Grasstree Mine

Grasstree Mine is located within the existing German Creek lease area between the Central and Southern Collieries. Anglo Coal (Grasstree Management) Pty Ltd has been contracted by Capcoal to develop the mine for joint venture owners Anglo Coal Australia Pty Ltd (70%) and Mitsui Pty Ltd (30%).

Development of Grasstree Mine commenced in 2002 with the first longwall coal scheduled to be produced in 2006.

Grasstree Mine has a planned annual production capacity of 5 million tonnes per annum run-of-mine coal and will sell, on average, 4 million tonnes per annum of product coal. Coal produced from Grasstree Mine will be washed in the existing German Creek Coal Handling and Preparation Plant.

Geology and Exploration

Three extensive programs of exploration drilling over the Grasstree Project area, carried out by Capcoal from 1991 to 1995 and from 1997 to 1998, provided the necessary confidence in geological conditions to support detailed mine planning.

Mine Access and Development

Seam access is by two vertical shafts sunk to the seam level (250 metre depth) in the Grasstree Mine pit bottom area. One shaft is for the haulage of development coal using a 400 tonnes per hour hoisting system and the other for men and materials access.

Permanent bathhouse facilities and offices, suitable for the life of the Grasstree Mine operation, have been established at this shaft location.

Roadway and longwall panel development underground will be by continuous miners.

Longwall

The longwall has been designed using a 300 metre face length and a 4500 tonnes per hour coal clearance system. Supports will be 900 tonnes, two leg design and 1.75 metres wide, a specification matching the latest high capacity faces in Australia and representing the leading edge of proven design in longwall systems.

Coal Clearance

The Grasstree Mine trunk conveyor system will be rated at 6000 tonnes per hour to cater for production from the longwall and development units. The longwall conveyor will be rated at 4500 tonnes per hour to cater for the longwall coal only.