COMPANY OVERVIEW

Jellinbah Resources Pty Ltd is a company formed by Queensland Coal Mine Management Pty Ltd (QCMM) to develop and market product coals (low volatile PCI coal, semi-soft coking coal and thermal coal) from QCMM coal mines in Queensland.

JELLINBAH EAST COAL MINE

Jellinbah Resources Pty Ltd operate Jellinbah East Mine in the Bowen Basin of central Queensland, Australia. The mine is located on the Tropic of Capricorn and the product coal is hauled by Queensland Rail to the Port of Gladstone, approximately 300 km from the mine.

Jellinbah East Coal is a low volatile bituminous coal with high specific energy, low ash and sulphur and with properties which make it ideally suited to pulverised coal injection, blending for coke making and special coal boilers.

The first coal was shipped in 1989 and since that date over 1700 shipments have been made to Japan, Brazil, Europe, India, Korea and Asia. Total tonnage delivered to date is 43 million tonnes.

The mine is a majority Australian-owned joint venture with equity participation by two Japanese trading companies.

At Jellinbah East resources of Pollux seam coal are substantial, in excess of 350 million tonnes. Production capacity is in excess of 4.0 million tonnes per annum and infrastructure exists to readily increase this production level if required.

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MINING

The mine is an open cut operation with overburden drilling and blasting followed by conventional removal with truck and shovel. A favourable strip ratio and generous seam thickness means that Jellinbah East mine is a highly productive mine.

After overburden removal by truck and shovel, coal is mined using the truck and excavator method and is crushed in a 1,200 tonnes per hour crushing and screening plant. Sampling and on-line ash analysis takes place during the crushing process. After crushing, the coal can either be directed to the coal preparation plant or to crushed coal stockpiles. The product coal consisting of washed and/or bypass coal is trucked approximately 25 km to the Boonal Rail Siding where it is loaded onto 7,500 tonne trains for despatch to Gladstone Port by Queensland Rail. After mining, careful reshaping and rehabilitation of the spoil dumps is conducted and the site recovered with top soil and seeded. The mine operates in full compliance with Queensland Government environmental procedures which control levels of noise, dust, water quality, overburden rehabilitation etc.

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COAL QUALITY AND UTILISATION

Jellinbah Coal is classified as a Low Volatile PCI Coal or alternatively can be used as low volatile, high energy thermal coal.

The coal quality is very consistent and is free of impurities enabling the direct sale of raw, crushed coal. The coal from Jellinbah is used for the following purposes:

• PCI (pulverised coal injection)
• Blending for coke making
• Circulating fluidised bed boiler
• Pulverised fuel boiler
• Cement industry

The coal is of low volatile matter content (approximately 15% (adb)) and is of high rank (vitrinite reflectance mean max of 1.7%) and maintains a plastic phase in the coke making process. It can be used at up to 15% in a coking blend. In some instances the coal is used as a multi purpose feed for both coke ovens and PCI furnaces.

The high specific energy (7500 kcal/kg gad) is of benefit to thermal coal users in either low volatile coal boilers or in circulating fluidised bed boilers. The coal has found substantial utilisation in PCI blast furnace applications and sales total over 3 million tonnes per year to steel mills for PCI purposes. Low volatile coals for PCI injection are soft and easy to mill, provide a high replacement ratio of coke, and tend to yield a more stable blast furnace operation because of lessened coke degredation.

TRANSPORT

The Blackwater to Gladstone rail line is a significant transport link for Bowen Basin coal. Approximately 65 million tonnes of coal are hauled down this line per year for both export and domestic power station consumption. The Port of Gladstone handles in excess of 55 million tonnes per year of coal and has capability well beyond this. Expansion plans in 2007 will increase capacity at the Port to 73 million tonnes per year. The coal at the RG Tanna Coal Terminal is stockpiled before ship loading. Four superintendence companies are available to monitor ship loading quality and in recent years a significant quantity of coal from the RGTCT and Barney Point Coal Terminal has been blended. The blending process provides an accurate ratio of two or more coals throughout the vessel loading sequence.

The company can offer technical support both in Australia and overseas to assist with the utilisation of Jellinbah East coal. A number of reports have been prepared by the company on the use of low volatile coals for PCI injection. These are available on request or from the Library page of this website. Jellinbah has a commitment to be a reliable quality coal supplier to the world steel and other industries and takes advantage of a capable resource with well established infrastructure in a politically stable country.