New Acland Mine preparing for closure

 
  Sulla1 Chief Commissioner

New Hope has announced it will retrench half of its 300 strong workforce on Monday if it does not get State Government approval for its Stage Three extension. The approval process has been underway for twelve years and the expansion is necessary to keep the mine in operation as the existing pit runs out of recoverable coal. New Hope says it will now have to wind down the 4.5-million tonnes of production at the mine over the next twelve months. The mine also employs 500 contractors and has created over 2,300 indirect jobs in the Oakey and Toowoomba regions.

New Acland is currently the largest traffic source on QR's Western Line, loading around eight trains per day. Its closure will have a very siginificant impact on Aurizon's operations west of Brisbane, with this one mine accounting for around two thirds of traffic on the Toowoomba Range. Aurizon's crew depots at Willowburn (Toowoomba) and Fisherman Island (Brisbane) will see flow on effects, and its likely a large proportion of the 2300D class will be withdrawn from traffic.


https://www.abc.net.au/news/2019-08-30/acland-mine-expansion-job-losses-new-hope-stage-3/11464102

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  james.au Chief Commissioner

Location: Sydney, NSW
What's the approval issue relate to?
  Sulla1 Chief Commissioner

What's the approval issue relate to?
james.au

Water Licenses mostly. This expansion has seen a lot of negative debate from Alan Jones (who grew up in Acland), farming and green groups, which has turned the mine into Southern Queensland's version of Adani.
  RTT_Rules Dr Beeching

Location: Dubai UAE
What's the approval issue relate to?

Water Licenses mostly. This expansion has seen a lot of negative debate from Alan Jones (who grew up in Acland), farming and green groups, which has turned the mine into Southern Queensland's version of Adani.
Sulla1
Correction. "Huge amount of negative comments by AJ".

The current Qld govt has lived in a state of ideological denial over coal mining since it first came to power and it took the Fed election to make them pull their head out of their a_s_ and make a decision. Still burning over the power of the coal miners from the fed election and with redundancies and massive loss of income on the table, expect the govt to move quickly.
  bevans Site Admin

Location: Melbourne, Australia
On the subject is traffic, well aurizon has let go a lot of non coal traffic and placed a lot of their revenue into a single commodity.
  Fatty Assistant Commissioner

Location: Melbourne
On the subject is traffic, well aurizon has let go a lot of non coal traffic and placed a lot of their revenue into a single commodity.
bevans
Yes, that's because Aurizon is managed by morons.
  neillfarmer Chief Train Controller

I think Aurizon have plenty of issues, but getting out of something you are not good at and concentrating on something you are good at makes sense to me. Just because it didn't suit enthusiasts is no reason to call them derogatory names. They're not in business running trains so we can take pictures of them.
  Sulla1 Chief Commissioner

Yancoal's Cameby Downs mine near Miles is the only other active export mine on the Western Line, and is currently ramping up production from 2.8-million to 3.5-million tonnes per annum by the end of this year, which may slightly lessen the impact of a New Acland closure. However the dangers of turning a rail corridor into a one trick pony have been laid bare by this debacle - track access revenue produced by the New Acland traffic is worth around $30-million to QR and the State Government per annum.
  Sunbird Station Master

What's the approval issue relate to?

Water Licenses mostly. This expansion has seen a lot of negative debate from Alan Jones (who grew up in Acland), farming and green groups, which has turned the mine into Southern Queensland's version of Adani.
Correction. "Huge amount of negative comments by AJ".

The current Qld govt has lived in a state of ideological denial over coal mining since it first came to power and it took the Fed election to make them pull their head out of their a_s_ and make a decision. Still burning over the power of the coal miners from the fed election and with redundancies and massive loss of income on the table, expect the govt to move quickly.
RTT_Rules
While I agree with your opinion of the current Labor governments attitude to the coal industry they can't take all the blame for the situation with the New Acland mine. Notice how the LNP opposition hasn't made any comment about this? That's because when they were last in power they also refused to green light the stage three expansion (the farmers on the DarlingDowns obviously have a lot more influence in the LNP than Central Queensland graziers).
  Fatty Assistant Commissioner

Location: Melbourne
I think Aurizon have plenty of issues, but getting out of something you are not good at and concentrating on something you are good at makes sense to me. Just because it didn't suit enthusiasts is no reason to call them derogatory names. They're not in business running trains so we can take pictures of them.
neillfarmer
I worked for them for a number of years. I know that they are run by morons.
  Sulla1 Chief Commissioner

The ABC is reporting having had no contact from the State Government over the weekend, New Hope will today proceed with the redundancies of 150 miners at New Acland, which will effectively halve production as the exisiting mine begins to wind down.
  bevans Site Admin

Location: Melbourne, Australia
I think Aurizon have plenty of issues, but getting out of something you are not good at and concentrating on something you are good at makes sense to me. Just because it didn't suit enthusiasts is no reason to call them derogatory names. They're not in business running trains so we can take pictures of them.
neillfarmer

One of the key things to avoid in business is to limit the spread of your receivables by concentrating your revenue into smaller and smaller markets.  This leaves your business vulnerable to downturn in that one remaining market.  This in my view is exactly what the managers at Aurizon have done.  

It may not happen today, but there is a reduction in revenue and profit on this company's horizon unless they go back to opening up new markets if that is possible as it could also be argued their loyal customers were also cut off by them.
  phil_48 Assistant Commissioner

Location: Wynnum North
This will take the wind out of the sails of the " Clean Air For Wynnum " group who have been lobbying for years for covering of trains and better still,  no trains at all.
  james.au Chief Commissioner

Location: Sydney, NSW
What's the approval issue relate to?

Water Licenses mostly. This expansion has seen a lot of negative debate from Alan Jones (who grew up in Acland), farming and green groups, which has turned the mine into Southern Queensland's version of Adani.
Correction. "Huge amount of negative comments by AJ".

The current Qld govt has lived in a state of ideological denial over coal mining since it first came to power and it took the Fed election to make them pull their head out of their a_s_ and make a decision. Still burning over the power of the coal miners from the fed election and with redundancies and massive loss of income on the table, expect the govt to move quickly.
RTT_Rules
So, in the north of the state, local politics deems that coal goes ahead but in the south, it says no thanks, get out of here??

Talk about a complicated landscape to develop coal policy in....
  RTT_Rules Dr Beeching

Location: Dubai UAE
I think Aurizon have plenty of issues, but getting out of something you are not good at and concentrating on something you are good at makes sense to me. Just because it didn't suit enthusiasts is no reason to call them derogatory names. They're not in business running trains so we can take pictures of them.

One of the key things to avoid in business is to limit the spread of your receivables by concentrating your revenue into smaller and smaller markets.  This leaves your business vulnerable to downturn in that one remaining market.  This in my view is exactly what the managers at Aurizon have done.  

It may not happen today, but there is a reduction in revenue and profit on this company's horizon unless they go back to opening up new markets if that is possible as it could also be argued their loyal customers were also cut off by them.
bevans
As former QRN, something like 80-90% of QRN's tonnages was coal or bulk minerals. Even as old QR, coal was 90% of the business.

Stuffing around with grain and other commodities they were clearly not good at doing or wanted was a waste of time and those lost tonnages was alot of hard work for little return as road competition is very strong, especially in the SW. The rollingstock for Western coal is not compatible with CQ coal (or it used not to be) and the days of hand me down equipment has run its course with CQ gear simply too big and heavy for a number of reasons.

Aurizon have plenty of diversity in their mineral division and the coal industry has more than half a century in it.

Western Coal is so important to Aurizon that good luck finding it on their wiki site. I think part of their issues is their history of being a public service and they are simply too top heavy and slow to deal with these smaller more dynamic markets?

If Aurizon is again ever interested in new markets outside their current operation, I'm sure they make a move when the time comes, but for now, they have plenty of work in CQ and other.
  Sulla1 Chief Commissioner

In a further impact to QR's West Moreton coal system and Aurizon's South East Queensland operations, New Hope is also winding down its Jeebropilly Mine near Ipswich. The mine has produced up to 2-million tonnes per annum since opening in 1982, but was down to producing around 680,000-tonnes per annum at the beginning of 2019 and will close completely in December. This is the last operating coal mine in the Ipswich region and its closure is similar to that of New Acland in not being able to obtain permits to expand its pit to continue production. The mine uses the 1989-built Ebenezer Branch near Rosewood to load around one Aurizon service per day - the QR-owned branch is likely to close as a result.
  james.au Chief Commissioner

Location: Sydney, NSW
Stuffing around with grain and other commodities they were clearly not good at doing or wanted was a waste of time and those lost tonnages was alot of hard work for little return as road competition is very strong, especially in the SW. The rollingstock for Western coal is not compatible with CQ coal (or it used not to be) and the days of hand me down equipment has run its course with CQ gear simply too big and heavy for a number of reasons.
RTT_Rules
All the more reason for SG in the south west to allow other more dynamic operators to get in and make a go of the opportunities...

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