Third-party coal for Boral cement works
Company to transition ‘unsustainable’ Berrima (Medway) Colliery into care and maintenance
BORAL Ltd’s Berrima cement works will in future buy its coal from third parties after the company announced that it would be transitioning mining operations at its Berrima (Medway) Colliery into ‘care and maintenance’.
The small-scale colliery, which has been in operation since the 1920s and is managed by Delta Mining on Boral’s behalf, has provided about 220,000 tonnes of coal a year to the nearby cement works.
According to Boral, the decision to cease coal mining has been attributed to uncertainties a rising from the planning system and the need to reduce costs to remain competitive in difficult market conditions.
Stuart Hutchings, operations manager for both Berrima sites, said the decision to transition the colliery to ‘care and maintenance’ had been a difficult one to make.
‘We remain committed to our cement operations at Berrima, which employ some 130 staff and continue to make a major social and economic contribution to the Southern Highlands,’ he said, ‘But instead of using coal from the colliery for cement manufacturing, we will start buying coal from third parties.’
Mr Hutchings explained that the decision to enter ‘care and maintenance’ at the colliery followed a review which confirmed that continued mining at Medway was unsustainable in the current market due to increased costs, making it difficult for Boral to compete with imported cement material, and the flat outlook for cement sales generally.
The other major consideration, he said, was the uncertainty currently surrounding the future of the colliery as a result of the appeal lodged against Boral’s project approval by the Southern Highlands Coal Action Group (SHCAG).
‘We remain disappointed that, despite a lengthy and rigorous assessment process over more than two years to secure the project approval as granted by the Government’s expert panel in 2012, this approval was overturned by the Land and Environment Court at SHCAG’s instigation. Although coal mining has been undertaken in the district for more than 100 years, this decision and the subsequent appeal proceedings have placed additional pressure on the colliery.’
Mr Hutchings said the decision, regrettably, would impact more than 30 staff employed by Delta Mining, but that Boral would work with the mining company to support those individuals affected.
