SCALING BACK: Meandu Mine will reduce its coal deliveries to Tarong power stations for the next two years.
SCALING BACK: Meandu Mine will reduce its coal deliveries to Tarong power stations for the next two years. Tessa Mapstone

Meandu mine to reduce coal production

AFTER five years of increasing coal production, Meandu Mine will reduce its coal deliveries to Tarong power stations for the next two years.

Meandu Mine acting site manager Jacob Orbell said coal production from the mine would reduce from 6.49 million tonnes to 6.19 million tonnes in 2018-19.

It will further reduce to 5.75 million tonnes in the 2019-20 financial year.

"Coal deliveries to the Tarong power stations consistently change and fluctuate in response to the demand for electricity,” Mr Orbell said.

"We have built a healthy coal stockpile at the power station, which when combined with the forecast coal deliveries for the next two years, will be sufficient to meet electricity generation requirements.

"The cost of coal is the largest expense for the power station.”

This means the cost of operating Meandu Mine directly influences the competitiveness of the Tarong power stations in the electricity market.

"Every aspect of mining and coal delivery at Meandu Mine is carefully planned and monitored to ensure the right amount of coal is delivered as cost effectively as possible,” Mr Orbell said.

"This is part of our strategy to ensure the Tarong power stations remain viable for as long as possible by being cost competitive and flexible in their operations.”

Stanwell has advised Downer, which operates Meandu Mine on behalf of Stanwell, of this change in coal requirements.

Downer is assessing the impact of this change on its operations at the mine.

South Burnett

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