BlueScope Steel is supporting South32’s coal mine expansion in New South Wales as it deems the project crucial for sustainability of its Australian operations.
The Independent Planning Commission (IPC) will decide on whether to allow South32 to develop its Dendrobium mine, located west of Wollongong, until 2048. As part of the expansion plan, the miner will extract an added 78mn mt of steelmaking coal. Media reports noted a BlueScope spokesperson stating that the company consumes as much as 3mn mt of coking coal per year, of which 80pc of the supply is provided by local coal mines in Illawarra.
Bluescope added that its future success at Port Kembla is dependent on access to local coal supplies, of which South32 makes up two-thirds. Port Kembla is the largest steel production site in Australia, with yearly production capacity of about 3mn mt of crude steel for the manufacture of slab, flat steel, hot rolled coil, cold rolled coil and plate products.