Note: Australian Mining Tour…part.2

– Australia has become a highly developed country through its extensive mining industry and vast natural resources –

There are many countries in the world that have developed mining responsibly and succeeded. One of them is Australia. This country has been able to develop mining wisely and attain a reasonable income from this sector. Responsible development means mining companies have to be accountable, perform their duties and sustain the region through effective collaboration, so all stakeholders benefit and prosper from the outcome.

Bengalla coal mine

Bengalla is a responsible mining model
Australia is a mining country, there are over 20 mines operating in the single region (aimag) we visited. Travelling through this region you do not see any degradation to the environment, no dried-up rivers or streams, no dug-up landscape (like we used to seeing in our country), only dense forest, farming fields, beautiful scenery and straight and smooth roads. After travelling through the forest we reached our destination – Bengalla mine. Making our way there we felt as if we were going to a place of recreation, not a mine. Bengalla produces 9.5 million tonnes of coal annually, has 420 full-time employees and over 100 contracted employees. At present, they have a license for mining up until 2017 and plan to submit a request for an extra 21 years of operation at the end of this year. This will allow mining of an additional 15 million tonnes of coal every year. They currently export coal to Japan (40 per cent), South Korea (22 per cent), China (3 per cent) and other countries. The mine is located amidst a beautiful national park similar to the beauty of Khuvsgul aimag. Environmental rehabilitation has been done to a high standard avoiding any detrimental effect to the local residents of the town of Muswellbrook, located four kilometres away from the mine. The hills and the dense forest planted around the mine not only reduce noise but also control dust levels. All machinery and vehicles at the site are equipped with silencers. Despite of the high cost, this helps to reduce noise effectively. Sophisticated automated dust level monitors are installed around the mine site collecting dust and displaying dust levels. If there are strong winds the mine operation is suspended so that the local residents are not affected by the dust. Bengalla Technical Maintenance Manager David Mitchell says – “Our mine uses automatic water sprayers and a special water shower. We have not received any complaints on the dust or noise levels from local residents. The water we use for operations we take from the Hunter river and 80 per cent of that is recycled”. Bengalla combines rehabilitation with the mining activities. The rehabilitated land is even improved rather than just reinstated. To do this they follow a very specific procedure including proper soil handling, overstripping, preserving and using the preserved soil for reinstatement. The mine keeps regular contact with the local residents and holds Open Days every year. Over 1,000 people visited during the latest Open Day and learned about the mine.

An interactive community that develops together
Right now Mongolians are obsessed with mining. Apart from looking at the positive sides and progress that mining brings, we would rather believe in dubious rumours and exaggerate the detrimental effects. Generally, Mongolians do not trust what is not certain until they see it with their own eyes and as the saying goes, “there is a tremendous distance (of four fingers) between the truth and the lie.” So I interviewed Australians and asked what they think about mining. Bengalla is one of four mines that belong to the Coal & Allied company. Rio Tinto has an 80 per cent share in this company. The Community Relations Centres of Coal & Allied are located in the towns of Muswellbrook and Singleton and in the city of Newcastle. Having the centres situated close to the residents of the town rather than at the mine eases communication between the company and the community and enables direct feedback. The four mines of Coal & Allied have a long-term commitment to bolster sustainable development and maintain a friendly relationship with local residents. To ensure this they receive feedback from the community which is considered before decisions made by the company. The centre is transparent and open to the people. A local development support fund is established which undertakes many activities including supporting employment among the aborigines and investing in agriculture, education and cultural life. The residents send proposals and feedback via a special hot line. When I met with residents, they all said and agreed that mining is a foundation of development for Australia and it should be developed.

Port Vallarta coal company

Export coal to where there is a demand
We visited the Port Vallarta coal company which runs a coal transportation business and is ranked the largest in the world in this category. They sort and classify coal delivered by rail transport and load it onto the ships around-the-clock. This year they project to export 107.1 million tonnes of coal. The company’s the full capacity is 133 million tonnes annually. Last year the company shipped 1,025 ships of coal. The coal goes to Japan (33 per cent), Republic of Korea (13 per cent), PRC (18 per cent), and remaining amount to Mexico and other countries. Australia exports coal to wherever there is a demand for it. Shipping distances are apparently not so important. For instance, although Mexico is a long way from Australia they still export coal there. In our country everybody claims that the price of coal, a major export item, has dropped and the demand has faded, but not here. It is the opposite, Port Waratah Coal Services company intends to increase their shipping capacity. The demand for coal continues. Australia has been engaged in the coal mining business for over 100 years. The coal reserves of over 60 mines in the state of New South Wales is 12 billion tonnes. World leading mining company, Rio Tinto, mine a variety of minerals – aluminium, copper, coal, gold and iron ore. They operate in many countries of the world with the most sophisticated management, including Mongolia at the the soon to be launched, Oyu Tolgoi mine. With Rio Tinto management, mining in Mongolia has got off to a good start. For our country, there is an acute need for good management and responsible development of the mining sector. There are many examples in the world of countries which have developed well. One of these examples is Australia. This country is a great role model for us and a good example to follow.

Ch. Batpurev