MEANDU
CEDARS Bentonite

Toowoomba

Brick clay y IPSWICHH

Sandstone
tone HELIDON
ID
MOUNT SYLVIA
S
i
COMMODORE
Diatomite
NEW
E OAKLEIGH
Dolomite FLINDERS/MORETON
FLINDERS
WARBRICK
Brick clay WA
estone
Limestone
Y

Moonie

To Newcastle

SOUTHERN PACIFIC SANDS Silica sand

BRISBANE/NARANGBA
Brick clay

RAVENSBOURNE
Kaolinn

BRISBANE

Ipswich

VANCE Silica sands

YARRAMAN/ENTERPRISE
Mineral sands

H
STO Sandstone
HILL OF STONE

Gold Coast

Perlite
MIN
NUMINBAH
JEEBROPILLY Bentonite

CEMENT MILLS
Limestone

To Sydney

Colton

Maryborough
Gympie

The Range

Silver TWIN HILLS

LLS

To Port Bonython To Adelaide

Bundaberg
SUNSTATE SANDS Silica sand

Hawkwood Magnetite

Wandoan

Surat

TOOMPINE Opal

Ballera

Ilmenite Feldspar Apatite

Elimatta
Wandoan

Sodium bicarbonate Grafton Range

Quilpie

GOONDICUM
Ilmenite
e Feldspar Apatite

Gold CRACOW

Injune

Sodium bicarbonate Warrinilla

Eromanga

Gold
Norton
or

Mount Cannindah
Copper Gold
nnin

Molybdenum W
Whitewash
ewas

Gilmore
Gas Field

Oil and Gas

Fields

CALLIDE

DAWSON
(MOURA)

YARAKA Opal

QUILPIE Opal
KYABRA-EROMANGA Opal

TARAGOOLA
Limestone
RA

Springsure BARALABA
Creek

ROLLESTON

Meteor Downs
South

RIVERTONLimestone
Li
RIVERTON

Figure 2: Queensland coal basins

Selected coal measures

Bowen Basin
Callide Basin

Weipa

Galilee Basin
Ipswich Basin
Clarence-Moreton Basin
Surat Basin
Tarong Basin

Cooktown

Township
Coal export port

Cairns

100

300

Kilometres

Townsville
Abbot Point
Bowen
Collinsville

Mount Isa

Mackay
Hay Point

Galilee Basin

Moranbah
Dysart

Bowen Basin
Alpha

Rockhampton

Emerald
Blackwater

Gladstone

Callide Basin

Moura
Theodore
Taroom
Charleville

Surat Basin

Wandoan

Tarong Basin
BRISBANE
Ipswich

Millmerran

srs.ai

14A\EA\SS-05-14\SelectCoalM

Clarence-Moreton
Basin

Queensland mining and petroleum industry overview (July 2016)

www.dnrm.qld.gov.au

Figure 3: Queensland coal export destinations 201415 (217.8 Mt total)

China 52.9 Mt (24.3%)

Japan 49.8 Mt (22.9%)
India 34.6 Mt (15.9%)
Korea 24.3 Mt (11.2%)
Europe 20.3 Mt (9.3%)
Other East Asia 15.1 Mt (6.9%)
Taiwan 11.0 Mt (5.0%)
Americas 6.8 Mt (3.1%)
West Asia 2.0 Mt (.9%)
Africa 1.0 Mt (.5%)

Figure 4: Queensland coal exports 201415 by type (217.8 Mt total)

220

THERMAL
COKING

200

57.6
52

180
160
140
Million tonnes

51.1

58

40
120
36.6

100

36.9

42.3

43.1

39.7

46.2 46.8

49.7

42.8

44.8

31
80

25.7

31.8

152.4

24.2
60

105.5

40
54.8

60.7

61.7

73.7

86.9 90.2
80.9 86.2

100

110.2 112.3 109.6

125

116.2

118

160.2

128.6

20
0
1997

1999

2001

2003

2005

2007

Year ending 30 June

Queensland mining and petroleum industry overview (July 2016)

www.dnrm.qld.gov.au

2009

2011

2013

2015

New developments
New developments in the Bowen Basin include Grosvenor
underground mine (Anglo American and Exxaro); and scope for
future development such as the Wandoan open-cut mine in the
Surat Basin.
Exploration and development of thermal coal deposits to supply
large tonnages to the export market now includes a focus on shallow
coal occurring along the eastern and northern flank of the Galilee
Basin in central Queensland (Figure 2). A number of large-scale coal
mines, each with saleable production of between 3060 Mtpa, are
currently being planned in this region. These include:
Alpha and Kevins Corner Coal Projects (Hancock Coal, in joint
venture with GVK)
Galilee Basin Coal Project (Waratah Coal Pty Ltd)
Carmichael Coal Mine and Railway Project (Adani Mining Pty Ltd).

Minerals industry overview

In 201415 the industry accounted for 53% of Queenslands private
new capital investment and 59% of State exports. After coal, base
metals are the most important sector of the States mining industry.
In 201415 the value of mineral mining in Queensland was over
$8.6 billion producing a wide range of metallic and non-metallic
mineral products that include bauxite, copper, gold, zinc, lead,
silver, magnetite, titanium, tin, tungsten, nickel, apatite, ceramic
and structural clays, bentonite, kaolin, diatomite, dimension stone,
gemstones, gypsum, limestone, dolomite, magnesite, peat, perlite,
phosphate rock, salt, silica, and zircon.
Queensland is Australias top producer of silver, lead, zinc, and
copper. In 201415, the State produced:
71% of Australias silver

63% of Australias zinc

66% of Australias lead

30% of Australias copper

Queensland is Australias second largest bauxite producer (34%)

and third largest gold producer (6.0%). Queensland was also the
worlds second largest lead producer, third largest zinc producer,
and fifth for both silver and bauxite production (Figure 5).
The mineral provinces in north and north west Queensland contain
most of Queenslands metalliferous mines. The north west region
alone produces over 70% of the value of metalliferous minerals

recovered in Queensland. These regions are world-class in terms of

their base metals and industrial minerals production, possible new
mineral projects across a range of commodities and potential for
more discoveries.
In recent years, exploration near existing mines has largely
sustained Queenslands mineral industry by discovering new
deposits, extensions to known deposits or re-opening mines. These
include Lady Annie, the Merlin molybdenum project and Osborne
copper mines, and the Wolfram Camp and Mount Carbine tungsten
mines. Other significant new operations include the Lady Loretta
zinc mine and Evolution Mining Limiteds Mount Carlton goldsilver-copper deposit. Minerals and Metals Group Limited (MMG)
recently received prescribed project status from the Queensland
Governments Coordinator-General with regard to its Dugald River
zinc-lead-silver deposit development north of Cloncurry.
North west Queensland also hosts the Phosphate Hill mine, a
large open-cut phosphate mine that is the States most significant
industrial mineral operation in terms of production value.
The Weipa bauxite mine (Rio Tinto Alcan) on Cape York in north
Queensland is one of the four largest bauxite mines in the world.
Late in 2015 the company decided to construct the nearby Amrun
bauxite mine (previously known as South of Embley) centred 40
kilometres (km) south of Weipa and 40 km north of Aurukun at
an estimated capital cost of US$1.9 billion, thus securing bauxite
supply for the foreseeable future.
The establishment of mineral processing plants, including worldclass copper and aluminium smelters and copper, alumina, zinc
and nickel refineries, and extensive transport infrastructure allow
value-adding to local production of ores and concentrates for the
export market.
The Diamantina Power Station in Mount Isa was opened in
December 2014 and provides a reliable electricity supply solution
to the north west and is able to be expanded to meet growing
energy requirements in the region. The 622 km North-East Gas
Interconnector gas pipeline between Tennant Creek and Mount Isa
should be completed by 2018. Another positive for the north west
region was the extension of the environmental authority for the
Mount Isa copper smelter to operate beyond 2016 to 2022.
For more information on the Queensland minerals industry go to
DNRM or Business industry websites.

Figure 5: Queenslands ranking within Australian and global mineral production in 201415
Silver

Zinc

Lead

5th in the world

3rd in the world

2nd in the world

Bauxite

Copper

1240 tonnes
71% Australian
5.6% Global

461 000 tonnes

66% Australian
8.9% Global

1 071 000 tonnes

63% Australian
7.4% Global

27 434 000 tonnes

34% Australian
11.2% Global

287 000 tonnes

30% Australian
1.5% Global

3rd in the world

13th in the world

Queensland
Rest of Australia
Source: OCE and USGS

Queensland mining and petroleum industry overview (July 2016)

www.dnrm.qld.gov.au

New developments
New discoveries of base metal resources are required if
Queensland is to maintain its dominance in these industries in
the long term. In addition, Queenslands importance as a gold
and mineral sands producer will continue to decline, unless good
quality discoveries are made.
In the medium term in north and north west Queensland, the State
can broaden its resource production from already known deposits
with molybdenum and rhenium, and potentially scandium and
various rare earth elements, in part subject to market conditions.
In southern Queensland the South Burnett region has similarly
has potential for long term production of bauxite ilmenite feldspar
apatite zircon and magnetite from known near surface deposits.
In north west Queensland, CuDECO Ltd is in the final stages of
developing the Rocklands copper-cobalt project, and as mentioned
above MMG Ltd is developing Dugald River, one of the largest and
highest-grade deposits of zinc, lead and silver in the world with
an estimated 28 year mine life from an underground mine with a
production rate of 1.5 Mtpa. Altona Mining Ltds large low grade
copper project at Roseby is adjacent to Dugald River and also close
to development. Currently due diligence is being carried out by
the potential joint venture partner the Sichuan Railway Investment
Group (SRIG). After successful trail mining in mid-2015, the
Australian New Agribusiness and Chemical Group Ltd has executed
a sales contract for mining the Korella phosphate deposit near the
Phosphate Hill mine.
Noteable discoveries in the region with potential for new mines are
Red Metal Ltds Maronan silver-lead project south of Cloncurry and
Minotaur Exploration Ltds Artemis polymetallic deposit south east
of Cloncurry while it is reassuring to note new zinc-rich extensions
to the Pegmont deposit by Vendetta Mining Corporation. Hammer
Metals Ltds ongoing exploration at and near the Kalman and
Overlander deposits south east of Mount Isa and Aeon Metal Ltds
exploration at Walford Creek near the closed Century mine should
also be noted.
On Cape York Gulf Alumina Ltd submitted an environmental impact
statement on the Skardon River bauxite project in October 2015
and plans to commence production as soon as possible. The
project life is expected to be 10 years with a construction period of
approximately 1 year. Metallica Minerals Ltd has a mineral sands
deposit and a bauxite deposit at Urquhart Point with potential for
production in 2017.

In north Queensland a definitive feasibility study by Resolute

Mining Ltd is due for the Ravenswood extension project which
potentially will result in ongoing mining operations at Ravenswood
beyond the scheduled closure of the Mount Wright mine about
March 2017. Red River Resources Ltd acquired the Thalanga project
at the end of October 2014, has had encouraging exploration
results and has estimated that it could restart production within
six months of a decision to mine. Consolidated Tin Mines has
just completed a positive definitive feasibility study on the Gillian
deposit and is expanding the study to include the Pinnacles
deposit with completion expected in the first half of 2016. Strategic
Minerals Corporation continues to extend the Big Vein deposit at
Woolgar north of Richmond.
In southern Queensland gold, copper sulphate and a pyrite
concentrate should be produced from the tailings at Mount Morgan
by Carbine Resources Limited pending completion of a feasibility
study. Mantle Mining Corporation intends to re-commence gold
mining at Norton near Calliope during the first half of 2016. In
September 2015 Australian Bauxite Ltd announced the discovery
of good quality bauxite, exposed at the surface, at Brovinia near
Gayndah.
Throughout north west and north Queensland numerous deposits
containing rare earth elements and thorium are actively being
explored, usually in association with copper and gold. Exploration
is also occurring at the Julia Creek oil shalevanadium
molybdenum deposit. Queensland currently has around 90% of
Australias known oil shale resources, which are equivalent to
approximately 22 billion barrels of oil.

Petroleum industry overview

The petroleum industry in Queensland exceeds $1 billion in
production value. Petroleum (including coal seam gas (CSG))
exploration expenditure in Queensland continued at a high level
for 201415, reaching $751.6 million compared with $612.6 million
in 201314.The level of exploration expenditure is a reflection of
the continued commitment by companies to prove-up and develop
their CSG reserves to service the export LNG industry. This growth
in CSG has been rapid over the past 15 yearsthe annual number
of wells drilled increased from 10 in the early 1990s to over 1634 in
201314 and 914 in 201415 (Figure 6).
Coal seam gas production in the Bowen (Permian coal measures )
and Surat (Jurassic Walloon Coal Measures) basins represents 92%
of the total gas produced in the state (Figure 7).

Figure 6: Annual Queensland conventional petroleum and CSG wells drilled, to 30 June 2015
1600
1400

Petroleum wells
Coal seam gas wells

1200

Wells drilled

1000
800
600

15B\EG\Graphs\PetCSG_wells

400

Year

Queensland mining and petroleum industry overview (July 2016)

www.dnrm.qld.gov.au

14 15

09 10

04 05

99 00

94 95

89 90

84 85

79 80

74 75

69 70

64 65

59 60

54 55

200

Figure 7: Queensland conventional gas and CSG annual production by basin to 30 June 2015
50 0
12 000

Total Gas (201415) 13 272.56 Mm3

400

Bowen Basin (coal seam gas) 2770.98 Mm3

8000

6000
20 0
4000

CooperEromanga basins (conventional gas) 1010.86 Mm3

BowenSurat basins (conventional gas) 5.93 Mm3
Denison Trough (conventional gas) 65.60 Mm3

15B\EG\Graphs\Conv&CSG_prod

30 0

Surat Basin (coal seam gas) 9419.19 Mm3

Million cubic metres (Mm3)

Petajoules (PJ)

10 000

10 0

As at 30 June 2015, proved and probable (2P) reserves reached

42 733 petajoules (PJ) (Figure 8). Production from these sources
is expected to supply an increasing proportion of the Queensland
and other eastern Australian markets. Conventional gas production
in 201415 was 40 PJ compared with 457 PJ from coal seam gas
production (Figure 9).
For more information on Queensland coal seam gas and petroleum
industries go to DNRM or Business industry websites.
Like the coal industry, Queenslands petroleum industry has a large
portion of foreign ownership. This is based on the establishment of
an LNG industry with investment from companies in China, Japan,
Korea, Malaysia, Netherlands, the United Kingdom and United
States of America.

1314

1112

0910

0708

0506

0304

0102

9900

9798

9596

9394

9192

8990

8788

8586

8384

Ye a r

80

78

76

74

72

70

68

66

64

2000

New discoveries
Many of Queenslands basins with petroleum or coal have potential
shale gas, tight gas or CSG resources, including the Isa Superbasin
and the South Nicholson, Georgina, Adavale, Cooper, Bowen and
Eromanga basins Exploration in the Cooper Basin has targeted the
Permian Gidgealpa Group for basin centred gas in the Nappamerri
and Windorah troughs with promising results. Several wells have
also been drilled to target deep, tight gas resources in the Taroom
Trough of the Bowen Basin and to evaluate the unconventional
petroleum prospectivity of the Georgina Basin. This exploration
activity represents the further expansion of Queenslands
petroleum industry.
For more information on new developments in Queensland go to
DNRM or Business industry websites.

New developments
In the last decade the abundant coal seam gas reserves have
provided the foundation for the development of an LNG sector
based in Gladstone, in central Queensland. These include:
QCLNG British Gas (BG) Group and China National Offshore
Oil Corporation (CNOOC)
GLNG Santos, Petronas, Total and Korea Gas Corporation
(KOGAS)
APLNG Origin, ConocoPhillips and Sinopec.
All three operations are now exporting LNG as of January 2016.
Future LNG developments considered include Arrow LNG and
Fishermans Landing projects.

Queensland mining and petroleum industry overview (July 2016)

www.dnrm.qld.gov.au

Figure 8: Queensland coal seam gas 2P reserves

40 000
1 000 000

Total (PJ)

600 000
20 000
400 000

Bowen Basin

3278 3374

9522

9391

23 103
17 034

15 714
10 190
10 783
6556

3386
722

3667
847

2664

2820

31-12-05

Date 31-12-04

37 233
28 613

42 733
33 342

18 289
12 617

10 000
3652 4116
374 741

28 034
21 530

37 083
28 513

42 860
33 338

7154
3291

5989
2349

4559
1269

4227

3863

3640

5524

6069

5673

8451

6504

8329

8648

8591

8570

9225

9083

8620

15B\EG\Graphs\CSG_res

Petajoules (PJ)

800 000

Million cubic metres (Mm3)

Surat Basin

30 000

33 054
24 725

31 845
23 394

36 055
35 236 27 464
26 587

42 020
32 795

41 170
32 087

3290

31-12-06

31-12-07

31-12-08

31-12-09

31-12-10

31-12-11

31-12-12

31-12-13

31-12-14

Figure 9: Queensland coal seam gas production period 19972015

500

457
353

12 000
Total (PJ)

400

8000

6000
200
4000

Bowen Basin

212
93

100
2000

Year

10

16

97-98

98-99

99-00

00-01

01-02

27

30

02-03

03-04

36
0.3
36
04-05

Photo: Queensland Government Image Library

Queensland mining and petroleum industry overview (July 2016)

www.dnrm.qld.gov.au

63
2
61

86
17
69

05-06

06-07

125
38
87

07-08

234
113

254
139

264
150

285
166

15B\EG\Graphs\CSG_prod

300

Surat Basin

Million cubic metres (Mm3)

Petajoules (PJ)

10 000

151
46
105

08-09

119

121

115

114

119

09-10

10-11

11-12

12-13

13-14

104

14-15