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Coal Industry Act - Joint Coal Board - Report and financial accounts, together with Auditor-General's Report - Year - 1976-77 (30th)


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The Parliament of the Commonwealth of Australia

JO IN T COAL BOARD

Thirtieth Annual Report

1976-77

Presented pursuant to Statute 24 May 1978 Ordered to be printed 9 June 1978

Parliamentary Paper No. 157/1978

i

ISSN 0312-6358

joint coal board thirtieth annual report for the financial year 1976*77

JOINT COAL BOARD Sirius House, 23 Macquarie Place, Sydney, N.S.W.

23 December, 1977.

The Right Honourable the Prime Minister of Australia.

The Honourable the Premier of New South Wales.

Sirs,

In accordance with the provisions of the Coal Industry Acts, the Joint Coal Board

herewith presents its Thirtieth Annual Report, which covers the financial year 1976-77.

Chairman.

Member.

Secretary.

CONTENTS

Part Page

Introduction........................................................................................................... 13

1 The Joint Coal Board— 1.2 The Coal Industry in 1976-77 .. .. .. .. .. .. 15

1.14 New South Wales Coal—Prospective Markets to the Year 2000 .. 18 1.18 Joint Coal Board Order No. 27 .. .. .. .. .. .. 19

1.23 International Visits .. .. .. .. .. .. .. 20

1.31 The Industrial Market and Fuel Technology .. .. .. .. 21

1.49 Transport and Port Facilities .. .. .. .. .. .. 24

1.59 Black Coal Resources .. .. .. .. .. .. .. 26

1.63 Geological Activities ......................................................................... 26

1.76 Mining Engineering Activities .. .. .. .. .. .. 30

1.82 Dust Control............................................................................................... 31

1.88 Joint Coal Board—Health Services .. .. .. .. .. 32

1.93 S t a f f .....................................

1.96 Statistics .. .. ..

1.97 Joint Coal Board—Finances 1.99 Coal Industry Fund ..

1.107 The Welfare Fund .. ..

1.115 Workers’ Compensation Fund 1.143 Coal Mines Insurance Pty Ltd FINANCIAL ACCOUNTS

2 Production of Coal— 2.1 General .........................

2.4 New Projects.. .. ..

2.10 Number of Mines .. ..

2.12 Production .. .. ..

2.14 Employment .. .. ..

2.18 Output per Manshift Worked 2.24 Coal S to c k s ........................

2.26 Deliveries .. .. ..

2.28 Open Cut Mining .. ..

2.35 Plant and Equipment Survey 2.36 Extraction Methods ..

2.44 Production Units .. ..

2.52 Underground Haulage .. 2.56 Shift Working .. ..

2.59 Industrial Relations ..

2.68 Coal Preparation .. ..

33 34 35

35 36 39 44

45

63 63 67 67 69

71 74 75 75

77 77 80 83

85 87 89

CONTENTS—continued

Part Page

Production of Coal— continued

2.77 Capital Expenditure ........................................................................ 92

2.94 Value of Coal ................................................................................... 95

2.100 Major Owner Groups ........................................................................ 98

2.105 Captive and Non-Captive Mines .. .. .. .. .. .. 98

2.107 Drilling Activities .. .. .. .. .. .. .. .. 100

2.115 Production by Coal Seams.. .. .. .. .. .. .. 102

2.125 Measurement of Dust Concentrations .. .. .. .. .. 103

3 The Market for Coal—

3.1 Marketing Conditions G en erally ............................................................105

3.6 Australian Consumption of Black Coal .. .. .. .. .. 106

3.17 Distribution .. .. .. .. .. .. .. .. .. 109

3.27 Electricity Generation .. .. .. .. .. .. .. 113

3.37 Iron and Steel Industry .. .. .. .. .. .. .. 116

3.49 Metallurgical Coke .. .. .. .. .. .. .. .. 119

3.56 Exports .. .. .. .. .. .. .. .. .. 121

3.65 Japanese Market .. .. .. .. .. .. .. .. 127

3.86 Other Overseas Markets .. .. .. .. .. .. .. 134

3.102 Export Prices .. .. .. .. .. .. ,. .. 137

3.128 Market Forecast 1976-77 .. .............. .. .. .. .. 143

3.130 Future Market Within Australia .. .. .. .. .. .. 143

3.139 Future Overseas Markets .. .. .. .. .. .. . · 146

3.142 Summary of Future Markets for New South Wales Coal .. .. 147

4 Transporting Coal to the Consumer—

4.1 Transport from the Mine .. .. .. .. .. .. .. 148

4.8 Port Facilities .. .. .. ......................... .. .. 149

4.15 Shipping and Ocean Freights .. ......................... .. .. 151

5 District Review—

5.1 Introduction .. .. .. .. .. .. ......................... 153

5.2 South Maitland .. .. .. ................................................ 153

5.7 Singleton-North West .. ... .. .. .. .. .. 154

' 5.15 Newcastle .... .. .. .. .. .. .. .. .. 156

- 5.23 West ... ... ... .................................................. .. .. 158

5.29 Burragorang Valley .. .... .. .. .................................... 160

5.34 South Coast ... .. .. .. ..................................... .. 161

CONTENTS—continued

■ t Page

6 Primary Energy—

6.1 The World O u tlo o k ................................................. 163

6.28 Australian Studies .. .. .. .. .. .. .. . · 169

6.38 Coal Research ........................................................................................171

6.45 Primary Energy—Australia .. .. .. .. .. .. 173

7 The M ine worker—

7.1 Safety and Accident Experience .. .. ......................... ·. 177

7.11 Colliery Employees’ Training Rebate Scheme .. 181

7.16 Pneumoconiosis Prevalence Study.. .. .....................................182

7.26 Movements in the Labour Force .. .. .. ......................... 185

7.32 Earnings of Employees ............................................................................... 187

7.37 Award Variations .. .. .. ................................................ 189

LIST OF APPENDICES

1. Decisions of the Coal Industry T r i b u n a l ..................................... .. .. 190

2. Coal Drilling in New South Wales .. .. .. .. .. • · .. 199

3. Statistical A p p e n d ix ....................................................................... .. 201

4. Coal Mines in New South Wales—Ownership, Location Maps .. - · .. 261

INDEX TO STATISTICAL APPENDIX 201

G 441021— 211

LIST OF TABLES INCLUDED IN THE TEXT OF THE REPORT

Table Page

PART 1

The J oint Coal Board

1. N.S.W. coal production and disposal .. ......................... .. .· 17

2. Prospective market levels for N.S.W. coal to 2000 .. .. .. .. .. 19

3. Medical examinations—N.S.W. coal industry ................................................ 33

4. Joint Coal Board—Staff .. .. .. ......................... .. .. 34

5. Workers’ compensation insurance, cost of claims—N.S.W. coal industry .. 41 6. Workers’ compensation insurance—management expenses ......................... 41

PART 2

Production of Coal

7. Average production per possible working day—N.S.W. coal mines .. .. 63 8. Number of N.S.W. coal mines in operation........................................................... 67

9. N.S.W. coal production .................................................................................. ..... 69

10. Employment—N.S.W. coal mines .. .. .. .. .. .. .. 69

11. Location of employment—N.S.W. underground coal mines ......................... 70

12. Output of raw coal per manshift worked—N.S.W. .. .. .. .. .. 71

13. Output of saleable coal per manshift worked—N.S.W........................................... 73

14. O.M.S. at face, below ground, overall—N.S.W. underground coal mines .. 74 15. Coal stocks held in N.S.W. .. .. .. ................................................ 74

16. Coal delivered from N.S.W. mines and w a s h e rie s .................................................... 75

17. Open cut operations—N.S.W. coal industry .. 76

18. Methods of extraction—N.S.W. coal mines .. .. .. .. .. .. 79

19. Second working—N.S.W. underground coal m ines............................................... 80

20. Production units—N.S.W. underground coal mines .................................... 80

21. Use of continuous miners—N.S.W. coal mines ............................................... 83

22. Underground haulage—N.S.W. coal mines .. .. .. .. .. .. 85

23. Shifts worked per day—N.S.W. underground coal m in e s ........................................ 86

24. Multi-shift working at N.S.W. underground coal m i n e s ........................................ 86

25. Industrial disputes—N.S.W. coal mines .. 88

26. Industrial disputes—N.S.W. underground coal mines ........................................ 89

27. Coal washery practice in N.S.W. .. .. .. .. .. .. ■ · 91

28. Coal washery throughput—N.S.W................... ............................................... 91

29. Capital expenditure—N.S.W. coal industry .. ............................................... 93

30. Value of coal at the mine—saleable output—N.S.W. .. .. .. . · 96

31. Value of coal and other mineral production—N.S.W. .. .. .. .. 97

32. Wages and salaries, turnover and value added—N.S.W. coal industry .. .. 97 33. Major owner groups—N.S.W. coal industry ............................................... 99

34. Production from captive and non-captive coal mines—N.S.W............................... 100

LIST OF TABLES INCLUDED IN THE TEXT OF THE REPORT— continued

Table Page

PART 2— continued

Production of Coal— continued

35. Coal drilling—N.S.W..........................................................................................................100

36. Annual coal production by seams—N.S.W. .. ......................... .. 103

37. Average dust concentrations—N.S.W. coal m i n e s ................................................ 104

PART 3

The Market F or Coal

38. Pig-iron—world production by country .. .. ......................... .. 105

39. Crude steel—world production by country .. .. .. .. .. .. 106

40. Consumption of black coal—Australia by States .. .. .. .. .. 107

41. Consumption of black coal—Australia by industries .. .. .. .. 107

42. Consumption of N.S.W. black coal—by industries .. .. .. .. .. 108

43. Supply and consumption of black coal—N.S.W. .. .. .. .. .. 109

44. Distribution of coal from N.S.W. mines—tonnage .. .. .. .. 110

45. Coal sent to consumers or exported—N.S.W. by production area .. .. I l l

46. Coal stocks held by N.S.W. consumers ...................................................................I l l

47. Distribution of coal from N.S.W. mines—percentage .. .. .. .. 112

48. Interstate movements of coal .. .. .. .. .. 112

49. Electricity generated within N.S.W. .. .. .. .. .. .. .. 113

50. Coal consumption at N.S.W. power stations .. .. .. .. .. 114

51. Coal supplies for electricity undertakings in N.S.W. ......................... .. 115

52. Steel industry in Australia—coal supply and usage................................................ 117

53. Steel industry in Australia—coal supply and usage by plants .. .. .. 118

54. Overseas shipments of coke and coke breeze from Australia .. .. .. 120

55. Coal supplied for metallurgical and non-metallurgical purposes from N.S.W. .. 121 56. Overseas coal shipments from Australia ................................................ .. 122

57. Total f.o.b. value of Australian coal exports .......................................................124

58. Dependence of N.S.W. coal mines on the export m a r k e t................................... 125

59. Dependence of Queensland coal mines on the export market ......................... 125

60. Shipping of N.S.W. coal—interstate and o v e rse a s.................................... .. 127

61. Japan—imports of bituminous coal .. .. .. .. 129

62. Japanese steel industry .. 130

63. Export contracts—Australia to Japan ................................................ ·· 132

64. Export contracts—N.S.W. to other d e s ti n a ti o n s ................................................ 134

65. Japan—imports of bituminous coal by type and value .....................................141

66. Average f.o.b. value of Australian coal exports ................................................ 142

67. Market for N.S.W. coal 1976-77—actual and e s t i m a t e .................................... 143

68. Future market for N.S.W. coal within A u s t r a l i a ................................................ 145

LIST OF TABLES INCLUDED IN THE TEXT OF THE REPORT—continued

Table Page

PART 4

Transporting Coal to the Consumer

69. Dispatch of coal from the mine to market by type of transport, N.S.W. .. 148 70. Principal coal loading facilities—Australian p o r t s .......................................................150

71. Shipment of coal overseas—size of cargoes and ownership of vessels .. .. 151

PART 5

D istrict R eview

72. South Maitland .. .. .. .. .. .. .. .. .. 153

73. Singleton—North West ..........................................................................................155

74. Newcastle .. .. .. ·· .. ·· ■· .· .. .. 157

75. West ........................................................................................................................ 158

76. Burragorang Valley .. .. . . .. .. .. .. .. . . 1 6 0

77. South Coast .. .. .. .. .. .. .. .. .. .. 161

PART 6

Primary Energy

78. Consumption of primary energy—Australia—black coal equivalent .. .. 174 79. Consumption of primary energy—Australia—percentage change .. .. .. 175

PART 7

The M ineworker

80. Frequency rate of lost-time accidents—N.S.W. coal industry .. .. .. 177

81. Manshifts lost by men on compensation—N.S.W. coal industry .. ... .. 178 82. Accident claims lodged, by result—N.S.W. coal industry .. .. .. .. 178

83. Relative cost of workers’ compensation premiums—N.S.W. coal industry .. 179 84. Declared wages and premium income—N.S.W. coal industry .. .. .. 179

85. Safety footwear and incidence of toe injuries—N.S.W. coal industry .. .. 181 86. Pneumoconiosis prevalence study 1970-73—N.S.W. mineworkers .. .. 182 87. Pneumoconiosis prevalence, by districts—N.S.W. mineworkers .. .. .. 184 88. Comparison of pneumoconiosis prevalence rates, 1948-73, N.S.W. mineworkers 184 89. Employment changes and level of unemployment—N.S.W. coal industry .. 185 90. Employment changes, by districts—N.S.W. coal industry .. .. .. .. 186

91. Number of N.S.W. mineworkers registered as unemployed .. .. .. 186

92. Averages wages and salaries per employee—N.S.W. coal industry .. .. 188 93. Level of production bonus payments—N.S.W. coal industry .. .. .. 189

INTRODUCTION

1. The Joint Coal Board submits herewith its Annual Report for the year ended 30 June 1977. The financial accounts included in the Report have been prepared in the form prescribed. The certificates of the Auditor-General for the Commonwealth are appended to the accounts. In accordance with its established practice, the Board includes a report on the coal mining industry.

2. The Board is constituted under an arrangement between the Governor-General of Australia and the Governor of New South Wales, pursuant to the provisions of the Coal Industry Act 1946 of the Commonwealth Parliament and the Coal Industry Act, 1946 of the New South Wales Parliament. It is responsible to the Minister for Trade and Resources of the Commonwealth Government and to the Minister for Mines and Energy of the New

South Wales Government.

3. During 1976-77 the Commonwealth Government reviewed its role as a partner with the New South Wales Government in the Joint Coal Board. It decided to continue its participation.

4. Mr B. W. Hartnell, C.B.E., who had been Chairman of the Board since 1963 and a Member since 1958, retired on 21 October 1976. His successor, Mr G. J. Tredinnick, was appointed on 22 August 1977. The resignation of Mr M. J. Smith, a Member since 22 June 1972, took effect on 21 August 1977 and Mr T. A. Squires was appointed to the Board on the same date as Mr Tredinnick. Mr K. G. Wybrow continues to be a Member of the Board.

5. The general powers and functions of the Board are stated in identical provisions of the two Coal Industry Acts as follows:

(a) to ensure that coal is produced in the State in such quantities and with such regularity as will meet requirements throughout Australia and in trade with other countries; (b) to ensure that the coal resources of the State are conserved, developed, worked

and used to the best advantage in the public interest; (c) to ensure that coal produced in the State is distributed and used in such manner, quantities, classes and grades and at such prices as are calculated best to serve the public interest and secure the economical use of coal and the maintenance

of essential services and industrial activities; and (d) to promote the welfare of workers engaged in the coal industry in the State.”

6. Included in the specific powers conferred on the Board by the two Acts is . . power to establish workers’ compensation insurance schemes and to require any employer in the coal industry in the State to effect with or through the Board all workers’ compensation insurance in respect of his employees in that industry” .

7. The Board is authorised by the Coal Industry Acts to collect statistical information concerning the New South Wales coal industry and to publish reports and information of public interest. The Board is also authorised by the Coal Production (Wartime) Act Repeal Act 1948 of the Commonwealth Parliament to collect statistics relating to the production,

distribution and use of coal throughout Australia. The Board collects and publishes, in this report and elsewhere, a wide range of statistical information. The ability to collect data first-hand from individual mines and consumers for analysis and study is an important factor in enabling the Board to exercise its statutory powers and functions.

13

8. The funds to enable the Board to discharge its statutory functions come mainly from the following sources: funds appropriated annually by each of the two Parliaments, insurance premiums payable by employers in the industry under the Board’s workers’ com­ pensation insurance scheme, investment of the Board’s accummulated funds and fees received for technical services provided for the industry. Details are contained in Part 1 of this Report.

9. The Board records its appreciation of the loyal and efficient service of its staff during the year. In discharging its statutory responsibilities the Board has maintained close consultation with the Commonwealth and New South Wales Governments, with colliery proprietors, major consumers, coal distributors and with leaders of the mining unions. The Board has also continued to maintain close consultation with the Chairman and Members of the Queensland Coal Board.

10. The Board acknowledges the assistance of the New South Wales Government Printer and his staff in the preparation of this Annual Report.

14

PART 1

THE JOINT COAL BOARD

1.1 The form of the Board’s 30th Annual Report has been recast. The initial section constitutes a report of Board activities, policy initiatives and views on recent and future developments in the coal industry. The latter sections of the report record developments in the industry itself and the markets which coal serves.

Coal Industry in 1976-77

1.2 The Australian coal industry, and in particular the New South Wales coal industry, had a good year in 1976-77. Despite generally low levels of economic activity at home and abroad, production and sales expanded, industrial relations improved and expansion and development of the industry’s capacity continued. Recognition of the potential of the coal industry to play a key role in the nation’s economy became general. In both New South

Wales and Queensland many companies and organisations are seeking to gain entry to the industry or to enlarge an existing base. They include locally and foreign controlled companies, and companies involved in the petroleum industry.

1.3 Australia consumed 32,197,000 tonnes of black coal during 1976-77 and exported 35,372,000 tonnes. These two markets increased by 7,690,000 tonnes. In the preceding year there had been a decrease of 2,733,000 tonnes. There was a notable increase in the use of coal for power generation within Australia but exports of coal for metallurgical purposes

rose more rapidly than sales of coal for other purposes.

1.4 Exports from New South Wales increased by 17.0 per cent to a record 16,447,000 tonnes. The f.o.b. value of coal exports from Australia in 1976-77 was $1,282,000,000 of which $532,000,000 was earned by the New South Wales coal industry. Coal exports made up 20 per cent of the total value of all goods exported from New South Wales.

1.5 Australian raw coal production in 1976-77, at 85,960,000 tonnes, was 8,831,000 tonnes, or 11.4 per cent higher than in 1975-76. About 1,900,000 tonnes of this increase can be attributed to 1976-77 statistics being based on a 53-week year. Production rose in all States; the largest increase, 15.3 per cent, occurred in New South Wales. On a saleable

coal basis Australia produced 69,674,000 tonnes, 11.7 per cent more than in 1975-76. The New South Wales coal industry produced 39,520,000 tonnes of saleable coal in 1976-77, 56.7 per cent of the Australian total.

1.6 The development of the New South Wales coal industry over the 32 years from 1946 to 1977 is illustrated in the adjacent graph. Comparative figures for the last three years for production, consumption, exports and stock variations are given in Table 1 and are discussed briefly in the following paragraphs. A more detailed report is given in subsequent parts.

1.7 New South Wales in 1976-77, on a raw coal or “as mined” basis, produced 46,785,000 tonnes of coal. After preparation, and allowing for stock changes, the quantity of coal supplied to market rose by 5,426,000 tonnes or 16.1 per cent. The industry could have supplied additional quantities had they been required. Some mines operated below

capacity during the year and undelivered stocks increased by 505,000 tonnes.

15

THE GROWTH OF THE COAL INDUSTRY IN NEW SOUTH WALES MILLION TONNES

50 -i

P R O D U C T I O N

S A L E A B L E / O U T P U T

C O N S U M P T I O N / W I T H I N

A U S T R A L I A

E X P O R T S

/ O V E R S E A S

S T O C K S

YEAR

16

1.8 Consumption of New South Wales coal within Australia during 1976-77 also set a new record, 21,440,000 tonnes, despite the low level of economic activity in such industries as steel, cement, etc. which are direct users of coal. Consumption of coal for the generation of electric power rose by an unprecedented 29.2 per cent. It is an indication of the flexibility of the coal industry that it was able, without strain, to satisfy such an increase.

1.9 The improvement in industrial relations in the New South Wales coal industry, noted in the BoaixTs last annual report, continued throughout 1976-77. Following the award increases granted in September 1975, award wages have varied in line with the National Wage Case decisions. Assisted by higher bonus payments and a lower level of industrial disputes, employees in the industry continue to receive a level of earnings well above the average for the State.

1.10 Employment in the New South Wales coal industry continued to be reasonably stable during 1976-77, the number o f mineworkers increasing by 2.8 per cent to 15,915. Vacancies continued for some occupations and the Board believes that the industry would be well advised to take full advantage of the present employment situation to continue

with and, where appropriate, expand measures designed to increase the number of trained mineworkers. The proprietors are showing faith in the future of the industry by investing large amounts to purchase machinery and to otherwise expand the capacity of the industry. It is equally important to ensure that men with the appropriate skills and training be

available to man and service this new equipment.

TABLE I.—NEW SO U T H WALES COAL PRODUCTION AND DISPOSAL— ’000 TONNES

1974-75 1975-76 1976-77(0)

Saleable output ................. ........................................................ 36,440 34,387 39,520

Production— Coal production—as mined ( a ) ................................................. 42,306 40,590 46,785

Washery refuse and dump losses within coal industry ___ 5,997 6,235 7,171

36,309 34,355 39,614

Change in stocks held at collieries, ports, etc......................... + 662 + 672 + 505

Coal supplied to m ark et.................................... 35,647 33,683 39,109

Disposal— Consumption o f N.S.W. coal— Iron and Steel ..................................................................... 9,425 8,515 7,842

Electricity generation ......................................................... 9,246 9,047 11,692

Others...................................................................................... 2,335 2,075 1,906

21,006 19,637 21,440

Change in stocks held by consumers........................................ - 171 - 8 + 1,222

20,835 19,629 22,662

Exported— Overseas .............................................................................. 14,812 14,054 16,447

Coal supplied to m arket............................................ 35,647 33,683 39,109

(а) Total tonnage raised less any dirt and chitter removed prior to washing. (б) 53-week year.

17

1.11 Capital expenditure at coal mines was a record $122,700,000 in 1976-77 and advice received by the Board indicates an even higher expenditure is planned for 1977-78. Transport facilities were also expanded, but further additions will be necessary if the industry is going to be able to accept the market opportunities which are in prospect. Expansion of mine capacity, rail and port facilities must be co-ordinated.

1.12 In the short term, growth in the market for New South Wales coal is being adversely affected by the widespread weakness in the demand for steel. Nevertheless the indications are that both local and export markets will increase in 1977-78. During the first quarter of that year raw coal production reached an annual rate of almost 48 million tonnes. Ignoring special situations, the market seems capable of absorbing that level of production. However, pending a significant strengthening of the market any higher level of

output would endanger the stability of the industry.

1.13 The speed and the directions in which the energy market will develop have been the subject of much study and debate during 1976-77. Part 6 reviews some significant aspects of this debate with emphasis on the future demand for coal and in particular for Australian coal.

N ew South Wales Coal—Prospective M arkets to the Year 2000

1.14 During 1976-77 the Joint Coal Board decided to undertake a comprehensive study of the New South Wales coal industry covering both prospective markets for various types of coal, and the areas from which the projected tonnages might be supplied.

1.15 The first stage of the study—an assessment of the prospective markets for New South Wales coal to the year 2000—was completed during the year. A summary of the results are set out in Table 2. The Board is currently engaged in a detailed study of the State’s coalfields to determine the areas from which the projected tonnages are most likely to be supplied and the requirements in terms of new mining projects, manpower and transport and coal loading facilities necessary to meet such markets. The study of prospective markets did not take account of possible requirements for the conversion of New South Wales coals to liquid and gaseous fuels. The Board surveyed the views of existing and potential coal

exporters and producers in New South Wales and of existing and prospective consumers of New South Wales coal within Australia and overseas. Account was also taken of energy supply and demand predictions and forecasts of international bodies as well as the published energy policies of governments including those referred to in Part 6.

1.16 The results presented in Table 2 and in the graph in Part 6 are predictions of the markets which the New South Wales coal industry might reasonably expect to attain subject to, among other things, the necessary mining and infrastructure investments being made, the availability of manpower and the maintenance of productivity levels and market competive- ness.

1.17 In many countries there is still much uncertainty about future overall growth rates of gross domestic product and the corresponding rates of growth of energy usage, the effectiveness of conservation policies and the contributions to be made by the various energy sources. Of particular relevance for the growth of New South Wales coal exports is the extent to which Europe and Japan will import coal for electricity generation and the future rate of growth of the Japanese steel industry. The range between the high and low levels of prospective exports of New South Wales coal presented in this study reflects the range of

options under consideration.

18

TABLE 2—PROSPECTIVE MARKET LEVELS—HIGH AND LOW —FOR NEW SOUTH WALES COAL TO THE YEAR 2000—M ILLION TONNES

A. H ig h le v e l— Exports ....................................

Consumption within Australia

Total ................................

Actual 1976

Prospective

1980 1985 1990 1995 2000

14-9 20-8

3 0 0 28-5

55-0 35-5

78-0 42-0

9 6 0

50 0

1130 64 0

35-7 58-5 90-5 1 2 0 0 1 4 6 0 177-0

B. L o w le v e l— Exports .................................... 14-9 23-0 34-0 4 6 0 5 8 0 69 0

Consumption within Australia 20-8 25-5 30-5 3 5 0 41-5 48-0

Total ................................ 35-7 48-5 64-5 8 1 0 99-5 117-0

Joint Coal Board Order N o. 27

1.18 Under the Joint Coal Board’s Order No. 27 approval must be obtained from the Board for the opening of new mines, for major development work such as the driving of shafts or drifts and for the closure of existing mines. All applications under Order No. 27 are carefully considered to ensure that the proposed development accords with the public interest. With regard to the opening of new mines, the Board seeks to ensure, as far as is

practicable, that the project is technically, economically and environmentally sound, that the mining plan provides for maximum recovery of coal and that the applicant has the necessary technical and financial resources. The Board must also have regard to the likely impact of new projects on existing, efficient mines. Frequently, the giving of the Board’s approval to a

project is made subject to conditions or is accompanied by specific directions given by the Board pursuant to its statutory powers.

1.19 During 1976-77 the Board granted 16 approvals under Order No. 27. New mines approved were:

(i) Durham North, an open cut located within Coal & Allied Industries Ltd’s existing Liddell colliery holding. (ii) Bloomfield (Rathluba seam), an underground mine located within the existing Bloomfield colliery holding operated by Bloomfield Collieries Pty Ltd. This

mine will replace the existing production from the Big Ben seam. (iii)

(iv) Wakefield, an underground mine near Teralba, owned by The Broken Hill Proprietary Coy Ltd.

1.20 In addition to the above, approval was granted for the driving of drifts for the proposed Clarence mine near Lithgow (Coalex Pty Ltd). At Lithgow Valley in the Western district and at Millfield in the South Maitland district, permission was granted for the mimng of small areas within colliery holdings by open cut methods. During the year approval was

also granted for the mining of the Wongawilli seam at Kemira on the South Coast and for the extraction of a bulk sample of coal at Drayton (Muswellbrook) by Thiess Bros Pty Ltd.

Wambo Ridge (Whybrow seam), an underground mine located within the ;xisting Wambo colliery holding operated by Wambo Mining Corporation Ltd. This mine will replace the existing underground operation in the Wambo seam.

19

1.21 The remaining Order No. 27 approvals in 1976-77 were for the cessation of production at Wallsend Borehole No. 3, the cessation of production from the Fassifern seam at Belmont and from the Bulli seam at Wongawilli, the cessation and subsequent resumption of production at Bellbird and the driving of new entries at Hartley Main No. 4 and South Bellambi.

1.22 Para 2.6 lists ten major new mines under development in New South Wales at June 1977. There are a number of new mines being planned or under investigation in New South Wales for which formal applications to open a mine had not been made to the Board by 30 June 1977. These include a number of large open cuts in the Singleton Coal Measures of the Upper Hunter Valley and proposals by the Electricity Commission of New South Wales for the establishment of new underground mines in the Eraring and Lithgow areas.

International Visits 1.23 The Joint Coal Board forms an important link between the local coal industry and actual and potential overseas purchasers of coal. Growing interest in Australian coals is evidenced by the number of missions which visited the Board during 1976-77, including the following:

Brazil— Brazilian Steel Industry Mission ..

European Economic Community— Mission representing Community Countries.

Romania— Deputy Minister, Ministry of Mines, Romania.

Spain— Altos Hornos Meditterano .. ..

Fuerzas Electricas de Catalina S.A...

Israel— Israel Power Co. .. .. ..

Nigeria— Nigerian Steel Development Authority

Japan— Japanese Energy Mission .. ..

Korea— Korean Electric Power Co. .. ..

Tong Yang Cement Manufacturing Co. Hong Kong— Hong Kong Power Co. .. ..

Philippines— National Steel Corporation .. ..

Object of Visit

Diversify coking coal supply sources.

Evaluate New South Wales as1 a stable source for steaming coal.

Preliminary survey to establish additional coking coal supply sources to supply Romanian steel industry.

Coking coal requirements for new steel complex at Sagunta. Diversify steaming coal supply sources.

Steaming coal requirements for new power plant.

Coking coal requirements for new steel plant. ,

Evaluate Australia’s potential as a stable long term energy source.

Steaming coal requirements for new power plant. Steaming coal requirements to replace imported oil.

Steaming coal requirements for new power plant.

Coking coal requirements for new steel complex.

20

1.24 The mission from the European Economic Community (EEC) and the Japanese Energy Mission were particularly significant as each could lay the foundation for a major export market for steaming coals from New South Wales mines. The EEC mission included representatives from eleven nations while the Japanese mission included representatives from

a number of electricity generating authorities.

1.25 At the same time the New South Wales coal industry has actively sought markets in many countries. Representatives of the Joint Coal Board participated in two overseas visits during 1976-77.

1.26 A group from the Chinese coal mining industry attended the Seventh International Coal Preparation Congress held in Sydney in May 1976. Subsequently, on the invitation of the Chinese Ministry of Coal Industries and the China Coal Society, a nine-man mission from the Australian coal mining industry visited China from 12 to 29 October 1976.

The mission leader was Mr M. J. Smith, then a member of the Joint Coal Board. The members included Mr G. E. Edwards, then the Board’s Chief of Marketing and Fuel Technology and Mr G. J. Tredinnick, then Deputy Secretary, Department of National Resources, but subsequently appointed Chairman of the Joint Coal Board.

1.27 In the course of the visit the mission was able to see mechanised longwall mining, the hydraulic hoisting of coal from underground, thick seam mining by slicing and stowing, underground and surface services, a major open cut and coal preparation plants. Also visited were coal mining research, safety and training institutes, ancillary industries and two

consumers—a steelworks and a power station.

1.28 The mission reported that the Chinese coal industry had grown tremendously and has moved solidly towards developing safe methods and good technology. It commented that “with continuing industrialisation as one of China’s major objectives it seems that its coal mining industry will have to maintain a steady growth pattern in order to supply increas­

ing domestic requirements before it could become a significant contributor to the coal export scene.”

1.29 The mission recommended that such visits between Australia and China should continue.

1.30 The International Union of Pure and Applied Chemistry (IUPAC) held an international symposium on analytical chemistry in the exploration, mining and processing of materials in Johannesburg in August 1976. Mr R. G. Davies, then the Board’s Fuel Technologist and now the Board’s Chief of Marketing, attended and presented a paper titled

“Adaptation of Coal Exploration Analyses to Changing Markets” . The visit provided an opportunity to study the coal industry of South Africa including its research activities. A visit was made to the coal conversion complex at Sasolburg and discussions held on the technical aspects of coal conversion. The new Richards Bay Coal Terminal was inspected

(see para. 3.101).

The Industrial M arket and F uel Technology

1.31 Following increases in the cost of crude oil, the price of fuel oil has risen sharply in most markets, both overseas and within Australia, for ships’ bunkers and for sales to land based consumers. But in New South Wales the advent of natural gas in December 1976 started a price war between gas and oil suppliers which has prevented any move to increase

coal sales to general industrial markets. Oil, which had previously been sold at approxi­ mately $60 per tonne to large industrial consumers, has been on offer at $35 or even less in the Sydney metropolitan area. Reduced prices have also been offered to country consumers.

21

1.32 Because of such practices, Australia is importing more oil than would otherwise be necessary. Fuel oil is not a waste product, but a valuable resource from which petrol and other vital petroleum products can be produced.

1.33 The Joint Coal Board believes that industries requiring primary fuels should be encouraged to use coal in as wide a range of applications as can be shown to be practicable. While it is generally not economical for small plants to use coal, for larger plants, e.g. boilers with a rate of evaporation over 4,500 kg/hr, coal can be used efficiently and in an environ­ mentally acceptable manner.

1.34 The Board operates a fuel advisory service and coal consumers continued to avail themselves of the service during 1976-77. The scope of work performed ranged from minor adjustments to prevent smoke or clinker formation to the redesign of draught arrangements and of a coal handling system.

1.35 Considerable interest has been shown in the conversion of kilns and boilers to coal firing and there would doubtless be more but for the “dumping” of fuel oil referred to above. Recent prices quoted for pulverised fuel equipment, scrubbers and bag filters suggest that, when oil prices revert to a more realistic level, the conversion of packaged boilers to pulverised fuel may be an economic proposition.

1.36 Because of more compact design and absence of ash handling facilities in oil fired industrial boilers, their conversion to coal firing is not easily done with a conventional mechanical stoker. Fluidised bed combustion offers the possibility of a “conversion kit” which would maintain the rated output of the boiler, would have low NOz emission and would not require electrostatic precipitators or bag filters to reduce dust emission.

1.37 The quality of coal supplied to industry during 1976-77 has, in general, been quite good. Most complaints regarding quality have turned out to be due to poor plant operation and/or maintenance. In such cases the Board was able to recommend remedial action. However, there have been some complaints as to failure to supply coal sized to specification.

1.38 The Board’s fuel laboratory at Cessnock provides general analytical services for the industry. The high level of prospecting in the Hunter Valley and around Gloucester and Boggabri, has resulted in heavy demands being placed on the laboratory’s services throughout 1976-77.

1.39 The laboratory provided analytical data for the Clarence-Moreton Basin drilling programme carried out in conjunction with the New South Wales Department of Mines (see para 1.75) and for the Survey of Eastern Australian Coals of Coking Potential (Stage 2). The Australian Coal Industry Research Laboratories Ltd participated in this latter project.

1.40 During the year the laboratory’s registration by the National Association of Testing Authorities (ΝΑΤΑ) was renewed. Accreditation by ΝΑΤΑ guarantees to clients that the laboratory’s equipment and procedures are of the highest possible standard.

1.41 Very few companies prospecting in the Upper Hunter Valley have laboratory facilities of their own and many of those which do have facilities are beginning to sub-contract analytical work. Consequently, although several laboratories (including the Board’s) have added to their staff numbers, the capacity of coal testing facilities within New South Wales has tended to be fully occupied. The industry will need new laboratory space, equipment and staff to supply the analytical services arising from the anticipated growth in markets for New South Wales coal.

22

1.42 There have been very few changes in the type of analyses requested over the past year. Traditional tests which indicate coking and steaming potential continue to be in strong demand. There is also interest in the suitability of coals for formed coke processes. Most requests re fine coal cleaning are for gravity separation tests. The demand for tests which

are directly indicative of conversion potential has waned over the past year.

1.43 The Board in its 1975-76 Annual Report reported on the two-year programme to test and evaluate the burning of washery refuse in a fluidised bed combustor. A photograph of the pilot plant appears below.

1.44 Commissioning of the two-tonne per hour plant started on 1 March 1977, and the first burn of solid refuse was carried out on 18 April 1977. This was highly successful. Combustion was self sustaining from 700° C and the bed temperature rose to 1000° with a range of only 25° C between any of the nine thermo-couples in the bed.

1.45 The material burned was carbonaceous shale with a specific energy of about 7-2 MJ/kg (3,100 Btu/lb). The initial bed material was sand but this has now been displaced by burnt refuse which makes a very satisfactory inert bed.

1.46 The cement and brick industries have shown interest in the process, both as a source of heat from low grade fuel and as a source of raw materials.

1.47 The “tailings” circuit has been completed and trials on the combustion of tail­ ings, thickened to about 50 per cent solids, will commence early in 1978. Some modifications to the original plant are being made to improve the waste-gas handling system.

Fluidised Bed Combustion—pilot plant to treat washery refuse

23

1.48 The Board agreed to pay the capital costs associated with the construction of the plant. These costs to 30 June 1977 totalled $153,000. The site for the plant at Glenlee near Camden, power and other services are being supplied by Clutha Development Pty Ltd. Australian Iron and Steel Pty Ltd also made a contribution to the project. The Common­ wealth Scientific and Industrial Research Organisation (CSIRO) is responsible for the design and operation of the plant and has supplied most of the instrumentation. The right to publish the results of and patent any patentable developments remains with CSIRO. The

Board’s Fuel Engineer, Mr R. Sanderson, is working closely with the CSIRO officers responsible for the project.

Transport and Port Facilities

1.49 A number of positive steps are being taken to improve the coal transport and port loading infrastructure in New South Wales. Major projects under way during 1976-77 included the new coal loader and associated facilities at Port Waratah and the Mt Thorley rail project in the Upper Hunter Valley. In addition to these projects, the New South Wales Government has announced plans for the construction of a new coal loader at Port Kembla and the upgrading of the existing loader at Balmain. The Port of Newcastle is being deepened to take ships of 120,000 DWT and additional rolling stock is being purchased by the Public Transport Commission of New South Wales.

1.50 The Port Waratah and Mt Thorley projects, both of which are nearing com­ pletion, will greatly enhance prospects for the expansion of coal production and exports from the Hunter Valley region. The completed Port Waratah facility will be able to store and blend about one million tonnes of coal and load about 20 million tonnes per year. When completed, the whole project will have cost about $93 million. The facility is owned by

Port Waratah Coal Services Limited which is a partnership between the northern coal exporters (70 per cent) and Japanese coal consumers and trading companies (30 per cent).

1.51 Reference was made in the Board’s 28th and 29th Annual Reports to the con­ struction by the Public Transport Commission, specifically for coal traffic, of a 10 km length single track railway with balloon loop terminal from Whittingham, on the main northern line south of Singleton, to Mt Thorley. A coal receival, handling and loading facility is being constructed at the Mt Thorley terminal. The Mt Thorley project, with which the Joint Coal Board has been closely associated from its formative stages, will serve mines in the area, a part of the developing coalfield of the Upper Hunter Valley. Two mines—Wambo and Buchanan Lemington—are already operating at Warkworth and several new mines are planned for the area. The Mt Thorley facility will incorporate unit-train operation and has been designed to allow for maximum integration with discharge facilities at the new Port Waratah coal loader.

1.52 Construction of the project commenced in April 1976 and by June 1977 the earthworks, culverts and bridges were nearing completion (see adjacent photograph). A commencement had been made on the ballasting and track laying. The track is of continuous welded construction. The installation of the signalling system is being undertaken by the Public Transport Commission. The schedule provided for all railway works to be completed by November 1977.

1.53 The Joint Coal Board, which has taken a 50 year lease of the terminal area with an option of a further 50 years, is meeting the cost of land acquisition and the construction of the balloon loop. This will involve the Board in an estimated outlay of $1-2 million. A 25-year sub-lease of part of the terminal area has been concluded with Buchanan Borehole

Collieries Pty Limited, which is responsible for the construction of the coal receival, handling and loading facilities to specifications approved by the Board and for their operation as a

24

Mt Thorley — Rail loop and line to Whittingham under construction. Courtesy: C.S.R. Limited

The Inquiry concluded that the coal loader project should not proceed at this;; stage. It was concluded further that the proposal should not be adopted without: the clear demonstration of a full economic justification. To arrive at a favourable:: conclusion, the Government should be satisfied by detailed studies directed to the ■ ­ formation of an overall energy and transport policy.”

1.58 Following the release of the Simblist Report on Botany Bay, the New South Wales Government set up an Inter-Departmental Committee to look into alternatives to a coal loader at Botany Bay. The Board co-operated with this committee. In June 1977 the New South Wales Government announced that Port Kembla would be the site for a new coal loader to meet the expanding export potential of the Southern and Western coalfields. At the same time it was announced that the existing coal loading facility at Balmain would be

substantially upgraded. The Government also announced that in order to provide ready j access to the Port Kembla loader from the coalfields, a rail link would be constructed from the main southern rail line to Port Kembla as soon as surveys were completed.

Black Coal R esources

1.59 Map 1 on page 27 shows the geographic distribution of black coal deposits in Australia classified into actual coal producing areas, areas known to contain economically significant deposits, and basins known to contain some coal, possibly at depth, or in thin seams, or high in ash. It can be seen that coal resources are widespread across the continent

but areas known to contain economic resources make up a minor part of the total hatched area and are confined in the main to New South Wales and Queensland. Black coal deposits, at workable depth in Western Australia, South Australia and Tasmania are relatively small but are important locally.

1.60 The map presents only the broad picture as there are significant gaps in the spread of knowledge at all levels of prospecting from reconnaissance to mine development drilling. The companion map 2 shown on page 28 identifies the coal bearing and coal producing areas shown on Map 1.

1.61 In New South Wales government-sponsored drilling such as that under the joint arrangements at Ulan and Mandalong and regional drilling by the Department of Mines is extending knowledge of resources on a regional scale. Drilling sponsored by the Electricity Commission of New South Wales has concentrated on delineating reserves of coal for power

generation in selected locations. Drilling by private interests tends to be for more immediate purposes and hence tends to aim at increasing the reliability of resource assessment rather than locating new resources.

1.62 The Board believes there is a need for a more thorough and co-ordinated approach to the proving and assessment of the nation’s coal resources.

G eological A ctivities

1.63 The rapidly growing interest in New South Wales coal resources resulted in a high demand for the Board’s geological services for exploration purposes and a high demand for advisory services on coalfield geology.

26

LOCATION OF BLACK COAL RESOURCES

Map I

ALICE SPRINGS Θ

IB S: !___

Coal producing areas

Coal bearing areas containing substantial economic resources

Other. areas known to contain coal

27

LOCATION OF BLACK COAL RESOURCES

Map 2

Kiango - Moura District Ip sw ic h M illm erran Singleton - North West District

South Maitland District Newcastle District Western District Burrogorang Volley District South Coast District Fingal Valley

Leigh Creek Collie

COAL BASINS

Laura Basin Carpentaria Basin Galilee Basin Bowen Basin Collide Surot Basin Clarence — Morton Basin Gunnedah Basin Gloucester- Stroud Basin Sydney Basin

Coorobin - Oaklands Basin

12 Wonthaggi 13 Tasmania Basin 14 Pedirka Basin 15 Eromonga Basin

16 Cooper Basin 17 Arckaringa Basin 18 Phillipson Trough 19 Bonaparte Gulf Basin 20 Canning Basin

21 Carnarvon Basin 22 Perth Basin

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1.64 During 1976-77 the Board’s Geological branch was heavily engaged in commis­ sioned prospecting work. Important exploration programmes continued in the Newcastle and Western coalfields and the Clarence-Moreton Basin, and commenced in the Gloucester- Stroud Basin. In addition, intensive detailed investigations were continued in the Upper Hunter Valley. Just over 50,000 metres of drilling was logged by the Board’s geological staff, including nearly 22,000 metres for the Electricity Commission of New South Wales

1.65 The high level of exploration during 1976-77 greatly increased the volume of information available. The Geological branch, assisted by the E.D.P. section, has completed a study of systems and procedures that would need to be implemented should a switch to an E.D.P. system of recording all coal resource data be undertaken.

1.66 Areas near Mandalong and Ulan have been the subject of joint exploration projects involving the Commonwealth Government, the New South Wales Department of Mines and the Joint Coal Board. Drilling was completed during 1975-76 and assessment of the results by the Board’s staff continued during 1976-77.

1.67 In the Mandalong area, west of Lakes Macquarie, Munmorah, Budgewoi and Tuggerah, Newcastle Coal Measures have been shown to contain about 2,000 million tonnes of coal in situ. This virgin coal, mainly of steaming quality, occurs at depths ranging from 250 to 600 metres, with most concentrated in the upper part of the Measures.

1.68 The Mandalong area constitutes a very important resource and its presence will have a very significant bearing on the direction in which future mining in the Newcastle Coalfield will proceed. The Coalfield has now reached the stage at which most of the re­ maining shallower coal close to Newcastle is being worked by existing mines or will be worked by mines expected to operate during the 1980’s. Subsequent mining development will have to move in a westerly direction from the Lakes, i.e. in the Mandalong area or southerly under

Lake Tuggerah and its environs. Moving in a westerly direction has the major advantage of permitting coal extraction with minimum impediment from urban development or the presence of surface waters.

1.69 At Ulan on the northern extremity of the Western Coalfield a strip of coal bearing country approximately 20 km wide, stretching from the Talbragar River about 20 km north of the village of Ulan to the Cudgegong River to the south, has been found to contain in situ steaming coal resources to the order of 14,000 million tonnes at depths ranging from

outcrop to 300 metres. This represents a substantial increase in the resources previously inferred for the area.

1.70 The resource is virtually all contained in a single seam, the Ulan Seam, which ranges up to 15 metres in thickness. Full sections of the seam have ash contents ranging from 11.1 per cent to 46.2 per cent. Not all this tonnage meets current criteria for inclusion as a resource as these specify an upper ash limit of 30 per cent. If this limit is applied, the con­ tained tonnage reduces to around 10,000 million tonnes.

1.71 The bulk of the resource could be used at the present time in a conventional coal-fired power station designed for high-ash coal. A future possibility is fluidised bed combustion which would allow the entire resource to be used in an as mined state. Washing the coal would produce a uniform product with a lower ash content than the run-of-mine coal, but some of the energy content of the resource would be discarded in the process. A further problem to utilisation of the resource is the low rainfall in the Ulan area and the consequent low availability of local water. This might necessitate the transport of the raw coal to the coast and hence substantially increase the cost of transport per heat unit.

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1.72 As mentioned in para 1.81, the mining of seams above 3 metres thick presents problems for full seam recovery when open cut techniques are not applicable. Using current mining methods, only a low fraction of the thick Ulan seam would be recovered. Assuming the use of such methods and selecting the lower ash portions of the seam would reduce the workable amount of the deposit to about 3,000 million tonnes.

1.73 The Ulan area contains a huge energy resource but its full exploitation will require the application of modern techniques and a careful assessment of the economics involved. Similar economic and technological factors as those applying to the Ulan coal resources apply to other coal deposits. As in the Ulan example, the manner in which such factors are applied as criteria in assessing coal resources can affect the apparent size of the resource immensely. In fact, the magnitude of the energy available from coal is to a consider­ able degree dependent on how fully the coal deposits can be exploited and what constraints are accepted as appropriate.

1.74 Expenditure on the Mandalong and Ulan programmes was approximately j $500,000 and taking the figure of 10,000 million tonnes at Ulan, a total resource of about | 12,000 million tonnes was indicated by the two drilling programmes. The cost, therefore, amounted to the extremely modest figure of about $42 per million tonnes of coal located.

1.75 The drilling programme in the Clarence-Moreton Basin jointly undertaken by the New South Wales Department of Mines and the Joint Coal Board has been completed. The basic aim of this programme, which commenced in 1975-76, was to extend stratigraphic knowledge of the Jurassic Walloon Coal Measures and to examine their economic potential.

Under the arrangement drilling costs were shared, field supervision and logging of core was the responsibility of the Department and analytical work, including petrographic analysis, was carried out by the Board. A total of 15 bores, aggregating 4,000 metres, was sunk in the course of the exploration on both the eastern and western flanks of the Basin, but these only confirmed earlier results which indicated that coal seams generally were thin, high in ash content and contained numerous stone bands. Although the drilling was too widely spaced to rule out the possibility of finding economic coal in the area, it certainly has decreased expectations of such a discovery.

M ining Engineering Activities

1.76 The Mining Engineering Branch is responsible for advising the Board on all engineering matters related to the mining of coal in the State. Specific functions of the Branch include the investigation and making of recommendations on applications made under the Board’s Order No. 27 to open or close coal mines or to undertake major developmental work at existing mines, the oversight of coal mining operations to ensure the application of sound mining principles and practices, supervision and monitoring of dust control measures in coal mines and the dissemination throughout the industry of advice and information on engineering developments in coal mining. Frequent contact on these and other matters is maintained with colliery managements through the Board’s mining engineers stationed at

Newcastle, Cessnock, Lithgow and Corrimal.

1.77 In its 1974-75 Annual Report the Board stressed the need for higher recovery factors in coal mining operations. In appropriate areas the extensive application of open cut techniques is an obvious solution. But for a high proportion of resources, underground mining is the only feasible approach. An underground operation generally results in a considerable proportion of the in situ deposit being lost. A somewhat similar situation exists in the oil industry and increased attention is now being paid in that industry to development and application of techniques which will increase recovery factors.

30

1.78 During 1976 a study was made by officers of the Joint Coal Board in which 48 of the 71 operating underground mines in the State were examined relative to seam recovery. The results were necessarily based on estimates rather than on detailed surveys. The following conclusions were drawn:

(1) 24 mines (half those examined) were mining less than full seam height, the portion of seam height worked ranging down to 30 per cent.

(2) From the seam height actually worked, mining recovery varied between 30 and 80 per cent.

(3) Considering the whole of all working seams studied in the sample, mining recovery varied between 17 and 80 per cent, with the mean at 47 per cent.

(4) Saleable recovery of the seams worked varied between 12 per cent and 75 per cent of the in situ figure, with the mean at 40 per cent.

1.79 The survey also showed that there were five cases where workable virgin seams have probably been sterilised by underground mining activities. The survey did not include any mines which were worked out, abandoned, or closed. The detailed results of the survey were included in a paper “The Inadequacy of Current Technology for the Recovery of Coal

Seams by Underground Mining Methods” for the 7th World Energy Conference by Mr M. J. Smith while a Member of the Joint Coal Board.

1.80 In 1976-77 New South Wales black coal production from underground mines amounted to some 37 million tonnes of raw coal. It is fair to conclude that a similar quantity was irretrievably lost in mining operations. At an average value of say $A15 per tonne, this would represent the loss of a non-renewable national resource to the value of $550 million for the year.

1.81 It is in the mining of deep seams and of seams above 3 metres thick that present the greatest problems in relation to full seam recovery. Although some research is being undertaken, principally by Australian Coal Industry Research Laboratories Ltd, into these problems, a much greater research effort is required if a significant improvement in recovery rates is to be achieved. Areas requiring particular attention include:

1. Mining of thick seams. 2. Control of superincumbent and tectonic mining stresses. 3. Control of spontaneous combustion. 4. Problems associated with multiple seam operations,

5. Development of improved extraction techniques and support systems.

Dust Control

1.82 The Standing Committee on Dust Research and Control met regularly during 1976-77 under the Chairmanship of Mr M. J. Smith, then a Member of the Board. The committee has the important task of co-ordinating all work in the area of dust control in the New South Wales coal industry. The committee includes representatives of the New South Wales Department of Mines, the Health Commission of New South Wales, the Miners’ Federation, the New South Wales Combined Colliery Proprietors’ Association, Australian Iron and Steel Pty Ltd, Australian Coal Industry Research Laboratories Ltd and The Australasian Institute of Mining and Metallurgy. Engineering and Medical Officers of the

Board are also on the Committee.

31

1.83 During the year a survey of dust suppression techniques and equipment in use in coal mines on the South Coast and in the Burragorang Valley was carried out on behalf of ’ the Standing Committee by one of the Board’s engineers and the Dust Suppression Officer of Australian Iron & Steel Pty Ltd. The aim of the survey was to assess the efficiency of techniques and equipment currently in use with a view to framing recommendations, in the first instance, in respect of the operation of continuous miners, belt conveyors and ratio feeders.

1.84 The Standing Committee plans to develop a series of recommendations which will set standards for colliery practice or for machinery manufacturers which, if generally adhered to, should improve dust control in the coal mining industry. Some of the matters under consideration, and in respect of which the setting of minimum standards may be appropriate are:

the inner diameter of hoses supplying water to a continuous miner; the use of a dual water system on continuous miners; the installation of an improved type of water filter; the addition of high capacity sprays beneath the miner head; the use of separately controlled sets of sprays on each side of a continuous miner;

1.85 The Standing Committee also discussed the need for increased publicity concerning the hazard of men working ahead of the brattice or ducting. Consideration is being given to the display on colliery notice boards of actual individual dust counts showing the dramatic increases which occur in dust concentrations ahead of, or level with, the brattice. The aim would be to make operators and deputies more aware of the health hazard involved in such circumstances.

1.86 The programme to evaluate American and British gravimetric personal dust samplers is continuing with some modifications having been made to the units purchased for this programme.

1.87 Details of dust counts taken in New South Wales coal mines are given in para 2.127.

Joint Coal Board—H ealth Services .

1.88 The Board s Medical Division continued during 1976— 77 to monitor the general health of coal miners and check new entrants to ensure they meet the pre-employment medical standards. Accent is on health maintenance and the practice of preventive medicine. A comprehensive account of all facets of the medical scheme was given in the 29th Annual Report.

. , ,. Table 3 sets out the number of medical examinations carried out at the Board’s Medical Bureaux during 1975-76 and 1976-77. The number of periodic routine examinations increased in 1976-77 but there was a slight reduction in the number of new entrants examined. The number of restricted certificates fell to 12. A restricted certificate may be issued to a new

entrant with a disability normally sufficient to exclude him from the industry. This occurs

32

when a mine manager, knowing the disability, requests the man’s services for a particular job for which the disability is not a handicap. The restriction is recorded on the man’s certificate of fitness. In addition to routine examinations, periodic examinations are required for certain occupations, e.g. eyesight and hearing tests for deputies, locomotive drivers and

winding-engine drivers and, for mines rescue personnel, an annual general physical examin­ ation.

TABLE 3.—PRE-EMPLOYMENT AND ROUTINE MEDICAL EXAMINATIONS—NEW SOUTH WALES COAL INDUSTRY

Medical Bureau | Cessnock Newcastle Lithgow Wollongong Total N.S.W.

Pre-employment:

Accepted—without restriction— 1975-76........................................... 67 316 123 803 1,309

1976-77........................................... 229 231 124 676 1,260

Accepted—restricted— 1975-76........................................... 1 14 2 6 23

1976-77........................................... 4 4 1 3 12

Rejected— 1975-76........................................... 1 19 11 42 73

1976-77........................................... 9 12 8 21 50

Periodic routine: 1975-76............................................ 633 1,127 246 1,907 3,913

1976-77...........................................j 743 1,555 192 1,976 4,466

1.90 Prevalence studies of pneumoconiosis occurring among working coal miners have been carried out by the Medical Division at intervals since 1948. With the transfer of the Board’s medical histories of mineworkers to a computer data bank nearing completion, it was possible during 1976-77 to make a preliminary examination of the prevalence of pneumoconiosis as revealed during the routine medical examinations of mineworkers carried

out between June 1970 and June 1973. Details of the results of this study are given in Part 7.

1.91 First Aid training is undergoing a change with the introduction to the coal industry of the St John Ambulance Audiovisual Learning Programme. Much costly re­ search has gone into the development of the programme, which is based on the scientific i principle that the brain absorbs more knowledge through simultaneous appeal to the eye and

ear. Film strips are projected onto a screen and synchronised with a commentary recorded on cassette tape. A complete unit with projector, cassettes, film strips, instructor manual and sets of questions, cost about $1,000. The Board has purchased five units, one for each District Office. Instructors trained to use the equipment may borrow the units.

1.92 Audiovisual equipment has been installed in the waiting rooms of the Joint Coal Board Medical Bureaux. The first film shown was “View from Below” which was made for the Joint Coal Board as an introduction to coal mining. Primarily it is intended to orientate new entrants though all employees can benefit from seeing it. As men from all mines visit the medical bureaux, the audiovisual equipment will be a valuable means of

disseminating information and as other films and tapes become available they will be shown as part of health and safety training.

Staff

1.93 At 30 June 1977 there were 203 permanent officers, 7 temporary and 4 part-time employees in the Board’s service. Of these, 53 were engaged exclusively on workers’ com­ pensation insurance activities and 9 were on the staff of the Coal Industry Tribunal and of Local Coal Authorities.

33

G 44102J—3

1.94 Table 4 shows the numbers employed within the various branches at the Board’s Sydney and District offices at 30 June 1977.

TABLE 4.—JO INT COAL BOARD—STAFF, 30 JUNE 1977

Branch or Section Sydney

New­ castle

Cessnock Lithgow Wollon­ gong Singleton Total

A cco u n ts.................................... 13 13

Electronic D ata Processing .. 10 10

Geologv ................................ 9 6 12 27

Insurance ................................ 46 3 1 3 53

Marketing and Fuel Tech- nology ................................ 6 12 18

Medical .................................... 2 5 2 8 17

Mining Engineering ............... 4 6 6 i 4 i 22

Secretariat ................................ 23 23

Statistics .................................... 7 7

Transport and Maintenance.. 6 i 7

Welfare and L ib rary ............... 4 4

Attached to Coal Industry Tribunal and Local Coal A u th o rities............................ 4 3 2 9

P art-tim e.................................... 1 3 4

Total ........................... 134 24 36 1 18 1 214

1.95 On 27 October 1976, the Board was declared an employing authority within the meaning of the Superannuation Act, 1916 of the New South Wales Parliament with effect on and from 16 December, 1976. As a result employees were given an option to join the State Superannuation Fund. At 30 June 1977 there were 87 officers remaining in the Joint Coal Board’s scheme, one officer was a contributor to the Commonwealth Government superannuation scheme, 23 officers had been exempted and 99 officers were either already contributors or eligible to become contributors to the State Superannuation Fund.

Statistics

1.96 Producers, distributors, consumers and public authories in all States furnished source data used in the compilation of the tables within this Report and in the appendices. In certain tables the information extends to the coal mining industry throughout Australia. These tables are vital to the understanding and appreciation of the operations and problems

of the Australian coal mining industry. The Board gratefully acknowledges the co-operation received from the various groups concerned and, in particular, the Queensland Coal Board and the Australian Bureau of Statistics. The Statistical Appendix 3 includes data on_ Production,

Markets, consumption and stocks, Employment, Production per manshift worked, Losses from stoppages, Manshifts worked and lost, Mechanisation, Primary energy.

34

J oint Coal Board—F inances

1.97 The Coal Industry Acts of the Commonwealth and New South Wales Parlia­ ments under which the Joint Coal Board is constituted, require it to maintain: (a) a Coal Industry Fund; (b) a Welfare Fund; and

(c) a Workers’ Compensation Fund.

Balance sheets and accounts of the three funds for the year ended 30 June 1977, in the form prescribed by the Coal Industry (Finance) Regulations, follow.

1.98 The accounts of the Workers’ Compensation Fund record the financial operations of the Board’s workers’ compensation insurance scheme. Those of the Welfare Fund record the moneys allocated for and directed to the health, safety and welfare of the mineworker and the welfare of the community in which he lives.

Coal Industry Fund

1.99 The accounts of the Coal Industry Fund record the financial transactions of the Board not covered by the other two statutory funds and are presented in three sections as prescribed by the regulations. These sections are the Administration Account, the Research and Investigation Account and the General Account. In the following paragraphs, all figures are given to the nearest $1,000 and the figures shown in brackets relate to 1975-76. Additional information is given in the notes attached to the accounts which appear on pages 47 to 48.

1.100 Some of the operations of the Board are self-financing. The Commonwealth and New South Wales Governments meet in equal proportions those costs and expenses which are not chargeable to the self-supporting operations. The Administration Account shows the net expenditures from the contributions of the two Governments. For reasons of account­ ing conveniences most administrative expenses are paid initially from the Administration Account, but those relating to the self-supporting operations are allocated to and recovered from the respective Accounts and Funds concerned. The salaries and employer’s contri­ butions to the superannuation of officers employed full-time in the workers’ compensation insurance, electronic data processing and medical activities, and in certain technical operations

are not shown in the Administration Account. The cost of the services of officers who are not employed exclusively in these operations are included in the expense allocations to the other Accounts and Funds. In 1976-77, expenditure shown in the Administration Account totalled $2,242,000 ($2,402,000). Various receipts contributed $55,000 ($49,000), and

$693,000 ($901,000) was recovered from the other Accounts and Funds. The Common­ wealth and New South Wales Governments each contributed $793,000 ($736,000); the increase over 1975-76 being only 7-7 per cent, i.e. considerably less than the rise in the consumer price index. Cash at bank at 30 June 1977 was $117,000 ($25,000).

1.101 The Research and Investigation Account covers the cost of the Board’s fuel technology service, its geological investigations and related laboratory work and certain areas of medical and technical research. The Commonwealth Government made a contribution towards the cost of these activities up to and including the financial year 1974-75. Since then they have been financed wholly from the Board’s income arising from the provision of

geological and fuel technology services to the industry and from an allocation from the Workers’ Compensation Fund. In 1976-77, expenditure totalled $610,000 ($494,000). Expenditure in 1976-77 included an amount of $91,000 ($7,000) representing the Board’s share of the cost of a drilling programme to investigate the potential of the Walloon Coal

Measures of the Clarence-Moreton Basin in the north-east corner of the State. The cost of the project was shared with the New South Wales Department of Mines. Major sources of

35

finance were laboratory charges for sampling and testing, $200,000 ($131,000), geological supervision $142,000 ($127,000), and an allocation of $291,000 ($245,000) from the Workers’ Compensation Fund. Cash at bank at 30 June 1977 was $39,000 ($10,000).

1.102 The General Account is a general purpose account through which the Board conducts the management of its properties, the receipt of royalties and agency fees, the provision of insurance cover for some of its assets, and the financing of activities not con­ veniently conducted through the other Accounts and Funds. The self-insurance cover does not include workers’ compensation which is insured with Coal Mines Insurance Pty Ltd, nor public risk, motor vehicles and the properties in the Sydney Cove area, all of which are insured with the Government Insurance Office of New South Wales. The item, research and experiment covers peripheral matters not appropriate to the Research and Investigation Account, such as a contribution to a conference on coal research, an exhibition at a geological congress and expenditure on the development of a fluid impulse core-lifter. In 1976-77, operations conducted through the General Account resulted in a surplus of $182,000 ($178,000). Unappropriated profits brought forward were $447,000 ($440,000). These were increased by the transfer of the balance in the asset replacement reserve, $150,000, a reserve which is not now required. The accumulation of funds for periodic repainting is provided for by the provision for deferred maintenance. At the end of the year, profits

available for appropriation totalled $778,000 ($618,000). The general reserve was increased by $150,000 and the balance, $628,000 ($447,000), was carried forward.

1.103 Among the operations conducted through the General Account of the Coal Industry Fund are the Board’s short-term investment activities. Soon after the establishment in Australia in 1959 of a short-term money market, the Board found it profitable to unite the liquid resources of its various Accounts, Funds and trusts for employment in the market.

With the development of expertise in this field of investment, the Board has provided, without any charge, its services to certain associated organisations, some of which would not, without this assistance, have been able to invest their funds in the short-term money market. Note 4 attached to the balance sheet of the Coal Industry Fund gives details of contributions from

the Accounts and Funds and other organisations to the short-term investment pool. At 30 June 1977 the sum invested totalled $4,779,000 ($1,325,000).

1.104 Reference is made in para. 1.43 to a joint research project involving the con­ struction and operation of a fluidised bed combustor pilot plant. The Board is to pay all the capital costs associated with the construction of the plant. Capital costs to 30 June 1977 totalled $153,000 of which $22,000 was written off as depreciation. (See Note 2).

1.105 Included in the balance sheet are funds totalling $220,000 ($205,000) held in trust for the Greta Coal Research Committee, of which the Minister for Mines and Energy is Chairman.

1.106 The balance sheet of the General Account shows at 30 June 1977 a provision for employer’s liability to the State Superannuation Fund totalling $543,000.

Thf. Welfare F und

1.107 The Board administers this Fund as a means whereby financial assistance can be provided for such projects as the Board considers will benefit the mineworker in three areas: (a) his health and safety, (b) his domestic welfare, and (c) the welfare of the community in which he lives. Expenditure towards the health and safety of the mineworker is met from funds allocated each year from the Workers’ Compensation Fund. Expenditure in respect

36

u >

Presentation of Japanese Language Scholarship Prize

Left to right: Mr K. Oka (Mitsubishi (Aust.) Pty Ltd), Mr K. G . VVybrow (Member, Joint Coal Board), The Hon. P. D . Hills, M.P. (Minister for Mines and Energy), Miss C. G. Johnson, Mr N . Takedo (Japanese Consul General), Mr Y . Kawamoto (Nippon Steel Corporation) and Mr K. Suehiro (Mitsui & Co (Aust.) Ply Ltd).

of the other areas, including the cost of administering grants made, is met from the investment income of the 3Velfare Fund. The Balance Sheet and Statement of Income and Expenditure for 1976-77 are included in this Part.

1.108 In 1976-77, the allocation from the Workers’ Compensation Fund was $570,000 ($503,000). The operating costs of the Board’s medical services totalled $503,000 ($439,000). Other expenditure increased to $71,000 largely as the result of a doubling of the amount of the subsidy paid to encourage the wearing of safety boots (see Part 7).

1.109 Investment income totalled $128,000 ($126,000), derived mainly from semi- governmental stocks and company debentures. At 30 June 1977 the book value of investments totalled $1,894,000, unchanged from the previous year. Details of the investment portfolio are given in Note 2 to the Accounts of the Welfare Fund. In addition

to the portfolio, at 30 June 1977, $20,000 ($70,000) was held at call in short-term money market investments.

1.110 Expenditure included $5,000 ($8,000) paid in subsidies to miners’ co-operative building societies (see para 1.114), $3,000 ($3,000) in university scholarships, $1,000 ($1,000) in sponsoring education at technical college level (see para 1.12) and $32,000 ($32,000) in funeral benefits. Administration and miscellaneous items cost $19,000 ($17,000). Funeral benefits comprise grants, usually of $100, paid to the widow or other eligible person who kept house for a deceased mineworker, or to the person who accepted responsibility for the funeral expenses. Payment is subject to a donation also being made to that person by the employees of the colliery where the deceased mineworker had been employed, by employees of a related colliery pr from lodge funds.

1.111 In the field of community welfare, assistance is directed towards providing opportunity for group activity in the communities in which the mineworkers reside, and the provision of certain types of equipment for hospitals, schools, ambulance services, libraries and sporting and other recreation facilities. Grants up to, but not exceeding, 50 per cent of the cost of community projects are made to local government bodies and other organisations. Many community projects are completed in stages as local finance becomes available. As the Board makes its payments against a grant progressively on a pro-rata basis according to work completed, only a relatively small part of the funds committed in a financial year are actually paid in that year.

1.112 Commitments entered into during 1976-77 included $32,000 for halls, centres and libraries, $23,000 for outdoor recreational facilities, $9,000 for hospitals and ambulance services and $7,000 for technical colleges and other schools. Included in these grants was a donation of $5,000 to the Hunter Valley Theatre Co. Ltd for the promotion of drama, opera and other cultural arts in the Newcastle and Hunter Valley districts.

1.113 In 1976-77, the total commitment entered into in respect of community welfare was $74,000 ($56,000), but only $5,000 ($8,000) was paid during the year against these new commitments. The total amount paid against approved grants in 1976-77 was $51,000 ($37,000). Unexpended balances of commitments of previous years totalling $6,000 were cancelled. The total of all grants outstanding at 30 June 1977, including balances outstanding from previous years, was $112,000 ($95,000).

1.114 Between 1949 and 1953, in order to improve the living conditions which then prevailed in coal mining centres, the Board sponsored twenty-three terminating building societies. At 30 June 1977, all but 6 of these societies had reached their terminating dates and had been wound up, or were being wound up. All of the societies still operating are expected to wind up within the next two years. Subsidies paid in 1976-77 totalled $5,000 bringing the total amount paid since the formation of the societies to $869,000. At 30 June

1977, the 6 remaining societies had 161 members qualified for subsidy.

38

Workers’ Compensation F und

1.115 The financial results of the Board’s workers’ compensation insurance scheme for the financial year 1976-77 were better than had been budgeted. By conventional accounting methods, the result was a large profit. However, conventional accounting methods make no provision for the erosion of existing reserves by reason of inflation. It is,

therefore, desirable that substantial increments be made to reserves from time to time in order to maintain their value in real terms. The 1976-77 profit made it practicable to increase reserves and to reduce the premium rates which will apply in the policy year commencing 1 October 1977. The reduction will be from an average of 8-5 per cent to an average of 7-5 per cent of declared wages.

1.116 The ultimate cost of outstanding claims, both known and unnotified, depends on future developments including variations in the rates of compensation provided under the Workers’ Compensation Act, 1926. From 1 May 1975 statutory rates were increased by 50 per cent and the consequential adjustment of provisions was very large. There was no increase in rates in 1976-77. An amendment of the Act to increase compensation rates was made in December 1977.

1.117 The overall operating profit of $10,339,000 ($1,629,000) provided the means for an allocation of $7,000,000 to the reserve for contingencies. Other allocations were $570,000 ($503,000) to the Welfare Fund, $291,000 ($245,000) to the Research and Investigation Account, $190,000 to the adjustment of existing provisions for depreciation,

and $78,000 to the investment fluctuation reserve. Unappropriated profits carried forward totalled $2,736,000 ($527,000).

1.118 The Coal Industry Acts provide that the Board is to have power to establish workers’ compensation insurance schemes and to require any employer in the coal industry in the State to effect with or through the Board all workers’ compensation insurance in respect of his employees in that industry. The Board’s workers’ compensation insurance scheme

was inaugurated on 1 October 1948. The financial operations of the scheme are conducted through the Workers’ Compensation Fund, one of the statutory funds which the Board is required by the Coal Industry Acts to keep. The accounts of the Workers’ Compensation Fund for 1976-77 are included in this part of the Report—see pages 54 to 57.

1.119 The administration of the workers’ compensation insurance scheme has been delegated to Coal Mines Insurance Pty Ltd, a company in which all of the shares are beneficially owned by the Board. The shareholding is shown as an asset in the balance sheet of the Workers’ Compensation Fund. The audited balance sheet and profit and loss account of

Coal Mines Insurance Pty Ltd for 1976-77 appear on pages 58 to 62.

1.120 In this Part, unless otherwise stated, the figures for the Workers’ Compensation Fund and for Coal Mines Insurance Pty Ltd are consolidated. Figures shown in brackets relate to 1975-76. Reference is made to the terms, “financial year” and “policy year” . Policies issued under the Joint Coal Board’s workers’ compensation insurance scheme have a common renewal date on 1 October. The policy year, therefore, commences on 1 October

and concludes on 30 September. The Board’s financial year runs from 1 July to 30 June.

1.121 At 30 June 1977, policies current under the Board’s workers’ compensation insurance scheme, on which the Board is directly liable as principal, numbered 131 (121) and covered some 16,000 employees. An additional 22 (21) policies were current on which Coal Mines Insurance Pty Ltd was liable as principal. These are in respect of employers in or

closely associated with the coal industry who have employees engaged in operations not conveniently covered under the Board’s scheme.

39

1 122 Wages declared for the assessment of premium, after certain concessional deductions, totalled $212,597,000 ($166,075,000), an increase of 28.0 per cent, the result of I higher wage rates and more employees. The percentage increase in premiums assessed, , 31-1 per cent, was even greater because the premium scale has been increased on 1 October

1975. The higher scale was applicable throughout the financial year 1976-77. The average premium rate obtained rose from 8.2 per cent of declared wages in financial year 1975-76 to 8.5 per cent in financial year 1976-77. Gross premiums totalled $18,773,000 in 1976-77, and $14,321,000 in the previous year. Training rebates (see para 7.11) allowed in 1976-77 totalled $330,000 ($267,000). Net overall premium income was $18,581,000 ($14,262,000), an increase of 30.3 per cent.

1.123 Overall investment earnings increased from $4,052,000 to $4,816,000 partly because of a higher average yield and partly because of an increase in the total amount invested. Excluding property investment, the yield on average funds invested in 1976-77 was 8.36 per cent compared with 8.0 per cent for the previous year. The improvement was

due, to some extent, to the replacement of older investments by new investments at higher interest rates.

1.124 Although there was no variation in the statutory rates of compensation, payments under the Workers’ Compensation Act less recoveries, including those resulting from the settlement of claims at common law, absorbed $5,890,000 ($4,868,000), an increase of 21Ό per cent. A factor in this increase was a rise of 9-7 per cent to 9,269 in the number

of claims lodged during 1976-77. This increase and other aspects of accident experience are discussed in the second section of this Report at para 7.1. In addition, common law settle­ ments cost $2,517,000, a reduction of $601,000, there being fewer claims matured to the

settlement stage. The number of new writs received during 1976-77 was a little above the ten-year average. Under awards of the Coal Industry Tribunal, a mineworker in receipt of workers’ compensation is entitled to have his compensation made up to his classification wage plus production bonus for the period of his incapacity, up to a maximum of 26 weeks. These make-up payments are called accident pay. In 1976-77, they absorbed $2,746,000, an increase of $815,000, reflecting the additional number of claims lodged, the higher average earnings of mineworkers and also the average period on compensation. Payments on claims in 1976-77 totalled $11,226,000, compared with $9,928,000 in 1975-76.

1.125 Provisions for outstanding claims were increased by $196,000 to $36,505,000 at 30 June 1977. In 1975-76 these provisions had been increased by $5,311,000 to $36,309,000. The total cost of claims, i.e., payments plus increase in outstandings, for 1976-77 was $11,422,000. The corresponding figure for 1975-76, $15,239,000, was greater because of

costs related to the amendment of the Workers’ Compensation Act which came into effect on 1 May 1975.

1.126 Table 5 shows the costs of workers’ compensation and common law claims and accident pay, as well as the actual expenditure on claims, in each of the last ten years. Deducted for the years 1975-76 and 1976-77 were provisions, respectively of $350,000 and $219,000, in respect of amounts recoverable from Medibank for the period between its commencement on 1 July 1975 and 1 October 1976 when insurers ceased to have a right to Γξ™bursement. Moneys actually received in reimbursements to 30 June 1977 totalled

■ The figures aiso allow for recoveries by Coal Mines Insurance Pty Ltd of $22,000 m 1975-76 and $17,000 in 1976-77 from the Workers’ Compensation Insurers’ Contribution

40

TABLE 5.—COST OF CLAIMS AND PAYMENTS AGAINST CLAIMS (a )— $ ’0 0 0

Year

Cost o f Claims

Payments against claims Workers’ compensation

Common law

Accident pay (b) Total

1967 68 ................... 3.183(c) 487 3,670 2,446

1968 69 ................... 1,786(4) 919 2,705 2,564

1969-70 .................. 2,327(4) 2,167 4,494 3,154

1970-71 ........ .......... 2.354(c) 1,812 4,166 3,571

1971-72 ................... 5.547(c) 1,089 6,636 4,274

1972-73 ................... 3,772 1,774 5,546 4,553

1973-74 .................. 2,925 1,381 651 4,957 5,316

1974-75 .................. 9.239(c) 1,094 1,580 11,913 6,777

1975-76 .................. 10,707 2,601 1,931 15,239 9,928

1976-77 .................. 5,991 2,685 2,746 11,422 11,226

(а) This table includes Coal Mines Insurance Pty Limited.

(б) Accident pay awarded by the Coal Industry Tribunal with effect from 2 July 1973. (c) Workers’ Compensation Act amended during year. id) Revised actuarial valuation basis.

1.127 Consolidated management and similar expenses totalled $1,646,000 ($1,415,000), an increase of 16.3 per cent, due principally to inflation but also, in part, to a continuing need to expand computer facilities. Table 6 shows, for each of the last ten years, the ratios of management expenses to other financial indicators.

TABLE 6.—MANAGEMENT EXPENSES (a)

Cost per claim lodged

Management expenses as a percentage of

Year Management

expenses Net

premium income

Total income

Payments made on claims

$’000 $ per cent per cent per cent

1967-68 ...................... 319 60-55 15-1 7-8 13-0

1968-69 ....................... 340 64-13 16-8 8-3 13-2

1969-70 ...................... 394 68-74 14-3 7-9 12-5

1970-71 ...................... 507 87-45 14-9 8-8 13-5

1971-72 ...................... 552 87-13 14-2 8-7 12-9

1972-73 ...................... 611 95-84 13-3 8-5 13-4

1973-74 ....................... 742 109-26 12-3 8-4 14-0

1974-75 ....................... 1,006 125-17 10-4 7-7 14-9

1975-76 ...................... 1,254 149-51 8-8 6-8 12-6

1976-77 ...................... 1,430 154-33 7-7 61 12-7

Ten years to June 1977 10-5 7-4 13-4

(a) This table includes Coal Mines Insurance Pty Limited.

41

G 44102J—4ff

1.128 The consolidated net operating profit for the year was $10,408,000. Coal Mines Insurance Pty Ltd is liable for income tax estimated at $69,000. The balance, $10,339,000, together with unappropriated profits brought forward, $527,000, made a total of $10,866,000 available for appropriation. An initial depreciation charge relating to buildings in the Sydney Cove area absorbed $190,000 (see Accounts Note 2).

1.129 Another change, consistent with newly established accounting standards, is in respect of capital profits and losses on the realisation of investments. Heretofore, these have been written off to the investment fluctuation reserve, a reserve maintained for that purpose. These items are now shown in the Revenue Account although a corresponding

adjustment may be made to the investment fluctuation reserve through the Profit and Loss Appropriation Account. During 1976-77, the proceeds of investment maturities exceeded book values by $78,000 and this is shown in the Revenue Account. A corresponding appropriation was made to the investment fluctuation reserve which at 30 June 1977 stood at

$1,765,000.

1.130 In 1976-77, $570,000 ($503,000) was allocated to the Welfare Fund (see para 1.108). In addition, $291,000 ($245,000) was allocated to the Research and Investigation Account to meet the cost of certain medical and technical research. The transfer of $7,000,000 to the reserve for contingencies is dealt with in para 1.134. The balance remaining in the consolidated profit and loss appropriation accounts after these movements was $2,736,000 ($527,000), of which $2,722,000 ($502,000) was to the credit of the Fund and $15,000 ($24,000) to the credit of the company. These figures include a dividend of $90,000 ($120,000) from

the company to the credit of the Fund.

1.131 Provision is made in the Workers’ Compensation Fund and in the accounts of Coal Mines Insurance Pty Ltd for all claims of which notice has been received at the balance date. Future liability under the Workers’ Compensation Act is calculated in each case at the statutory rates of benefit current at the date of valuation. The calculation of future liability is made on a claim by claim basis. The Board’s consulting actuaries value some outstanding claims, but the great majority are valued by the Insurance Manager. Common law actions are provided for on the basis of their estimated cost additional to the provision already made for liability under the Act. The provisions for outstanding claims shown in the balance sheets of the Fund and the company are the sum of the provisions made for the

individual claims together with a provision for workers’ compensation claims incurred but not reported at balance date (see Notes 1 and 5 (c)).

1.132 Although long-term claims are only a small proportion of the claims lodged in any year, they account for a high proportion of the annual cost. The rates of compensation payable in respect of such claims are subject to future amendments of .the Workers’ Compensation Act. Failure to provide adequately for future increases in the prescribed rates of compensation would lead inevitably to a situation where a future premium rates must be loaded to pay for past accidents.

1.133 From the inception of its workers’ compensation insurance scheme, the Board has made provision for future increases in the rates of compensation, and has kept this provision under review. The Board’s consulting actuaries have calculated that, in a sample of 709 long-term cases, inflation continuing at the comparatively modest rate of 6.5 per cent per annum would add $13,066,000 to the liabilities of the Fund and the company, even after allowance had been made for future interest earnings.

1.134 At 30 June 1975, the reserve for contingencies stood at $8,000,000. It was increased to $9,000,000 at 30 June 1976 and to $16,000,000 at 30 June 1977. In addition, there is a general reserve of $5,000,000. The general reserve, the research and investigation

42

I reserve, the investment fluctuation reserve, the reserve for contingencies and the balance to | the credit of the profit and loss appropriation account, represent the accumulated funds of ! the Workers’ Compensation Fund. At 30 June 1977, accumulated funds totalled $28,237,000 : ($18,939,000). The paid capital and reserves of Coal Mines Insurance Pty Ltd at 30 June

1977 totalled $615,000 ($624,000). The value of the company’s shares in the books of the Fund was $593,000. The difference between these two figures increased the total accumulated funds held in the Fund and the company to $28,259,000. ................

i 1.135 The reserves and provisions of the Fund and the company are invested in real estate, Commonwealth loans, semi and local government securities, company debentures and certain other securities approved by the Commonwealth Treasurer under the Coal Industry Acts for investment by the Board (see Note 3).

1.136 During 1976-77, the Board purchased, at a cost of $1,785,000, three additional properties in the Sydney Cove area adjacent to its head office. Seven properties are held in the Workers’ Compensation Fund and one in the Coal Industry Fund. The potential for unified development when the property market recovers from the current recession fully justifies the retention of these investments. Re-development of the site which has frontages

to Pitt Street and the newly redesigned Macquarie Place will make an important contribution to the City Gateway concept for Sydney Cove. In the meantime Sirius House and some of the adjoining accommodation serve the Board as its headquarters. The balance is available for letting. The terms of leases do not, in general, run beyond 1978 but may be renewed subject to special provisions to ensure vacant possession should a redevelopment programme be implemented. The Board has decided to write the book values down by way of annual depreciation charges to the U.C.V. of the land at the time of purchase (see Note 2).

1.137 In the Board’s 29th Annual Report, reference was made to the financial commitments in respect of the construction of the Mount Thorley rail terminal and the road system which will serve it. The Board has taken a long-term lease from the Public Transport Commission of New South Wales (PTC) on terms which require the Board to pay to the PTC its costs in acquiring the land and constructing the rail loop line at Mount Thorley. In

addition the Board has entered into arrangements to lend up to $1,500,000 to the Singleton Shire Council for roadworks in the Mount Thorley area.

1.138 During 1976-77, the Council sought and received $750,000. This loan is included in the Balance Sheet as a semi-government stock. It is secured by mortgage under the Local Government Act, 1919, and is subject to the maximum rate of interest prescribed by the Loan Council at the time of application. The Singleton Shire Council is expected to

draw down additional funds during 1977-78. The resumption of land for and the construction of the rail loop is paid for, in the first instance, by the Public Transport Commission, which then claims reimbursement from the Joint Coal Board. At 30 June 1977 reimbursements made and claims in hand totalled $519,000 (see Note 5—Commitments at Balance Date (a) and (b)).

1.139 Investments which will mature in 1977-78 are not included in the investment portfolio and are shown separately in the balance sheet. The book value of the shareholding in Coal Mines Insurance Pty Ltd is also shown separately in the balance sheet of the Fund. At 30 June 1977, the book value of the portfolio held in the Fund was $50,947,000

($48,475,000) and its market value was $42,890,000 ($40,111,000). The book value of investments held in the company was $929,000 ($929,000) and their market value was $800,000 ($807,000). The Board does not, except in an exchange for the purpose of improving the yield on a particular stock, realise investments before maturity. The investment

fluctuation reserve, $1,765,000 at 30 June 1977, is maintained to cover any loss which might occur in such exchanges.

43

1 140 In addition to the portfolio, there are fixed-term investments which will mature within twelve months and moneys held in the short-term investment pool in the Coal Industiy

($2 707 000) and moneys held in the short-term investment pool totalled $4,097,000 t$215 000) ’ Including debtors and cash at bank, but excluding moneys owing one to the other the" current asfets of the Fund and the company totalled $9,693,000 ($4,689,000), equal’to 14-7 per cent (8-4 per cent) of total assets. Investments maturing on 30 June 1977 contributed to the high degree of liquidity shown in the balance sheet of the Fund.

1.141 The premium rates payable to the Board’s Workers’ Compensation Fund are industry rates, payable in respect of all employees, and are not occupational rates. The premium charged by the Board is inclusive of the common law indemnity required by the Workers’ Compensation Act, and no additional charge is made for indemnifying the policy­ holder against liability for accident pay and those liabilities which, in other industries, are covered under the Dust Diseases Act, and for which an additional premium is charged. In addition to the common law indemnity of $100,000 per worker provided by the prescribed

policy, policies issued under the Board’s workers’ compensation insurance scheme may be extended, on payment of an additional premium, to afford greater cover at common law.

1.142 As mentioned earlier the average premium rate before addition of the surcharge for additional common law indemnity has been reduced to 7.5 per cent from 1 October 1977. The rates to be charged will range from 2.5 to 12.5 per cent of declared wages. In determining the premium rate for a policy, regard is had to accident experience over recent years. Details are given in Part 7.

Coal M ines I nsurance Pty Ltd

1.143 Coal Mines Insurance Pty Ltd administers the Board’s workers’ compensation insurance scheme, but its underwriting liability is now limited to the comparatively few policies it issues as principal. Net premium income in 1976-77 was $138,000 and other income $85,000. After provision of $69,000 for income tax, the total available for

appropriation was $105,000. The provision for dividend is $90,000 leaving retained profits at 30 June 1977 of $15,000 ($24,000). In its 28th Annual Report, the Board reported that liability for common law claims relating to injury sustained prior to 1 October 1970, which had been underwritten by the company as a delegate of the Board and which had not been

settled, had been transferred to the Board (see Note 6 to the Company’s Accounts).

1.144 Reference is made in the company’s balance sheet to the liability accepted by the Commonwealth Government under war-time price fixing arrangements, for compensation costs in excess of $2,000 in any one case. This liability known as the “Old liability”, was assumed by the Board as from 1 October 1948. Payments by the Board under the

arrangement to 30 June 1977 totalled $6,182,000. At that date, there were still current 89 ky the arrangement. Future liability as at 30 June 1977 was estimated at $1,032,000, of which former self-insurers were primarily liable for $46,000 and Coal Mines ‘> IJSUua rCe ^ kid for $986,000. This item appears in the Balance Sheet under the heading

Liabilities Indemnified by Joint Coal Board” . The contra item records the fact that the Board has indemnified the company against its primary liability for this amount.

r n l · 145 Th?re is an uncalled liability on the company’s shares of $900,000. The , ° y - as entered into a covenant that, while it remains the beneficial owner of all the issued , es ir! oa . lnes Insurance Pty Ltd it will provide, in the event that the company’s assets me insufficient to pay its liabilities, sufficient funds to enable it to discharge such liabilities.

44

JOINT COAL BOARD

COAL INDUSTRY FUND

BALANCE SHEET

As at 30 June 1977 (to the nearest dollar)

Previous j Year

$

800,000 150.000

102,340 170.000 500.000

446,504

237,857

10,322

205,354

2,622,377

Liabilities

GENERAL ACCOUNT— Accumulated funds— Reserves— Self-insurance ...............

Asset replacement (Note 5) Investment fluctuation (Not 3) ..................................

Washery refuse research . General (Note 5) ............

Profit and Loss Appropria­ tion Account .......

Current Liabilities— Sundry creditors and accruals

Deferred Liabilities— Provision for deferred main­ tenance ...............

Provision for employer’s lia­ bility to State Superannua­ tion Fund (Note 6) ..........

Trust Account— Greta Coal Research Fund

Current Year

Previous Year

$ $

800,000

102,310 170.000 650.000

341,972

628,224

417,466

45,931

13,322

543,478

1,576,176

189,628

199,000

31,425 32,891

219,703 205,354

3,544,503 2,622,377

Assets

$ GENERAL ACCOUNT— $

Fixed Assets— Land, buildings and lease­ hold improvements at cost 592,007 ( N o t e ! ) ............................. 593,611

Deduct provision for de- 250,035 preciation and amortisation 276,530

Equipment and furnishings 60,318 at cost ............................. 87,256

Deduct provision for de- 14,387 preciation ......................... 22,296

Fluidised bed combustor (Note 2 ) ............................. 153,449

Deduct provision for de­ preciation ......................... 22,241

Fixed term securities at cost (Note 3 ) .............................

Current Assets— 87,681 Trade debtors ................. 249,578

Deduct provision for doubt- 2,000 ful debts ......................... 2,000

85,681 147,578

Add other debtors and pre- 103,947 payments ......................... 378,492

1.325.000 Short term investments .. 4,778,500 Deduct contributions from other funds and organi- 1.126.000 sations (Note 4)................. 4,769,500

Other in vestm en ts m a tu rin g within twelve months (Note

Cash on hand and at bank

Trust Account Assets— Greta Coal Research Fund— 200,000 Investments ..................... 214,000

5,354 Cash at bank ................. 5,703

Current Year

$

317,081

64,960

131,208

2,170,338

526,070

9,000

70,432 35,711

219,703

3,544,503

JOINT COAL BOARD

COAL INDUSTRY FUND

BALANCE SHEET

For the year ended 30 June 1977— c o n tin u e d

Previous

$

117,661

117,661

Liabilities

ADMINISTRATION ACCOUNT— As per contra . . . .

Current Year

$

Previous Year

$

224,611

34,037

I I , j 57,540 * 31 !

1,000

339

24,714

$ ADMINISTRATION ACCOUNT— $ I Assets, as specified below— j

Office furniture and fittings j

81,762 at cost .............................. 87,782

Deduct provision for de~ 47,725 preciation ......................... 46,914

87,400 Motor vehicles at cost . . . . 102,675 Deduct provision for de- 29,860 preciation ......................... 37,400

1,990 Garage equipment at cost .. 1,969 Deduct provision for de- 1,959 preciation ......................... 1,766

48.507 Library books at cost ---- 51,004

Deduct provision for de- J

47.507 preciation ......................... 50,004 |

Engineers’ and surveyors’ 3,740 equipment at cost .......... 3,134

Deduct provision for de- 3,401 preciation ......................... 2,783

Cash on hand and at bank

Current Year

$

40,868

65,275

203

1,000

351

116,914

224,611 117,661 224,611

56,313

56,313

RESEARCH AND INVESTI­ GATION ACCOUNT— As per contra ..................... 80,096

80,096

31,326

12,725

2,588

2

9,672

56,313

RESEARCH AND INVESTIGATION ACCOUNT— Assets, as specified below— 63,103 Land and buildings at cost

Deduct provision for de- 31,777 preciation .........................

Laboratory plant and equip- 50,575 ment at cost .....................

Deduct provision for de- 37,850 preciation .........................

Prospecting and experimental 31,614 plant at cost .....................

Deduct provision for de- 29,026 preciation .........................

750 Film negatives at cost . . . . Deduct provision for de- 748 preciation .........................

Cash on hand and at bank

63,103

33,354

29,749

50,064

40,240

9,824

30,114

28,231

1,883

38,640

80,096

The attached explanatory notes are to be read with and form part o f the accounts o f the Coal Industry Fund.

(L. G. O Brien,) (G. J. Tredinnick,)

CHIEF ACCOUNTANT CHAIRM AN

46

JOINT COAL BOARD

COAL INDUSTRY FUND—GENERAL ACCOUNT

TRADING A N D PROFIT A N D LOSS ACCOUNT

For the Year ended 30 June 1977

(to the nearest dollar)

Previous Year

Current Year

Previous Year

Current

$ $ $ $

Trading Expenditure— Trading Income—

Rent and maintenance of land and 17,613 Coal royalties and agency fees.............. 14,939

355,394 376,636 407,669 465,694

166,'885 Interest .. .. .. .. 174,788

Administration Expenditure^- 30,000 Allocated from Administration Account 36,078 Other Income— 3,073 Self-insurance contributions .. .. 2,103

Provisions—

22,757 Depreciation (Note 2) ........................ 45,190

Other Expenditure— 978 Research and experiment .. .. 11,196

7,758 Miscellaneous .. .. .. ..

Loss on realisation of investment .. 6,704 30

Profit transferred to Profit and Loss 178,353 Appropriation Account .. .. 181,690

595,240 657,524 595,240 657,524

PROFIT A N D LOSS APPROPRIATION ACCOUNT

For the year ended 30 June 1977

(to the nearest dollar)

Previous Year

Current Previous Year

Current Year

$ 1,728

170,000

446,504

Net loss on disposal of assets.................

Transfers— Washery refuse research reserve ......... General reserve (Note 5) .. .

Balance carried forward at end of year ..

$

150,000 628,224

$

439,879

178,353

Balance brought forward at beginning of

Profit transferred from Trading and Profit and Loss Account ,. .. ..

Transfers— Asset replacement reserve (Note 5) . . . . Investment fluctuation reserve .............

$

446,504

181,690

150,000 30

618,232 778,224 618,232 778,224

47

JOINT COAL BOARD

COAL INDUSTRY FUND—RESEARCH AND INVESTIGATION ACCOUNT

STATEMENT OF RECEIPTS A N D PAYMENTS

For the Year ended 30 June 1977

(to the nearest dollar)

Previous Year

Receipts Current

Year

Previous Year

Payments Current

Year

$ $ , $ $

Allocations pursuant to section 25 of the 132,597 Investigation and research .................. 181,430

Coal Industry Act, 1946 (Common- wealth) and section 33 of the Coal Purchase of assets—

Industry Act, 1946 (New South Wales), 167 Laboratory plant and equipment . . . . 439

206 Prospecting and experimental plant .. 1,695

245,000 Workers’ Compensation Fund . . . . 291,250

361,000 Transfers from Administration Account 426,234

130,505 Sampling and testing................................. 199,811

127,188 Geological supervision............................. 142,372

Sale of prospecting and experimental plant 202 662 Interest ................................................... 3,976

41 Miscellaneous ........................................ 1,153

Transfer of film negatives to Admini- stration Account ................................ 2

503,396 638,766 493,970 609,798

Balance brought forward at beginning of 9,672 Balance carried forward at end of year.. 38,640

246 year ....................................................... 9,672

503,642 648,438 503,642 Total ............. 648,438

(L. G. O’Brien,) (G. J. Tredinnick,)

CHIEF ACCOUNTANT CHAIRM AN

48

JOINT COAL BOARD

COAL INDUSTRY FUND—ADMINISTRATION ACCOUNT

COMMONWEALTH A N D STATE JOINT CONTRIBUTIONS

STATEMENT OF RECEIPTS A N D PAYMENTS

For the Year ended 30 June 1977

(to the nearest dollar)

Previous Year

736.000 736.000

900,700

27

16,100

10,219 22,644 151

Receipts

Contributions to this Account by— (1) Commonwealth Government (2) New South Wales Government Transfers to Accounts and Funds for

salaries and administrative costs Other receipts— Proceeds from sale of— Office furniture and fittings .........

Motor vehicles................................

Garage equipment ....................

Refund of employer’s superannuation contributions .......................

Interest ......................................

Miscellaneous ..........................

2,421,841

5,119

2,426,960

Total receipts

Current Year

Previous Payments Current Year

$ $

Salaries—

$

793,000 394,517 Administration .................................... 390,572

793,000 162,104 Finance ................................................ 168,507

115,447 Marketing and Statistics ................... 153,992

693,238 576,459 Engineering............................................ 400,258

17,443 Transport ............................................

Coal Industry Tribunal and other 17,381

1,224 151,587 industrial ........................................ 185,391

11,000 122,206 Typists, stenographers, telephonists .. 132,651 95 23,128 Other....................................................... 6,310

16,077 1,562,891 1,455,062

26,187 274,728 Superannuation .................................... 169,787

352 65,779 Travelling and transport expenses . ., Rent and other expenses in connection 59,393 228,481 with buildings.................................... 261,718

76,631 Printing, stationery and publications .. 90.416 135,088 14,715 Other general expenses .........................

Witnesses’ allowances............................

Purchases of assets—

140,82'T 18,931

7,888 Office furniture and fittings ................. 13,401

29,257 Motor vehicles........................................ 27,705

19 Garage equipment ............................. 186

125 Engineers’ and surveyors’ equipment 2,497 2,549 Library bo o k s.......................................

Other Payments— Office furniture and fittings (non- 4,095 depreciable)........................................ 2,050

2,334,173 2,402,246 Total payments ................. 2,241,973

24,714 24,714 Balance carried forward at end of year .. 116,914

2,358,887 2,426,960 Total ............................... 2,358,887

(L. G. O’Brien,) (G. J. Tredinnick,)

CHIEF ACCOUNTANT CHAIRM AN

49

NOTES TO AND FORMING PART OF THE ACCOUNTS OF THE JOINT COAL BOARD’S COAL INDUSTRY FUND FOR THE YEAR ENDED 30 JUNE 1977

BALANCE SHEET

1. L and, Buildings and Leasehold I mprovements At 30 June 1976 At 30 June 1977

$ $ $ $

151,794 -323,032 171,238

Land and buildings at cost .. ..

Deduct provision for depreciation ..

323,472 178,725

144,747

147,821

42,357 -

341,972

218,760 70,939

50,215 7,858

Land and buildings at cost .. ..

Deduct provision for amortisation ..

Leasehold improvements at cost .. Deduct provision for depreciation ..

218,760 88,662

51,379 9,143

130,098

42,236

317,081

Depreciation rates are based on the remaining useful life o f each building. N o. 5 Bulletin Place is being amortised over a term of fifteen years.

2, F luidised Bed C ombustor A t 30 June 1977 the Board had incurred expenditure of $153,449 on the construction of a fluidised bed combustor pilot plant. The plant came into service on 1 March 1977 and is being depreciated over a two-year period. The depreciation charge for 1976-77 was $22,242.

3. F ixed Term Securities At 30 June 1976 At 30 June 1977

Cost Market Value Cost Market Value

$ $ $ $

1,157,601 1,130,341 Loans to semi- and local Government Authorities. 1,161,926 1,141,713

450,000 396,175 Other trustee stocks .. .. .. 1,078,673 1,001,944

Company debentures ............................ 171 188

1,607,601 1,526,516 2,240,770 2,143,845

31,425 ' 31,425

Deduct: Investments maturing within 12 months 70,432 69,397

1,576,176 1,495,091 2,170,338 2,074,448

Investments are customarily held to maturity but opportunities to improve the portfolio sometimes occur. There is a reserve o f $102,310 ($102,340 at 30 June 1976) which is debited or credited with any losses or gains on the realisation of investments. Investments maturing within twelve months are shown as current assets.

Market values shown above are ex interest.

4. Short T erm I nvestments C ontributions F rom Other F unds and Organizations These amounts represent the liability of the Coal Industry Fund to the contributors named in respect of short term investments made on their behalf. The interest accrued on such investments is

included in the item “Sundry creditors and accruals”. At 30 June 1976 $ 70.000 Welfare Fund .........................

175.000 Workers’ Compensation Fund . 40.000 Coal Mines Insurance Pty Limited 526.000 Staff Superannuation Scheme . .. Greta Coal Research Fund .

315.000 Other organisations.. .. .

At 30 June 1977

.. 20,000

.. 4,009,000

. . 88,000

.. 99,500

.. 14,000

.. 539,000

1,126,000 4,769,500

50

NOTES TO AND FORMING PART OF THE ACCOUNTS OF THE JOINT COAL BOARD’S COAL INDUSTRY FUND

For the year ended 30 June 1977—(c o n tin u e d )

Balance Sheet

5. A sset R eplacement R eserve The asset replacement reserve is no longer regarded as necessary. The previous balance on the reserve has been transferred to the general reserve.

6. Provision for E mployer’s Liability to State Superannuation F und By order dated 27 October, 1976, under the authority of Section 92 of the Act, the Joint Coal Board was declared an employer within the meaning of the Superannuation Act, 1916 o f the State of New South Wales. The Minister of Justice fixed 16 December, 1976 as the date from which employees of the Board shall contribute to the State Superannuation Fund, and determined that employees who were members of the Board’s existing staff superannuation scheme were to elect whether to become a contributor to the State Superannuation Fund or to remain a member of the Board’s scheme. Where a member elected to become a contributor to the State Fund, his or her credit in the Board’s scheme was to be apportioned between the member and the Board having regard

to their respective contributions. The credit allocated to the member was to be applied to the purchase of units fully paid as to his or her contributions. The credit allocated to the Board was to be applied to paying in full the employer’s liability in respect of these units, and the balance was to be carried forward to be applied to the Board’s continuing liability in the terms of the Superannuation Act, 1916, in respect of the employees concerned. At 30 June 1977, the balance carried forward in accordance with the Minister’s determination totalled $543,478.

7. L ong Service Leave Liability At 30 June 1977 the Board’s liability in respect of long service leave due but not paid was approxi­ mately $459,000. The Board does not provide in its accounts for this liability.

8. Commonwealth Superannuation Scheme The attached statements do not include the liability of the Joint Coal Board to the Common­ wealth by way of employer contributions for increased pension costs during 1976-77. The amount involved has not yet been determined.

AUDIT REPORT

The accompanying Balance Sheet, Trading and Profit and Loss Account and Profit and Loss Appropriation Account for the General Account and Statements of Receipts and Payments for the Adminis­ tration Account and the Research and Investigation Account together with the Notes to and forming part of the accounts, have been examined and are in agreement with the accounts and records. In my opinion,

taken in conjunction with the Notes to the accounts, they show fairly the financial transactions for the year ended 30 June 1977 and the state of the affairs of the Coal Industry of the Fund Joint Coal Board as at that date.

22 December 1977 (D . R. STEELE CRAIK)

AUDITOR-GENERAL

51

JOINT COAL BOARD

WELFARE FUND

BALANCE SHEET

As at 30 June 1977

(to the nearest dollar)

Previous

1,953,639

14,203

95,089

2,062,931

Liabilities j Current Year

1 Previous • Year

$ $

Accumulated Funds ............................. 1,949,169 1,894,198

Sundry Creditors ..................................... 32,811

76,297 70,000 Deferred Liabilities in respect of com-m itm c n ts fo r c o m m u n ity amenities

(Note 1) ................................................ 112,255

5,816

6,750

1,152 -

8,698

20

Total ........................................ 2,094,235 2,062,931

Assets

Investments at cost (Note 2) .................

Current Assets— Sundry Debtors .....................

Short-term investments .......... Other investments maturing within twelve months (Note 2) Cash on hand and at bank . . . .

Advance to Local Government D epartm ent.............................

Other Assets— Welfare equipment at 4,015 cost ......................... 4,130

Deduct provision for 2,863 depreciation .......... 3,216

Medical equipment at 81,096 cost ......................... 82,388

Deduct provision for 72,398 depreciation .......... 73,520

Shares in miners’ co­ operative building societies at cost . . . .

Total

Current Year

1,865,890

96,372 20,000

28,308 63,863

10,000

914

8,868

20

2,094 235

NOTES TO AND FORMING PART OF THE ACCOUNTS

1. O ther D eferred L iabilities

Liabilities not yet due but payable over a period of years from future investment earnings were as follows: At 30 June 1976

4,200

22,390

University scholarships .. .. .. .. , . ..

Subsidies to miners’ co-operative building societies as valued by the New South Wales Government Actuary.

At 30 June 1977 $ 5,084

13,920

2. I nvestments At 30 June 1976 Cost Market

At 30 June 1977 Cost Market

985,490 349,708 559,000

752,428 302,950 397,940

Loans to semi and local Government Authorities .. Other trustee stocks .. .. .. .. ..

Company debentures .. .. !! .. j ‘

.. 985,490

. . 349,708

.. 559,000

780,506 320,200 406,770

1,894,198 1,453,318 Deduct: Investments maturing within twelve months 1,894,198 .. 28,308

1,507,476 28,680

1,894,198 1,453,318 1,865,890 1,478,796

The portfolio is designed with a view to investments being held to maturity. Investments maturing within twelve months are shown as current assets. Market values shown above are ex interest.

L. G. O’Brien,) (G. J. Tredinnick,)

CHIEF ACCOUN TANT CHAIRM AN

52

JOINT COAL BOARD

WELFARE FUND

STATEMENT OF INCOME AND EXPENDITURE For the Year Ended 30 June 1977 (to the nearest dollar)

Previous Year Expenditure

Current Year

Previous Year Income

Current Year

$ $ $ $

Community amenities— Allocations pursuant to section 25 of the

2,100 Outdoor recreation facilities ............. Coal Industry Act, 1946 (Common-

2,398 Halls, centres and libraries ................. 5,000 wealth) and section 33 of the Coal

500 Hospital expenses ............................ Industry Act, 1946 (New South Wales),

2,781 Other items ....................................... from—

503,000 Workers’ Compensation Fund ---- 570,000

Subsidies and continuing activities— Subsidies to miners’ co-operative build- Other income—

7 953 5,479 126,202 128,156

32,000 Funeral benefits .................................... 31'600 Cancellation of previous vears’ com-

mitments (Note 1) ............................ 5,711

Education and training— 2,521 University scholarships ..................... 2,950 Surplus of Expenditure over Income

1,029 Technical colleges and other schools .. 925 carried to Accumulated Funds .......... 4,470

Transfer from Coal Industry Fund, 16,000 Administration Account ..................... 18,968

Other expenditure— 459,146 Medical Services ................................ 519,530

26,312 Accident prevention ........................ 18,020

18,155 Safety boot subsidy ............................ 36,675

422 Depreciation of welfare equipm ent___ 243

96 Repairs to welfare equipment ............. 122

6 Sundry expenses.................................... 30

Provision for outstanding liabilities (Note 48,867 1) .......................................................... 68,795

Surplus of Income over Expenditure 8,916 carried to Accumulated Funds .........

629,202 Total ....................................... 708,337 629,202 Total ........................................ 708,337

NOTES TO AND FORMING PART OF THE ACCOUNTS

1. P rovision for O utstanding L iabilities The following commitments were entered into during 1976-77 but were unpaid at balance date: At 30 June 1976 $

3,000 Outdoor recreation facilities .. 42,402 Hails, centres and libraries.. ..

2,300 Technical colleges and other schools .. Hospitals and ambulance services.. 1,165 Other items .. .. .. ..

At 30 June 1977

. .. 22,795

. .. 27,400

. .. 7,200

. .. 8,850

. .. 2,550

48,867 68,795

The following commitments entered into prior to 1 July 1976 were cancelled during 1976-77: At 30 June 1976 At 30 June 1977

$ $

.. Outdoor recreation facilities .. .. .. .. .. .. .. .. 331

.. Halls, centres and libraries.. .. .. .. .. .. .. .. .. 2,096

.. Technical colleges and other schools .. .. .. .. .. .. .. 105

. . Hospital and ambulance services .. . . .. . . .. .. .. .. 449

.. Mine canteens and amenities .. .. .. . . .. ,. . . .. 2,730

5,711

AUD IT REPORT

The accompanying Balance sheet and Statement of Income and Expenditure together with the Notes to and forming part of the accounts, have been examined and are in agreement with the accounts and records. In my opinion, taken in conjunction with the Notes to the accounts, they show fairly the financial transactions for the year ended 30 June 1977, and the state of the affairs of the Welfare Fund of the Joint Coal Board as at that date.

22 December 1977 (D. R. STEELE CRAIK,)

AUDITOR-GENERAL

53

JOINT COAL BOARD

WORKERS’ COMPENSATION FUND

BALANCE SHEET

As at 30 June 1977

(to the nearest dollar)

Previous Liabilities Current Previous Assets Current

$

18,939,368

36,088,950

432,382

55,460,700

$ ' $

Accumulated Funds— 5.000. 000 General reserve .. 5,000,000 Research and invest- 2,750,000 igation reserve . . 2,750,000

Investment fluctu­ ation reserve

1,686,969 (Note 3) ............... 1,764,896

Reserve for con- 9.000. 000 tingencies.16,000,000

Profit and Loss Ap­ propriation 502,399 Account .............. 2,721,642

$

28,236,538

Provision for claims outstanding (Note 1) ............. 36,309,884

Current Liabilities— Sundry creditors and 231,914 accruals................. 264,211

111,359 Unearned premiums 36,602 Coal Mines In-

89, 109 surance Pty Lt d.. ..

300,813

Total.... 64,847,235

$

8,493

50,844,159

4,608,048

55,460,700 I

$ . $

Fixed Assets— 23,713 Equipment at cost. . 23,301 Deduct provision for 15,220 depreciation . . . . 16,870

Investments— Land and buildings

2,247,443 at cost ............. 4,042,269

Deduct provision for depreciation and amortisation

$

6,431

470,768 (Note 2) .............. 823,424

1,776,675 3,218,845

Mount Thorley Rail Loop at cost (Note .. 5) ......................... 518,736

Commonwealth and semi-government stock and other

fixed term securities

48,474,692 at cost (Note 3). .50,947,023 Shares in Coal Mines Insurance Ptv Ltd 592,792 at cost ................. 592,792

Current Assets— 224,890 Premiums due . . . . 234,411 Deduct provision 35,000 for doubtful debts 35,000

189,890 199,411

1,475,837 Other debtors . . . . 1,314,899

1,665,727 1,514,310

Coal Mines In­

.. surance Pty Ltd .. 104,571

Short term invest- 175,000 ments ................. 4,009,000

Other investments maturing within twelve months

2,706,783 (Note 3) ............. 2,852,725

Cash on hand and at 60,538 bank ................ 1,082,802

55,277,396

Tot al . .. .

9,563,408

64,847,235

The attached explanatory notes are to be read with and form part of the accounts o f the Workers’ Compensation Fund.

(L. G. O’Brien,) (G. J. Tredinnick,)

CHIEF ACCOUNTANT. CHAIRMAN.

54

JOINT COAL BOARD

WORKERS’ COMPENSATION FUND REVENUE ACCOUNT For the Year ended 30 June 1977 (to the nearest dollar)

Previous Current

Year

Previous Current

$ $ . $

Claims paid and outstanding in­ cluding medical -

and other expenses directly incurred

9,879,319 in settling claims 11,181,817 Add: Provision at 30 June 1977 for claims outstanding 36,088,950 (Note 1 ) ............. 36,309,884

$ $

14,054,715

1,389,721

14,321,215 Premiums (Note 4) 18,772,597 266,500 Less: Rebates .. 330,000

$

18.442,597

1,624,003

Interest earned on provisions ..........

Dividends and In­ terest on Invest­ ments— Dividend from

Coal Mines In- 120,000 surance Pty Ltd 90,000 Interest on invest- 2,584,455 ments .............. 3,107,482

15,085,574

45,968,269 47,491,701

Less: Provision at 30 June 1976 for

30,882,695 claims outstanding 36,088,950 11,402,751 2,704,455 3,197,482

1,196,847

Expenses of Man­ agement .......... 1,375,229

Profit on realisation of investments 77,928

161,566 Other Expenses .. 215,336

1,704,904

Profit transferred to Profit and Loss Appropriation A ccount............. 10,348,694

18,148,891 Total .. 23,342,010 18,148,891 Total .. 23,342,010

P R O F I T A N D L O S S A P P R O P R I A T I O N A C C O U N T

F o r th e Y e a r e n d e d 30 J u n e 1977

(to th e n e a re s t d o lla r)

Previous Current

Year

Previous Year

Current

$

Initial depreciation charge on buildings $ 190,273

$

300,220

1,704,904

245.000 250.000

Balance brought forward at beginning of $ 502,399

10,348,694

291,250

Allocations to other Funds pursuant to section 25 of the Coal Industry Act, 1946 (Commonwealth) and section 33 of the Coal Industry Act, 1946 (New South Wales)—

Profit transferred from Revenue A c c o u n t

Transfers— Research and investigation reserve ..

503,000 570,000

291,250 245,000 Research and Investigation Account

245,000 1,000,000

Transfers— Research and investigation reserve .. 291,250 7,000,000 77,928

4,725

502,399 Balance carried forward at end of year .. 2,721,642

2,500,124 11,142,343 2,500,124 11,142,343

The attached explanatory notes are to be read with and form part of the accounts of the Workers’ Compensation Fund. .

55

NOTES TO AND FORMING PART OF THE ACCOUNTS OF THE JOINT COAL BOARD’S WORKERS’ COMPENSATION FUND

For the year ended 30 June 1977

1. P rovision for C laims Outstanding

The provision for claims outstanding falls into the following divisions: At 30 June 1976 At 30 June 1977

$ $

15,523,500 Long term claims valued by the Board’s consulting actuaries 14,494,782 Common law and special claims valued by the Insurance 5,099,070 Manager. 5,246,023

14,216,380 Other claims valued by the Insurance Manager .. .. 15,319,079 Provision in respect of accident pay liability and workers’ compensation claims incurred but not reported at balance 1,250,000 date. 1,250,000

36,088,950 36,309,884

2. Land and B uildings, D epreciation and A mortisation

Land and buildings previously shown as fixed assets have been reclassified as investments to more accurately describe the nature of these assets. Seven buildings are now held in the Workers’ Com­ pensation Fund. Sirius House is occupied wholly by the Board and its cost in excess of the value of the land at the date of purchase is being amortised over a term of twenty years. Investment indhe other six buildings, on adjoining sites, was made with a view to the ultimate redevelopment o f the properties.

In accordance with professional accounting standards, provision has this year been made for deprecia­ tion o f each o f the six buildings referred to from the dates of their acquisition. Initial depreciation to 30 June 1976, amounting to $190,273, has been debited against the balance brought forward in the Profit and Loss Appropriation Account. Depreciation for the year ended 30 June 1977 has been included in Other Expenses in the Revenue Account.

3. Commonwealth and Semi-G overnment Stock and Other F ixed T erm Securities

At 30 June 1976 At 30 June 1977

Cost Market Value Cost Market Value

$

12,275,106 19,180,818 5,179,344 1,000,000 13,546,207

9,725,408 14,839,817 4,845,490 1,000,000 12,435,010

Commonwealth Government Loans .. ..

Loans to semi and local Government Authorities .. Other trustee stocks .. .. .. .. ..

Loan guaranteed by bank .. .. .. ..

Company debentures .. ........................................

$

13,535,106 20,324,163 6,517,219 1,000,000

12,423,260

10,823,326 16,334,941 6,262,710 1,000,000

11,318,723

1,181,475

2,706,783

42,845,725

2,734,631 Deduct: Investments maturing within twelve months ..

53,799,748­

2,852,725

45,739,700

2,849,888

48,474,692 40,111,094 50,947,023 42,889,812

Investments are customarily held to maturity but opportunities to improve the portfolio sometimes occur. There is a reserve of $1,764,896 ($1,686,969 at 30 June 1976) which is debited or credited with any losses or gains on the realisation of investments.

Investments maturing within twelve months are shown as current assets. Market values shown above are ex interest.

4. P remiums

Premium income has been adjusted for unearned income and amounts due but not received.

56

NOTES TO AND FORMING PART OF THE ACCOUNTS OF THE JOINT COAL BOARD’S WORKERS’ COMPENSATION FUND

For the year ended 30 June 1977— c o n tin u e d

5. C ontingent Liabilities and Commitments at Balance D ate

Contingent Liabilities (a) The Joint Coal Board has entered into a covenant that while it remains the beneficial owner of all o f the issued shares in Coal Mines Insurance Pty Limited, it will, in the event that the Com­ pany’s assets become insufficient to enable it to pay its liabilities, provide sufficient funds to

enable the Company to discharge such liabilities.

(b) There is a contingent liability for uncalled capital on shares held in Coal Mines Insurance Pty Limited amounting to $900,000.

(c) There is a contingent liability in respect of common law claims unnotified at 30 June 1977 which is not capable of precise valuation but could amount to $1,500,000.

C ommitments at Balance D ate (a) The Joint Coal Board has taken up as an investment in the Workers’ Compensation Fund a long-term lease from the Public Transport Commission o f New South Wales of a rail loop line at Mount Thorley near Singleton which the Commission has under construction. The considera­

tion payable by the Board, comprising the cost of land resumed for the purpose and the Com­ mission’s cost o f construction, is estimated at $1,200,000 o f which amount the sum of $518,736 had been advanced or provided for as at 30 June 1977. (b) As at the date of the balance sheet there is a commitment to the Singleton Shire Council to lend

subject to the provisions of the Local Government Act, 1919 a sum of up to $750,000 for construc­ tion of roads and the improvement of existing roads to serve the Mount Thorley coal loading plant. (c) On 16 June 1977, the Metropolitan Water Sewerage and Drainage Board allocated to the Joint Coal Board $1,000,000 inscribed stock. At balance date there was a commitment to the Metro­ politan Water Sewerage and Drainage Board in respect o f the balance of the purchase moneys amounting to $750,000. (d) At 30 June 1977, the Board was committed to Potter Partners, stockbrokers and underwriters,

in the amount of $1,000,000 under a general sub-underwriting agreement in respect of a public loan, N o. 53D, for the Brisbane City Council.

AUDIT REPORT

The accompanying Balance sheet, Revenue Account and Profit and Loss Appropriation Account together with the N otes to and forming part o f the accounts, have been examined and are in agreement with the accounts and records. In my opinion, taken in conjunction with the Notes to the accounts, they show fairly the financial transactions for the year ended 30 June 1977 and the state of the affairs of the Workers’

Compensation Fund of the Joint Coal Board as at that date.

22 December, 1977. (D . R. STEELE CRAIK)

AUDITOR-GENERAL.

57

COAL M INES INSURANCE PTY LIMITED

BALANCE SHEET

As at 30 June 1977—(to the nearest dollar)

Previous Y e ar $ I nvestments a t cost (N o te 1)

$

769,500 C om m onw ealth G o v e rn m en t loans . . . . . . . . . .

O th e r C om m o n w ealth G o v ern m en t L o an s lo d g ed as security fo r 769,500

60,000 b a n k o v e rd ra ft ..................................................................................... 60,000

99^500 929,000

C om pany debentures n o t dealt in o n a sto ck exchange . . . .

C u rren t A ssets

99,500

9,809 P rem ium s d u e (N o te 2) ........................................................................ 756

400 D e d u c t: P rovision fo r d o u b tfu l debts . . . . . . . . 400

9,409 356

5,458 O th e r deb to rs . . . . . . . . . . . . ■ · · · 1,620

25,019 In tere st accrued o n investm ents . . . . . . . . . . 29,029

1,500 A dvances fo r coal-b u rn in g e q u ip m e n t . . . . . . . .

88,000 40,000 S ho rt-term investm ents a t call . . . . . . . . . .

C om m onw ealth T rad in g B a n k . . . . . . . . . . 114,687

149,377 230,763 1,159,763

Jo in t C oal B o ard . . . . . . . . . . . . . . —

Deduct: C u rren t L iabilities 109,831 C om m onw ealth T rad in g B an k ($60,000 secured) . . . . . .

147,271 93,572 Sundry cred ito rs a n d a ccrued charges . . . . . . ..

17,630 U n e arn e d prem ium s (N o te 2) (N o te 8) . . . . . . . .

P rovisions fo r o u tstan d in g claim s: (N o te 3)

32,829

205,368 W o rk ers’ co m p en satio n .. . . . . . . . . . . 183,437

7,800 C o m m o n law ..................................................................................... 7,600

7,200 A ccident P ay . . . . . . . . . . . . . . 4,300

34,142 Provision fo r incom e tax (N o te 4) . . . . . . . . . . 68,673

60,000 Provision fo r dividend (N o te 5) . . . . . . . . . . 90,000

535,543

Jo in t C oal B o a rd . . . . . . . . . . . . . .

L iabilities I ndemnified by J o int C oal B oard I ncreased liability arising fro m legislative am en d m en ts a n d C o u rt decisions since 30 Ju n e, 1942, in resp ect o f injuries sustained by

13,745

1,089,708 claim ants p rio r to 1 O ctober, 1948 . . . . .. . .

C o m m o n law claim s incu rred as D elegate o f J o in t C oal B o ard 986,228

823,500 (N o te 6) . . . . . . . . . . . . . . . . 581,500

1,913,208 1,567,728

1,913,208 D e d u ct: Indem nities received fro m Jo in t C oal B o a rd . . . . 1,567,728

624,220 S h a r e h o l d e r s’ F u n d s

Representing: C a p i t a l A u th o ris e d ............................. 2,000,000 shares of $1 each

Issued...........................................1,500,000 shares

300,000 Fully paid . . . . 300,000 shares . . . .

300.000 600.000

Paid to 25 cents each . . 1,200,000 shares . . . .

24,220 624,220 R e t a in e d P r o f it s used in th e C o m p an y ’s business . . . . . .

Current Year $

929,000

233,692 1,162,692

547,855

614,837

300.000 300.000 600.000 14,837 614,837

The attached Explanatory Notes are to be read with and form part o f the Accounts o f Coal Mines Insurance Pty Limited.

58

C O A L M IN E S IN S U R A N C E P T Y L IM IT E D

S T A T E M E N T O F P R O F IT A N D LOSS

F o r th e y ear end ed 30 Ju n e 1977

Previous y ear

(to th e n earest dollar)

C u rre n t y ear

$

207,464 Prem ium s (N ote 8) . . . . .........................................................

$ $

138,027

43,869 34,366 325

O ther incom e: In terest fro m investm ents w hich are d ealt in o n a sto c k exchange O ther interest .. . . . . . . . . . · ■ ·

C om m ission . . . . . . . . . . . . ..

58,304 26,134 801

78,560 85,239

286,024 153,459 D e d u ct: C ost o f claim s . . . . . . . . . . . .

223,266 18,741

132,565 G ross P ro fit . . .. . . . . . . . . 204,525

497

37,000 19,573

D e d u ct: O verhead e x p e n s e s......................................................................

A dm in istratio n expenses . . . . . . . . . . . .

M anagem ent fee .. . . . . . . . . . . . .

O ther expenses (N o te 9) . . .. . . . . . . ..

567

43,000 11,668

57,070 55,235

75,495 30,985

O perating P rofit B efore Income T ax . . . . ..

Incom e ta x expense applicable th ere to . . . . . . . .

149,290 68,673

44,510

7,428 3,157

O pera tin g P rofit . . ........................................... ..

E xtrao rd in ary item : T ransferred fro m sta tu to ry equalisation provision . . ..

D e d u c t: Incom e tax expense applicable th ereto . . ..

80,617

4,271

48,781 95,439

O perating P rofit a n d E x traordinary I tems .. R etained profits a t 30 Ju n e 1976 . . . . . . . . ..

80,617 24,220

144,220 T otal A vailable for A ppr o pria tio n . . . . .. 104,837

60,000 60,000 D ividend paid ' . . . . . . . . . . . . ..

Provision for dividend . . . . . . . . . . . . 90,000

120,000 90,000

24,220 R etained P rofits a t 30 J une 1977 .............................. 14,837

The attached Explanatory Notes are to be read with and form part of the Accounts of Coal Mines Insurance Pty Limited.

59

n o t e s t o a n d f o r m i n g p a r t o f t h e a c c o u n t s o f

COAL MINES INSURANCE PTY LIMITED

For the year ended 30 June 1977

BALANCE SHEET

1. I nvestments At 30 June 1976 Cost Market Value $ $ '

769,500 678,292 Commonwealth Government loans .. .. ..

Other Commonwealth Government loans lodged as 60,000 44,130 security for bank overdraft. 99,500 84,570 Company debentures not dealt in on a stock exchange

929,000 8 0 6 ,9 9 2

At 30 June 1977 Cost Market Value

769,500 668,908

60,000 43,548

99,500 87,420

929,000 799,876

The portfolio is designed with a view to investments being held to maturity.

Market values shown above are ex interest.

2. P remiums D ue and U nearned Premiums In accordance with relief granted to general insurance companies from the requirements of clause 12 (2) of the Ninth Schedule to the Companies Act by Order dated 23 August 1974 published in Gazette N o. 106 of 30 August 1974, unearned sums as at 30 June 1976 were not deducted from the amount of premiums due. Provision was made for the unearned sums in the gross amount o f those debts by including them with other unearned premiums in the balance sheet. :

3. Provisions for Outstanding Claims Provision is made for all claims notified but not settled on the basis o f the best information available at balance date. Liability in respect of cases involving permanent incapacity is based on actuarial valuations while cases involving temporary incapacity are valued by the Company’s Manager. O f the total liability of $195,337 ($220,368 at 30 June 1976) it is expected that the sum o f $137,797 ($130,545

at 30 June 1976) will become payable within twelve months from balance date. The balance of $57,540 represents the only non-current liability of the Company as at 30 June 1977.

4. Provision for I ncome Tax 1976 1977

$ $

25.374 Balance of provision as at 30 June 1976 . . .. . . .. 34,142

25.374 Paid during the year .. . . .. . . .. .. .. 34,142

34,142 Added in respect o f year ended 30 June 1977 . . .. . . 68,673

34,142 Balance of provision as at 30 June 1977 .. . . . . . . 68,673

5. P rovision for D ividend 1976 1977

$ $

300,000 Balance of provision as at 30 June 1976 . . .. .. .. 60,000

60.000 Dividend declared—interim 1977 .. . . .. . . . . ..

60.000 Dividend proposed—final 1977 .. .. .. . . . . 90,000

420.000 150,000

300.000 Dividend paid—final 1976 .. .. .. .. 60,000

60,000 —interim 1977 ........................... ..

------------ 60,000

60,000 Balance of provision as at 30 June 1977 . . .. .. . . 90,000

60

NOTES TO AND FORMING PART OF THE ACCOUNTS OF COAL MINES INSURANCE PTY LIMITED

FOR THE YEAR ENDED 30 JUNE 1977— c o n tin u e d

BALANCE SHEET— c o n tin u e d

6, Common Law Claims I ncurred as D elegate of J oint Coal Board Prior to 1 October 1970, common law indemnity on policies issued as delegate of the Joint Coal Board was underwritten by the Company as principal. In December 1974 liability for those claims relating to injuries sustained prior to 1 October 1970 which had not been settled was transferred to

the Joint Coal Board together with investments to a value equal to the estimated cost of the claims transferred. The Company’s liability for any expenditure it may incur in respect of claims arising out of policies issued under the Board’s Workers’ Compensation Insurance Scheme has been in­ demnified in full by the Joint Coal Board.

7. U ndertaking by Joint Coal Board The Joint Coal Board has entered into a covenant that while it remains the beneficial owner of all the issued shares in Coal Mines Insurance Pty Limited it will, in the event that the Company’s assets become insufficient to enable it to pay its liabilities, provide sufficient funds to enable the Company

to discharge such liabilities.

STATEMENT OF PROFIT A N D LOSS

8. P rem ium s

Premium income represents premiums charged during the year and accrued as at 30 June 1977 less unearned income based on the unexpired term o f each policy at that date.

9. Other Expenses Other expenses includes the sum of $670 interest paid on bank overdraft ($1,233 in 1975-76).

61

COAL M INES INSURANCE PTY LIMITED

DIRECTORS’ STATEMENT

(Companies Act, 1 9 6 1 , as amended. Sec. 162 (1 0 ))

In the opinion of the Board o f Directors of Coal Mines Insurance Pty Limited the accompanying profit and loss statement is drawn up so as to give a true and fair view o f the profit of the Company for the financial year ended 30 June 1977, and the accompanying balance sheet is drawn up so as to give a true and fair view o f the state of affairs of the Company as at the 30 June 1977.

For and on behalf o f the Board of Directors

SYDNEY,

19 September 1977.

G. J. TREDINNICK.

T. A. SQUIRES.

PRINCIPAL ACCOUNTING OFFICER’S STATEMENT

(Companies Act, 1961, as amended. Sec. 162 (12))

I, Lloyd George O’Brien, being the officer in charge of the preparation of the accompanying accounts o f Coal Mines Insurance Pty Limited for the year ended 30 June 1977, state that to the best o f my knowledge and belief such accounts give a true and fair view o f the matters required by Section 162 o f the New South Wales Companies Act, 1961, as amended, to be dealt with therein.

SYDNEY,

19 September 1977.

L. G. O’BRIEN.

AUDIT REPORT

The accompanying Balance-sheet and Statement o f Profit and Loss together with the Notes to and forming part of the accounts, have been examined and are in agreement with the accounts and records. In my opinion, taken in conjunction with the Notes to the accounts, they show fairly the financial transactions for the year ended 30 June 1977 and the State of the affairs of Coal Mines Insurance Pty

Limited as at that date.

22 December 1977

(D. R . STEELE CRAIK) AUDITOR-GENERAL.

62

PART 2

PRODUCTION OF COAL

General

2.1 Production increased strongly in 1976-77 and, although major sectors of the market also expanded, production, as in the latter months of 1975-76, exceeded the current demand. Expansion of the productive capacity of the industry continued during the year, but recruitment of labour was only moderate. Many companies are planning major projects, a considerable proportion of which will be needed if anticipated demand for coal in the 1980’s is to be satisfied.

2.2 A feature of the industry in 1976-77 was the regularity of coal production. In the two preceding years there had been considerable variation. Table 7 records an increase from 193,800 tonnes to 204,900 tonnes in the average production per possible working day between the first and the second halves of the year.

TABLE 7.—AVERAGE PRODUCTION PER POSSIBLE WORKING DAY—TONNES OF RAW COAL N.S.W. COAL MINES

Underground Open cut Total

Year 1972-73 ........................................................ 141,800 23,700 165,500

1973-74 ........................................................ 131,700 28,300 160,000

1974-75 ........................................................ 143,300 40,700 184,000

1975-76 ........................................................ 140,100 36,400 176,500

1976-77 (a ) .................................................... 157,500 41,600 199,100

1975 July-20 September ........ .................. 102,800 28,100 130,900

21 September-December ................... 153,000 45,100 198,100

1976 January-June ................................... 151,000 35,500 186,500

July-December ............................... 153,400 40,400 193,800

1977 January-June ................................... 162,000 42,900 204,900

(a) 53-week year.

2.3 A second significant feature of 1976-77 was the expansion of output from under­ ground mines. The January-June average daily rate of 162,000 tonnes was well above the 144,000 tonnes achieved in 1970-71 and the 150,700 tonnes achieved in February-May period of 1975.

N ew P rojects

2.4 The adjacent map shows the names and locations of twelve new mines at which development was proceeding at 30 June 1977. Some of the mines had received permission under the Board’s Order No. 27 prior to June 1976. Approvals granted during 1976-77 are discussed in paras 1.19 and 1.20.

63

64

S O U T H E R N D E V E L O P M E N T

Above: Cordeaux - Construction of downcast and upcast shafts. Below: West Cliff - Coal storage and surface loading facilities.

S O U T H E R N D E V E L O P M E N T

Above: Avon — Successful grassing of colliery washery refuse.

Right: Tali moor — No. 2 shaft being sunk.

2.5 New mines to commence production during the year were West Cliff on the South Coast and Durham North Open Cut and Wambo (Ridge) in the Singleton-North West district. Production at Wambo Ridge, however, was suspended in March 1977 pending the carrying out of modifications to the coal preparation plant.

2.6 Major new mines under development but not in production as at the end of June 1977 are listed below. All of these are underground mines.

Mine

Ellalong .. ..

Buchanan Lemington No. 2 .. ..

Macquarie ..

Wakefield ( a ) . .

District

South Maitland ..

Singleton-North West

Newcastle .. ..

Newcastle

Bloomfield (Rathluba seam) Newcastle Angus Place .. .. West ..

Clarence ( b ) .. .. West ..

Tahmoor .. .. .. Southern

Cordeaux .. .. .. Southern

Tower Southern

Proprietor

Peko Wallsend Ltd Buchanan Borehole Collieries Pty Ltd. The Broken Hill Proprietary

Co. Ltd. The Broken Hill Proprietary Co. Ltd. Bloomfield Colleries Pty Ltd.

Newcom Colleries Pty Ltd. Coalex Pty Ltd. Clutha Development Pty Ltd. Australian Iron & Steel Pty

Ltd.

Australian Iron & Steel Pty Ltd.

(a) Subsequent to the close of the year development of Wakefield was suspended due to the depressed state of the steel industy.

(b) Approval to commence production not yet granted.

2.7 In addition to the new projects listed above, there are a number of new mines being planned or under investigation in New South Wales for which formal applications to open a mine have not yet been made to the Board. These include a number of large open cuts in the Singleton Coal Measures of the Upper Hunter Valley and proposals by the Electric­

ity Commission of New South Wales for the establishment of new underground mines in the Eraring and Lithgow areas.

2.8 The mines listed together with West Cliff, which commenced production in October 1976, have a total planned capacity of about 12 million tonnes of raw coal per annum. A significant proportion of this capacity will serve to replace declining productive capacity at existing mines. All of these new projects are scheduled to be in production by 1980.

Macquarie, Wakefield, Tower and Cordeaux are being developed as captive mines to the Australian steel industry. The others are being developed mainly for the export market.

2.9 The total capital expenditure on the listed projects, including West Cliff, to June 1977 amounted to about $100 million. Lurther expenditure in 1977-78 is estimated at about $50 million with an additional $100-150 million expenditure to bring the projects to planned maximum capacity. As shown in para 2.90, total capital expenditure by the industry

65

C, 44102J—5

ANNUAL COAL PRODUCTION N.S.W. DISTRICTS

MILLION TONNES RAW COAL 1 4 — 1

NE WCAS TLE / . SI NGLETON -

/ / NORTH WES T

\ / /

SOUTH COAST

N.S.W. OPEN-CUTS'

BURRAGORANG VALLEY

WEST

SOUTH MAITLAND

YEAR 1 9 6 5 - 6 6 1 9 6 6 -6 7 1 9 6 7 -6 8 1 9 6 8 - 6 9 1 9 6 9 -7 0 197 0 -7 1 1 9 7 V 7 2 19 7 2 * 7 3 1 9 7 3 - 7 4 1 1 9 7 4 -7 5 1 9 7 5 -7 6 1 9 7 6 -7 7

66

in 1977-78 is expected to reach $175 million. The capital cost of developing new coal mines has escalated rapidly in recent years. The long lead time required to bring a new mine into full production (5 to 7 years for a large underground mine) and variations mentioned below make it difficult to predict the capital cost of new mine development. Based on 1977 dollars, the final capital cost of developing a new mine in New South Wales could range between $25

and $50 per annual tonne, depending on such factors as the type and size of mine being developed, its location and the range of associated surface facilities required.

Number of M ines

2.10 The location of mines in operation at the end of 1976-77 is shown in the district maps in Appendix 4 of this Report. The Board has available copies of these maps and of a consolidated map covering all mines in the State. These can be supplied upon written request to the Board. Table 8 shows the number of mines operating in each of the six coal mining districts.

2.11 There were 83 coal mines in production at June 1977, one more than in June 1976. However, there was one underground mine less, despite the opening of West Cliff and the re-opening of Aberdare North. Hermitage, in the West, is out of production pending completion of further developmental work. Details of these and other changes are noted in Part 5.

TABLE 8.—NUMBER OF N.S.W. COAL MINES IN OPERATION

30 June 29 June 28 June 26 June 2 July

1973 1974 1975 1976 1977

South Maitland ............................ 5 5 4 3 4

Singleton—North West ............... 17 19 19 19 20

Newcastle ........................................ 23 23 25 24 23

West ................................................. 11 13 12 12 11

Burragorang Valley ....................... 7 7 8 8 8

South Coast .................................... 15 15 16 16 17

New South Wales ................... 78 82 84 82 83 ^

Includes open cuts ....................... 9 11 12 11 13

P r o d u c t io n

2.12 Coal production in 1976-77, in terms of raw coal, increased by 15.3 per cent. Since 1976-77 included 235 possible working days compared with 230 in each of the two preceding years, production might have been expected to increase by 2.2 per cent from that factor. Of more significance was a reduced loss from industrial disputes. With markets expanding, the industry was able to utilise some, but not all of its growing capacity.

2.13 Production in all six districts increased. This is shown in the adjacent graph and in Table 9. The largest increase, 26 per cent, occurred on the South Coast and, in part, this was a recovery from the unsatisfactory situation in 1975-76. Strong expansion occurred in three other districts—Singleton-North West, Newcastle and West. Output in the South

Maitland district increased for the first time since 1970-71. In the Burragorang Valley, output, having expanded strongly in 1974-75 and 1975-76, was only marginally higher in 1976-77.

67

NUMBERS EMPLOYED N. S. W. COAL MINES

N?

6 0 0 0

5 0 0 0

N E W C A S T L E........ .

4 0 0 0 -

3 0 0 0 -

S I N G L E T O N - N O R T H W E S T

2 0 0 0 -

S O U T H M A I T L A N D

B U R R A G O R A N G

V A L L E Y

1 0 0 0 -

year 1967-68 1968-69 1969-70 1971-72 1972-73 1973-74 1974-75 1976-77

68

TABLE 9.—N.S.W . COAL PRODUCTION—RAW COAL— Ό00 TONNES

South Maitland ...............

1973-74 1974-75 1975-76 1976-77 (a)

Average change per annum 1973-74

to

1976-77

Change 1975-76 to 1976-77

1,868 8,427 11,876 1,987

3,806 8,668

1,802 11,467 12,361 2,658

4,518 9,500

1,189 10,713 11,358

3,523 5,202 8,605

1,294 12,410 12,893 4,023

5,318 10,847

- 191

+ 1,327

+ 339

+ 679

+ 504

+ 726

Ό00 tonnes + 105

+ 1,697

+ 1,535

+ 500

+ 116

+ 2,242

per cent

+ 8-8

+ 15-8

+ 13-5

+ 14-2

+ 2-2

+ 26-1

Singleton-North West ..

South Coast .......................

N .S.W ........................

Underground ...................

36,632 42,306 40,590 46,785 + 3,384 + 6,195 + 15-3

30,155 6,477

32,957 9,349

32,214 8,376

37,014 9,771 + 2,286

+ 1,098

+ 4,800

+ 1,395

+ 14-9

+ 16-7 Open cu t................................

(a) 53-week year.

Employment

2.14 The number of persons employed in the New South Wales coal industry increased by 437 during 1976-77, a rise of 2-8 per cent. Employment rose by 9-6 per cent in the Singleton-North West district, by 8-0 per cent in the West and by 3-7 per cent on the South Coast. Since October 1964, a low point for the industry, employment has risen by 4,615, an increase of over 40 per cent. Table 10 and the adjacent graph show how employment

has varied in recent years.

TABLE 10.—EMPLOYMENT—N.S.W. COAL MINES

Change Change

29 June 1974

28 June 1975

26 June 1976

2 July 1977

June 1974 to June 1977

June 1976 to June 1977

South M aitland ...................................... 1,034 1,069 828 782 _ 252 46

Singleton— North West .. 1,444 1,732 1,898 2,081 + 637 + 183

Newcastle ........................... 4,440 4,701 4,875 4,876 -r 436 + 1

W est................................................................................ 594 782 879 949 + 355 + 70

Burragorang Valley .......... 1,179 1,338

5,376

1,451 1,477 + 298 + 26

South Coast ............................................... 5,023 5,547 5,750 + 727 + 203

N.S.W ................................................. 13,714 14,998 15,478 15,915 + 2,201 + 437

Underground ............................................... 13,181 14,324 14,716 15,038 + 1,857 + 322

Open cut ....................................................... 533 674 762 877 + 344

+

115

2.15 Between 1971-72 and 1976-77 (both 53 week years) coal production at New South Wales underground mines rose by 14-6 per cent, while average employment rose by 7-9 per cent. For open cuts the corresponding increases were 109 per cent for production and 79 per cent for employment and for all mines 26-6 per cent and 10 per cent, respectively.

69

2.16 Employment statistics for underground mines are available under four groupings: (a) At the coal face. (b) Elsewhere below ground. (c) Surface—other than administrative and clerical. (d) Surface—administrative and clerical. The first group comprises men working close to the face and includes such occupations as deputy, borer, shotfirer, crew of the continuous miner or other coal-winning or loading

equipment, and face timber-men and roadlayers.

2.17 Employment at underground mines increased by 322 in 1976-77. Table 11 shows that there has been a slight increase in the proportion working at the coal face but the proportion employed below ground, 70-2 per cent, was unchanged from June 1976 to June 1977. The proportion of administrative and clerical workers was steady at 10 per cent. Since June 1964, total employment has risen by 33 per cent but the number of ‘other’ surface workers has fallen by 3 per cent.

TABLE 11.—LOCATION OF EMPLOYMENT—N .S.W . UNDERGROUND COAL MINES

Below ground Surface

Location

At face Elsewhere Other

Administra­ tive and clerical

Total

Number employed as at June— 1954 ................................................. .. 6,718 6,760 5,051 1,028 19,557

1964 ........ ............................................ 2,902 4,301 3,064 1,017 11,284

1972 ..................................................... 3,547 5,714 2,844 1,346 13,451

1974 ..................................................... 3,742 5,406 2,692 1,341 13,181

1975 ..................................................... 3,826 6,162 2,920 1,416 14,324

1976 ..................................................... 4,123 6,212 2,916 1,465 14,716

1977 ..................................................... 4,262 6,286 2,981 1,509 15,038

Percentage employed as at June—

1954 .....................................................

per cent 34-3

per cent 34-6

per cent 25-8

per cent 5-3

per cent 100

1964 ..................................................... 25-7 38-1 27-2 9 0 100

1974 ..................................................... 28-4 41-0 20-4 10-2 100

1975 ..................................................... 26-7 43-0 20-4 9-9 100

1976 ..................................................... 28-0 42-2 19-8 100 100

1977 ..................................................... 28-4 41-8 19-8 100 100

1977— South Maitland ....................... 21-3 39-4 24-6 14-7 100

Singleton—North W e s t.......... 26-0 38-6 24-2 11-2 ' 100

Newcastle ................................ 25-4 41-7 21-3 11-6 100

W e s t............................................ 37-2 27-7 25-5 9-6 100

Burragorang Valley ............... 21-3 57-7 1 6 0 5 0 100

South Coast ........................... 32-6 41-2 170 9-2 100

Employment in June 1977 as a percentage o f employment in June 1964—

147 146 97 148 133

Employment in June 1977 as a percentage of employment in June 1972—

120 110 105 112 112

70

2.18 The statistics on output per manshift worked (O.M.S.) published by the Board in respect of the New South Wales coal industry have been based on the tonnage of raw coal mined and the number of manshifts worked by employees in or about the mines and associated coal preparation plants. Output is measured on a consistent basis from mine to mine, irrespective of the processing to which the coal might subsequently be subjected. The output

of saleable coal depends, not only on the output of raw coal, but also on the proportion of the output washed and the yield from washing. The latter is, to a degree, determined by the specifications agreed on with the consumer and can change from contract to contract. O.M.S. measured in terms of raw coal, together with separate data on coal preparation, gives a better indication of the results obtained by the industry than a composite figure. O.M.S., measured in terms of saleable output, is a composite figure and its several components may,

at one time, all act to increase or decrease the measurement while, at another time, one component may tend to offset the movement by another.

Output per Manshift W orked

2.19 Overall O.M.S. for underground mines on a raw coal basis rose by 4-7 per cent in 1976-77 to 10-2 tonnes. This is the same rate as in 1972-73, but a little higher than in the three years 1973-74 to 1975-76. Prior to August 1970, with award hours 40 per week, O.M.S. at underground mines increased from 9-0 tonnes in 1966-67 to 10-5 tonnes in 1969-70

a rise of 15-9 per cent. In 1970 it was calculated that introduction of the 35 hour week would have an impact effect of 12-5 per cent on the availability of productive time at coal face.

2.20 O.M.S. at open cuts was 45-9 tonnes in 1976-77, higher than in 1975-76, but still below the high rate of 54-0 tonnes achieved in 1974-75. For all mines O.M.S. was 12-2 tonnes the same level as 1974-75 when open cuts provided 22-1 per cent of the State’s coal compared with 20-9 per cent in 1976-77.

TABLE 12.—OUTPUT OF RAW COAL PER MANSHIFT WORKED— TONNES—N.S.W. COAL MINES

1973-74 1974-75 1975-76 1976-77

Percentage change 1973-74 to 1976-77

Change to 19

tonnes

1975-76 76-77

per cent

Underground mines— South Maitland .......... 7-5 7-3 6-2 6-8 — 9-4 + 0-6 + 10-2

Singleton—North West 11-8 11-8 11-5 10-8 — 8-3 — 0-7 - 5-7

Newcastle ....................... 10-8 10-8 9-9 10-8 — 0-4 + 0-9 + 8-9

West ............................... 151 151 17-5 16-9 + 12-1 — 0-6 - 3-5

Burragorang Valley . . . . 110 120 12-4 11-8 + 7-3 — 0-6 - 5-1

South Coast ................... 8 0 8-1 7-5 8-3 + 4-2 + 0-8 + 1M

N.S.W................... 9-8 1 0 0 9-7 10-2 + 4 0 + 0-5 + 4-7

Open cut— N.S.W................... 49-6 54-0 44-2 45-9 — 7-3 + 1-7 + 3-9

All mines in N.S.W ............. 11 -4 12-2 11-6 12-2 + 6-6 + 0 6 + 4-9

71

RAW COAL TON NES 20 0-1

1 9 0 -

1 8 0 ­

1 7 0

1 6 0

1 5 0

1 4 0

1 3 0 ­

1 2 0-

OUTPUT PER MANSHIFT WORKED N.S.W. UNDERGROUND MINES

110 -

1 0 Ό -

9 0 -

8 0 -

7 0 -

6 0 -

5 0 -

Λ * .

A

/ X

W E S T

.Z

x

\X V x / \ ................... ' -------- \\ X X S I N G L E T O N - x . . . . . . . . . * » · . „ X N O R T H W E S T . . , · · · < " . . . . .......Λ X B U R R A G O R A N G \ V A L L E Y . ■ • ' N E W C A S T L E S O U T H C O A S T S O U T H M A I T L A N D V ' 8 H o u r S h i f t s - 7 H o u r S h i f t s ■1967-68 1968-69 1969-70 1970-71 1971-72 1972-73 1973-74 1974-75 1975-76 1976 77 YEAR72

2.21 Table 12 and the associated graph show O.M.S. (raw) for underground mines in each district. There were increases of over 8 per cent in three districts but decreases in • the other three. Despite a small reduction in 1976-77 to 16-9 tonnes, the West continued to II have an O.M.S. well in excess of that in any other district.

η

| 2.22 On the basis of saleable output, O.M.S. for all mines was 10-3 tonnes in 1976-77, I compared with 9-8 tonnes in 1975-76, a rise of 4-6 per cent. The proportion of coal pro­ 's· duction which was washed within the coal industry decreased in 1976-77 to 54·2 per cent ; from 56-6 per cent in 1975-76. The recovery factor fell to 72T per cent from 73T per cent.

These two variations account for the difference in the two measurements of productivity. Table 13 shows how these factors have varied in each district. .

TABLE 13.—OUTPUT OF SALEABLE COAL PER MANSHIFT WORKED—N.S.W. COAL M INES

Washery input (raw) to total Recovery factor o f coal washed O.M.S. (overall)—-saleable production (raw) (yield)

1976-77 Change (a) 1976-77 Change (a)

1975-76 1976-77 Change (a)

Underground mines— per cent per cent per cent per cent tonnes tonnes per cent

South Maitland ................... 97-8 + 8-3 83 0 — 4-4 5-5 5-7 + 3-0

Singleton—North West . . . . 85-5 + 7-8 71-5 — 2-9 8-8 9-2 + 5-0

Newcastle ............................ 36-8 - 1M 69-4 — 2-4 8-7 9*6 + 10-2

W e s t..................... .................. 38-5 - 14-2 80-4 + 2-5 15-7 15-4 - 2 0

Burragorang Valley ........... 95-6 - 3-2 69-9 — 5-0 9 1 8-2 - 10-3

South Coast ....................... 55-9 + 10-2 74-1 — 0-6 6-5 7-0 + 7-8

N .S.W .............................. 57-6 - 2-5 72-8 — 2-2 8-2 8-6 + 4-8

Open cut—· Singleton—North West . . . . ■ 36-3 - 11-0 71-5 + 1-5 39-4 40-3 + 2-3

Other................... :. ................ 99-5 + 0-2 57-3 + 7-9 24-7 22-2 - 10-2

N .S.W .............................. 41-1 - 120 68-9 + 3-3 37-9 38-8 + 2-1

All mines in N .S.W ................... 54-2 - 4-2 72-2 - 1-3 9-8 10-3 + 4-6

(a) The change between 1975-76 and 1976-77 as a percentage of the 1975-76 level.

2.23 Table 14 records O.M.S. at New South Wales underground coal mines on a variety of bases. O.M.S. for 1976-77 in terms of raw coal was 36-6 tonnes taking account of those manshifts worked at the coal face and 14-7 tonnes when all manshifts worked below ground were counted. These rates were very close to the corresponding rates in 1973-74.

However, there has been an increase of 10-2 per cent in the O.M.S. of surface workers other than administrative and clerical. As noted earlier, the number of such employees has fallen in recent years.

73

G44102J— 61i

TABLE 1 4 —O.M .S. AT FACE, BELOW GROUND, OVERALL—N.S.W. UNDERGROUND MINES

1976-77 tonnes o f raw i O.M.S.— at coal face .....................

elsewhere below ground below ground .................

istrative and clerical excluding administi and clerical ...............

overall ...........................

P e r c e n ta g e c h a n g e sin c e 1973-74— at coal face ...........................

elsewhere below ground. . . . below ground .......................

surface other than admin­ istrative and clerical excluding administrative and clerical ...............

overall ............................

South Maitland

Singleton — North West New­

castle West

Burra- gorang Valley

South Coast

N.S.W.

32-4 42-0 44-1 44-7 51-3 25-7 36*6

19-4 27-5 26-0 63-0 21-2 20-6 24-7

12-1 16-6 16-3 26-1 15-0 11-4 14-7

23-7 46-4 47-3 65-2 70-6 45-1 48-6

8 0 12-2 12-1 18-7 12-4 9 1 11-3

6-8 10-8 10-7 16-9 11-8 8-3 10-2

- 6-4 - 6-9 3-1 5-7 + 35-0 4-5 0-3

- 6-3 - 12-7 + 0-4 16-9 - 9 0 + 5 1 + 1-6

- 6-9 - 10-3 — 2-4 + 3-6 + 4-2 + 0-7

- 10-9 + 1-8 + 4-4 + 21-2 + 150 + 9-5 + 10-2

- 8 0 - 7-6 0-8 + 8-7 + 6 0 + 2-2 + 2-7

- 9-3 - 8-5 0-9 + 11:9 + 7-3 + 3-8 + 4-1

Coal Stocks 2.24 After rising sharply during the latter 9 months of 1975-76 stocks of coal held at colleries rose by only 5,000 tonnes during 1976-77. Within the overall total, stocks at northern colleries fell by 33 per cent to 1,005,000 tonnes while stocks at South Coast mines rose by 175 per cent to 607,000 tonnes. For many years stocks of South Coast coal were unduly low.

TABLE 15.—ANALYSIS OF COAL STOCKS HELD IN NEW SOUTH WALES— Ό00 TONNES

30 June 29 June 28 June

20 Sep­ tember 1975

26 June 2 July

1973 1974 1975 1976 1977

Colliery stocks—· South M aitland........................... 458 113 125 73 157 103

Singleton—North West ........... 691 676 616 474 684 521

Newcastle .................................... 668 293 465 253 672 381

W est................................................ 113 189 282 290 482 502

Burragorang Valley ................... 389 88 362 204 768 875

South Coast ................................ 403 205 184 87 221 607

Total ............................... 2,722 1,564 2,034 1,381 2,984 2,989

Ports, merchants and in transit .. 690 331 649 491 553 1,054

Western district stockpile ........... 514 514 388 304 206 206

Total ................................ 3,926 2,409 3,071 2,176 3,743 4,249

Held by consumers ....................... 4,182 4,837 4,702 3,534 4,661 5,872

Total stocks in New South Wales ........................... 8,108 7,246 7,773 5,710 8,404 10,121

74

2.25 The quantity of coal held in port storage and in partly loaded ships at 2 July 1977 was 1,015,000 tonnes, well above the levels held in previous years. The storage areas ' attached to the new coal loader at Port Waratah has increased capacity at Newcastle. The increase in consumer stocks is detailed in Table 45. The quantities held at the various ports ' are shown below:

Newcastle ..

Balmain (Sydney) Port Kembla ..

2 July 1977 Change from

June 1976

(tonnes) (tonnes)

466,300 + 172,800

13,700 + 3,000

535,000 + 309,000

1,015,000 + 484,800

Deliveries

2.26 The quantity of coal delivered from New South Wales mines and washeries rose by 17-8 per cent in 1976-77, a rate some what higher than the 15-3 per cent by which raw coal production rose. The increase in deliveries of 5,995,000 tonnes contrasts sharply with the net increase of 603,000 tonnes between 1973-74 and 1975-76.

2.27 Table 16 shows that in 1976-77 deliveries increased from all six districts. Although South Coast had the largest increase in raw coal production, the increase in deliveries of 1,438,000 tonnes was less than in two other districts, Singleton-North West and Newcastle. Deliveries differ from the production figures given in Table 9 because of the

variations in colliery stocks noted in Table 15, the amount of coal used at collieries or supplied as miners’ coal, and the reject at coal industry washeries. Occasionally surveys of coal stocks result in adjustments which cannot be allocated back to output or rejects at a particular

mine.

TABLE 16.—COAL DELIVERED FROM N.S.W . M INES AND WASHERIES—Ό00 TONNES

1973-74 1974-75 1975-76 1976-77 (a)

Average change 1973-74 to 1976-77

Change 1975-76 to 1976-77

South Maitland ............... 1,919 1,513 1,025 1,131 ( - ) 263

Ό00 tonnes ( + ) 106

per cent

( + ) 10-3

Singleton—North West .. 7,277 9,806 9,112 10,839 (+ )1,187 (+ )1,727 ( + ) 1 9 0

Newcastle ........................... 10,870 10,488 9,501 11,492 ( + ) 207 ( + ) 1,991 ( + ) 21 0

West .................................... 1,788 2,339 3,129 3,635 ( + ) 616 ( + ) 506 ( + ) 16-2

Burragorang Valley . . . . 3,253 3,316 3,416 3,643 ( + ) 130 ( + ) 227 ( + ) 6-6

South Coast ....................... 7,925 8,493 7,452 8,890 ( + ) 322 (+)1,438 ( + ) 19-3

N.S.W.................... 33,032 35,955 33,635 39,630 (+ )2,199 (+ )5 ,9 95 ( + ) 17-8

(a) 53-week year.

Open Cut M ining

2.28 Two new open cuts came into operation during 1976-77. One is a project to win a small amount of South Maitland coal left adjacent to an underground mine which closed 22 years ago. The other, in the Singleton-North West, district is associated with an operating underground mine and is designed, to ensure maximum recovery in that portion

of the lease accessible to open cut working.

75

2.29 Major interest has developed in the potential for large scale open cut mining of the Singleton area, and a number of projects are being planned by organisations holding leases or exploration permits.

2.30 Table 17 brings together various statistics regarding open cut operations during recent years. Production, employment and O.M.S. all rose in 1976-77. The increase in raw coal production was 1,395,000 tonnes or about 29 per cent of the 4,800,000 tonnes by which underground output rose.

TABLE 17.—OPEN CUT OPERATIONS—NEW SO U T H WALES COAL INDUSTRY

Production—raw coal Ό00 tonnes—

1972-73 1973-74 1974-75 1975-76 1976-77

30

4,950 476

5,834 643

8 ,365 970 14

7,534 842

5

9,038 728

West .........................................................

N.S.W ............................................ 5,456 6,477 9,349 8,376 9,771

Employment at end of year— N .S.W ............................................ 468 533 674 762 877

O.M.S.—tonnes raw coal— N.S.W ............................................ 41-7 49-6 54-0 44-2 45-9

Open cut production as a percentage of output from all N.S.W. mines . . . . 14-3 17-7 22-1 j 20-6 20-9

2.31 The plant and equipment returns (see para 2.35) show that during the 1977 period under survey the average quantity of overburden moved was 200,000 cubic metres per day, equivalent to about 470,000 tonnes. Coal production during the same period averaged 52,035 tonnes per day. The averages just quoted were calculated on the basis of a five-day working week. At most open cuts, plant used to move overburden commonly

operates for more hours per week than the equipment used to load coal.

2.32 The thickness of individual seams worked in June 1977 by open cut methods ranged from 11.0 metres to 0.8 metres, but total coal thickness worked at the cuts ranged from 15.0 metres to 2.4 metres. The greatest depth, coal plus overburden, currently being worked was 60 metres. The ratio of coal to overburden thickness ranged from 1:1.25 to

1:7.9 with a weighted average of 1:3.2. This compares with the June 1976 average of 1:5.0.

2.33 There are two main techniques used to remove overburden at New South Wales open cuts. At four open cuts the key machine is a walking dragline, with 5 units currently in use. The smaller open cuts use scrapers, dozers and front-end loaders. At the time of the 1977 survey, 64 per cent of the overburden was being moved by draglines.

76

2.34 The progressive rehabilitation of mined areas is a feature of open cut mining as currently practised in New South Wales. The plant and equipment survey of June 1977 sought information from open cut operators currently producing coal as to the extent of areas stripped and areas rehabilitated. At that date the areas stripped totalled 968 hectares, with individual areas ranging from 3 to 327 hectares and averaging 74 hectares per open cut. Of the thirteen mines covered by the survey, twelve had rehabilitated some areas either to a final state or partially. In one case, 63 per cent of the area stripped had been partially rehabilitated. In another case, rehabilitation was final in respect of 24 per cent of the area stripped, with an additional 49 per cent partially rehabilitated. In all, the rehabilitation was final in respect of 126 hectares and partial in respect of 195 hectares. In June 1976 rehabilitation had been final in respect of 63 hectares and partial in respect of 160 hectares.

Plant and Equipment Survey

2.35 Each year the Board conducts a survey of the major items of plant and equipment in use at each New South Wales coal mine and the tonnage of coal handled by such items. This year’s survey covered the 4 weeks to 18 June 1977. The daily rates given are the sum of individual mine averages, each average being based on the number of days actually worked by the mine. During the period of the 1977 survey all but four of the mines worked on each

of the 19 possible days.

Extraction M ethods

2.36 At the time of the June 1977 survey, the average daily output for all operating mines was 215,950 tonnes, 10.2 per cent above the rate at the time of the 1976 survey. Open cut production was higher by 11,325 tonnes per day and underground mines by 8,698 tonnes. For both underground and open cut mines the rates in June 1977 were higher than recorded

in any previous plant and equipment survey.

2.37 The June 1977 total included 13,989 tonnes from 5 mines currently raising coal to the surface via a shaft. As recorded in earlier reports, a number of new underground mines have installed automatic bulk hoisting. The first Australian coal mines to raise coal by this type of equipment were Newstan and Newvale No. 2 (1968-69). During 1976-77

West Cliff came into production, with a 500 m deep shaft having a haulage capacity of 750 tonnes per hour.

2.38 Although no additional longwall units were installed during 1976-77, output in June 1977 from 3 units was 8,767 tonnes per day, almost double the June 1976 rate. Two shortwall units were in operation in June 1977 with an output of 2,046 tonnes per day.

2.39 The balance of underground output, 153,102 tonnes per day, comprised coal won by bord and pillar in first and second workings together with first workings preparatory to shortwall and longwall extraction. The corresponding total in 1976 was 148,732 tonnes.

2.40 Table 18 shows changes in methods of extraction since 1954. In June 1977, 46 per cent of underground coal came from first workings and 54 per cent came from second workings. This is the first occasion since records were kept that second workings have provided more than 50 per cent of coal won from underground workings. In 1954, just

before the restrictions on the use of machines to extract pillar coal were eased, only 18.9 per cent of the coal came from pillars. At that time 41 per cent of output was still hand- loaded. Since then the tonnage of coal won by machines has risen from 36,741 tonnes per day to 163,860 tonnes, an increase of 346 per cent.

77

FIRST WORKINGS SEC O N D WORKINGS

UNDERGROUND MINING DAILY RATES AS AT /UNE 1977 ’0 0 0 TONNES PER DAY

30 η

SO U TH C O A S T 53-2 %

N E W C A S T L E 43-6 %

BU RRAGORANG VALLEY 59-8% W E S T 77-5 %

SIN G L E TO N - S O U T H NO RTH W ES" M A IT L A N D 4 4 -3% 8 2 "°%

1 8 0 %

22-5 %

55-7 % 4 0 -2%

46-8%

56-4 %

78

TABLE 18.—METHODS OF EXTRACTION—N.S.W. COAL INDUSTRY DAILY AVERAGE PRODUCTION—RAW COAL—TONNES

June Open

cut

Underground

All mines

First working Second working

Total Loaded by Total per cent

Longwall and shortwall

Loaded by

Total per cent

Hand Machine Hand Machine

1954 5,867 13,721 36,741 81-1 11,772 18-9 62,234 68,101

1960 2,928 3,247 47,587 70-2 1,972 19,623 29-8 72,429 75,357

1965 3,662 1,392 53,643 54-7 304 925 44,333 45-3 100,597 104,259

1970 18,305 112 87,714 55 0 7,489 61 64,212 45-0 159,588 177,893

1972 26,753 83,327 51 -6 5,722 120 72,199 48 -4 161,368 188,121

1974 34,511 74,217 53-7 4,310 78 59,521 46-3 138,126 172,637

1975 44,379 4 82,912 53-2 7,370 66 65,496 46-8 155,848 200,227

1976 40,710 42 80,170 51-7 6,485 27 68,493 48-3 155,217 195,927

1977 52,035 55 75,394 46-0 10,813 77,653 54-0 163,915 215,950

2.41 Variants of the bord and pillar system, such as Old Ben, Wongawilli and certain modifications of these systems, can give higher recovery factors, coupled with improved safety. To measure the extent to which these techniques are being adopted, recent plant and equipment surveys have collected information from colliery management as to the system(s)

of extraction, other than Iongwall or shortwall, then in use in New South Wales underground coal mines. In June 1977 it was found that of the 77,653 tonnes per day of second workings being extracted from 51 mines, the contribution from the various methods, including modifications, were:

“Traditional” .. .. .. .. 44 per cent

“Wongawilli” .. .. .. .. 43 per cent

“Old Ben” ..................................... 13 per cent

2.42 The use of the traditional system has shown no sustained decline over the last three years, varying from 44 per cent in June 1975, 41 per cent in 1976 and back to 44 per cent in 1977. The use of the Old Ben system has varied from 15 per cent to 16 per cent, then down to 13 per cent. However the results obtained in the survey may have been influenced

by mines normally using the Old Ben system extracting few if any pillars during June 1977. The number of mines using the Wongawilli method was 13 (25,744 tonnes) with a further 5 (7,747 tonnes) using a modification of the method.

2.43 Table 19 shows the tonnage of coal won from second workings in each of the six coal mining districts and the percentage this represents of total underground production. The State-wide increase in second workings already noted resulted from higher levels of second working in five districts. On the South Coast there was a small reduction to 53.2 per cent, i.e., very close to the State average of 54.0 per cent. The 1977 data is depicted in the adjacent graph.

79

TABLE 19.—SECOND WORKING DAILY AVERAGE PRODUCTION AS AT JUNE—RAW COAL— N .S.W . UNDERGROUND MINES

Daily average production— tonnes Percentage o f coal won by second working during underground mining

1975 1976 1977 1975 1976 1977

South M aitlan d ................................ 5,547 3,172 . 5,324 69-7 69-1 82-0

Singleton-North West ............... 7,781 6,296 7,036 5 3 0 42-1 44-3

Newcastle ........................................ 21,666 19,034 21,840 41-8 37-1 43-6

W est..................................................... 5,891 10,986 12,985 41-1 59-6 77-5

Burragorang Valley ....................... 8,387 12,164 14,109 37-7 50-9 59-8

South Coast .................................... 23,660 23,353 27,172 52-8 55-5 53-2

N .S.W ................................. 72,932 75,005 88,466 46-8 48-3 54-0

P r o d u c t io n U nits

2.44 The daily output won in June 1977 from each of the four types of production unit shown in Table 20 was higher than in June 1976. However, the percentage of coal won by longwall units increased from 3.2 per cent to 5.3 per cent. The percentage of coal won by continuous miners showed a corresponding reduction from 92.9 per cent to 90.8 per cent. Included in the 2,463 tonnes mined by hand or grunched was 2,339 tonnes shot down and loaded out with a front-end loader. Most of the remainder was won at Nymboida, the mine owned by the Union Coal Mining Co. Pty Ltd.

2.45 The use of coal cutters showed little change from June 1976 to June 1977. The average output from fully-manned units, including units used in conjunction with mobile face drills, was 517 tonnes per unit-shift.

TABLE 20.—PRODUCTION UNITS—DAILY TONNAGE OF RAW COAL WON— N.S.W . UNDERGROUND COAL M INES—TONNES

June 1968.......................

June 1970.......................

June 1974 .......................

June 1975.........................

June 1976.........................

June 1977.........................

Percentage at June 1977

Longwall units Continuous miners

Coal cutters

Mined by hand or grunched

Total .

252 111,472 12,699 2,213 126,636

7,489 138,874 10,399 2,826 159,588

3,519 126,974 6,723 910 138,126

3,902 144,928 5,254 1,764 155,848

5,021 144,253 3,691 2,252 155,217

8,767 148,825 3,860 2,463 163,915

5-3 90-8 2-4 ' 1-5 1000

80

2.46 The Board’s last two reports have referred to a longwall unit first installed by The Bellambi Coal Co. Ltd at its South Bulli mine in 1975. Following extraction of the first block of about 380,000 tonnes, the plough used in conjunction with the shearer was replaced by ramp plates and the conveyor joints modified. The unit recommenced extraction

in November 1976. During the period of the June 1977 plant and equipment survey, output from the unit averaged 4,594 tonnes per day. The unit is operated on a four-shift basis in a seam with a working height of 2.6 metres. The measures taken to control dust from this unit continue to be successful, with counts taken being within the prescribed standard.

2.47 To date, Australian use of the mechanised longwall system using self-advancing roof supports has been confined to the South Coast district. The Electricity Commission of New South Wales has announced that it is now investigating the use of this system in the Western District. The Commission is interested in the potential of the system to ensure a high recovery of in situ coal.

2.48 The changing pattern of coal winning is shown in the upper half of the adjacent graph headed “Method of Mining and Loading” . The lower half of the graph illustrates the relative use made of various methods of loading coal at the face. The longwall units win and load coal simultaneously. Continuous miners normally win and load coal directly

to face transport, but may sometimes be used in conjunction with a “pick-up” loader. In June 1977, 3,464 tonnes per day were loaded by such pick-up loaders, compared with 3,323 tonnes per day in June 1976 and 17,443 tonnes in June 1971.

2.49 The part of the diagram marked “mobile loaders” includes loaders operating in conjunction with coal cutters in addition to those operating as pick-up loaders. Also included are front-end loaders, which accounted for 2,339 tonnes of underground production in June 1977 and scraper loaders 69 tonnes. Loading by hand continues in a portion of

one mine, the average daily output being 55 tonnes.

2.50 Continuous miners remain the most significant coal winning machine. Details of the operation of these machines are set out in Table 21. Emphasis in the table is on changes between June 1972 and June 1977. All mines worked a 35-hour week throughout this period. Over the five years the average number of unit-shifts worked per day rose by 21 per cent, but the increase in the daily output was only 1.8 per cent. This was mainly because the

average output from fully-manned unit-shifts fell by 15 per cent, from 388 tonnes to 331 tonnes. However, the average output per fully-manned unit-shift increased slightly from June 1976 to June 1977. The improvement was most marked in the South Maitland and South Coast districts, both of which have rates below the State average. The number of

continuous miners in use rose by 15 during 1976-77 to 206 reflecting one aspect of the high level of capital expenditure in recent years. In the northern and western districts the ratio of unit-shifts worked to units in use fell during the year.

2.51 Included in the 206 continuous miners in use in June 1977 were 4 narrow-width machines. Special reference to the use of this type of machine, which is used to drive narrow roadways for better roof control, appeared in the Board’s 29th Annual Report. The trend to use the solid head instead of oscillating head type of continuous miner continues.

81

METHOD OF MINING & LOADING P o sitio n in June o f e a c h year___________

% OF TOTAL OUTPUT HAND WJ

W O N NICALLY

M I N E R S C O N T I N U

L O N G W A L L

YEAR

% OF TOTAL OUTPUT

M O B I L E

LOADED ECHA NICALLY

C O N T I N U O U S

N G W A L L U N T S

γ, , , , , ι m u " | , ‘ **" m m

YEAR

* Includes 2-1 % picked up behind continuous miners, 1-4% by front-end loader transporters.

■ H A N D L O A D E D .

82

TABLE 21.—U SE OF CONTINUOUS MINERS—N.S.W . COAL MINES

June—

South Maitland

Single­ ton- North West

New­ castle West

Burra- gorang Valley

South Coast

New South Wales

Daily output— to n n es........... 1972 8,469

7,481

10,457 11,603

52,788 46,121

8,532 9,756

24,482 16,355

41,478 35,658 146,206 126,974 1974 1975 7,496 13,953 46,991 13,876 22,253 40,359 144,928

1976 4,588 14,190 47,174 17,892 23,911 36,498 144,253

1977 6,491 14,896 45,125 16,427 23,608 42,278 148,825

Percentage change 1972 to - 2 3 + 4 2 - 1 5 +93 - 4 + 2 + 2

1977

1972 13 13 65 9 23 58 181

N o. of units in use ........... 1974 12 15 65 12 20 53 177

1975 13 18 67 14 22 59 193

1976 8 20 65 15 24 59 191

1977 10 22 70 18 22 64 206

Change 1972 to 1977 ........... - 3 + 9 + 5 + 9 - 1 + 6 + 2 5

1972 33 25 131 15 48 149 401

1974 37 30 124 21 38 145 395

N o. of unit-shifts worked— 1975 37 41 134 30 48 164 454

daily average (a ). 1976 23 43 144 32 51 172 465

1977 24 44 146 36 51 184 485

Change 1972 to 1977 ........... - 9 + 19 + 15 +21 + 3 + 3 5 + 8 4

Number of unit-shifts worked to units in use at June 1977

2-4 2 0 2-1 2-0 2-3 2-9 2-4

Output per unit-shift (6)— 1972 344 485 421 575 520 288 388

tonnes 1974 283 451 394 485 431 264 364

1975 266 381 373 536 484 257 349

1976 197 362 347 575 489 224 328

1977 303 384 330 481 482 245 331

Percentage change 1972 to - 1 2 - 2 1 - 2 2 - 1 6 - 7 - 1 5 - 1 5

1077

1972 78-6 93-3 89-7 87-3 100-0 89-4 90-6

Daily output won by 1974 90-8 95-5 90-0 93-3 100-0 89-9 91-9

continuous miners as a per- 1975 94-3 95-0 90-7 96-8 100-0 90-1 93-0

centage o f total daily output 1976 1000 94-9 92-0 97-0 100-0 86-7 92-9

from underground mines. 1977 100-0 93-8 90-0 98 0 1000 82-8 90-8

( a) Including partial shifts

( b) Fully-manned unit-shifts

U nderground H aulage

2.52 Coal won by longwall units is transported by face chain conveyors to belt conveyor systems for transport to the mine surface. In a few mines front-end loaders transport the coal from the face to the nearest conveyor belt. With only minor exceptions, all other coal won from New South Wales underground mines is transported by shuttle cars

from the production unit, usually a continuous miner. Thereafter, except in 7 mines, a series of conveyor belts moves the coal either to the surface or to a shaft equipped with an automatic bulk hoist (see para. 2.37). Table 22 shows the method of haulage used in each of the six coal mining districts.

83

A b o ve: Dowty shield type chocks for longwall extraction at Appin

B e lo w : P.E.T. vehicle used for transporting men and materials

84

TABLE 22.—UNDERGROUND HAULAGE—N.S.W . COAL M INES—BY DISTRICTS

RAW COAL HAULED AS AT JUNE 1977—TONNES PER DAY

Machine loaded to shuttle cars, then coal transported by— Conveyor belts .......................

Conveyors and locomotives .. Locomotives ...........................

Total via shuttle cars (a)

car) then coal transported by— Conveyors, face and belt ........ .

Conveyor, face and r o p e ...............

Total ..............................

Total daily tonnage (b ).

South Maitland

Single­ ton- North West

New­ castle West

Burra- gorang Valley

South Coast Total

6,491 15,756 44,247

4,401

16,160

604

21,300 2,308

32,908 9,236 155

136,862 15,945 759

6,491 15,756 50,106 16,764 23,608 42,299 155,024

124

8,767 8,767

124

124 8,767 8,891

6,491 15,880 50,106 16,764 23,608 51,066 163,915

(,z) Includes 1,458 tonnes via loader transporters. (&) Total includes 55 tonnes hand-loaded in Singleton-North West district.

2.53 An accepted weakness of the continuous miner-shuttle car combination is the intermittent nature of the haulage of coal from the continuous miner by shuttle cars. A solution to this problem has been sought over many years and some success has been claimed for innovations which have not yet achieved general acceptance.

2.54 In the United States an experiment is to be conducted by one company using flexible hose to transport the crushed coal in water from the face. It is anticipated that this experiment will commence about the middle of 1978 and will be watched with interest. In Canada hydraulic mining and transport has been applied in a mine where the grade is favour­

able to sluicing the coal. The long distance conveyance of coal by pipeline is also receiving increased attention both within Australia and overseas.

2.55 During the 1960’s, several experiments were made at New South Wales mines to utilise water power to sluice coal away from the point of production and convey it towards the mine exit. These efforts were discontinued in 1969.

Shift Working

2.56 During 1976-77 there were changes at some underground mines in the number of production shifts worked per day. The lower demand for coal from some mines led to the elimination of one or more shifts. At other mines the trend to multi-shift working, which has been evidenced in recent years, continued. The net result was an increase from

16 to 17 in mines using the four-shift cycle and from 11 to 12 in mines producing on a single­ shift. There was a net reduction in three-shift working. The district details are given in Table 23.

85

TABLE 23.— SHIFTS WORKED PER DAY—N.S.W . UNDERGROUND COAL M INES—JUNE 1977

Number o f Mines

One shift Two shifts Three shifts Four shifts Total

South Maitland ................................ 1 2 3

Singleton-North West ................... 2 4 3 1 10

Newcastle............................................. 4 8 7 2 21

W e st..................................................... 5 2 2 2 11

Burragorang Valley ........................ 1 2 4 1 8

South C oast........................................ 4 4 9 17

Total ................................

12

21 20 17 70

2.57 Table 24 records the extent to which coal is won on the various shifts. Since the hour at which shifts commence and the names by which they are known vary from mine to mine, it was necessary to adopt a standard nomenclature. The title “first shift” is given to the shift which usually commences just before midnight. The shift commencing about 7 a.m. is thus the “ second shift” , although it is commonly called the “day shift” .

2.58 There was a decrease from 20,982 tonnes to 19,747 tonnes in the average daily quantity of coal won on the fourth shift and the proportion of output won on that shift declined from 13-7 per cent to 12-0 per cent. The percentage of coal won on the second or day shift was unchanged, but the percentage of coal won on the third shift rose, but not for longwall units. Output from the latter units was more evenly spread over the four shifts

than in recent years.

TABLE 24.— MULTI-SHIFT WORKING AT N.S.W . UNDERGROUND COAL MINES—JUNE 1977

Shifts on which coal was won

South Maitland .......................

Singleton-North West .......................

Newcastle .......................

West ................................

Burragorang Valley ............................

South Coast ...............

1st

per cent 21-6 1 5 0 9-3 13-6

3-7 22-1

2nd

per cent 33-3 47-9 49 ·6 50-7 40-1 26-3

3rd

per cent 35- 8

36- 3 35-4 28-0 37- 6

31-1

4th '

per cent 9-3 0-8 5-7 7-7 18-6 20-5

Total

per cent 100 100 100 100 100

100

New South Wales—all mines ............. 14-0 40-2 33-8 1 2 0 100

L ongw all............. 27-8 23-2 23-6 25-4 100

Total daily average production—tonnes . . . . 22,882 66,025 55,261 19,747 163,915

86

Industrial R elations

2.59 Relations between employers and employees in the New South Wales coal mining industry were, in general, good throughout 1976-77. Wage rates continued to be adjusted j in line with determinations of the Australian Conciliation and Arbitration Commission, i One situation which had not been resolved by June 1977 involved the Australian Collieries

i Staff Association, which was concerned about salary relativities and the hours agreement. ! (See Appendix I of this Report which includes a report of major decisions, orders or awards j of the Coal Industry Tribunal during 1976-77).

2.60 Coal production lost as a result of industrial disputes in 1976-77 amounted to 1,593,000 tonnes compared with 3,059,000 tonnes in 1975-76. The tonnage lost in 1976-77 represented 3-3 per cent of possible production, compared with a loss of 7-0 per cent in the previous year. Included in the 1976-77 total was the loss of 192,000 tonnes arising from

protest stoppages regarding Medibank.

2.61 A number of union claims relating to the principal awards were not determined in September 1975 and became the subject of a determination by the Tribunal on 14 September 1976. Prior to this a number of counter-claims related to a “52 week-working year”, spread of ordinary hours, tolerance time and severance pay, were made by the employers. Stoppages

protesting against these proposals were widespread. The resultant loss of output was 608,000 tonnes.

2.62 The Tribunal increased some existing allowances, and modified the conditions under which sick leave, long service leave, severance pay and bereavement leave are payable. The employers claim for a 52-week working year along with several union claims were refused.

2.63 After a hearing spread over three months, the Coal Industry Tribunal made some findings favourable to the Collieries Staff Association including an interim measure in respect of “equal pay” . However, the Association was not satisfied. An overtime ban was imposed, and subsequently a withdrawal of labour. Except in isolated cases coal production continued at normal rates. Work was resumed on the basis that an earnings survey, designed

to identify anomolies, would be conducted under the authority of the Tribunal.

2.64 Table 25 shows production lost at all mines and manshifts lost at underground mines as a result of industrial disputes in the New South Wales coal mining industry since 1948-49. Table 26 shows manshifts lost at underground mines in each coal mining district since 1963-64.

87

TABLE 25.—INDUSTRIAL DISPUTES—N.S.W . COAL M INES

All mines

Underground mines

Tonnage lost—raw coal Percentage o f

Total

As percentage o f possible production

manshifts lost to manshifts possible

Ό00 tonnes per cent per cent

1948 49 ....................... 1,986

2,639 1,719 1,346 1,542

1,034

1,198 1,176 942

14-2 10-55

1949 50 ....................... 18-3 14-28

1950-51 ....................... 11-4 7-25

1951-52 ....................... 8"2 5-30

1952 53 ....................... 9 5 6-85

1953-54 ....................... 6'4 4-29

1954_55 ....................... 7-3 4-84

1955-56 ....................... 7-3 4-92

1956-57 ....................... 5-7 3-93

1957-58 ....................... 963 5-7 4 0 6

1958-59 ....................... 472 2-9 2-16

1959-60 ( a ) ................... 542 3 0 2-03

1960-61 ....................... 563 3 0 1-91

1961-62 ....................... 423 2-1 1-32

1962-63 ....................... 505 2-6 1-29

1963-64 ....................... 398 1-9 1-17

1964-65 ....................... 351 1-6 0-92

1965-66 ( b ) ................... 781 3 0 2-05

1966-67 . i ................... 730 2-7 1-85

1967-68 ....................... 601 2-1 1-27

1968-69 ....................... 1,092

2,249 1,592 3,837 979

3 2 2-06

1969-70 ....................... 6 0 4-01

1970-71 ....................... 4-2 2-68

1971-72 (b) ................... 9-4 4-81

1972-73 '. i ................... 2-5 1-25

1973-74 ....................... 1,703

1,855 3,059 1,593

4-4 2-99

2-67 1974-75 ....................... 4-2

1975-76 ................... .... 7 0 4-82

1976-77 (b) ................... 3-3 2-72 -

(a) 54-week year. (b) 53-week year.

2.65 Over the period covered by Table 25 major changes have taken place in the level of production and in output per manshift worked. For those reasons losses through industrial disputes, expressed as a percentage of total production, or the percentage of manshifts lost, are to be preferred for the purpose of making comparisons with earlier years rather than the total tonnage lost. The level of industrial disputes, whilst increasing in recent years, is still well below that in the late 1940’s and early 1950’s. In 1949-50, manshifts lost as a result of industrial disputes represented 14-3 per cent of manshifts possible at underground mines and

11 -6 per cent at open cuts, while production lost represented 18-3 per cent of possible produc­ tion at all mines. Since 1952-53, manshifts lost at underground mines as a result of industrial disputes have not exceeded 5 per cent of possible manshifts in any year.

88

TABLE 26.—INDUSTRIAL DISPUTES—N.S.W . UNDERGROUND COAL MINES BY DISTRICTS

Underground mines

Percentage o f manshifts lost to manshifts possible

South Maitland

Singleton-North West Newcastle West

Burra­ gorang Valley

South Coast N.S.W.

per cent per cent per cent per cent per cent per cent per cent

1963-64 ....................... 1-60 0 0 2 0-27 0-50 1-93 1-93 1-17

1964-65 ....................... 0 3 4 0 1 8 0-29 003 1-74 1-74 0 9 2

1965-66 ( a ) ................... 0-81 0-23 0-78 0-17 1-73 4-08 2Ό5

1966-67 ....................... 1-31 0-60 1-18 0-41 2-25 2-81 1-85

1967-68 ....................... 0 8 0 0-61 0-34 0-39 2-50 2-09 1-27

1968-69 ....................... 1-82 1-91 1-39 0·53 2-34 2-84 2 0 6

1969-70 ....................... 3-16 2-33 3Ί9 1-87 3-22 5-74 4-01

1970-71 ....................... 2-34 1-82 1-90 1-45 2-81 3-75 2-68

1971-72 (a)................... 5-47 5-52 4-88 4-27 4-31 502 4-81

1972-73 ....................... 0-22 H 6 0-69 0Ί 6 2-00 1-89 1-25

1973-74 ....................... 2-23 2-62 1-49 0-87 2-06 507 2-99

1974-75 ....................... 2-42 1-57 3-28 1-73 0-77 3-14 2-67

1975-76 ....................... 4-44 4-51 4-13 3-55 0-88 7-05 4-82

1976-77 (a )................... 2Ό8 2-43 1-32 1-87 2-68 4Ί9 2-72

(a) 53-week year.

2.66 The Burragorang Valley was the only New South Wales district not to record an improved industrial loss situation in 1976-77. However, that district had had a very good record in 1975-76, not having been involved in the major dispute re wage rates. Losses at open cut mines also fell in 1976-77, the percentage of manshifts lost falling to 1-99 per cent. In Queensland the industrial situation did not improve when measured in terms of manshifts lost, the percentage of manshifts lost at all mines rising from 3-9 per cent in 1975-76 to 4-0 per cent in 1976-77. The deterioration was confined to the open cuts.

2.67 The Statistical Appendix contains tables on stoppages of work at New South Wales coal mines classified according to the reason for the stoppage. In addition to the loss of 1,593,000 tonnes due to industrial disputes, a further 531,000 tonnes was lost to non­ industrial disputes. The effect of abnormal weather (within mine holdings) caused a loss of

185,000 tonnes. The fire at the Appin Colliery which destroyed the main conveyor belt, caused the loss of 233,000 tonnes (see para 5.35).

Coal Preparation

2.68 All coal produced in New South Wales is prepared to some degree before utilisation. Coal preparation embraces such processing as crushing, size grading, drying, blending and washing. Washing not only reduces the coal’s ash content but also lowers the content of minerals, such as pyritic sulphur. Such changes have special importance in certain

of coal’s uses.

89

2.69 In the beneficiation (washing) of coal, use is made of the differences in physical properties between those particles or lumps which are coal-rich and those which are rich in mineral matter. There are three basic types of separation processes based on the use of one of the following properties:

(i) Differences in the apparent relative density of particles.

(ii) Differences in the rates of acceleration of settling particles in water (up to their terminal velocities).

(iii) The aerophylic nature of fine particles (the propensity of coal-rich particles for air bubble attachment).

2.70 Coal preparation plants in New South Wales, which at the end of 1976-77, included washeries were:

South Maitland ..

Singleton-North W est..

Newcastle .. ..

West .. ..

Burragorang Valley South Coast ..

Aberdare, Ayrfield No 3, Pelton. Bayswater No. 2, Buchanan Lemington, Liddell, Liddell State, Newdell, Nymboida, Wambo.

Belmont, Bloomfield, Borehill, Burwood, Delta No. 1, Gretley, Hexham, John Darling, Minmi, Newstan No. 1, Wallarah, Wallsend Borehole. Blue Mountains, Hermitage, Wallerawang. Glenlee, Wollondilly. Avon, Coal Cliff, Huntley, Metropolitan, South Bulli, West Cliff, Yellow Rock.

The steel industry also operated washeries at its Newcastle and Port Kembla works.

2.71 During 1976-77 new washeries were commissioned at West Cliff, to serve the new mine, and at Bloomfield to replace a smaller plant using less suitable techniques. An­ other plant was undergoing trials in July 1977. At the end of 1976 a washery adjacent to the Wyee mine site was dismantled, following a change in marketing arrangements. The number of plants operating in the State therefore remained, as in June 1976, at 36.

2.72 Major extensions were also undertaken during 1976-77 at the Hermitage plant, including the installation of a dense medium cyclone to give increased recovery. Extensions and modifications each costing at least $100,000 also took place at Bayswater No. 2, Coal Cliff and Wollondilly. ft is expected that most of the new mines now under development, or under consideration, which plan to export coal, will require new coal preparation plants. This is particularly true of the Upper Hunter Valley where multiple coal seams with varying properties

will necessitate careful attention to coal preparation and coal blending. In the short term, however, there is still considerable unused washing capacity in many of the existing plants. Round-the-clock operation is rare.

90

TABLE 27.—COAL WASHERY PRACTICE IN N.S.W .—JUNE, 1977

District

South Maitland Singleton -N orth

West

New­ castle

West South Total N.S.W.

Number of operating plants ................... 3 7 13 3 10 36

Types of units within plants (number)— Heavy medium baths and cones .. 2 2 3 4 11

Coarse coal j i g s ................................... 1 4 8 3 4 20

T a b les.................................................... 1 4 5

Fine coal j i g s .......................................

Launders ............................................ 1 1 2

Heavy medium cyclones ................... 1 3 5 2 8 19

Water washing cyclones ................... 1 5 2 8

Froth flotation ............ ...................... 1 3 3 7 14

Total ............................................ 7 14 28 5 25 79

Top size of coal treated (mm)— Maximum ............................................ 200 157 150 150 254 254

Minimum ................................. .......... 76 32 38 100 19 19

Average (unweighted) ....................... 125 97 85 126 108 101

Washing plant capacity (tonnes per hour): Size Range— Maximum ............................................ 210 660 559 210 850 850

Minimum ............................................ 120 30 80 41 130 30

Average ................................................ 160 284 247 141 485 304

Change in plant capacity since June, 1976 0 ( + ) 149 ( - ) 59 0 ( + ) 550 ( + ) 640

Total all plants June, 1977.......... 480 1,990 3,208 424 4,853 10,955

TABLE 28.—COAL WASHERIES—N.S.W.—1976-77

No. of plants in operation Input of

raw coal Refuse Output of washed

Refuse as per cent of

Raw coal input as per cent of total production

at end of coal raw coal

year input

District N.S.W.

Ό00 Ό00 Ό00 per cent per cent per cent

tonnes tonnes tonnes

Coal industry washeries—

1,260 South Maitland .. .. 3 214 1,046 17.0 97-3 2-7

Singleton-North West .. 7 6,167 1,756 4,411 28-5 49-7 13-2

Newcastle .. .. .. 12 5,211 1,682 3,529 32-3 40-4 11-1

West . . .. .. 3 1,549 304 1,245 19-6 38-5 3-3

Burragorang Valley .. 2 5,086 1,529 3,557 301 95-6 10.9

South Coast.. .. .. 7 6,059 1,569 4,490 25-9 55-9 12-9

Total .. .. .. 34 25,332 7,054 18,278 27-8 54-1

Consumers’ washeries— Newcastle steelworks .. 1 2,357 589 1,768 25-0 5 0

Port Kembla steelworks .. 1 4,017 649 3,368 16-2 8-6

Total .. .. .. 2 6,374 . 1,238 5,136 19-4 13-6

91

2.73 Practices in coal washeries at June 1977 are set out in Table 27. There were a few minor variations in plant capacities (tonnes per hour of feed coal) and overall capacity increased by 640 tonnes per hour during the year.

2.74 Table 28 summarises washery performance in 1976-77. The input of raw coal into coal industry washeries, ?t 25,332,000 tonnes, was 2,388,000 tonnes more than in 1975-76. However, the tonnage washed was only 54.1 per cent of total production. In 1975-76 the plants had treated 56-6 per cent of the year’s production. For the consumer’s washeries, the input tonnage fell by 273,000 tonnes and the percentage of the State’s output washed at these

plants fell from 16-4 per cent to 13-6 per cent (see para 3.39).

2.75 The total quantity of refuse increased to 8,292,000 tonnes, for two reasons, firstly the higher input and secondly the higher percentage of rejects in five districts and at the two consumer’s washeries.

2.76 Progress in the fluidised bed combustion of refuse is reported in para 1.43.

Capital Expenditure

2.77 Expenditure during 1976-77 on mine development and on plant and equipment, including replacements, totalled $122,700,000. This was 21 per cent more than in 1975-76 and the second year in succession that expenditure has exceeded $100,000,000. In 1972-73 and again in 1973-74 expenditure totalled approximately $25,000,000. In each of the last three years the increases in expenditure, even when expressed in constant money values have been

large. Advice supplied to the Board at the beginning of 1976-77 was that expenditure would increase to $133,000,000. In view of the short-term market situation a few projects did not proceed at the expected rate.

2.78 Not included in the 1976-77 total of $122,700,000 was the $38,000,000 spent by Port Waratah Coal Services Ltd on coal loading facilities at Newcastle, expenditure by various parties on the Mt Thorley project or expenditure by the Public Transport Commission on railway rolling stock. Table 29 shows the main types of expenditure in each of the six coal

mining districts in recent years. Prior to 1976-77 all expenditure on proving reserves and prospecting, except at existing open cuts, was, for convenience, shown against underground mines. However, in 1976-77 expenditure on prospecting and proving reserves which was clearly aimed at delineating areas with undoubted open cut potential, have been included

against open cut rather than underground mines. To ensure that the Board’s statistics fully indicate the level of new equipment becoming available to the industry, the figures given in this section include the approximate value of leased equipment. Details of expenditure in individual districts is given in Table 43 of the Statistical Appendix.

2.79 Expenditure at underground mines rose to $108,325,000 in 1976-77, the average over the five years to June 1976 being $47,166,000. Open cut expenditure, partly because of the inclusion of a large volume of expenditure on proving reserves, rose sharply to $14,375,000, double the average during the five years to June 1976. Included in the 1976-77 total was

$3,650,000 for coal and overburden equipment.

92

TABLE 29.—CAPITAL EXPENDITURE (INCLUDING REPLACEMENTS)— N.S.W. COAL INDUSTRY

Class of plant and equipment 1972-73 1973-74 1974-75 1975-76 1976-77 Average

5 years

$’000 $’000 $’000 $’000 $’000 $’000

Underground— Face equipment ................................... 3,705 4,667 13,518 18,344 12,285 10,504

Transport—men, material, coal .......... 5,463 5,886 12,341 16,712 17,768 11,634

Other ........................................................ 2,520 2,863 4,220 5,005 9,489 4,819

Open cut— Coal and overburden equipment.......... 1,225 1,219 7,781 1,084 3,650 2,992

Surface— Coal preparation plant ....................... 3,096 3,263 3,515 11,076 14,681 7,126

Coal transport, storage, load in g.......... 1,338 1,159 5,854 11,543 7,774 5,533

Buildings and land ............................... 552 825 5,867 6,013 7,967 4,245

Other ........................................................ 1,240 1,007 3,345 9,386 10,516 5,099

Mine development—

4,778 Shafts, drifts, etc....................................... 3,264 7,993 17,121 29,379 12,507

Proving reserves and prospecting .......... 1,054 1,128 2,488 5,208 9,191 3,814

Total—N.S.W................................... 24,971 25,281 66,922 101,492 122,700 68,273

Coal producing areas— South M aitland....................................... 1,198 1,026 1,384 1,596 9,117 2,864

Singleton-North West ........................... 6,097 3,192 17,618 19,144 30,755 15,361

Newcastle ................................................ 6,429 4,842 9,113 19,498 14,358 10,848

W est............................................................ 660 2,110 7,312 8,927 10,624 5,927

Burragorang Valley ............................... 1,952 2,732 3,215 7,088 15,750 6,147

South Coast(a) ....................................... 8,635 11,379 28,280 45,239 42,096 27,126

Type of mine— Underground............................................ 22,091 23,451 55,921 94.747(b) 108,325 60,907

Open cut ................................................ 2,880 1,830 11,001 6,745 14,375 7,366

Total—N.S.W.................................... 24,971 25,281 66,922 101,492 122,700 68,273

( a) Includes expenditure for Coorabin-Oaklands District.

(b) All expenditure on proving reserves and prospecting, except at existing open cuts, is, for convenience, included against underground mines.

2.80 Expenditure on face equipment in 1976-77 was only two-thirds the level of the preceding year. As in 1975-76 much of the expenditure was in two districts—South Coast 35 per cent, Newcastle 25 per cent. The number of new continuous miners purchased, which had risen sharply to 52 in 1975-76, fell to 29 in 1976-77. As shown in Table 21 there were 206 continuous miners in use in June 1977. Therefore the 111 new units purchased over

the last three years ensure that the industry is well equipped with the modern high-capacity units and that it has ample machine capacity to increase output in line with market demand.

2.81 Underground transport equipment accounted for an outlay of $17,768,000, maintaining the level achieved after the sharp increase experienced in 1975-76. In all districts, with the exception of Burragorang Valley, expenditure on underground transport

93

exceeded expenditure on face equipment. Major items under this heading are shuttle cars, conveyor belts and structures. Almost half the expenditure occurred at South Coast mines. Expenditure in “other underground" increased by $4,484,000 to $9,489,000. Major items include distribution of electricity within the mine, water reticulation and dewatering systems and underground storage bins.

2.82 Nearly one quarter of all expenditure was on “mine development” comprising, in the main, the sinking of shafts, and the driving of new drifts. Such expenditure is incurred when new mines are being developed or when major reorganisation of old mines is undertaken. Included in the 1976-77 total of $29,379,000 was $9,680,000 spent at South Coast mines and

$6,278,000 at Burragorang Valley mines. Expenditure in the other four districts ranged from $2,125,000 to $4,587,000.

2.83 Expenditure on surface facilities continued at a high level, despite a 33 per cent reduction in the amount spent on coal transport, storage and loading facilities. However this reduction was balanced by a corresponding 33 per cent increase in expenditure on coal preparation to $14,681,000. Half the total was spent in the Singleton-North West district

as washing capacity was expanded to handle the increasing level of exports, actual and anticipated. In the West, expenditure was concentrated on three projects, Hermitage, Ulan and Angus Place. The latter does not include a washery. On the South Coast the major project was the completion of the new washery at West Cliff.

2.84 Expenditure on proving reserves and prospecting rose very sharply to $9,191,000 in 1976-77. In 1972-73 the total was only $1,054,000. Details of the footage drilled are given in Table 35 and Appendix 2. Expenditure by Government authorities on prospecting included $316,000 by the Geological Survey of New South Wales and $1,021,000 by the

Electricity Commission of New South Wales. The Joint Coal Board (see para 1.75) contributed $91,000 to a joint programme being conducted with the New South Wales Department of Mines.

2.85 Total expenditure increased in four districts but neither South Coast nor Newcastle districts maintained the high levels reached in 1975-76. After an average expenditure of only $1,371,000 during the five years to June 1976, expenditure in the South Maitland district increased sharply to $9,117,000 in 1976-77. The development of Peko- Wallsend’s Pelton and Ellalong projects was responsible for the increase. Even higher expenditure is anticipated in 1977-78. An important element in the high level of expenditure in the Singleton-North West expenditure was the $7,528,000 spent on proving reserves and prospecting. A high proportion of this work was directed at detailed exploration of areas in the Singleton Coal Measures. Such work is an essential prerequisite for the adequate planning of a new area. Major expenditure on mine development occurred at Buchanan Lemington where a new underground mine is being developed. Total expenditure in the district rose to $30,755,000 in 1976-77 and is forecast to exceed $60,000,000 in 1977-78, should company plans proceed on schedule.

2.86 Expenditure in the Newcastle district had been forecast to continue at about the 1975-76 level of $19,498,000 in 1976-77 but only reached $14,358,000. Several projects did not proceed as rapidly as anticipated, both coking and steaming coal projects being affected. Expenditure was spread over a number of projects, with the largest amount, over $2,700,000 at the new Macquarie mine. Expenditure in 1977-78 is forecast to increase by about 50 per cent and to include initial expenditure on two new Electricity Commission mines—Myuna and Cooranbong.

94

2.87 Expansion of Western District mines continued in 1976-77, with capital expenditure rising to $10,624,000. One quarter of the amount was incurred at the Electricity Commission’s new mine at Angus Place. Initial expenditure at Clarence reached $1,000,000. Current plans envisage much larger expenditure at both these projects in 1977-78, and, as a result, district expenditure is forecast to more than double to $22,000,000 in 1976-77.

2.88 Expenditure in the Burragorang Valley doubled in 1976-77 to $15,750,000 and further expansion to about $19,000,000 has been forecast for 1977-78. The major project is the new mine at Tahmoor, but large scale expenditure is also being incurred at Nattai Bulli.

2.89 Expenditure at South Coast mines, at $41,941,000, was close to the forecast level of $45,000,000. This was 7.3 per cent less than in 1975-76 and a further reduction to $38,000,000 has been forecast for 1977-78. Major expenditure was incurred at three new mines, West Cliff, Tower and Cordeaux and will continue into 1977-78. Expenditure at a number of older mines is also substantial.

2.90 The Joint Coal Board has received advice from colliery proprietors of plans to spend $175,000,000 on plant, equipment and mine development during 1977-78. In addition to this sum, expenditure of a capital nature associated with the coal industry will be made by public authorities and by private companies to expand and upgrade road, rail and port facilities.

2.91 For the industry itself, the Board has been advised of 102 projects, each of which involves expenditure of at least $100,000. In 15 instances expenditure of between $5,000,000 and $12,000,000 has been forecast for 1977-78. These projects, all of which will extend over several years, are Pelton, Ellalong, Gunnedah, Liddell, Angus Place, Clarence, Nattai Bulli,

Tahmoor, Cordeaux, South Bulli, Tower and West Cliff, together with three in the Warkworth area by Coal & Allied Industries Ltd, R. W. Miller & Co. Pty Ltd and Warkworth Mining Ltd.

2.92 There are a further 20 projects where expenditure of between $1,000,000 and $5,000,000 is planned for 1977-78. These comprise 9 in the Newcastle district, 6 in the Singleton-North West district, 3 on the South Coast and one each in the West and Burragorang Valley districts.

2.93 Included in the anticipated expenditure for 1977-78 is $9,000,000 on prospecting and proving reserves. This is close to the 1976-77 total and once again the main emphasis is on the Singleton Coal Measures.

Value of Coal

2.94 The Australian Bureau of Statistics has made available information as to the value of coal produced in New South Wales on an at mine basis; i.e. value at point of sale less transport cost. The data given refers to all coal produced in New South Wales; this includes, of course, steaming and coking coal, open cut and underground coal from captive

95

and non-captive mines, and coal from mines operating under a wide variety of physical conditions. The data for the years 1970-71 to 1975-76, is set out in Table 30. The values given for 1975-76 are subject to the coal export tax. The total amount collected by the Commonwealth Treasurer was $111,600,000 (the amount collected in 1976-77 was

$121,300,000).

TABLE 30.—VALUE OF COAL AT THE MINE—SALEABLE OUTPUT—N.S.W .

North West South

New South Wales

Total value of coal produced— 1970- 71 ...........

1971- 72 ...........

1972- 73 ...........................

1973- 74 ...........................

1974- 75 ...........................

1975- 76 (a) .................

Total output of saleable coal— 1970- 71 ...........

1971- 72 ...........

1972- 73 ...........................

1973- 74 ...........................

1974- 75 ...........................

1975- 76 ...........................

Average value per tonne of saleable coal— 1970- 71 ..................................

1971- 72 ..................................

1972- 73 ..................................

1973- 74 ..................................

1974- 75 ..................................

1975- 76 (a) ......................................

$A’000

98,180 103,472 109,878 121,593 217,806

290,497

Ό00 tonnes

17,883 17,744 19,268 19,367 22,030 20,150

$A

5.49 5.83 5.70 6.28 9.89 14.42

$A’000

7,229 8,792 8,337 9,328 18,950 36,032

Ό00 tonnes

1,984 2,197 1,897 1,844 2,463 3,180

$A

3.64 4.00 4.39 5.06 7.69 11.33

$A’000

91,349 101,372 111,731 112,431 215,032

332,085

Ό00 tonnes

11,265 11,833 11,917 10,590 11,975 11,391

$A

8.11 8.57 9.38 10.62 17.96 29.15

$A’000

196,758 213,636 229,946 243,352 451,788

658,614

Ό00 tonnes

31,132 31,774 33,082 31,801 36,468 34,721

$A

6.32 6.72 6.95 7.65 12.39 18.97

(a) Includes duty payable on coal exports.

2.95 The value of coal increased by 46 per cent in 1975-76, following an increase of 85 per cent in 1974-75. In 1974-75 part of the increase is attributable to the higher tonnage of saleable output, but in 1975-76, output declined and the whole of the increase arose from the rise of 53 per cent in the average value per tonne of saleable coal.

2.96 Over the two years from 1973-74 to 1975-76 the total value of northern coal increased by 139 per cent and average value per tonne increased by 130 per cent to $14.42 per tonne. For Western coal the total value increased by 286 per cent and average value per tonne increased by 124 per cent. For Southern coal total value increased by 195 per cent and average value per tonne by 174 per cent. Data for 1976-77 is not yet available but it is anticipated that the total value will increase significantly as a result of the increase

96

of 14-9 per cent in saleable output. However, prices were relatively stable during the year and the disproportionally large increase in the tonnage of power house coal produced would have tended to reduce the overall average value per tonne.

2.97 Coal is easily the most important mine product won in New South Wales. In 1975-76 it represented 65-6 of total value of mine and quarry production; excluding construction materials and non-metallic minerals it represented 75·7 per cent of the State’s output. The data given in Table 31 shows that the value of coal produced in New South

Wales increased by 689 per cent between 1955 and 1975-76. The value of other products increased by 305 per cent over the same period.

TABLE 31.—VALUE OF COAL AND OTHER MINERAL PRODUCTION—N.S.W.—$’000

1955 1965 1970-71 1974-75 1975-76

C o a l.................................................... 83,431 112,103 196,758 451,788 658,614

Silver-lead-zinc ............................... 63,900 98,061 77,463 145,646 130,050

Other metallic minerals ............... 5,529 20,906 50,347 73,378 80,857

Total metallic minerals .. 69,429 118,967 127,811 219,024 210,907

Construction materials ............... 11,056 28,372 50,310 85,235 90,349

Other non-metallic minerals ___ 4,674 8,229 17,309 28,028 43,829

Total—All mining ___ 168,590 267,672 392,188 784,075 1,003,699

Coal as a percentage of all minerals 49-5 41-9 50-2 57-6 65-6

Source: Australian Bureau o f Statistics.

2.98 Table 32 shows wages and salaries, turnover, value added and value added per employee, all at current prices, for the N.S.W. coal mining industry.

TABLE 32.—N.S.W. COAL MINING INDUSTRY—WAGES AND SALARIES, TURNOVER AND VALUE ADDED

Wages and Turnover Value added Value added Salaries (a) (6) per employee

$’000 $’000 $’000 $

1973-74 ........................... 110,685 314,295 194,203 14,392

1974-75 ........................... 164,074 557,381 372,699 25,798

1975-76 ........................... 200,089 695,600 494,545 32,589

Per cent change— 1973-74 to 1975-76 ............... 80-8 121-3 154-7 126-4

Source: Australian Bureau of Statistics. (a) Turnover is broadly the value o f sales plus all other operating revenue. (h) Value added is broadly the market value o f goods and services produced by the industry less the cost of goods and services purchased from other industries.

2.99 As seen earlier for value of production, there have been very large increases since 1973-74 in each of the items shown in Table 32. Value added, which had increased by an average of 12-7 per cent per annum in the period 1968-69 to 1973-74, rose by 91-9 per cent in 1974-75 and by 32-7 per cent in 1975-76. Value added per employee increased

by 79-2 per cent in 1974-75 and by 26-3 per cent in 1975-76 (see Part 7 for report on wages and salaries).

97

G 44102J— 7

M ajor Owner Groups

2.100 During 1976-77 and continuing into 1977-78 there was a high degree of interest in the ownership of coal mines and the right of access to coal deposits. Changes have taken place in the ownership of shares in several companies, but the composition of the owner groups listed in Table 33 did not change significantly. B.P. Australia Ltd on 1 January

1977 acquired a 50 per cent holding in the New South Wales coal interests of Clutha Develop­ ment Pty Ltd. In June 1977 final arrangements were in hand for Le Nickel (Australia) Exploration Pty Ltd, acting on behalf of Charbonnages de France and Societe Miniere and Metallurgique de Penarroya, to acquire from Hartogen Exploration Pty Ltd (or the Hartogen Group), 50 per cent of the issued capital of Wambo Mining Corporation Pty Ltd.

2.101 All owner groups listed in Table 33, with two exceptions, recorded larger outputs in 1976-77 than in 1975-76. By far the largest increase, 2,885,000 tonnes or 30-4 per cent, occurred at State-owned mines. However five other groups, Austen & Butta Ltd, Bayswater Colliery Co. Pty Ltd, Kembla Coal & Coke Pty Ltd, Wambo Mining Corporation Pty Ltd and The Bellambi Coal Co. Ltd, recorded increases ranging from 24 T per cent to 71-3 per cent over output in 1975-76. Mines owned by the steel industry produced more coal than in 1975-76, but less than in 1973-74 or 1974-75.

2.102 The two open cuts owned by the Electricity Commission of New South Wales, but operated by contractors had an O.M.S. of 67-9 tonnes in 1976-77, 14-7 per cent above the 1975-76 rate. The underground mines owned by subsidiary companies of the Commission had O.M.S. increases of a similar proportion. Mines owned by Clutha Development Pty

Ltd, a group of open cut and underground mines, produced only slightly less coal in 1976-77 than in the preceding year, but their productivity, measured in terms of O.M.S., fell by 5-8 per cent to 14-7 tonnes.

2.103 In 1976-77 for the third successive year there was an increase in output from mines whose owners are not named in Table 33. O.M.S. for these other mines increased to 10.7 tonnes the same level as in 1974-75.

2.104 The increases in output recorded by a number of groups were heavily influenced by enlarged markets. For some groups the opening of an additional mine was a significant factor.

Captive and N on-Captive M ines

2.105 In 1976-77 production of raw coal from non-captive mines increased by 3,477,000 tonnes, of which 2,046,000 tonnes came from South Coast mines. At the same time, production from captive mines increased by 2,754,000 tonnes, of which 2,316,000 tonnes came from mines captive to public utilities.

2.106 A captive mine is one where a close link, often complete identity , exists between the owner of the mine and the owner of the plant at which the bulk of the coal from that mine is consumed. Over the years, some mines, formerly classified as captive, faced with a decline in their “captive market”, e.g., to the railways or to a power station, have entered another market. Some non-captive mines have become captive through purchase. Table 34 incorporates these changes. More details are contained in Table 7 of the Statistical Appendix.

98

TABLE 33.—MAJOR OWNER GROUPS—N.S.W. COAL INDUSTRY

Groups 1973-74 1974-75 1975-76

1976-77 i d )

Total change, 1973-74 to 1976-77

Change, 1975- 76 to 1976- 77

PRODUCTION—RAW COAL— Ό00 tonnes Steel industry ownership— The Broken Hill Proprietary Co. L td .. 2,847 2,653 2,390 2,533 - 314 + 143

Australian Iron and Steel Pty Ltd (a).. 4,009 4,525 4,035 4,252 + 243 + 217

Total ........................... 6,856 7,178 6,425 6,785 - 71 + 360

State Ownership- Subsidiaries of Electricity Commission (6) ................................. ...................... 6,403 6,037 5,377 7,046 + 643 + 1,669

Contractors to Electricity Commission (c )............................................................ 3,692 4,623 4,112 5,328 + 1,636 + 1,216

Total ........................... 10,095 10,660 9,489 12,374 + 2,279 + 2,885

Clutha Development Pty Ltd ............... 6,166 7,203 7,877 7,845 + 1,679 — 32

Coal and Allied Industries Ltd ............... 3,939 4,109 3,557 3,667 - 272 + 110

Austen & Butta L t d .................................... 1,223 1,665 1,953 2,424 + 1,201 + 471

Kembla Coal and Coke Pty Ltd .......... 1.468 1,580 1,523 2,241 + 773 + 718

The Bellambi Coal Co. Ltd ................... 1,066 1,091 1,037 1,776 + 710 + 739

B.. W. Miller (Holdings) Limited ........... 1,170 1,651 1,653 1,705 + 535 + 52

Buchanan Borehole Collieries Pty Ltd .. 774 1,344 1,437 1,548 + 774 + 111

Coalex Pty Ltd ............................................ 808 1,162 1,351 1,483 + 675 + 132

Feko-Wallsend Ltd .................................... 938 1,123 1,151 1,381 + 443 230

Bloomfield Collieries Pty Ltd ............... 701 903 725 653 - 48 — 72

Wambo Mining Corporation Pty Ltd .. 131 517 417 623 + 492 + 206

Bayswater Colliery Co. Pty L t d ............... IbU 600 442 564 + 404 + 122

All others .................................................... 1,137 1,520 1,553 1,716 + 579 + 163

Total—All N.S.W. coal m ines............... 36,632 42,306 40,590 46,785 + 10,153 + 6,195

Ο. M. S.—RAW COAL— tonnes

Steel industry ownership— The Broken Hill Proprietary Co. L td.. 8 0 7-9 7-4 7-6 - 0-4 + 0-2

Australian Iron and Steel Pty Ltd { a ) . . 7-9 8-4 7-7 7-5 - 0-4 + 0-2

Total ........................... 7-9 8-2 7-6 7-5 - 0-4 - 0-1

State ownership— Subsidiaries of Electricity Commission (6) ........................................................ 12-3 11-7 10-6 12-2 - 0-1 + 1-6

Contractors to Electricity Commission ( c ) ............................................................ 57-9 64-8 59-2 67-9 + 10-0 + 8-7

Total ........................... 17-3 18-1 16-4 18-9 + 1-6 + 2-5

Clutha Development Pty Ltd ............... 14-4 15-6 15-6 14-7 + 0-3 0-9

Coal and Allied Industries Ltd ........... 9-3 9 1 8-3 8-5 - 0-8 + 0-2

Other groups listed above ....................... 10-7 12-2 11-9 12-4 + 1-7 + 0-5

All others .................................................... 9-8 10-7 10-1 10-7 + 0-9 + 0-6

Total—All N.S.W. coal mines............... 11-4 12-2 11-6 12-2 + 0-8 + 0-6

(o) Wholly-owned subsidiary o f The Broken Hill Proprietary Co. Ltd. (έ>) Elcom Colleries Ply Ltd, Newcom Colliery Pty Ltd and Huntley Colliery Pty Ltd. This group includes mines formerly owned by the State Mines Control Authority. (c) Swamp Creek and Ravensworth No. 2 open cuts.

d) 53-week year.

TABLE 34.—PRODUCTION FROM CAPTIVE AND NON-CAPTIVE COAL MINES— NEW SOUTH WALES

Production—Ό00 tonnes

Percentage of area production

1964-65 1975-76 1976-77 1964-65 1975-76 1976-77

Non-Captive Mines— South M aitland...........................

Singleton-North West ...............

Newcastle ....................................

W est................................................

Burragorang Valley ...................

South Coast ...............................

2,263 1,832 3,035 927 2,324 2,295

1,189 6,529 5,603 2,663 5,202 4,392

1,294 7,082 5,902 3,021

5,318 6,438

1000 86-9 41-5 56-6 100 0

35-3

1 0 0 0 60-9 49-3 76-4 100.0

51 0

1000 57-1 45-8 75-1 100 0

59-4

Total ............................... 12,676 25,578 29,055 57-2 63-1 62-1

Captive Mines— Captive to public utilities . . . . 3,973 8,007 10,323 17-9 19-7 22-1

Captive to steel industry ........... 5,042 6,425 6,785 22-8 15-9 14-5

Captive to cement industry . . . . 473 544 622 2-1 1-3 1-3

Total ................................ 9,488 14,976 17,730 42-8 36-9 : 37-9

D rilling activities

2.107 Coal exploration measured by the aggregate length drilled increased by 64; per cent in 1976-77 to 131,430 metres. This is the fourth successive year in which the lengthj drilled has increased. However, the 1976-77 total was still below the peak of 161,713 metres drilled in 1970-71. Details of coal drilling during 1976-77 are shown in Appendix 2 and total drilling over the past live years is summarised in Table 35. Details of expenditure on I proving reserves and prospecting are given in para 2.84 and it is expected that expenditure in 1977-78 will maintain the high level achieved in 1976-77.

TABLE 35.—COAL DRILLING IN NEW SOUTH WALES—LENGTH DRILLED—METRES

Area 1973-74 1974-75 1975-76 1976-77

Newcastle District ..................................................... 4,111 6,177 6,983 7,088

789

103,016 3,694

Singleton—North West District ........................... 15,734 39,708 51,074

Clarence—Moreton B a s in ........................................

South Maitland District ........................................ 2 ,475

7,021 1,116 6,534 3,411 1,306

Western District ......................................................... 2,214

4,040 13,133 3,485

2,253 4,334 14,519

10,231 1,367 Burragorang Valley District ....................................

South Coast District ................................................

Corrabin—Oaklands Basin ....................................

Great Australian Basin ................................ ..

Z4z

T o ta l............................................................. 42,717 66,991 79,920 131,430

100

2.108 The main centre of activity has been the Singleton Coal Measures of the Upper Hunter Valley. As reported previously this area contains some of the richest coal bearing land in Australia. Since much of the area contains a remarkable concentration of coal seams, closely-spaced drilling is required to adequately prove reserves and to plan extraction.

Twelve separate companies, the Electricity Commission of New South Wales and the New South Wales Department of Mines have been drilling in the area with nearly 77,000 metres drilled during 1976-77. Some additional companies plan to commence drilling in 1977-78. The most intensive activity has been in the immediate vicinity of Warkworth, Jerry’s Plains,

Mt Arthur and Denman.

2.109 Outside the Upper Hunter Valley, the main area of exploration activity in the Singleton-North West District was in the Gunnedah Basin near Boggabri. In this area, where equivalents of the Greta Coal Measures occur, Amax Iron Ore Corporation both on its own account and in partnership with The Broken Hill Proprietary Co. Ltd has drilled over

22,000 metres in the course of prospecting a number of interesting thick coal seams at shallow depth. The coal, in general, is high volatile, non-coking and low in sulphur. However, the coal is further from a port than other deposits currently being mined in New South Wales.

2.110 In the other districts exploration activity was greatest in the West, where 8 organisations drilled a total of over 10,000 metres. The major contributors were the Elec­ tricity Commission in the Lithgow-Newnes area, Coalex Pty Ltd mainly at Clarence and Wolgan Valley and White Industries Ltd at Ulan. This Ulan Colliery drilling was quite

independent of the scout drilling carried out by the Joint Coal Board in the Ulan area in the previous year under a joint Government programme (see para 1.66).

2.111 Whilst drilling activity increased markedly in the case of private industry, from 57,128 metres in 1975-76 to 101,323 metres, in the case of government authorities the increase from 22,792 metres to 30,107 metres was more modest.

2.112 The Electricity Commission had the largest programme, with a total of approxi­ mately 22,000 metres. The Commission’s principal activities were in the Mt Arthur area, near Muswellbrook, where drilling of the Singleton Coal Measures continued from previous years. The Mt Arthur area is one of the most attractive areas in the Upper Hunter Valley

and has great potential for the supply of large quantities of both steaming and coking coal.

2.113 The Commission was again active in the Lake Macquarie and Lithgow-Newnes areas. At Lake Macquarie in the vicinity of Wangi and Eraring a major new power station is under construction and drilling has been directed towards the detailed delineation of the reserves on which the new station will depend. The 5,548 metres drilled represent 78 per

cent of the total drilling in the Newcastle District.

2.114 The Department of Mines carried out programmes near Singleton and Muswell­ brook related to proposals for urban development and exploration programmes at Breeza in the Gunnedah Basin and at East Bargo in the Southern Coalfield. The Department, jointly with the Joint Coal Board, completed a drilling programme in the Clarence-Moreton

Basin (see para 1.75).

101

Production by Coal Seams

2.115 During 1976-77 coal was won from 38 seams, compared with 37 in 1975-76 and 34 in 1973-74.

2.116 Table 6 of the Statistical Appendix sets out the quantities of coal won from every seam mined during the years 1975-76 and 1976-77. Seams from which more than 500,000 tonnes per year were won in recent years are shown in Table 36. In previous reports coal shown as Borehole seam has included coal from the West Borehole seam. Separate tonnages are given in Table 36.

2.117 With coal production increasing by 6,195,000 tonnes in 1976-77, production from most of the seams listed increased. The largest increases were from the Bayswater seam, up 1,821,000 tonnes, and Bulli, up 1,700,000 tonnes. However output from the following seams fell—Victoria Tunnel, Big Ben, Ravensworth and Katoomba.

2.118 The first two seams listed in Table 36, the Wallarah and the Great Northern, supply a high-volatile coal of low-rank. Ash content ranges from medium to high, but sulphur content is very low. These seams are the main source of steaming coal in the Newcastle district. Output from both seams rose sharply reflecting the sharp increase in the demand for steaming coal. ;

2.119 The next five seams listed in Table 36, Victoria Tunnel to Borehill, supply high-volatile, low-rank coking coal. Used alone, these medium to high-ash coals yield acceptable, but relatively weak, metallurgical cokes. They are valuable as components in coking blends and their low sulphur content is an important attribute. Coal from these seams forms the base of the blend used at the Newcastle steelworks.

2.120 Coals from the Ravensworth and Bayswater seams have a low specific energy value, and a medium to high-ash content. The Liddell power station depends on coal from these seams. The Mt Arthur seam is low-rank coking, high in volatiles, with a medium-ash content. The Liddell seam supplies a high-volatile, low-rank coking coal. It is the main coal currently exported from the Singleton-North West District.

2.121 There was a small increase in output from the Greta seam in 1976-77. This low-ash coal is suited to town gas production and is sold to Japan for that purpose. It is also classified as a high-volatile, low-rank coking coal which has potential as a component in coking blends. The Balmoral seam supplies a high-volatile, low-rank coal. Coal from the Hoskisson seam is variable in quality but in general it is a high-volatile, low-rank coking coal of medium-ash and fluidity. Output has risen sharply over the last two years as a result of the expansion of Gunnedah No. 2 colliery. The coal is railed to Newcastle for inclusion in export blends.

2.122 The Lithgow is the main seam mined in the Western district. Locally, it is used for steam-raising or in the production of cement. It is a high-volatile, low-rank coal with a medium to high-ash content but can be used to a limited extent in a coking blend. The Katoomba seam provides a steaming coal and increasing quantities are being mined to supply

102

2.123 The Bull! seam on the South Coast supplies a low-volatile, high-rank coking coal. This medium to high-ash coal is a prime coking coal. As a base coal, it yields excellent cokes from blends with large proportions of inferior components. Sulphur content is very low. In the Burragorang Valley, the seam supplies a medium-volatile, medium-rank coking coal.

A medium-ash coal, it has good coking properties. It is also valuable as a major blend component. Large tonnages of coal from the Bulli seam are exported to steelworks in Japan and South Korea.

2.124 The last seam listed in Table 36, the Wongawilli, is a medium-volatile, medium- rank coking coal. It has a medium to high-ash content, but is very reactive, and is ideally suited to blending in large proportions with high-rank coking coal. This seam, together with the Bulli seam, are the main sources of supply for the Port Kembla steelworks.

TABLE 36.—ANNUAL COAL PRODUCTION BY SEAMS—N.S.W.—’OOO TONNES OF RAW COAL

Name o f seam 1974-75 1975-76 1976-77 (a)

Wallarah .................................................................................. 1,096 1,057 1,389

Great Northern......................................................................... 4,333 3,739 4,867

Victoria Tunnel......................................................................... 1,482 1,397 1,184

Dudley ...................................................................................... 918 1,041 1,043

Young Wallsend ..................................................................... 1,882 1,411 1,722

West Borehole .......................................................................... 712 652 278

Borehole..................................................................................... 731 940 1,305

Big Ben .................................................................................. 665 576 430

Mt A rthur.................................................................................. 1,168 1,265 1,411

Ravensworth ......................................................................... 1,290 1,209 584

Bayswater .................................................................................. 3,376 2,923 4,744

Liddell ...................................................................................... 3,199 2,995 3,036

G r e ta .......................................................................................... 1,802 1,189 1,294

Balmoral .................................................................................. 600 442 565

Hoskisson .............................................................................. 414 542 635

Katoomba .............................................................................. 331 627 611

L ithgow ...................................................................................... 2,239 2,863 3,335

Bulli .......................................................................................... 10,189 10,657 12,357

Wongawilli .............................................................................. 3,473 2,695 3,089

All other seam s.......................................................................... 2,406 2,370 2,906

Total .......................................................................... 42,306 40,590 46,785

(a) 53-week year.

Measurement of D ust Concentrations

2.125 Reference is made in Part 1 to the control of dust in coal mines (see para 1.82) and in Part 7 to a study of the prevalence of pneumoconiosis among New South Wales mineworkers (see para 7.16).

2.126 Table 37 shows the average counts for samples of coal dust taken in New South Wales coal mines. The samples were taken by an Owens’ dust counter. Total counts are taken near an operator’s breathing zone. Each is representative of the conditions to which the operator is exposed at the time when the sample was taken. The intake count is a measure

103

of the concentration of dust in the air stream on the intake side of the operator, and is indicative of the dust content of the air entering the district. The make is the difference between the mean of the intake counts taken over a period of time and total count for each individual sample.

2.127 The prescribed standard, for counts taken in coal, is 175 particles per cubic centimetre in the size range 1-5 microns. The table covers all such counts taken in New South Wales. The prescribed standard is lower if the sample contains silica. The table does not indicate the number of counts taken. The number of sets of counts (usually 12 total counts and 4 intake counts per set) indicates the intensity of dust sampling within each district. The

1976-77 totals were South Maitland and Singleton-North West—110, Newcastle—123, W e st- 20, South Coast and Burragorang Valley—202, i.e. 44 per cent of sampling was done in the southern districts.

TABLE 37.—AVERAGE DUST CONCENTRATIONS—N.S.W. COAL MINES—NUMBER OF PARTICLES PER CUBIC CENTIMETRE 1 TO 5 MICRONS IN SIZE

(Counts taken in coal only)

1972-73 1973-74 1974-75 1975-76 1976-77

Intake— South Maitland and Singleton-North West ..................................................... 12 19 26 23 21

Newcastle ............................................. 14 13 15 14 10

West ......................................................... 24 25 33 33 32

South Coast and Burragorang Valley.. 41 50 112 71 74

Make— South Maitland and Singleton-North West ..................................................... 24 54 51 47 43

Newcastle ............................................. 22 20 26 25 23

West ......................................................... 90 73 69 73 58

South Coast and Burragorang V alley.. 57 69 75 60 78

Total— South Maitland and Singleton-North West ..................................................... 49 76 65 61 57

Newcastle ............................................ 37 34 39 39 34

West .......................................... .............. 113 98 102 94 90

South Coast and Burragorang Valley.. 95 121 168 124 145

2.128 The counts taken during 1976-77 show a further reduction in dust concentra­ tions in the northern and western districts but in the south the large improvement recorded in 1975-76 was not fully maintained, particularly in respect of dust make.

104

PA RT3

THE MARKET FOR COAL

M arketing Conditions G enerally

3.1 The outstanding feature of 1976-77 was the high level of interest shown in very many quarters in future coal supplies. Consumers, actual and prospective, spent considerable time and effort in investigating the potential of the Australian coal industry to satisfy at least a part of their anticipate! requirements.

3.2 Sales of coal increased during 1976-77 but the general level of demand was subdued with production tending to outstrip current market requirements. Some new contracts were written, but, in general, these were for relatively small tonnages. In terms of Australian currency, most f.o.b. prices increased during 1976-77 but in terms of Yen, the average cost

of coking coal delivered to Japan fell.

3.3 The world’s production of crude steel, which had grown sharply between 1972 and 1974, recovered in 1976, at least in part, from the sharp reduction which had occurred in 1975. However, the improvement was not fully maintained during 1977.

TABLE 38.—PIG-IRON—WORLD PRODUCTION BY COUNTRY—MONTHLY AVERAGE— *000 TONNES

Area 1972 1973 1974 1975 1976

Community o f the Six ................... 6,764 7,471 8,146 6,365 6,704

United Kingdom ........................... 1,276 1,404 1,158 1,011 1,153

U .S.A ................................................... 6,759 7,634 7,251 6,042 6,612

U .S.S.R................................................ 7,692 7,992 8,192 8,580 8,794

Japan ................................................ 6,171 7,501 7,536 7,240 7,215

A ustralia............................................ 541 638 604 630 618

29,203 32,640 32,887 29,868 31,096

Rest o f World ................................ 7,898 8,646 9,496 9,540 10,044

World ............................................ .. 37,101 41,286 42,383 39,408 41,140

S o u rce— Ir o n a n d S te e l S ta tis tic s B u re a u , L o n d o n .

3.4 Average monthly figures for the production of pig-iron and crude steel throughout the world are set out in Tables 38 and 39. Pig-iron production increased during 1976 in all areas listed, with the exception of Japan and Australia. During the first half of 1977 the rate of crude steel production declined, as compared with 1976, in all areas listed, with

the exception of the U.S.S.R.

3.5 At their October 1977 meeting International Iron and Steel Institute (I.I.S.I.) members expressed concern at the situation then prevailing in the steel trade wherein developed nations were trying to protect their steel industries in the face of fierce competition caused by stagnant demand and increased production in the developing world.

105

G 44102J— 81f

TABLE 39.—CRUDE STEEL— WORLD PRODUCTION BY COUNTRY—M ONTHLY AVERAGE Ό00 TONNES

Area 1972 1973 1974 1975 1976

1977

to 30 June

Community o f the Six ...............

United Kingdom .......................

U .S.A ...................................................

U .S.S.R...............................................

Japan ................................................

Australia ........................................

Rest of World ...............................

World ............................................

9,432 2,110 10,063 10,503

8,076 562

10,244 2,221 11,366 10,908

9,944 635

11,051 1,860 11,002 11,333

9,760 646

8,733 1,675 8,829 11,763 8,518

689

9,249 1,856 9,673 12,091

8,949 648

8,988 1,757 9,639 12,333 (a)

8,645 618

40,746 11,537

45,318 12,564

45,652 13,331

40,207 13,947

42,466 14,260

41,980 13,687

52,283 57,882 58.983 54,154 | 56,726 55,667 (a)

Source—Iron and Steel Statistics Bureau, London. International Iron and Steel Institute (1977 data).

a) Broken Hill Pty Co. Ltd estimate.

A ustralian Consumption of Black Coal

3.6 After falling by 2-4 per cent in 1975-76, consumption of black coal increased by 9-3 per cent in 1976-77 to 32,197,000 tonnes. Approximately 2-0 per cent of this rise can be attributed to the inclusion of an additional week’s usage (53 in lieu of 52) in the 1976-77 data. Usage of New South Wales coal rose by 9.2 per cent and other black coals by 9-6 per cent.

3.7 As shown in Table 40, coal consumption increased in every State with the exception of South Australia where usage of the local Leigh Creek coal did not maintain the increase achieved in 1975-76. New South Wales, Queensland and Western Australia each recorded increases of about 10 per cent. In Tasmania consumption rose by 45 per cent to

187,000 tonnes.

3.8 These increases were achieved despite the low level of economic activity in particular sections of the Australian economy. For industries other than metallurgical coke manufacture, black coal consumption rose by 3,273,000 tonnes or 16-2 per cent. Table 41 shows that coal consumption at the steel and coke works fell by 530,000 tonnes, a reduction

of 5-7 per cent.

3.9 New South Wales supplied 66-6 per cent of all the black coal consumed within Australia during 1976-77. Table 42 shows which industries used this coal. The large increase in usage for power generation contrasts with the reduction in usage in most other industries. By far the greater part of these reductions resulted from industries operating well below capacity, rather than from a transfer to other types of fuel. However, in the New South Wales cement industry, part of the reduction recorded was the result of the imple­ mentation during 1976 of a decision to purchase electricity from the State grid in lieu of generating electric power at a cement works.

106

TABLE 40.—CONSUMPTION OF BLACK COAL—AUSTRALIA BY STATES—''000 TONNES

Consumed in Produced in 1966-67 1972-73 1973-74 1974-75 1975-76

1976-77 (a)

N.S.W. N.S.W................ 16,093 19,153 19,088 20,079 18,884 20,857

Queensland .. 17 22 21 86 49

Total ......... 16,093 19,170 19,110 20,100 18,970 20,906

Victoria N.S.W................ 520 42 11 3 3 4

Victoria............. 33

Queensland .. ··

Total ......... 553 42 11 3 3 4

South N.S.W................ 267 904 918 916 742 562

Australia S.A....................... 2,117 1,584 1,500 1,785 1,857 1,806

Queensland .. 170 192 181 277 491

Total ......... 2,384 2,658 2,610 2,882 2,876 2,859

Queensland N.S.W...............

Queensland .. 2,923 4,250 4,672 5,244 5,323 5,884

Total ......... 2,923 4,250 4,672 5,244 5,323 5,884

Tasmania N.S.W .............. 8 8 8 8 8 17

Tasmania......... 73 93 96 102 121 170

Total ......... 81 101 104 110 129 187

Western N.S.W............... 37

Australia W.A................... 1,074 1,173 1,176 1,851 2,153 2,357

Total ......... 1,111 1,173 1,176 1,851 2,153 2,357

Australia N.S.W................ 16,925 20,107 20,025 21,006 19,637 21,440

Other black coal 6,220 7,287 7,658 9,184 9,817 10,757

Total ......... 23,145 27,394 27,683 30,190 29,454 32,197

(

TABLE 41.—CONSUMPTION OF BLACK COAL—AUSTRALIA BY INDUSTRIES— Ό00 TONNES

A ustralia 1966-67 1972-73 1973-74 1974-75 1975-76 1976-77

(«)

Iro n a n d steel (as re c e iv e d )............ 6,782 8,948 8,981 9,606 8,854 8,364

Electricity generation ..................... 10,979 14,607 14,787 16,253 16,454 19,668

R ailw ays and tow n g a s ..................... 1,925 164 139 137 123 129

C em ent ............................................... 864 899 862 1,031 992 979

M etallurgical coke (other) ...........

Ships' bunkers ..................................

O th er consum ers .............................

440 AQ

473 393 478 398 358

2,106 2,303 2,521 2,685 2,633 2,699

T o tal ............................. 23,145 27,394 27,683 30,190 29,454 32,197

Includes N .S.W . coal ..................... 16,925 20,107 20,025 21,006 19,637 21,440

a) 5 3-week year.

107

TABLE 42.— CONSUM PTION OF N.S.W . BLACK COAL—BY INDUSTRIES— Ό00 TONNES

1966-67 1972-73 1973-74 1974-75 1975-76

1976-77 to)

N.S.W .— Iron and steel (as received) .. 6,782 8,008 8,006 8,618 7,885 7,390

Electricity generation ............... 5,950 8,864 8,938 9,246 9,047 11,692

Railways and town gas............... 995 89 66 66 56 57

Cement ........................................ 498 595 596 670 553 453

Metallurgical coke (other) . . . . Ships’ bunkers ...........................

Other consumers .......................

415 Λς

424 340 399 346 318

1,408 1,173 1,142 1,080 *997 947

Total ........................... 16,093 19,153 19,088 20,079 18,884 20,857

Interstate— Iron and steel (washed coal) .. 770 783 807 630 452

Electricity generation ............... 51

Railways and town gas............... 413 71 69 68 66 71

Ships’ bunkers ........................... 2

General industry ....................... 366 113 85 52 57 60

Total ........................... 832 954 937 927 753 583

Total N.S.W. coal .. 16,925 20,107 20,025 21,006 19,637 21,440

(a) 53-week year.

3.10 Details of coal usage in individual States is given in Tables 11 to 16 of the Statistical Appendix. In Queensland coal consumption increased by 561,000 tonnes to 5,884,000 tonnes. The major increases were for power generation, up 451,000 tonnes or 13 per cent, and alumina works, up 105,000 tonnes or 11 per cent. Less coal was used in coke manufacture.

3.11 In Tasmania usage of locally produced coal rose by 49,000 tonnes. Having been converted from oil firing in late 1975, the cement works operated on coal throughout 1976-77, using an additional 48,000 tonnes. Usage of coal by the paper manufacturing industry rose by 10 per cent, but usage of local coal by other consumers fell. Usage of New South Wales coal doubled to 17,000 tonnes. A new consumer, the Tasmanian Electro- ! Metallurgical Co. Pty Ltd, a subsidiary of The Broken Hill Proprietary Company Ltd, was responsible for the increase. One gas works continued to operate a coal based plant.

3.12 In Western Australia the use of coal for power generation rose by 9 per cent, accounting for 169,000 tonnes of the increase. The char plant did not operate during 1976-77 but usage at the cement works increased, as did usage by other consumers.

3.13 The town gas industry continues to operate several small coal retorts in New South Wales; these plants used 50,000 tonnes in 1976-77. Other plants still in operation are at Osborne in South Australia and at Launceston in Tasmania. Total usage at all these plants rose by 7,000 tonnes to 119,000 tonnes. Except for several small private lines, coal usage by the railways has almost ceased. The 1976-77 total was 10,000 tonnes.

108

3.14 Consumption by “other consumers” in Australia (see Table 41) rose by 66,000 tonnes or 2-5 per cent. In New South Wales (see Table 43) usage fell by 56,000 tonnes or 5-5 per cent. Within New South Wales an additional 31,000 tonnes of coal were used by the paper manufacturing industry, with several other groups recording increases. However these increases were much smaller than the reductions at a wide range of other industries. The largest reductions occurred in brick, chemical, textile and sugar manufacturing industries. In part, these decreases can be attributed to the effect of the economic situation on these industries. However, the availability in the Sydney area of natural gas, since December

1976, has had some impact, as has the very low prices at which fuel oil is being offered to industrial consumers (see para. 1.31).

3.15 The position in New South Wales contrasts with the situation in other States where consumption of coal by “other consumers” has risen steadily from 1,357,000 tonnes in 1973-74 to 1,734,000 tonnes in 1976-77, an average increase of 126,000 tonnes per annum. In view of the ability of the New South Wales coal industry to supply all reasonable consumer

needs, the reduction of 66,000 tonnes per annum in New South Wales is unsatisfactory.

3.16 Table 43 shows, for selected years during the period 1960 to 1976-77, the main statistics relating to the supply and usage of black coal in New South Wales. The Table shows a growth in annual production of 28-8 million tonnes, the development of the export trade from 1-6 million tonnes to 16-4 million tonnes and an increase in coal consumption within New South Wales from under 13-5 million tonnes to 20-9 million tonnes. In this

period three major markets—railways, town gas and ships’ bunkers—virtually disappeared.

TABLE 43.—SUPPLY AND CONSUMPTION OF BLACK COAL—N.S.W.—Ό00 TONNES

1960 1964 1972-73 1973-74 1974-75 1975-76 1976-77 («)

Production—raw coal ___ 18,021 21,030 38,060 36,632 42,306 40,590 46,785

Exports—Interstate ............. 1,768 1,167 918 909 891 817 562

—Overseas................. 1,579 3,713 11,168 12,731 14,812 14,054 16,447

Consumption—Local ......... 13,462 14,959 19,153 19,088 20,079 18,884 20,857

—Queensland .. 17 22 21 86 49

Consumption by Industry— Iron and steel ................. 4,682 5,850 8,008 8,006 8,618 7,947 7,421

Electricity generation ___ 4,033 4,954 8,864 8,938 9,246 9,047 11,692

Railways and town g a s ___ . 1,975 1,447 89 66 66 56 57

Cement ............................ 552 572 595 596 670 553 453

Metallurgical coke (other).. 303 352 424 340 399 346 318

Ships* bunkers ................. 149 126

Other consumers ............. 1,768 1,658 1,190 1,164 1,101 1,021 965

Total .................... 13,462 14,959 19,170 19,110 20,100 18,970 20,906

o) 53-week year.

D istribution

3.17 Table 44 shows the distribution of coal dispatched from the New South Wales coal industry; i.e., direct from mines or from preparation plants operated by the industry. The tables given earlier in this Part record the tonnages of coal consumed in the various States and by various industries. These tonnages, particularly in the short term, may vary significantly from the quantities of coal supplied to the consumer.

109

TABLE 4 4 —DISTRIBUTION OF COAL FRO M N.S.W . M INES— Ό00 TONNES

1973-74 1974-75 1975-76 1976-77(b)

Received by N.S.W. consumers— Iron and steel (as received) (a) ................. 7,945 8,552 8,045 8,147

Electricity generation ................................ 9,667 9,138 8,821 12,126

Railways and town gas ................................ 65 66 56 57

Cem ent.......................................................... 591 699 537 505

Metallurgical coke (other)............................ 338 402 346 319

Other consumers........................................... 1,127 1,071 1,000 939

T o ta l...................................................... 19,733 19,928 18,805 22,093

Shipped interstate ............................................... 909 891 817 562

Exported overseas ........................................... 12,731 14,812 14,054 16,447

T o ta l...................................................... 33,373 35,631 33,676 39,102

Stock variations and losses, at ports, merchants and in transit ............................................... —341 +324 —41 + 528

Total deliveries from mines, or industry washeries ....................................... 33,032 35,955 33,635 39,630

(a ) Excluding coal subsequently exported or supplied to other consumers. For total deliveries to steel industry, see Table 47. (6) 53-week year.

3.18 The amount of coal dispatched to market after falling in 1975-76, increased by 5,995,000 tonnes in 1976-77. This was a rise of 17-8 per cent of which about 2 per cent can be attributed to the additional week included in 1976-77, and a further 1 -6 per cent comprised increases in stocks held at ports, merchants’ yards, etc.

3.19 The 22,093,000 tonnes received by New South Wales consumers was an increase of 17-5 per cent above 1975-76 total. Exports rose at almost the same rate, 17-0 per cent. Despite the very large increase in the quantity of coal consumed at power stations the tonnage of coal received increased even more rapidly, by 37·5 per cent.

3.20 Table 45 shows deliveries of coal by production areas in 1976-77. Deliveries rose from all six districts but for South Maitland and Burragorang Valley districts coal sent to.Australian consumers fell by 5,000 tonnes and by 219,000 tonnes, respectively. Part 5 contains comments on the pattern of deliveries as it affected each district.

3.21 Stocks held by New South Wales consumers rose during 1976-77. Stocks held at the Newcastle and Port Kembla steelworks by June 1977 were more than twice as high as at a similar time in earlier years. The increase of 726,000 tonnes during 1976-77 occurred despite a series of actions taken to reduce deliveries to the steelworks.

3.22 In June 1975, the 4,027,000 tonnes held at power stations was equivalent to 20 weeks’ supply at the 1975 rate of consumption, but the 4,235,000 tonnes held in June 1977 was equivalent to 15 weeks’ supply at the 1977 rate of consumption.

110

TABLE 45.—COAL SENT TO CONSUMERS OR EXPORTED N.S.W. BY PRODUCTION AREA—1976-77—Ό00 TONNES

South Mait­ land

Singleton -North West New­

castle West Burra- gorang Valley

South Coast N.S.W.

Iron and steel—Australia (a) .......... 0 15 2,867

5,524

121 418 5,170

333

8,591 12,126 Electricity generation—N.S.W............. 5,463 806

Railways and town gas—N.S.W.......... 54 1 1 1 0 57

Cement—N.S.W.................................. 348 0 157 505

Metallurgical coke (other)—N.S.W. .. 319 319

Other consumers—within N.S.W........ 44 79 440 296 72 8 939

Interstate consumers (other) ......... 41 2 29 46 118

Total—Australia ................. 139 5,560 8,861 1,572 490 6,033 22,655

Overseas—direct shipments ............. 978 5,219 2,507 2,048 3,101 2,594 16,447

Total ................................... 1,117 10,779 11,368 3,620 3,591 8,627 39,102

Inter-district transfers, stock losses and variations at ports, merchants and in transit .......................................... +14 +60 +124 +15 +52 +263 +528

Total deliveries from mines, or industry washeries ................................. 1,131 10,839 11,492 3,635 3,643 8,890 39,630

( e ) T h e se figures re p re s e n t t h e to ta l in ta k e o f c o a l o f t h e ir o n a n d s te e l in d u s try . S o m e o f th is c o a l, a f te r w a sh ­

in g a n d b le n d in g , w a s s h ip p e d in te rs ta te , o r s u p p lie d t o o th e r lo c a l c o n su m e rs .

TABLE 46.—COAL STOCKS HELD BY N.S.W. CONSUMERS—Ό00 TONNES

Industry Group

At the end of June Latest stock

compared with June rate of consumption 1973 1974 1975 1976 1977

Iron and steel .................... 652 591 525 716 1,442 11 weeks.

Electricity generation ......... 3,400 4,135 4,027 3,801 4,235 15 weeks.

Railways and town gas ___ 7 6 5 5 4 3 weeks.

Cement ............................... 63 57 85 69 121 14 weeks.

Metallurgical coke (other) .. 4 3 6 6 6 1 week.

Other consumers ................. 56 45 54 64 64 3 weeks.

Total ................. 4,182 4,837 4,702 4,661 5,872

3.23 The proportion of coal which went to power stations was 31.0 per cent in 1976-77 ; it had been 32 ·0 per cent in 1972-73. The proportion going to the iron and steel industry in New South Wales, or shipped interstate (mainly to the steelworks at Whyalla) fell sharply in 1976-77.

3.24 Exports represented 42T per cent of coal distributed from New South Wales coal mines in 1976-77. In Queensland exports represented 75 per cent of coal sent to market.

I ll

TABLE 47.—DISTRIBUTION OF COAL FROM N.S.W. MINES—PERCENTAGE

1973-74 1974-75 1975-76 1976-77 (o)

Received by N.S.W. consumers—

24-0 23-9 20-8 Iron and steel ............................ 23-8

Electricity generation ................. 28-9 25-6 26-2 310

Railways and town gas................. 0-2 0-2 0-2 0-2

Cement ....................................... 1-8 2-0 2*6 1-3

Metallurgical coke (other) ......... 10 1-1 1-0 0-8

Other consumers ..................... 3-4 3-0 3-0 2-4

Total .................................... 59-1 55-9 55-9 56-5

Shipped interstate ___ 2-7 2-5 2-4 1-4

Exported overseas ___ 38-2 41-6 41-7 42T

Total ..................... 100-0 100-0 100-0 1000

(a) 53-week year.

3.25 Interstate shipments of New South Wales coal fell in 1976-77 to 562,000 tonnes, with shipments to South Australia falling by 263,000 tonnes. With Queensland supplying an additional 163,000 tonnes, total despatches to South Australia were down by 100,000 tonnes. The trial shipments made in 1975-76 of Queensland coking coal into New South Wales were not repeated in 1976-77.

TABLE 48.—INTERSTATE MOVEMENTS OF COAL—Ό00 TONNES

From New South Wales to— Victoria ......................................................

1973-74 1974-75 1975-76 1976-77 (c)

9

892 8

3 (a)

880 8

3(o)

803 11

4 (a) 540 18

South Australia ...........................................

Tasmania .....................................................

T o ta l................................ 909 891 817 562

From Queensland to— South Australia ........................................... 185

22(o)

176 21(o)

318 117 (6)

481 18(o) New South Wales .......................................

T o ta l.............................. 207 197 435 499

Grand Total ................. 1,116 1,088 1 04^ 1 Λ* 1

1 ’ v

(a) All sent by road or rail.

(b) 24,000 tonnes sent by road or rail, (c) 53-week year.

112

3.26 The quantity of Queensland coal which enters the far North Eastern corner of New South Wales fell to 18,000 tonnes in 1976-77. Other interstate movements continue to be small. Recently advertisements appeared in the press inviting companies to register an interest in the supply of steaming coal to Western Australia, where total power station require­ ments are expected to increase from 2-2 million tonnes per year to 5-0 million tonnes per year by 1987.

E lectricity G eneration

3.27 The amount of electricity generated by thermal plants in New South Wales was 26-6 per cent higher in 1976-77 than in 1975-76. This contrasts with small reductions in each of the two preceeding years.

3.28 Three factors which contributed to this very large increase were: a reduction in the amount of electricity generated by hydro-electric plants, an increase in the net transfer of power to Victoria and a rise in demand for power in New South Wales and the Australian Capital Territory. As shown in Table 49, the magnitude of these changes was very large. The increase of 8·3 per cent in the quantity of power available to New South Wales and the Australian Capital Territory contrasts with only 2-2 per cent in 1975-76 and 5-0 per cent in

1974-75.

3.29 The table refers to “thermal plants”, but steam generators supply over 99 per cent of the power generated by thermal stations in New South Wales. Coal supplied almost all the fuel used in steam plants. The Snowy Mountains Hydro-Electric System in 1976-77 generated about 2 per cent less power than might have been expected, given average conditions . In 1975-76 43 per cent of additional power was generated.

TABLE 49.—ELECTRICITY GENERATED WITHIN N.S.W.—MILLIONS kWh

Percentage variation

1972-73 1973-74 1974-75 1975-76 1976-77 1975-76 to 1976-77

Thermal plant* ........................ 21,065 21,237 21,195 20,713 26,221 + 26.6

Hydro plant ............................... 5,016 6,120 7,603 8,068 5,572 - 30.9

Total generated* ......... 26,081 27,357 28,798 28,781 31,793 + 10-5

Victoria’s entitlement ( | Snowy and i Hume) ........................ 1,524 1,716 1,994 1,747 2,162 + 23-8

L ess—Power supplied to N.S.W... - 270 407 547 913 633 - 30-7

Net transfer to Victoria.. 1,794 1,309 1,447 834 1,529 + 83-3

Available for use in N.S.W. and A.C.T......................................... 24,287 26,048 27,351 27,947 30,264 + 8-3

* Source: Commonwealth Statistician. These totals include a proportion o f electricity generated at industrial plants.

113

3.30 Coal consumption increased by 2,645,000 tonnes during 1976-77 to 11,692,000 tonnes. This was a rise of 29-2 per cent, of which about 2 per cent can be attributed to the 1976-77 data covering 53 weeks. The rise of 26-6 per cent in the amount of electricity generated at thermal power stations resulted in a very large increase in coal usage.

3.31 Table 50 shows that this sharp increase was confined to the power stations located on the coal-fields. Coal used at the older metropolitan power stations fell to a mere 3,000 tonnes. Usage at “other” plants was affected by the closure during 1975-76 of generating plants at Muswellbrook, Richmond Main and Cockle Creek.

TABLE 50.—COAL CONSUMPTION AT N.S.W. POWER STATIONS—Ό00 TONNES

Power stations 1974-75 1975-76 1976-77 (a)

Lake Macquarie, Lake Munmorah area

(Wangi, Vales Point, and M unm orah)............... 3,757 4,298 5,456

Singleton—North West (Liddell) ............................ 4,195 4,002 5,344

West (Wallerawang)..................................................... 433 287 472

South Coast (Tallawarra) .................................... 423 245 338

8,808 8,832 11,610

Sydney metropolitan ................................................. 133 32 3

Others ...................................... .................................... 305 183 79

9,246 9,047 11,692

(a) 53-week year.

3.32 The 2000 MW plant at Liddell used 5,344,000 tonnes or 27-4 per cent more than in preceeding peak year 1974— 75. The three plants south of Newcastle used more coal than in any preceeding year and 46-7 per cent more than in 1973-74. Additional capacity is being added at Vales Point but the first of the new 660 MW units is not expected to be commissioned until early 1978. The only additional capacity added to the system was a 500 MW unit at Wallerawang. It was commissioned in May 1977.

3.33 The average specific energy of all coal used by the Electricity Commission of New South Wales was 23-41 MJ/kg in 1976-77. It had been 23-17 MJ/kg in 1975-76 and 23-47 MJ/kg in 1974-75. These figures reflect the steady proportion, between 42 and 46 per cent, of coal which was used at Liddell. This plant uses coal which has a specific energy of about 20-70 MJ/kg as fired.

3.34 Coal supplies to power stations increased by 3,305,000 tonnes in 1976-77, a rise of 37-5 per cent. This more than covered the increase in coal consumption, and stocks rose by 434,000 tonnes. Deliveries from mines owned or operated on behalf of the Electricity Commission of New South Wales rose by 2,684,000 tonnes, or 33-6 per cent. Coal purchased from mines not directly developed to supply power stations increased sharply from 134,000 tonnes to 594,000 tonnes. Some coal not required by the Australian steel industry was diverted to the Electricity Commission.

114

W E S T E R N D E V E L O P M E N T

Above: Ulan - Screening plant and storage bins. Below: Wallerawang Power Station — New extension.

W E S T E R N D E V E L O P M E N T

3.35 Details of coal deliveries from various coal producing areas are given in Table 51. In most areas coal deliveries were very close to consumption but in the Western district consumption was lower than anticipated due to the delay in the commissioning of the new unit. Coal stocks held at Wallerawang rose by 239,000 tonnes.

TABLE 51.—COAL SUPPLIES FOR ELECTRICITY UNDERTAKINGS IN N.S.W.—Ό00 TONNES

Producing areas 1973-74 1974-75 1975-76 1976-77

( d )

Newcastle— to Lake Macquarie area ................................ 4,451 3,541 3,758 5,518

to Sydney area ................................................. 73 64

elsewhere ............................................................. 150(a) 139 (c) 91 6

T o ta l............................................ 4,674 (a) 3,744 (c) 3,849 5,524

West— local ...................................................................... 753 158 516 731

T o ta l............................................ 754 158 516 806

South Maitland— local and elsewhere............................................ 20 3

Singleton-North West— local ..................................................................... 3,816 4,918 4,169 5,463

Burragorang Valley— to Sydney area ................................................ 72 28

South Coast—· local ..................................................................... 331 315 259 333

Total deliveries all plants ___ 9,667 (a) 9.138(c) 8,821 12,126

From mines owned or operated on behalf of Electricity Commission of N .S.W .................... 8,251 8,247 7,997 10,681

From other mines developed to supply Electricity Commission and local authority plants . . . . 732 645 690 851

Other m in e s................................................................. 684 (a) 246 (c) 134 594

Stock change ............................................................. + 735 (6) — 108 - 226 + 434

Consumption ............................................................. 8,938 9,246 9,047 11,692

(a) Includes 10,000 tonnes middlings ex B.H.P. (ά) Includes 6,000 tonnes excess from old reserve. (c) Includes 800 tonnes middlings ex B.H.P. (d) 53-week year.

3.36. The Electricity Commission supplies coking coal to the Australian steel industry from two mines, while the output from a third mine is sold to private companies and included in export cargoes. The Commission, which in previous years had sold considerable quantities of steaming coal, surplus to its requirements, sold less than 200 tonnes in 1976-77. Since the

close of the financial year the New South Wales Government has announced a more direct role for the Electricity Commission in the coal export trade.

115

I r o n a n d Steel I n d u s t r y

3.37 The low level of demand for steel products both within Australia and abroad continued to have a depressing effect on the level of iron and steel production throughout 1976-77. Compared with the previous year, total production of raw steel fell by 3-3 per cent to 7,550,000 tonnes in the year to 31 May 1977. Iron production, at 7,076,000 tonnes, was 3-6 per cent lower. In each case production was well below the capacity of the industry and steel production was the lowest since 1972-73. Local demand for steel was particularly low and production at the levels indicated was only possible because exports of iron and steel increased by 8·9 per cent to 2,777,000 tonnes.

3.38 With lower levels of pig-iron production, coal consumption fell to 8,364,000 tonnes on an “as received” basis, a fall of 5·5 per cent. On a washed coal basis the fall was 8-5 per cent. On either basis the reduction was considerably greater than the reduction in pig-iron output. A 4 per cent reduction in the ratio of coal to pig-iron would result in a fall in

annual coal usage of about 350,000 tonnes of coal on an “as received” basis.

3.39 The steel industry had ample supplies of coal throughout 1976-77 and stocks increased by 696,000 tonnes. The quantity of coal treated by washeries operated within the steel industry decreased by 4-1 per cent to 6,374,000 tonnes. The recovery factor fell from 83-9 per cent to 80-6 per cent (see para 2.74). The quantity of refuse removed, which had fallen sharply in 1975-76, increased to 1,238,000 tonnes.

3.40 Purchases of coal, which had been rising for some years, fell in 1976-77 to 2,256,000 tonnes. In part, this reduction reflects a return to more normal trading from the high level of purchases arranged during 1975 at a time when coal stocks were very low. How­ ever, action was also taken to reduce receipts during the year by diverting some coal to other markets. Some coal was also stockpiled at collieries.

3.41 Supplies of coal from The Broken Hill Proprietary Co. Ltd’s Queensland mines increased. Output from Cook Colliery has improved but difficult mining conditions are still being encountered at Leichhardt. Purchases from other Queensland mines were 'reduced to 155,000 tonnes.

3.42 The tonnages of coal received by the steel industry from company mines and those purchased from each coal producing district are shown in Tables 52 and 53. Coal transfers are also shown.

116

TABLE 52.—IRON AND STEEL INDUSTRY IN AUSTRALIA COAL SUPPLY AND USAGE—Ό00 TONNES

1972-73 1973-74 1974-75 1975-76 1976-77 (6)

From steel industry mines— Newcastle ............................................... 2,558 2,743 2,627 2,301 2,257

South Coast ........................................... 4,519 4,013 4,506 4,006 4,233

Queensland............................................... 69 75 208 326

Total.................................... 7,077 6,825 7,208 6,515 6,816

Purchased from other mines— South Maitland .................................... 29 24 9 0 0

Singleton—North West............................ 32 170 160 15

Newcastle ............................................... 444 484 596 753 610

West ....................................................... 307 294 117 147 121

Burragorang Valley ................................ 355 372 450 589 418

South Coast ........................................... 658 751 864 772 937

Queensland ........................................... 198 116 100 203 . 155

Total.................................... 1,991 2,073 2,306 2,624 2,256

Total intake of coal ........................................ 9,068 8,898 9,514 9,139 9,072

L ess washery refuse ( a ) .................................... 1,383 1,445 1,486 1,068 1,238

Net intake ................................................... 7,685 7,453 8,028 8,071 7,834

Disposal of washed coal— To coke works in N.S.W........................... 97

For shipment interstate............................ 1 12

To power stations (middlings) ............. 10 1

To cement works (middlings) ................. 1 3 • ·

Coal consumption on a washed coal basis-

4,504 Port Kembla ........................................... 4,139 4,109 4,703 3,949

Newcastle ............................................... 2,502 2,453 2,429 2,375 2,234

Whyalla ............................................... 940 975 988 907 943

7,581 7,537 8,120 7,786 7,126

Coal consumption on “as received” basis-

8,854 8,364 Total................................................... 8,948 8,981 9,606

Stock change at the three p lan ts..................... + 7 — 95 — 96 + 284 + 696

(a) Includes refuse on washed coal sold overseas or supplied for consumption outside the steel industry. (b) 53-week year.

3.43 Table 53 gives details for 1976-77 of the coal supply situation in each of the four Australian steelworks, together with the output of coke, pig-iron and crude steel. The latter figures relate to the year ended 31 May. Some of the variations noted in the following para­ graphs at particular plants arise from the integrated nature of certain operations. Variations

in coke stocks may also be significant.

3.44 At Newcastle, production of coke, pig-iron and steel were higher in 1976-77 than in 1975-76 by 3.8 per cent, 1 -1 per cent and 0-6 per cent respectively. Consumption of washed coal fell by 5-9 per cent. At Port Kembla production of coke fell by 7-6 per cent, production of pig-iron by 7·5 per cent and of steel by 7-0 per cent. Consumption of washed coal fell by 12-3 percent. At Whyalla production of coke, pig-iron and crude steel rose by

6-2 per cent, 0-8 per cent and 6-0 per cent respectively. Consumption of washed coal rose by 4 per cent. At Kwinana production of pig-iron rose by 1 -8 per cent but transfers of coke from New South Wales having risen sharply in 1975-76 fell by 17-8 per cent to 481,000 tonnes.

117

3 45 In 1975-76 a similar analysis emphasised the widespread nature of the down-turn

the No. 3 blast furnace was modified and refined during the year and the No. 1 Open Hearth shop was retired.

TABLE 53.—STEEL INDUSTRY IN AUSTRALIA—BY PLANTS—1976-77(4) Ό00 TONNES

Year ended June 1977:

Coal supply Opening coal stocks .....................................

Received from own collieries— Newcastle ...............................................

South Coast...............................................

Queensland...............................................

Newcastle Port Kembla Whyalla Kwinana Total

344

2,257 260

372

3,973

130(a)

326

846

2,257 4,233 326

Total.................................... 2,517 3,973 326 6,816

Other collieries—N.S.W.— South Maitland ....................................

Singleton-North West ...........................

Newcastle ............................................. ·

West .......................................................

Burragorang Valley ................................

South Coast ............................................

0

15

590

" 0

20 121 418 937

0

15

610 121 418 937

Total....................................

Other collieries—Queensland .........................

All collieries total ............................................

605 1,496 2,101

155 ·· 155

3,122 5,469 481 9,072

Steelworks washery refuse— Re own use ............................................

Transfers of washed coal to— Newcastle ...............................................

Whyalla ...............................................

Tasmania ...............................................

Transfers of coke ...........................................

Consumption of washed coal .........................

Closing coal stocks .......................................

589

+ 32

- 197

- 12

- 35

2,234 466

649

- 32

- 235

- '4 5 9 3,949 976

+ "432

+ 13

943 100(c)

+ "481

1,238

- " l 2

7,126 1,542

Year ended May 1977:

Coke production ........................................... 1,308 2,874 648 4,830

Pig-iron production .................................... 1,760 3,737 897 682 7,076

Crude steel production.................................... 2,001 4,426 1,049 7,550(6)

(d) Includes 27,000 tonnes in transit at 26 June 1976. (b Total includes 74,000 tonnes produced by Commonwealth Steel Co. Ltd. (c) Includes 44,000 tonnes in transit at 2 July 1977. (d) 53-week year.

118

3.46 The Newcastle steelworks received 3,122,000 tonnes of coal in 1976-77, well below the 3,470,000 tonnes received in 1975-76. Receipts from the company’s own mines were almost unchanged. Purchases from other New South Wales mines were down by 241,000 tonnes. Some purchasing contracts made in 1975 were not continued, and arrange­

ments were made for some coal, covered by a long-term arrangement, to be taken by the Electricity Commission of New South Wales. Tests were made with the 93,000 tonnes of North Bowen Basin coal imported late in 1975-76 but no further tonnages were received. Despite these changes, coal stocks at the Newcastle works rose by 122,000 tonnes during the year, a significant factor being a reduction of 212,000 tonnes in supplies of washed coal sent to

Whyalla.

3.47 At Port Kembla receipts from the company’s own mines increased by 197,000 tonnes, purchases from South Coast mines rose by 165,000 tonnes but from other districts fell by 150,000 tonnes. Despite a sharp increase in washery rejects and larger transfers of washed coal to Whyalla, coal stocks held at Port Kembla rose by 604,000 tonnes to 976,000 tonnes.

This is equivalent to 3 months’ requirements at the 1976-77 rate of consumption. Action taken to reduce the level of stock accumulation has included reductions at company mines in overtime worked and in recruitment of labour and the stopping of work in the Bulli seam at the Wongawilli mine.

3.48 Whyalla received 913,000 tonnes of coal in 1976-77, 87,000 tonnes less than in 1975-76. Stocks fell by 30,000 tonnes. Shipments from the company’s Queensland mines rose by 57 per cent to 326,000 tonnes, but receipts from other sources were reduced. Transfers of washed coal from the Newcastle and Port Kembla works fell and direct shipments of

Burragorang Valley coal ceased.

M et a l lu r g ic a l C oke

3.49 Coke production for the year ended 31 May 1977 at the Australian steelworks was given in Table 53 as 4,830,000 tonnes. This was 150,000 less than in 1975-76 and 580,000 less than in 1974-75.

3.50 Coal consumption at the beehive coke ovens on the South Coast of New South Wales, see Table 43, fell to 318,000 tonnes, the lowest level since 1963-64. The only other beehive ovens in Australia are at Bowen in Queensland, and consumption of that plant declined in 1976-77 to 49,000 tonnes. The char plant in Western Australia, which utilises

Collie coal has not operated since September 1975. Supplies of brown coal briquettes to Victorian char plants also declined. Taken together these figures indicate a very depressed market for the coke/char industry.

3.51 Coke is also produced at the few remaining gas plants still using traditional gas manufacturing techniques. Coal usage remained relatively steady in 1976-77 at 119,000 tonnes. Several small plants still operating in New South Wales country centres are en­ countering difficulties in disposing of coke supplies, but the larger plant at Osborne in South

Australia has a contract to supply coke to a local chemical works.

119

TABLE 54.—OVERSEAS SHIPMENTS OF COKE AND COKE BREEZE FROM AUSTRALIA (a )— ’000 TONNES

1973-74 1974-75 1975-76 1976-77(6) Ό00 tonnes $A ’000

48 35 73 1,975

40 63

1 17

56 183 60 51 1,262

47 131

30 10 11 249

2 3 3 2 197

2 26 701

Singapore ...................................................... 0 13

Taiwan........................................................ . 5

Thailand .......................................................... 0 6

Vietnam .......................................................... 11 10 632

Yugoslavia ...................................................... 4

Zambia .......................................................... 15 465

Total ex—

109 253 165 120 3,727

0 7 146

Queensland .......................................... 7

South Australia ....................................... 19 158 17 62 1,644

Western Australia ................................... 5 Λ

Total ............................................... 140 411 182 189 5,517

Source—Australian Bureau o f Statistics. (a) Bulk shipments only. (b) Preliminary.

3.52 Overseas sales of coke and coke breeze are shown in Table 54. Although total shipments were almost unchanged, there was considerable variation in destinations. The f.o.b. value of the exports increased to $5,517,000, as a result of an increase of almost $4.00 in the average return per tonne sold.

3.53 Movements of coke from the Port Kembla and Newcastle'steelworks to Whyalla and Kwinana are given in Table 53. Other interstate movements during 1976-77 comprised 48,000 tonnes to Tasmania and 31,000 tonnes to South Australia.

3.54 Table 55 gives details of New South Wales coal supplied for metallurgical and non-metallurgical purposes. Increased exports of coal for metallurgical purposes more than compensated for lower rates of usage within Australia. The overall increase was 2,065,000 tonnes, or 10-3 per cent.

3.55 Increased exports of coal for non-metallurgical purposes made only a minor contribution to the overall increase of 3,361,000 tonnes or 24-8 per cent. The proportion of such coal to total supplies rose from 40-2 per cent in 1975-76 to 43-2 per cent in 1976-77. As indicated elsewhere, there are indications that the export market for steaming coal will expand very strongly during the balance of this century. The range of coals being taken for

metallurgical purposes is also expanding.

120

TABLE 55.—COAL SUPPLIED FOR METALLURGICAL AND NON-METALLURGICAL PURPOSES—NEW SOUTH WALES— Ό00 TONNES

1966-67 1973-74 1974-75 1975-76 1976-77 (c)

For metallurgical industries— Steel industry in Australia (a) 6,597 8,713 9,339 8,728 8,591

Other coke ovens in N .S .W ... 415 338 402 346 319

Exports to Japan (6) ........... 6,746 10,787 9,682 10,280 11,997

Exports—oth ers....................... 221 943 1,377 787 1,299

Total................... 13,979 20,781 20,800 20,141 22,206

Other uses— Electricity generation in

N.S.W...................................... 6,184 9,657 9,137 8,821 12,126

All others in Australia .......... 3,692 1,934 1,941 1,727 1,619

Exports .................................... 161 1,001 3,753 2,987 3,151

Total................... 10,037 12,592 14,831 13,535 16,896

Grand Total .. 24,016 33,373 35,631 33,676 39,102

(а) Mainly raw coal, excluding coal subsequently exported or supplied to local coke works.

(б) Includes some coal carbonised hy the gas and chemical industry.

(c) 53-week year.

E xports

3.56 Despite the uncertainties of the international economy in 1976-77, coal exports from Australia reached the record level of 35,372,000 tonnes, an increase of 16-3 per cent, over shipments in 1975-76. The value of coal exports increased by 20-4 per cent to $1,282,000,000. The average f.o.b. value of coal exported was SA37.16 per tonne, 5-8 per cent more than in 1975-76.

3.57 Exports from New South Wales totalled 16,447,000 tonnes in 1976-77, an increase of 17-0 per cent over the 1975-76 shipments. Following two years of virtual stability, coal sold for metallurgical purposes expanded by 20-1 per cent to 13,296,000 tonnes. Sales of coal for non-metallurgical purposes, aided by improved demand in Northern European

countries, rose marginally by 164,000 tonnes to 3,151,000 tonnes in 1976-77. The rate of exports from New South Wales increased during 1976-77, the average rate per week rising from 278,700 tonnes during the September quarter to 335,300 tonnes during the June quarter. The latter is equivalent to an annual rate of 17·4 million tonnes.

3.58 As reported elsewhere in this Report the industry had the capacity to produce and to export additional coal had markets been available. Stocks held at port storage areas and at some collieries increased during the year. Additional rolling stock came into use and the new coal loader at Newcastle, after some teething troubles, has opened up a new era for the Northern coalfields. Despite a degree of uncertainty as to the level of exports in the immediate

future, New South Wales continued with projects to increase productive capacity, to achieve higher efficiency and to develop infrastructure, particularly coal transport facilities.

121

TABLE 56.—OVERSEAS COAL SHIPM ENTS FROM AUSTRALIA— Ό00 TONNES

From New South Wales— Japan ..........................

United Kingdom ...............

Northern European Ports* G ree ce.................................. ..

R o m a n ia ................................

Yugoslavia ............................

European Total

Argentina ..........................

B an glad esh ..........................

Brazil ..................................

Burma ..............................

Egypt ..................................

Indonesia ..........................

Fiji ......................................

Ethiopia ..............................

South Korea .....................

Malaysia and Singapore . Mexico ..............................

New Caledonia .................

Taiwan ..............................

United States of America..

Total from N .S .W .. . .

From Queensland— Japan ...................................

United Kingdom France .................

I t a ly .....................

G ree ce.................

Belgium .........

Holland .............

R o m a n ia .............

Spain .................

European Total

Argentina . . . Fiji ...............

M exico.........

South Korea Taiwan . . . .

Vietnam . . . .

Total from Queensland

From Western Australia— Japan ......................................

Taiw an....................................

Total from W .A........

Total from Australia

1972-73

10,690

173 138

140 0

" l l

16

11,168

12,425

127 119 656 427 362 467

2,233

14,658

1

25,827

1973-74

10,787

286 352 204

842

684 0

349 65

12,731

13,085

133 232

1,027 320 286 562

2,560

15,645

1

10

28,387

1974-75

9,951

1,947 1,038 404 49

3,438

126 74 167 8

7

10

568 0

197 239

14,812

14,197

217 516

1,408 285 312 626

3,364

46 3

17,610

32,422

1975-76

10,432

2,359 418

"48 29

2,854

29

17

‘645 0 18

14,054

13,408

451 739 828 109

145 349

324

2,945

16,371

30,425

1976-77 (a)

12,464

1,463 1,175

2,638

74 10

1,053 0

' 195

16,447

14,855

385 832

1,109 201 316 652

52

332

3,879

2

45 60 63

21

18,925

35,372

(a) 53-week year. • Shipments to Antwerp, Emden, Hamburg, Rostock, Rotterdam, include tonnage for trans-shipment to undesignated European destinations. 122

3.59 Queensland exports also achieved a new record—18,925,000 tonnes in 1976-77— an increase of 15-6 per cent over 1975-76. Shipments to Japanese and various European steel industries increased. All but 2,000 tonnes was sent for metallurgical purposes. The rate of shipment varied during the year, reaching a peak of 380,800 tonnes per week during the March

quarter, but falling back to 358,100 tonnes per week during the June quarter.

3.60 The adjacent map illustrates the pattern of distribution of coal exported from Australia in 1976-77. Table 56 shows tonnages and destinations of black coal exported from Australia in recent years. The value of coal exports rose very sharply in 1974-75 and in 1975- 76, primarily as a result of the higher f.o.b. prices negotiated under existing and new contracts. In 1976-77 the increase in value of $217,000,000 is largely attributable to the

larger tonnage exported. In 1975-76 coal was Australia’s most valuable export. However, in 1976-77 wool prices recovered and the quantity exported rose. As a result, coal in 1976-77 was Australia’s second largest earner of foreign exchange. As shown in Table 57 the f.o.b. value of coal exported to Japan has risen from $303,000,000 in 1973-74 to $1,045,000,000 in

1976- 77. In terms of value, Japan purchased 824 per cent of the coal exported from New South Wales and 81.1 per cent of the coal exported from Queensland.

TABLE 57.—TOTAL F.O.B. VALUE OF AUSTRALIAN COAL EXPORTS—$A’000

1966-67 1972-73 1973-74 1974-75 1975-76 1976-77

From New South Wales— to Japan ................................ 53,908 125,885 134,280 220,378 365,323 437,537

all destinations ....................... 56,985 130,996 154,347 308,111 437,760 532,289

From Queensland— to Japan ................................ 14,762 134,365 169,120 341,360 527,422 608,171

all destinations ....................... 14,821 159,751 193,663 413,346 632,086 749,649

Australia— to Japan (a ) ........................... 68,622 260,255 303,405 561,738 892,745 1,045,708

all destinations (a) ............... 71,824 290,752 348,117 721,457 1,069,846 1,281,938

(a) Includes small consignments from Western Australia.

Source: Australian Bureau o f Statistics.

3.61 The average employment in the New South Wales coal industry during 1976-77 was 15,787; 46-0 per cent of employees were dependent on the export market for their con­ tinued employment. In 1975-76 the corresponding proportion was 42-5 per cent. In 1976-77 export sales comprised 41-5 per cent of all coal supplied to market during the year. However, if both the tonnage exported and the total tonnage supplied to local consumers were to be converted to a raw coal basis, the percentage represented by exports would rise to

46-8 per cent. With both export sales and local deliveries expressed on a raw coal basis, the district ratios were: South Maitland 87 per cent, Burragorang Valley 85 per cent, West 57 per cent, Singleton-North West 56 per cent, South Coast 31 per cent and Newcastle 28 per cent. The degree of dependence on export sales also varied widely from mine to mine, as shown in

Table 58. In this table coal is shown as exported irrespective of whether the exporter was the colliery proprietor or some other party.

123

TABLE 58.—DEPENDENCE OF N.S.W. COAL MINES O N THE EXPORT MARKET—YEAR 1976-77

Percentage o f sales exported N o. of mines

Raw coal production ’000 tonnes

Tonnage exported ’000 tonnes

Average no. of

employees

100-90 per cent ................... 29 11,283 8,052 2,739

89-75 per cent ................... 18 11,860 7,300 4,892

74-50 per cent ................... 4 926 450 248

49-25 per cent ................... 4 1,180 523 540

24- 2 per cent ................... 4 2,113 109 657

1 - 0 per cent ................... 28 19,423 2 6,684

Others (o) ................... 1 11 27

Total ....................... 88 46,785 16,447 15,787

(a ) Mines not yet delivering coal and coal exported from old stockpiles.

3.62 A similar analysis in respect of Queensland mines is given in Table 59. In that State 74.8 per cent of coal delivered from the mines during 1976-77 was exported, and 59.8 per cent of all employees were dependent on the export market for their continued employment.

TABLE 59.—DEPENDENCE OF QUEENSLAND COAL MINES ON THE EXPORT M ARKET-YEAR 1976-77

Percentage o f sales represented by exports N o. o f mines

Raw coal production ’000 tonnes

Tonnage exported Ό00 tonnes

Average no. of

Employees

100-90 per cent ___ 5 19,596 13,472 2,251

89-75 per cent ___ 5 7,602 5,437 1,508

24-2 per cent . . . . ' 3 341 16 187

1-0 per cent . . . . 38 7,118 1,955

Total: ........... 51 34,657 18,925 5,927

3.63 Details of coal shipments through the three New South Wales coal exporting ports, and tonnages exported from each coal mining district, are contained in Table 60. Part 5 contains comment on the contribution made by individual districts to the export trade. The adjacent graph shows the volume of coal exports from each major Australian

coal port for the years 1966-67 to 1976-77. Information on the capacity of the ports is given in Table 70 in Part 4.

3.64 All six districts contributed to the record level of exports in 1976-77, and increased tonnages were shipped through each port. The largest increase was at Port Kembla which handled coal from the South Coast, Burragorang Valley and Western districts. The total tonnage shipped, 5,598,000 tonnes, was close to the reported capacity of this port.

125

CO A L EX PO RTS BY P O R T S *

1 9 6 6 - 6 7 t o 1 9 7 6 - 7 7

MILLION

Small tonnages are shipped from other ports. Total in 1976-77 was 16,000 tonnes.

126

TABLE 60.—SHIPPING OF N.S.W. COAL—INTERSTATE AND OVERSEAS *000 TONNES

Port of Shipment 1972-73 1973-74 1974-75 1975-76 1976-77(a)

Newcastle— Overseas ............................................................. 5,766 7,595 8,550 7,663 8,376

Interstate ......................................................... 316 607 477 481 282

6,082 8,202 9,027 8,144 8,658

Sydney—■ Overseas (Balmain) ........................................ 2,142 1,848 2,649 2,338 2,429

Overseas (Balls Head) ................................ 43 24 320

Interstate (Balls Head) ................................ 6

2,142 1,848 2,698 2,362 2,749

Port Kembla— Overseas ............................................................. 3,260 3,286 3,570 4,029 5,322

Interstate ......................................................... 602 302 405 333 276

3,862 3,588 3,975 4,362 5,598

T otal.................................................... 12,086 13,640(6) 15.700(c) 14,868(d) 17.005(e)

Source of overseas shipments— Direct from production areas— South Maitland ........................................ 1,339 1,773 1,326 902 978

Singleton—North West ........................... 2,548 3,346 4,530 4,679 5,219

Newcastle .................................................... 1,879 2,482 2,778 2,196 2,507

West ............................................................ 47 109 1,433 1,822 2,048

Burragorang Valley .................................... 2,766 2,679 2,639 2,716 3,101

South Coast ................................................ 2,589 2,342 2,106 1,739 2,594

T otal.................................................... 11,168 12,731 14,812 14,054 16,447

(a) 53-week year.

(b) Includes overseas shipment o f 2,000 tonnes ex Catherine Hill Bay. (c) Does not include 3,000 tonnes railed interstate.

Of) Does not include 3,000 tonnes railed interstate. (

Japanese M arket

3.65 Some sectors of the Japanese economy grew during 1976-77, including its steel industry. Compared with 1975-76, the increase in crude steel production was 7-3 per cent, but the improvement was not maintained during the latter months of the year. Concern was felt in Japan about long term energy supplies but, in the short term, stocks of coking

coal were excessive and moves were made to reduce deliveries against existing contracts and to defer consideration of new contracts. The balance of trade strongly favoured Japan but efforts were made to reduce, in real terms, the cost of coal imports.

3.66 There have been significant changes in recent years in the pattern of Japanese coal imports. In 1974, when imports of coking coal peaked at 62,478,000 tonnes, the United States supplied 40-7 per cent and Australia 36-5 per cent of this amount. For the first half of 1977 imports of coking coal had fallen to an annual rate of 58,732,000 tonnes, of which

the United States supplied 24.8 per cent and Australia 44.6 per cent. Canada now supplies 19-2 per cent, and South Africa 3-9 per cent Shipments from Poland and the U.S.S.R have declined. Tonnages are shown in Table 61.

127

JAPANESE STEEL INDUSTRY AND

COAL EXPORTS-AUSTRALIA TO JAPAN

MILLION TONNES PER QUARTER 33 — i

CRUDE STEEL O U T PU T X ,/z'

PIG -IR O N O U T PU T ' · . . · · · · '

COKING COAL C O N SU M PT IO N

COAL EXPORTS TO JA P A N

■C.-· - A U ST R A L IA

Q UEENSLAND N EW SOUTH W ALES

YEAR

Coking Coal Stocks i n j a p a n .

128

TABLE 61.—JAPAN—IMPORTS OF BITUMINOUS COAL—*000 TONNES

Year ended December 1971 1972 1973 1974 1975 1976 Jan.-June 1977

Coking coal— United States ................................ 18,480 16,542 16,538 25,426 22,418 17,455 7,275

Australia............................................. 16,595 20,560 24,914 22,800 22,787 26,040 13,099

Canada ............................................. 6,614 7,674 10,321 9,569 10,665 10,297 5,627

U .S.S.R............................................... 2,449 2,501 2,724 3,193 3,123 3,035 1,425

Poland ............................................. 1,148 1,213 1,220 1,205 1,077 970 473

Germany Fed. Rep.......................... 53 332 381 188

China ............................................ 4 16 3

South Africa ................................ 0 18 80 122 91 754 1,157

Other ................................................. 53 12 26 106 213 175 119

Total ............................................. 45,339 48,520 55,823 62,478 60,706 59,123 29,366

Percentage supplied by—

40-7 United States ................................ 40-8 34-1 29-6 36-9 29-5 24-8

Australia............................................. 36-6 42-4 44-6 36-5 37-5 44-1 44-6

Canada ............................................ 14-6 15-8 18-5 15-3 17-6 17-4 19-2

Other ................................................. 8-0 7-7 7-3 7-5 8-0 9 0 11-4

Non-coking coal— United States ................................ 2 0 12 0

Australia............................................. 1 1 73 213 249 203

U.S.S.R............................................... 0 62 39 209 6 4

China ............................................ 35 123 105 99

Other ................................................. 0 26

Total ............................................. n.a. 3 1 182 375 563 392

Source: Ministry o f Customs, Japan.

3.67 Imports of non-coking coal are shown in the lower section of Table 61. Prior to 1974 imports of such coal were prohibited. Although still small compared with the tonnages of coking coal, the rate during the first half of 1977 was four times the 1974 rate. The construction of new coal fired power stations has recommenced in Japan and during

1976-77 two agreements were negotiated with New South Wales producers to supply a portion of the coal required. During the first half of 1977 New South Wales supplied over 50 per cent of Japan’s imports of non-coking coal.

3.68 Japanese steel production in fiscal year 1976 (i.e. year commencing 1 April 1976) increased by 6-7 million tonnes to 108-3 million tonnes but this was still significantly below the record level of 120 million tonnes produced in fiscal year 1973. The adjacent graph shows that the sharp upturn in production during the 6 months to December 1976,

when the annual production rate reached 113 million tonnes, was not maintained. Production fell by about 9 per cent in early 1977. A further decline has been forecast for the December quarter of 1977 with a total output for the fiscal year 1977 of about 100 million tonnes. At this level of production the Japanese steel industry is operating at about 70 per cent of capacity.

Details of operations of the Japanese steel industry for fiscal 1976 and earlier years are set out in Table 62.

129

G 441021— 9

TABLE 62.—JAPANESE STEEL INDUSTRY

Japanese fiscal year Crude steel production Pig-iron

production

Coal ratio*

Coke ratio*

Oil rate)

Ό00 tonnes Ό00 tonnes

1960 ................................ 23,161 12,052 984 615

1965 ................................ 41,296 27,930 825 505 37

1970 ................................ 92,406 69,023 792 469 49

1972 ................................ 102,972 77,515 723 441 57

1973 ................................ 120,012 90,973 719 440 58

1974 ................................ 114,036 89,545 737 442 56

1975 ................................ 101,596 85,733 750 439 49

1976 ................................ 108,309 87,728 729 431 51

COKING COAL CONSUMPTION

Imported Imported Imported Domestic Total

low-volatile high-volatile total high-volatile coal

Ό00 tonnes Ό00 tonnes Ό00 tonnes Ό00 tonnes Ό00 tonnes

1960 ................................ 6,006 111 6,117 5,738 11,855

1965 ................................ 12,910 1,786 14,696 8,338 23,034

1970 ................................ 40,012 5,225 45,237 9,437 54,675

1972 ................................ 41,443 4,580 46,023 10,043 56,066

1973 ................................ 49,443 6,180 55,623 9,757 65,380

1974 ................................ 51,839 5,015 56,854 8,911 65,765

1975 ................................ 51,571 5,282 56,853 7,481 64,334

1976 ................................ 49,864 6,882 56,747 7,186 63,933

* Kilograms per tonne of hot metal (pig-iron), t Litres per tonne of hot metal (pig-iron). Source: Japan Iron and Steel Federation and Japan Ministry of International Trade and Industry.

3.69 Pig iron production, having declined for two years, increased by 2-0 million tonnes to 87-7 million tonnes in fiscal 1976, but subsequently declined. Production which had reached 23-1 million tonnes in the December quarter of 1976 fell to 21-5 million tonnes in the June quarter of .1977. Some further decline during the remainder of fiscal 1977 is anticipated possibly to around the 80 million tonnes. .

3.70 The coal ratio in fiscal 1976 fell to 729 its lowest level since 1973. The coke ratio also showed an improvement. Fuel efficiency as indicated by the total fuel ratio (coke plus oil) continued to improve. The combined rate fell from 498 in 1974 to 488 in 1975 and to 482 in fiscal year 1976. The improvement in efficiency can be attributed to the greater

use of modern and larger blast furnaces and to a detailed study of and application of energy conservation measures.

3.71 Consumption of domestic high-volatile coal by the Japanese steel industry continued to decline. Domestic coal’s contribution to the overall blend has fallen from 19-3 per cent in fiscal year 1971 to 11.2 per cent in fiscal year 1976. The shortfall in domestic high-volatile coals has been partly offset by imported high-volatile coals whose contribution rose from 9.4 per cent to 10.8 per cent during the same period. The construction of larger

130

capacity blast furnaces, which require a strong coke, has tended to increase the use of low- volatile coals. Usage rose from 73-9 per cent in fiscal 1972 to 80-2 per cent in 1975. However, more recently, changing technology is enabling a greater use of lower rank coals and this is reflected in fiscal 1976 data. Consumption of low-volatile coal declined by

1-7 million tonnes to 78-0 per cent of the total coal consumed in fiscal year 1976 and consumption of high-volatile coal increased by 1 -3 million tonnes.

3.72 The trend towards non-metallurgical and high-volatile coking coal is expected to continue with usage reaching a level of about 35 per cent of the blend by the late 1980’s. As production of Japanese domestic high-volatile coking coal is expected to stabilise at about 7-5 million tonnes per annum the additional requirements will need to be imported. In

fiscal year 1976 New South Wales supplied about 80 per cent of the imported high-volatile coals. Most came from the Northern coalfields, but some came from the Western district.

3.73 Table 63 shows Australian export contracts with Japanese buyers in fiscal years 1976, 1977 and 1978. Actual shipments in recent fiscal years are also shown.

3.74 Shipments from Australia to the Japanese steel industry in fiscal year 1976 totalled 25,907,000 tonnes. However, base contract tonna ges, for that year totalled 31,932,000 tonnes. Dispatches therefore represented a shipping rate of 81T per cent compared with 70.4 per cent in fiscal year 1975.

3.75 Shipments to the Japanese steel industry from New South Wales in fiscal year 1976 were 10,463,000 tonnes. This represented a shipping rate against contracts of 81-9 per cent, compared with 73-4 per cent in fiscal year 1975. Improved shipping rates were achieved in all but the Burragorang Valley district. The higher level of deliveries of the high-volatile coals from the Northern and Western districts reflected the increasing usage of these coals in the overall blend. Increased shipments of South Coast coals in fiscal year

1977 reflected sharply improved output from both major suppliers. The shipping rate for the latter district improved from 53-5 per cent in fiscal year 1975 to 81-9 per cent in the 1976 fiscal year and sufficient coal was available to supply 100 per cent of contract tonnages if shipping had been provided by the purchaser.

3.76 Shipments to the Japanese steel industry from Queensland of 15,444,000 tonnes in fiscal year 1976 represented a shipping rate of 80-6 per cent. This was significantly higher than in fiscal 1975 when only 68-5 per cent of contract was shipped. Deliveries from the North Bowen Basin, which were seriously interrupted by industrial disputes in fiscal 1975, increased by 2,193,000 tonnes in fiscal year 1976, representing a shipping rate against contracts of 96 ·3 per cent. Shipments from the South Bowen Basin, however, were low and achieved a shipping rate of only 63.4 per cent.

3.77 Australian base contracts with the Japanese steel industry increased by 1,678,000 tonnes to 33,610,000 tonnes in fiscal year 1977, all of the increase being for New South Wales coals. However, on present indications, there appears little prospect of Australian suppliers maintaining a shipping rate of 81-9 per cent in the forthcoming year. The Japanese steel

industry has indicated minimum tonnages to be accepted in fiscal year 1977. For the major contracts in New South Wales, acceptances range from 70 per cent for low and high volatile coals, to 88 per cent for medium volatile coals while for Queensland contracts minimum tonnages are reported to be about 80 per cent. However, further cutback in these tonnages is likely if steel output continues to decline.

131

TABLE 63.—EXPORT CONTRACTS—JAPAN—Ό00 TONNES

Actual shipments Base contract tonnage

Japanese Industry— 1974(a) 1975(a) 1976(a) 1 9 7 6 (a )

1977(a) 1978(a)

Steel N.S.W .— North ........................................

Burragorang Valley ...............

W est............................................

South Coast ...........................

3,907 1,930 67 1,662

4,443 2,829 232 1,548

5,096 2,663 493 2,211

6,492 2,950 638 2,700

7,300 2,950 638

3,570

7,550 2,950 638

3,870

Total ................................ 7,566 9,052 10,463 12,780 14,458 15,008

Queensland—

9,195 9,195 1,524(6) South Bowen Basin ............... 6,694 5,201 5,857 North Bowen Basin ............... 6,620 7,394 9,587 9,957 9,957 9,957

Total ..................... .......... 13,314 12,595 15,444 19,152 19,152 11,481

Total to steel industry .. 20,880 21,647 25,907 31,932 33,610 26,489

Gas, chemical and coke— N.S.W .— North ........................................ 1,358 1,094 800 930 1,954 1,954

South Coast ........................... 264 104 75 307 130

Total ................................ 1,622 1,198 875 1,237 2,084 1,954

Electricity, cement and aluminium N.S.W .— North ........................................ 170 191 392 424 687 500

W est............................................ 6 6 10

Total ............................... 176 191 398 434 687 500

Electricity— Queensland South Bowen Basin 5

Chemical— Queensland— North Bowen Basin ............... 42 58 14 122 92

Total ex N.S.W................ 9,364 10,441 11,736 14,451 17.229 17,462

Total ex Queensland .. 13,356 12,658 15,458 19,274 19,244 11,481

Total A u stra lia ............... 22,720 23,099 27,194 33,725 36,473 28,943

{ a ) Japanese fiscal commenting J April.

(b) See paragraph 3.78

3.78 Two major northern New South Wales contracts with the Japanese steel industry were to have terminated on 31 March, 1978. These contracts, which covered 2,800,000 tonnes, were extended in April 1977 for a further 12 months, i.e. for fiscal 1978. New South Wales contracts with the steel industry currently provide for base tonnages to increase by a further 550,000 tonnes in the fiscal 1978. In Queensland, base tonnages are unaltered in fiscal 1977 but Table 63 shows a decline by 7,671,000 tonnes in fiscal 1978. Two large contracts are due for completion in fiscal 1977 and protracted negotiations for follow-on contracts have commenced in respect of quantities, prices and conditions.

3.79 Six New South Wales contracts with the steel industry, totalling 7,472,000 tonnes, are due to terminate on 31 March 1979. This represents 50 per cent of the total tonnage contracted in fiscal year 1978. A further northern contract for 900,000 tonnes is due to terminate on 31 March 1980, while 6 additional contracts, which aggregate 6,336,000

tonnes in fiscal 1978, extend to 1983, 1984 or 1985. In addition to the steel industry arrange­ ments, two northern contracts with the Japanese coke industry, which aggregate 350,000 tonnes, also terminate at 31 March 1979.

3.80 The greater use of non-metallurgical coals by the Japanese steel industry is evidenced in the virtual doubling of deliveries of this type of coal in fiscal year 1977. Coal sent for sponge iron and formed coke production rose to 646,000 tonnes or 77-3 per cent of contract compared with a delivery rate of 51 per cent in the previous year. Contracts in

fiscal year 1977 and 1978 remain at the 1976 level of 836,000 tonnes.

3.81 Deliveries to the Japanese gas and chemical industries continued to be affected by the downturn in industrial activity. The principal outlet for coke produced by these industries is the Japanese steel industry. Shipments from New South Wales fell from 1,071,000 tonnes in fiscal year 1975 to 673,000 tonnes in fiscal year 1976. Contracts in fiscal

years 1977 and 1978 are 1,734,000 tonnes and 1,604,000 tonnes respectively, but in the present economic climate there seems little possibility of these tonnages being accepted in full. Shipments of Queensland coal to the Japanese chemical industry were only 14,000 tonnes in fiscal 1976 against a contract for 122,000 tonnes.

3.82 A contract with the Japanese coke industry provides for annual shipments of 250,000 tonnes of New South Wales coal. Deliveries in fiscal year 1976 showed an improve­ ment, rising to 202,000 tonnes or 80-8 per cent of contract compared with shipments of 163,000 tonnes in fiscal year 1975.

3.83 A New South Wales producer also holds a contract to supply coal to the Japanese cement industry; shipments showed a marked improvement in fiscal year 1976. Deliveries were 330,000 tonnes, or 82-6 per cent of contract, compared with the shipping rate of 54-6 per cent in fiscal year 1975. The contract provides for annul shipments of 500,000 tonnes

in fiscal 1977. However, the buyer has indicated a minimum tonnage to be accepted of 400,000 tonnes, the same level as in fiscal 1976.

3.84 Exports of steaming coal from New South Wales for power generation in Japan continue to be small. Shipments in fiscal year 1976 totalled 41,000 tonnes, comprising 35,000 tonnes from mines in the Northern district and 6,000 tonnes from a mine in the Western District. Imports at present are essentially for the purpose of evaluation. (Reference is

made in para. 3.67 to new longer term arrangements). A new market outlet for New South Wales steaming coals in fiscal year 1976 was the aluminium industry. Shipments totalled 27,000 tonnes in that year, but a one year contract provides for deliveries to increase to 187,00 tonnes in fiscal 1977.

3.85 The New South Wales coal industry is thus becoming a supplier to a wide range of Japanese industries and the foundation is being laid for a diversified trade, covering a wide range of coal types (see also Part 6).

133

Other Overseas M arkets

3.86 Exports from New South Wales to markets other than Japan totalled 3,983,000 tonnes in 1976-77, an increase of 361,000 tonnes over 1975-76. Shipments comprised 2,684,000 tonnes for steam raising and 1,299,000 tonnes for metallurgical purposes. Exports of the latter coal increased by about 65 per cent due to a sharp increase in shipments to South Korea and the commencement of deliveries to the China Steel Corporation, Taiwan. With shipments to the United Kingdom down by nearly a million tonnes, short term arrangements with European buyers were responsible for sustaining steaming coal exports at just below the

1975-76 level. Details of actual shipments for metallurgical and non-metallurgical purposes are set out in Table 64. Quantities covered by existing contracts are given for 1977 and 1978.

TABLE 64.—EXPORTS OF NEW SOUTH WALES COAL OTHER THAN TO JAPAN—Ό00 TONNES

Actual shipments Contracts (a )

1974-75 1975-76 1976-77 1976 1977 1978

Steaming coal— Belgium, Holland and West Germany ...............................

United Kingdom .......................

1,038 1,947

418

2,359

1,175 1,463

2,495

l 1,390 975

B urm a............................................

E th io p ia ........................................

74 10

J

Fiji ................................................ 7 17 13 25

Taiwan ........................................ 169 41 23 500

United States of America . . . . 239 ioo

Bangladesh ............................... 10

Total ............................... 3,484 2,835 2,684 3,020 1,490 975

Coking coal— Greece ........................................ 404 400

Romania .................................... 49 48 100 ioo 300

Argentina .................................... 27 74

Brazil ............................................ 126

Egypt ............................................ 167 29

Indonesia .................................... 8

Mexico ....................................... 18 ioo 140

South Korea ............................... 568 645 1,053 1,097 1,258 1,270

Taiwan ........................................ 28 18 172 116 606 580

Y u goslavia................................... 29

Total ............................... 1,377 787 1,299 1,813 2,104 2,150

Grand total........................... 4,861 3,622 3,983 4,833 3,594 3,125

(a ) Contracts are for varying periods and tonnages are calculated on the basis of an even rate of delivery over the period specified in the contract.

3.87 In 1973-74 a number of contracts were signed for the supply of power house coal to Great Britain. In 1975-76 shipments reached a peak of 2,359,000 tonnes but there was a sharp downturn in 1976-77 to 1,463,000 tonnes, due to the completion by June 1976, of deliveries under several of the contracts. However, shipments under a new 7-year contract, which provides for annual deliveries of 975,000 tonnes from 1976-77, will ensure a continuation

of deliveries although at a somewhat lower level.

134

3.88 Many European countries have during the past year indicated interest in pur­ chasing significant quantities of steaming coal from Australia. Although no long term arrangements have yet been made shipments to Northern European countries nearly trebled to 1,175,000 tonnes in 1976-77. New South Wales steaming coals currently being sent to

Europe are, in the main, sold to merchants who operate across national boundaries. The result is that details of tonnages received by countries of final destination are not generally available. However, it has been reported that about one million tonnes went to France, with smaller tonnages going to Belgium, West Germany, Holland and Denmark.

3.89 The size of the European market for steaming coal depends on the level of economic growth, the extent to which coal is used to reduce dependence on imported oil, the level of local coal production and the share of the resultant market which New South Wales suppliers are able to win in competition with other exporters. Poland and South Africa

both have the advantage of being much closer to European markets than New South Wales. The current inability of New South Wales ports to accommodate large ships accentuates this handicap.

3.90 One New South Wales producer signed in 1975 a 10 year contract to supply coking coal to the Romanian steel industry. However, no deliveries were made during 1976­ 77, and a resumption of deliveries is not expected pending resolution of discussions on the insertion of penalty clauses in the contract. While one company has been successful in increasing sales of Queensland coking coal in a number of European countries (see Table 56)

there are few immediate prospects for sales of New South Wales coking coals in Europe.

3.91 After an initial shipment in 1975-76, shipments of coking coal to Taiwan, to the China Steel Corporation’s new steelworks rose to 172,000 tonnes in 1976-77. The requirements of this plant are expected to rise from about 600,000 tonnes in 1977 to about 2-2 million tonnes per annum during the early 1980’s. Four New South Wales suppliers, two for high-volatile coal and two for low-volatile coal, have contracts to supply in total

580,000 tonnes per annum for 5 years. It is anticipated that additional contracts will be available within a few years. The other suppliers to the Corporation are Queensland, with a contract for 200,000 tonnes per annum, and Canada.

3.92 A shipment of 23,000 tonnes of steaming coal was sent to Taiwan during 1976-77. However, the prospects are still uncertain for the development of a stable steaming coal market in that country.

3.93 Intake of New South Wales coals by Pohang Iron and Steel Company of South Korea rose sharply in 1976-77 to 1,053,000 tonnes, an increase of 60 per cent over the 1975-76 figure. Queensland also supplied 60,000 tonnes in 1976-77. The Australian total includes 63 per cent high-volatile coal. Present contracts for New South Wales coal provide for

annual shipments of 1 -27 million tonnes. The expansion programme currently being imple­ mented provides for the No. 3 blast furnace to be commissioned in 1978 or 1979. Annual coal requirements are forecast to increase from 1 ·8 million tonnes in 1976 to 4-4 million tonnes in 1979 and to 6·8 million tonnes by 1982. Australia is expected to supply at least half of

these requirements.

135

3.94 In addition to the rapidly expanding market for metallurgical coal, South Korea is expected to develop into a major importer of steaming coal for cement manufacture and power generation. The high cost of imported oil has encouraged consumers in that country to evaluate alternative energy sources and present indications are that coal will contribute

significantly to future requirements. The Korea Electric Power Co. is constructing a 2 x 500 MW unit coal fired power station. Coal requirements are forecast to be 500,000 tonnes in 1981, increasing to 2 million tonnes by 1983. Australian producers are seeking major contracts. Competition is expected from South Africa and India. A mission representing

the Tong Yang Cement Manufacturing Co. Ltd visited New South Wales in June, 1977 for discussions with prospective coal suppliers. At present this company consumes about 335,000 tonnes of imported oil. An annual requirement of 500,000 tonnes of coal is forecast if the company changes over completely to coal.

3.95 A new steel complex with an initial designed capacity of 1 million tonnes per annum is under construction for the Pakistan Steel Corporation and is scheduled to be commissioned by the early 1980’s. Discussions have been held with potential coal suppliers and there are indications that New South Wales coking coal will provide a significant portion

of the plant’s requirements.

3.96 A contract to supply 100,000 tonnes of New South Wales steaming coal to a power company in the United States has been arranged. Shipment is to be effected in the latter part of 1977. ;

3.97 Steelworks in South America are heavily dependent on imports for supplies of coking coal and there is interest in New South Wales as a major source for their requirements. During 1976-77, 74,000 tonnes of medium-volatile coals were shipped to Argentina. In June 1977, a steel mission from Brazil visited Australia to investigate the prospects of buying Australian coal. Following that visit a mission comprising representatives of major Australian

coal producers, the Joint Coal Board and the Department of National Resources, visited several South American countries and Mexico for discussions with the various steel producers.

3.98 Deliveries under the three-year contract with the Mexican steel producer Sicartsa of Las Truchas, were discontinued in 1976-77 and only 18,000 tonnes were sent in 1975-76 of the total contract of 260,000 tonnes.

3.99 A new market for coking coal will develop in Nigeria with the establishment of an iron and steel plant in that country. The first stage is scheduled to be completed by 1983. An initial capacity of 1 -3 million tonnes per annum is planned to expand to 5 million tonnes. High rank coking coals are to be imported to blend with low rank Nigerian coking coals. The Joint

Coal Board has been approached by the Nigerian Steel Development Authority as to the possibility of undertaking blending tests on their behalf.

3.100 Construction of a coal-fired power station at Hadera in Israel is expected to provide a significant market opportunity for New South Wales suppliers. The current pro­ gramme provides for the first unit to be commissioned about 1980. The plant will comprise 4 units each of 350 MW. By 1984 coal requirements are expected to exceed 3 million tonnes

per annum. The Israel Electric Corporation has received offers from potential suppliers and further discussions are expected with bidders in late 1977. Potential suppliers apart from Australia, are Poland, South Africa, United States, Federal Republic of Germany and the

United Kingdom.

136

3.101 While the Republic of South Africa may need to import high rank metallurgical coals to supplement indigenous supplies, that country has developed into a major coal exporter. Contracts for steaming coal with several European countries and the United States are reported to total 7 million tonnes per annum. In addition, a contract with the Japanese

steel industry provides for annual shipments of 2-5 million tonnes of high-volatile metallurgical coal. As noted in para 3.122 the c.i.f. price of this coal is very low. A deepwater port has been developed at Richards Bay to handle coal exports. A loading facility with an initial designed

capacity of 12 million tonnes per annum was completed in 1976 and this plant is being up­ graded to handle 20 million tonnes per annum by 1978. Vessels of up to 150,000 DWT can be accommodated at the facility.

Export Prices

3.102 A continuation of a depressed world demand for steel and only limited growth in many other areas of economic activity, coupled with relatively stable oil prices and ample supplies of oil were major influences tending to contain coal prices during 1976-77.

3.103 In August 1976 Mr Tanabe, Senior Managing Director, Nippon Steel Corpora­ tion, foreshadowed the Japanese steel companies’ policy towards the forthcoming contract negotiations by stating that they would be seeking to achieve stabilisation of raw material prices. He indicated that suppliers would be requested to accept base prices fixed for a period of about three years.

3.104 During 1976-77 negotiations in respect of existing contracts with the Japanese steel industry centred on the following issues: (i) Requests by Japan that base prices to be fixed for periods up to three years. (ii) Requests from Japan that the percentage of base tonnages to be accepted in

fiscal year 1977 be reduced, and that scheduled increases not take effect. (iii) Requests by suppliers that base prices for fiscal 1977 be increased, generally from 1 April 1977, for varying amounts ranging up to 9 per cent. (iv) The limitations to be placed on escalation provisions.

(v) How changes in national currency relativities should be reflected.

3.105 While negotiations with some suppliers commenced in September 1976, it was August 1977 before variations of a Queensland contract for fiscal 1977 were agreed. The result of the negotiations in respect of the five issues are set out below.

3.106 A two-year period was agreed to for most New South Wales contracts, but for Canada and the U.S.S.R., the 1977 base prices were made effective for one year. On the other hand, some United States suppliers agreed to a three-year period.

3.107 For many suppliers, the tonnage to be accepted was at least as significant an issue as any likely price change. For United States suppliers, the base tonnages were fixed at from 50 to 66 per cent of tonnages shown in the contracts. For New South Wales suppliers, the minimum tonnages accepted after extended negotiations were an average of 72 per cent for northern high-volatile coals and 88 per cent for Burragorang Valley medium-volatile coals.

The contracts for South Coast coals provide for tonnages to increase from 2,700,000 tonnes in fiscal 1976 to 3,570,000 tonnes in fiscal 1977. However, the minimum tonnage to be accepted in fiscal 1977 was set at 2,470,000 tonnes. This is only 69 per cent of the 1977 contract tonnage but 91 ·5 per cent of the preceding year’s contract tonnage. Actual shipments in fiscal 1976 had been 2,211,000 tonnes.

137

G44102J— 10fi

3.108 Minimum tonnages to be accepted by the Japanese steel industry for Queensland coals in fiscal year 1977 are reported to be about 80 per cent of contract. Stocks held by the Japanese steel mills were very high during the early months of fiscal 1977 and, with projections for lower steel production, it is by no means certain that all the agreed tonnages will, in fact, be accepted.

3.109 Small price increases were gained by United States suppliers of low-volatile coal (e.g. SUS2.34 for Itmann coal) and by U.S.S.R. suppliers. Canadian and Polish base prices were unchanged. Reductions occurred in respect of South African coal (SUS1.50 per tonne) and for some medium-volatile coal from the United States. The position in respect of Australian contracts was complicated by currency changes and differing provisions in contracts regarding currency protection.

3.110 In fiscal 1975 there were few, if any, limitations on the amounts which suppliers, under escalation clauses, could recover from the buyer for a wide range of cost increases. For fiscal 1977 ceilings were fixed on the total amounts which could be recovered but in general these amounts were more generous than in fiscal 1976. For South Africa the limit was set at

SUS1.60 per tonne. For low-volatile New South Wales coals the total agreed upon was SUS3.30 (SA3.00) of which SA1.65 was payable from 1 April 1977. For high and medium- volatile New South Wales coals the limits were SUS2.86 ($A2.60) and SUS3.14 ($A2.85) per tonne respectively.

3.111 Negotiations between New South Wales suppliers and the Japanese steel mills were complicated by devaluation of the Australian currency in November 1976. New South Wales suppliers received no advantage from the devaluation. New South Wales high-volatile coal contracts have for some years been expressed in Australian currency while low-volatile coal contracts have recently been expressed in United States dollars but with currency protec­ tion clauses to ensure a constant return in Australian dollars to the exporter. Queensland contracts, with the exception of one which is the same basis as the New South Wales high- volatile coal contracts, are expressed in United States dollars but currency protection only applies to about one-third of the f.o.b. price. The immediate result of the November devalua­ tion was a fall in terms of United States dollars in the price of New South Wales coals, ranging from about $US 7.00 to $US 9.00 per tonne. In contrast, most Queensland prices declined by about SUS3.00 per tonne. While subsequent firming of the Australian dollar did increase prices marginally in terms of United States currency, the Japanese steel mills still achieved substantial benefits, particularly in respect to New South Wales coals, as a direct result of the changes in the value of the Australian currency.

3.112 Price relativities were also affected by movements in the price of the yen and the Canadian dollar relative to the United States dollar. The number of yen per Australian dollar has fallen from 384 in January 1976 to 368 in June 1976 and to 303 in June 1977. Only New South Wales high-volatile coal suppliers were successful in negotiating prices which, in terms of United States currency, were above those which existed prior to devaluation.

3.113 While preliminary discussions over New South Wales contracts were initiated in October 1976 talks were discontinued following devaluation of the Australian currency and were not resumed until January 1977. A counter offer in May 1977 by the Japanese steel mills proposed for low-volatile coals a base price of $US 50.33 ($A 45.75) for two years. This was subsequently agreed to by the New South Wales suppliers. Essentially this meant that New South Wales low-volatile coal suppliers accepted a price in terms of United States currency,

138

after escalation was applied, of 61 cents above the June 1976 price of SUS51.37 per tonne. This compared with a reported increase of SUS5.50 over the full year achieved by U.S. low- volatile coal suppliers. In terms of Australian currency, the increase from June 1976 to April 1977 was $A5.59 per tonne, a rise of 13'4 per cent.

3.114 Negotiations by New South Wales suppliers of high-volatile coals were com­ pleted in April 1977. The contracts provide for base prices ranging from SUS41.15 to $US41.80 (SA37.41 to SA38.00) per tonne. This represents an increase of SUS2.00 ($A1.83) per tonne above 31 March 1977 price. Compared with June 1976 prices, the increase in terms of Australian currency was SA5.59, a rise of 17-3 per cent, but in terms of United States

currency the increase was only 4-9 per cent.

3.115 For medium-volatile coal, negotiations were completed in May 1977 with a base price for fiscal 1977 of $US48.98 (SA44.53). This was an increase of SUS2.32 ($A2.11) per tonne above the 31 March 1977 price. Compared with June 1976 prices, the increase, in terms of Australian currency, was SA4.09, a rise of 10T per cent, but in terms of United States

currency the price decreased by SUS0.76.

3.116 For Queensland coals, negotiations with the Japanese steel mills regarding prices and terms for fiscal 1977 were confined to one South Bowen contract. Discussions were not finalised until August 1977. The new price was set at SUS47.00 (SA42.73) per tonne. Both the size of the increase and the final price were below the corresponding amounts set for New South Wales medium-volatile coals. As mentioned in para 3.78, some Queensland contracts expire in March 1978 and negotiations regarding their renewal are proceeding slowly. The remaining Queensland contracts all contain long term pricing arrangements which extend for some years. Prices under these contracts fall within the range for New South Wales coals.

3.117 Prices per tonne at May 1977 for coking coal to the Japanese steel industry were reported to be: (1) Coal sold on f.o.b. basis: $US per tonne

Australia * .................................... .. .. 41.15—51.98

South Africa .. .. .. .. .. .. 34.47

C anada....................................................................... 53.26—68.38

Soviet U n i o n ..................................... .. ,. 36.80—53.00

United States .. .. .. .. .. .. 59.71—67.79

(2) Coal sold on c & f basis:

$US per tonne

Poland .. .. .. .. ......................... 62.35

* Where $US have been converted to $Aust. the exchange rate adopted has been SUSl.l to $A1.

3.118 The Japanese steel industry also purchases New South Wales non-coking coal for use in the production of formed coke and sponge iron process. The f.o.b. price for these coals at May 1977 was in the range of SA27.00 to SA29.00 per tonne which represented an increase of $A1 per tonne above the price in June 1976.

139

3.119 Figures released by the Japanese Department of Customs show that the average c.i.f. value per tonne of cdking coal imported into Japan from all sources has changed significantly in recent years. It should be noted that in certain periods retrospective price increases applied; the returns made to the Japanese Department of Customs do not reflect the revisions—·

Yen

January-June 1971 .. .................................................7,828

January-June 1972 .. .................................................6,807

January-June 1973 .. .................................................6,229

January-June 1974 .. .................................... .. 9,386

July-December 1974 .. .................................................16,254

January-June 1975 .. .................................................16,056

July-December 1975 .. .................................................17,165

January-June 1976 .. .................................................17,761

July-December 1976 .. .................................................17,337

January-June 1977 .. .................................... ..16,395

These figures show that, following the rapid rise in average coal prices during 1974 and 1975, Japan has been successful in avoiding further increases. Indeed the average cost of coal imports has fallen in 1976-77. Significant factors in this reduction would be the higher proportion of coals purchased from Australia and South Africa and the revaluation of

the yen.

3.121 Table 65 shows quantities and average c.i.f. values in Australian dollars of coals imported into Japan in the first 6 months of 1976 and 1977. Conversion to Australian dollars has been in accordance with the table of overseas exchange rates published by the Government Statistician of New South Wales. The coking coals are classified into four categories according to ash content and coking properties, with separate data for each major

supplier. Data for non-coking coal is given in the last column.

3.122 The average c.i.f. price of all coking coal given in Table 65 has increased between the two half years by $5.77 per tonne or by 12-2 per cent. However, as shown in para 3.121 the price in yen has fallen by 7-7 per cent. The highest price noted in 1976, $56.93 for heavy coking coals from the U.S.A. increased in 1977 to $A66.64, a rise of 17T per cent. The lowest priced coals in 1977 are those from South Africa with an average of $38.30 per tonne.

3.123 In its 29th Annual Report the Board noted that the c.i.f. prices'for Australian coals, despite the 1975 price increases, continued to be below the prices shown for similar coals from other countries. This statement referred to the prices given in the upper half of Table 65. The lower section of Table 65 shows that, in general, this unsatisfactory situation remains true. Exceptions are South African coals, which are barely half the price of coals from the United States, and one type of coal from the U.S.S.R. The average increases between the two half-years were also lower for Australian coals than for any other coals. For

Australia the overall increase was $A4.71, with rises of from $A3.58 to $A5.43 for the four grades of coking coal. For United States coals the overall increase was $A9.83 per tonne and with a range from $A8.94 to $A10.35 per tonne. The higher proportion of the cheaper Australian and South African coals, together with the lower proportion of United States coals,

made a significant contribution to containing the cost to the Japanese steel industry of coal imports. Lower freight costs between Australia and Japan was another area in which costs would have been saved.

140

TABLE 65.—JAPAN—IMPORTS OF BITUMINOUS COAL—BY TYPE AND VALUE

Type o f Coal Heavy Coking Other Coking

Total Non-

Ash content—dry weight basis .. 8% or less over 8 % 8% or less over 8 % Coking coking

JANUARY-JUNE 1 9 7 6 - Tonnage—’000 tonnes— Australia............................... 1,527 7,222 574 3,072 12,395 79

Canada ............................... 923 5,238 21 6,182

Poland ............................... 388 30 418

U.S.A..................................... 5,166 1,497 1,303 649 8,615

U.S.S.R................................. 569 708 46 132 1,455 6 8

South Africa ................... 128 128

Others ............................... 197 92 43 0 332 74

Total ........................... 8,770 14,757 2,124 3,874 29,525 221

Percentage supplied by— Australia............................... 17.4 48.9 27.0 79.3 42.0 35.7

U.S.A..................................... 58.9 10.1 61.3 16.8 29.2

Average c.i.f. value per tonne— $A (a )— Australia............................... 43 04 43-17 41 -57 38-34 41-89 32-46

Canada ............................... 54-62 45-80 32-39 47-07

Poland ............................... 49-67 49-59 49-67

U.S.A..................................... 56·93 53-78 55-41 54-33 55-96

U.S.S.R................................. 46-08 45-67 43-31 36-09 44-89 23-98

South Africa ................... 34-16 34-16

Total ........................... 53-30 45-24 49-72 40-91 47-39 27-46

JANUARY-JUNE 1 9 7 7 - Tonnage—ΌΟΟ tonnes— Australia............................... 1,767 7,247 346 3,739 13,099 203

Canada ............................... 740 4,743 53 90 5,626 0

Poland ............................... 426 47 473

U.S.A..................................... 4,796 1,154 956 369 7,275

U.S.S.R................................. 473 671 184 97 1,425 64

South Africa ................... 393 764 1,157 22

Others ............................... 188 109 14 311 103

Total ........................... 8,783 13,924 2,364 4,295 29,366 392

Percentage supplied by— Australia............................... 20*1 52-0 14-6 87-1 44*6 51-8

U.S.A..................................... 54-6 8-3 40-4 8-6 24-8

Average c.i.f. value per tonne— $A (a )— Australia............................... 48-47 48.57 46-33 41-92 46-60 31-63

Canada ............................... 65-87 52.98 57-85 51-78 54-70 142-00

Poland ............................... 56-16 56-00 56-14

U.S.A..................................... 66-64 64.13 64-50 63-27 65-79

U.S.S.R................................. 53-26 52-96 44-29 43-52 51-30 24-45

South Africa ................... 38-90 37-99 38-30 27-30

Total ........................... 60-72 51-54 51-30 I 44-00 53-16 30-41

Source: Ministry of Customs, Japan. (n) See para. 3.113.

141

3.124 The average f.o.b. value of coal exports from New South Wales and

Queensland for the two six monthly periods July-December 1976 and January-June 1977 are. shown in Table 66, together with the values for the three years to June 1976. The values from which these averages were derived have been revised to include retrospective price adjustments..

TABLE 66.—AVERAGE F.O.B. VALUE PER TONNE OF AUSTRALIAN COAL EXPORTS

From New South Wales— to Japan .....................

to United Kingdom . . . to Northern Europe . to Southern Europe .. . to South K o r e a .............

to others .........................

T otal: .............

From Queensland— to Japan .......................

to United Kingdom . . . .

to Northern Europe .. to Southern Europe . . . . to South K o r e a ...............

to others ...........................

Total: ...............

From Australia ...............

1972-73 1973-74 1974-75

1975-76 (Q July-Dee. 1976

1 Jan.-June j 1977

$A. $A. $A. $A. $A. $A.

11.73 12.50 21.74 35.62 35.28 37.15

11.88 13.66 16.32 18.97 20.21

8.25 13.63 14.31 16.82 19.68 20.80

10.91 11.28 24.67 23.21 15.75 18.50

10.94 12.01 22.63 33.72 35.75 36.76

12.93 11.07 18.66 22.04 26.52 35.37

11.63 12.43 20.26 31.43 33.04 33.86

10.88 13.12 24.07 38.72 39.82 42.49

11.98 11.33 24.17 34.35 38.71 37.48

12.31 9.67 21.95 34.78 37.18 37.20

11.38 9.54 21.90 34.14 37.26 37.63

40.21 43.11

48.51 20.50 52.31 44.06

11.01 12.56 23.70 37.91 39.46 41.40

11.28 12.50 22.10 34.96 36.49 37.92

Source: Australian Bureau of Statistics. (a) Revised.

3.125 After almost trebling between 1973-74 and 1975-76 the average f.o.b. price of coal shipped to Japan has increased relatively slowly. Shipments from New South Wales comprise low, medium and high-volatile coking coals, together with some steaming coal. As mentioned in para 3.123 each of these coals commands a different price. The average increase in the f.o.b. price from 1975-76 to the January-June half of 1977 was 93 cents to $A36.69 per tonne.

3.126 Shipments from Queensland include a very high proportion of low-volatile coking coal and the average f.o.b. price rose to SA42.47 per tonne in 1977. However, the contract price for low-volatile Queensland coals is below the f.o.b. price for such coals from New South Wales. The prices received for coking coal shipped to South Korea are equal to the prices received for comparable coal shipped to Japan. However, the coking coals

shipped from Queensland to the United Kingdom, and to European ports are priced about $A5 per tonne below average f.o.b. prices to Japan.

3.127 The shipments shown in Table 66 as going in 1976-77 to the United Kingdom and Europe from New South Wales consisted of steaming coal. In 1974-75 and 1975-76 some shipments of coking coal went to Southern European ports and account for the higher prices shown in those years. The f.o.b. price received for steaming coal has risen to a little

over 5A20.00 per tonne in 1977, an increase of about 25 per cent above the 1975-76 prices.

142

Market F orecast 1976-77

3.128 In its 29th Annual Report, the Board forecast that the market for New South Wales coal was expected to expand in 1976-77 although certain industries would continue to operate below capacity. Consumption within Australia was estimated to increase to 22.4 million tonnes. Exports were anticipated to increase to over 15.0 million tonnes, and possibly

to as high as 15.8 million tonnes to give a total market of close to 38 million tonnes.

3.129 Table 67 compares these estimates with actual results. Exports expanded more rapidly than forecast, but the local industry, with the noteable exception of electricity genera­ tion, used less coal than anticipated. Taken together the total market was 0-8 per cent less than forecast, i.e., the market increased by 12-5 per cent in lieu of the forecast increase of

13-4 per cent.

TABLE 6 7 —MARKET FOR N.S.W. COAL, 1976-77(a)—ACTUAL AND ESTIMATE— Ό00 TONNES

Consumption within Australia— Iron and steel (as received) ...............................

Electricity generation ............................................

Railways and town gas .......................................

Estimate Actual

Difference— actual from estimates

Difference— actual from estimates

9,220 11,100 130 510

365 1,075

7,842 11,692 128 453

318

1,007

—1,378 + 592 — 2

— 57 — 47 — 68

per cent

— 14.9 + 5-3

— 1-5 — 11-2 — 12-9 — 6-3

Metallurgical coke (other) ...............................

Other consumers ................................................

Total consumption ...................................

Overseas market ...................................

Total market ................................................

22,400 15,800

21,440 16,447

—960 +647

— 4.3 + 4.1

38,200 37,887 —313 — 0-8

(a) 53-week year.

F uture M arket W ithin Australia

3.130 Reference is made in Part I to the results of a study of the prospective markets for New South Wales coal to. the year 2,000. The emphasis in that study was on medium to long term trends whereas in the estimates given below the emphasis is on the short term outlook.

3.131 For several years many industrial plants located in New South Wales have been operating at levels well below capacity and currently there are few signs of an early return to a high level of activity. This situation is having a depressing effect on the demand for coal. Furthermore, the advent of supplies of natural gas on the Sydney and Wollongong markets,

coupled as it is with heavily discounted prices for fuel oil is adversely affecting coal sales. It is therefore anticipated that the use of New South Wales coal outside the power generation and the steel industry will decline rather than expand during the next few years.

3.132. In contrast to other areas, sales of electricity grew at a satisfactory rate in 1976-77 and the forecasts which follow are based on annual growth rate of 6-0 per cent per annum. Since thermal plants will be required to satisfy the total growth in sales, coal consump­ tion at power stations within New South Wales is expected to increase from 11,692,000 tonnes in 1976-77 to 15,300,000 tonnes in 1981-82.

143

CONSUMPTION OF N. S. W. COAL IN AUSTRALIA y ELECTR,C IT Y MILLION TONNES

15 -1

ACTUAL 1 9 6 6 - 6 7 to 1 9 7 6 - 7 7

ESTIMATED DEMAND 1 9 7 7 - 7 8 to 1 9 8 1 - 8 2

IRON & ST E E L

6 -

G E N E R A L I N D U S T R Y

T O W N G A S &

R A I L W A Y S

YEAR

144

3.133 The Shoalhaven pump storage system with a capacity of 240 MW will be commissioned during 1977-78. This plant will utilise power available at times when demand is low to pump water to a storage area from which it will be released to generate power during periods of peak demand. As estimated, commissioning dates for other new generating units are:

Vales Point No. 5 660 MW March 1978

Vales Point No. 6 660 MW 3rd Quarter 1978

Wallerawang No. 8 500 MW 3rd Quarter 1980

Eraring No. 1 660 MW 3rd Quarter 1981

Eraring No. 2 660 MW 3rd Quarter 1982

3.134 Most of the coal required to supply those new units will come from mines owned by the Electricity Commission of New South Wales. Purchases from outside sources in 1977-78 are expected to comprise 500,000 tonnes from Western district mines and 1,200,000 tonnes from mines in Newcastle area. The Commission is expanding the capacity of its existing mines

in both these areas and is to develop two new mines as part of the Eraring project.

3.135 As mentioned in para 3.5 the market for iron and steel continues to be very competitive and future levels of demand, at home and abroad are uncertain. Nevertheless the indications at the time this report was written were that steel production in 1977-78 would be close to the average level achieved during 1976-77. A recovery has been forecast in 1978-79, with further growth in subsequent years. On this basis, coal consumption by the Australian steel industry is forecast at 8,250,000 tonnes in 1977-78, of which 7,850,000 tonnes will come from New South Wales, rising to 10,900,000 tonnes in 1981-82, of which 10,300,000 tonnes will come from New South Wales. These figures are on an “as received” basis.

TABLE 68.—FUTURE MARKET FOR N.S.W . COAL WITHIN AUSTRALIA— Ό00 TONNES

Year Electricity

generation Iron and steel Railways

and

town gas General industry

Total within N.S.W.

Total within Australia

Actual— 1972-73 ........................... 8,8 64 8,778 160 .2,305 19,153 20,107

1973-74 ........................... 8,938 8,789 135 2,163 19,088 20,025

1974-75 ........................... 9,246 9,425 134 2,201 20,079 21,006

1975-76 ........................... 9,047 8,515 122 1,953 18,884 19,637

1976-77 ( a ) ........................... 11,692 7,842 128 1,778 20,857 21,440

Possible— 1977-78 ........................... 12,500 7,850 1,800 21,675 22,150

1978-79 ........................... 13,000 9,000 1,750 22,880 23,750

1979-80 ........................... 13,600 9,950 1,650 24,425 25,200

1980-81 .. .. .. 14,300 10,250 1,700 25,275 26,250

1981-82 .. ............... 15,300 10,300 1,700 26,480 27,300

(a) 53-week year.

145

3.136 Set out in Table 68 for each of the five years 1977-78 to 1981-82 are estimates of the local market which New South Wales coal is expected to supply.

3.137 The present forecast is that consumption of New South Wales coal within Australia will total 22,150,000 tonnes in 1977-78, 12-8 per cent above the 19,637,000 tonnes used in 1975-76. By 1981-82 consumption is expected to rise to 27,300,000 tonnes. This is a slightly less optimistic forecast than that given in the Board’s 29th Annual Report. These estimated tonnages might increase if economic recovery is earlier, stronger and more sustained than has been assumed. They might also increase if initiatives to conserve oil in the non­ transport field are taken and are efiective.

3.138 An example of a new modern efficient coal burning plant is the new cement kiln being installed by Blue Circle Southern Cement Ltd at Berrima. The company reports that the new plant will result in a significant fuel saving with associated lower production costs compared with a similar kiln fired by fuel oil. The Berrima plant reflects the latest trend in energy resource utilisation. Because of the arrangement of ten satellite coolers, much of the heat from the product will be “recovered” and returned to the kiln. The 85 metre kiln will be capable of producing clinker to make 750,000 tonnes of cement a year.

It is scheduled for commissioning during 1978-79 to become one of the most modern coal-fired dry-process satellite kiln plants in the world. ;

F uture Overseas M arket

3.139 Short term prospects are clouded by the low level of activity in major steel plants, particularly those in Japan, and in the steaming coal market by a continued dependance on short term arrangements.

3.140 The tonnages for current contracts are listed in Tables 63 and 64. However, buyers have indicated that tonnages to be accepted are likely to be much lower than the base rates. Based on this advice and shipping performance during the early months of the year, it seems probable that exports from New South Wales in 1977-78 will fall within the range

17.0 to 18.0 million tonnes. The lower level is slightly above the 1975-76 total but implies a cutback in the rate of shipments, particularly to Japan, during the latter months of the year. The higher figure assumes that exports will be maintained at levels attained towards the end of 1976-77. An even higher figure might be attained in certain eventualities, such as a pro­ longed strike in the United States coal industry. Full acceptance of quantities covered by current contracts would result in the export of about 18.5 million tonnes of coal from New

South Wales.

3.141 Shipments from Newcastle are expected to range between 8 and 9 million tonnes, from Port Kembla between 6 and 7 million tonnes and from Balmain between 2 and 2.5 million tonnes. On the higher figures, the Port Kembla loader will be operating at above its nominal capacity, the Balmain plant would be capable of handling some additional cargoes (providing the ships did not exceed 44,000 DWT), while Newcastle could handle two to three times as much coal.

146

Summary of F uture M arkets for N ew South Wales Coal

3.142 The figures quoted in the preceding paragraphs indicate that the market for New South Wales coal is expected to expand in 1977-78 and further growth is expected thereafter, but the rate of growth will be strongly influenced by the general level of economic activity, within Australia and overseas, and the strength of the movement towards a greater use of coal in lieu of other fuels, particularly oil.

3.143 A market of 40 million tonnes would require a raw coal output of about 47.5 million tonnes. This implies a rate of production 3 to 4 per cent higher than in 1976-77. The industry was producing at an annual rate of 47.9 million tonnes of raw coal during the first quarter of 1977-78.

147

PART 4

TRANSPORTING COAL TO THE CONSUMER

Transport F rom The M ine

4.1 In 1976-77, 39-6 million tonnes of coal were transported from coal mines in New South Wales to consumers in Australia or to ports for shipment overseas. The relative importance of the various modes of transporting this coal from the mines is shown in Table 69. The data in this table was collected in the Board’s Plant and Equipment Surveys which cover a four-week period ending mid-June. Of the total saleable coal dispatched from mines during the 1977 Survey period, 31-7 per cent was transported by rail (30-8 per cent in June

1976), 14-5 per cent was hauled by road to off-site rail sidings (15*9 per cent), 27-7 per cent was road-hauled direct to port or to local consumers (29-2 per cent) and 26-1 per cent was dispatched to consumers via surface conveyor belts (24 T per cent).

TABLE 69.—DISPATCH OF COAL FROM THE MINE TO MARKET— BY TYPE OF TRANSPORT—NEW SO U TH WALES COAL IN D U S T R Y - AVERAGE TONNES PER WEEK—JUNE, 1977

Dispatches to market— ex South Maitland ..

ex Singleton-North W est.. ex Newcastle .. ..

ex West .. .. ..

ex Burragorang Valley .. ex South Coast .. ..

N .S.W ...........................

Rail haulage from site

Road haulage to railway siding not on site

Road haulage to port or local consumer

Conveyor belt to consumer

Total coal dispatched

19,320 46,736 66,227 14,630 35,000 82,340

50,359 8,658 33,101

28,530

264

3,652 84,501 4 1 ,6 9 0 24,500

76,276

122,386 92,053

3,410

19,584 223,133 251,439 89,421

59,500 190,556

264,253 120,648 230,883 217,849 833,633

Corresponding totals in June 1976— N .S.W ........................... 245,354 126,762 232,154 192,022 796,292

4.2 The tonnages in Table 69 do not include raw coal sent to separately located coal preparation plants for treatment prior to dispatch to consumers. Haulage of raw coal to such plants during the 1977 Survey period averaged 166,622 tonnes per week, of which 117,866 tonnes were hauled by road, 14,088 tonnes transported by conveyor, 19,504 tonnes transported

by road and conveyor and 15,164 tonnes hauled by rail.

4.3 In considering applications to open new mines or expand production from existing mines, the Board closely examines the proposed methods of transporting the coal to market. The Board’s policy is that, whenever practicable, coal is to be transported by rail rather than by road. The Board continues to be represented on the two Coal Transport Advisory Committees established in 1975 by the New South Wales Government to consider coal transport problems. The Committees, one of which covers the northern region of the State and the other the southern and western regions, have as their broad objectives the encourage­ ment of the use of rail for the transport of coal and ensuring that all coal necessarily carried by road is conveyed by the least environmentally objectionable route.

148

4.4 In recent years a number of positive steps have been taken to improve the transport system for coal and reduce the flow of coal trucks through townships. The construction by Bloomfield Collieries Pty Ltd of a private access road from Bloomfield colliery to the New England Highway has meant that coal trucks from this colliery, en-route to Thorton Siding,

no longer pass through the township of East Maitland. With the completion of the new Mitchell Line of Road near Singleton in September 1976, coal trucks proceeding to Branxton siding from the Buchanan Lemington and Wambo mines have been diverted from the town of Singleton. The cost of constructing this public by-pass road was met by Buchanan Bore­

hole Collieries Pty Ltd and Wambo Mining Corporation Pty Ltd. Coal from these mines will be placed on rail when the new coal loading terminal at Mt Thorley is completed. Details of the Mt Thorley project are given in Part 1.

4.5 The programme by the Public Transport Commission to upgrade its fleet of coal rail waggons continued during the year. Conversion of the older B.C.H. type waggons from 43 to 55 tonne capacity and delivery of the 500 new C.H.S. 75 tonne capacity waggons is scheduled to be completed by the end of 1977. By June 1977, 473 of the latter waggons had

been delivered, but 200 of these are currently being fitted with antennae to enable automatic discharge at the Port Waratah Coal Services complex. An order has also been placed by the Commission for the construction of 300 C.T.S. 58 tonne capacity waggons which are expected to be delivered by May 1979. A tender has been let for the construction of 40 electric and diesel electric locomotives, the first of which is expected to be delivered by late 1978. The

construction of self-propelled passenger cars is also expected to release, over the next two years, about 10 locomotives to augment the current fleet for freight haulage.

4.6 Coal hauled over the Government railway system in 1976-77 rose to the record level of 16-13 million tonnes, exceeding the 1975-76 figure by 1-57 million tonnes or 10.8 per cent. The previous highest tonnage was in 1974-75 when 15-85 million tonnes were hauled. Despite the significant rise in tonnage in 1976-77, the number of Government rail waggons loaded increased only marginally by 5,109 to 427,409, reflecting the greater usage of higher

capacity waggons in that period.

4.7 The marked increase in coal exports was primarily responsible for the increase in the tonnage of coal hauled by the Public Transport Commission. Coal railed to the various ports rose by 1.4 million tonnes in 1976-77 to 11-3 million tonnes. This increase resulted mainly from a rise in the tonnage of coal railed to Newcastle from 6T to 7-2 million tonnes.

The total tonnage of export coal loaded through Newcastle in 1976-77 was 8-4 million tonnes compared to 7-7 million tonnes in 1975-76. Road deliveries to the Basin loader were termin­ ated in May 1977.

Port F acilities

4.8 The main features of the principal coal loading facilities at Australian ports are summarised in Table 70. The estimated annual capacity of each port is shown, together with the actual coal loaded in 1976-77, for both overseas and interstate destinations.

4.9 In New South Wales, utilisation of the estimated annual capacities of coal loading facilities at Newcastle Basin, Port Kembla (Inner Harbour) and at Balmain in 1976-77 was 80 per cent, 89-5 per cent and 81 per cent respectively. During the year concern was caused on occasion by congestion at the Port Kembla and Balmain coal loaders. In both the

December and June quarters of 1976-77, overseas shipments through Port Kembla were equivalent to an annual rate of 5-8 million tonnes, very close to the estimated annual capacity of the loader.

149

TABLE 70.—PRINCIPAL COAL LOADING FACILITIES—AUSTRALIAN PORTS

Nominal Estimated Coal Maximum Length

Depth at low water alongside berth

hourly rate

annual capacity

loaded 1976-77

size vessel

of

berth

tonnes million million DWT Metres Metres

tonnes tonnes

New South Wales— Newcastle— B a s in ................... 2,000

4,000

9-5 7-60 58,000

120,000(a) 366 11-6

— P.W.C.S. 20 (a ) 0-80 540 15-2 (a)

Sydney—Balmain (b) ............... 1,000

2,000

3 2-43 44.000

58.000

259 11-6

Port Kembla—Inner Harbour 6 5-37 457 11-6

Queensland— Gladstone—Barney Point 2,000 8 3-02 75,000 206 12-2

Auckland Point 1,600 5 3-43 55,000 183 11-2

Hay Point ................................ 10,000 20 12-94 120,000 343 16-8

(a) Data is for completed project.

(b) Being upgraded to 4 million tonnes annual capacity.

4.10 The new coal handling and loading facilities at Port Waratah were progressively brought into operation during 1977. The complex was officially opened by the Premier of New South Wales, the Hon. Neville Wran, on 25 May 1977. Full unit train working to the facility commenced on 1 June 1977 and 800,000 tonnes of coal had been shipped through the loader by the end of June. Construction work will continue on the project until early 1978 to complete storage areas, railway trackwork and an installation to receive road-hauled coal. When completed the whole project will have cost about $93 million. Details of the loader given in Table 70 refer to the completed project, including the deepening of Newcastle harbour.

4.11 Not included in Table 70 are small coal loading plants at Bunbury in Western Australia, Bowen in Queensland and New South Wales plants at Balls Head (Sydney), Catherine Hill Bay, Hexham, Newcastle (dyke) and at the Newcastle and Port Kembla steelworks. The Newcastle dyke loader was taken out of service in January 1977. Coal shipped through this loader in 1976-77 totalled 48,200 tonnes—1,400 tonnes for oversees and 46,800 tonnes for interstate. The Catherine Hill Bay facility is used to ship Wallarah coal to Sydney for the general metropolitan trade and to Balls Head for re-shipment overseas. The Balls Head facility is used to load cargoes of up to 35,000 tonnes for shipment toUbe Industries in Japan. Coal loaded in 1976-77 totalled 319,800 tonnes. Small ships are used for this trade because of the limited capacity of the receival facility in Japan.

. 4.12 In January 1977 the New South Wales Government called tenders for the deepen­ ing ol Newcastle harbour. It is proposed that the work be carried out in two stages. The nrst stage calls for the harbour entrance and main channel to be deepened from the present 11 metres to 13.1 metres. This will enable fully laden vessels up to 80,000 DWT to -7λ6λλλ secorK* stage will take the depth to 15.2 metres, enabling vessels of up to

/Ο,υυυ DWT to load at the Basin loader and up to 120,000 DWT to load at the new Port Waratah loader. At present, the maximum size of vessels which can be accommodated at both loaders is limited to 58,000 DWT.

150

4.13 In June 1977 the New South Wales Government announced that the proposed Botany Bay coal loader would not be proceeded with and that Port Kembla would be the site of a new coal loader. At the same time it was announced that the existing coal loading facility at Balmain would be substantially upgraded. The Government also announced that

in order to provide ready access to the Port Kembla loader from the Southern and Western coalfields a rail link from the main southern line to Port Kembla would be constructed.

4.14 The proposal for the Balmain facility involves increasing the annual capacity of the coal loader from 3 to 4 million tonnes. This will be accomplished by lengthening the present berth by approximately 200 metres, enabling vessels of up to 55,000 DWT to use the loader, and by increasing coal stockpile capacity from 28,000 tonnes to 65,000 tonnes.

Railway trackwork will also be improved to eliminate much of the shunting now required. All work is expected to be completed within two years.

Shipping and Ocean Freights

4.15 Table 71 shows the tonnage of Australian coal shipped overseas in 1976-77 according to size of cargoes. Data is given separately for Japanese and other foreign-flag vessels. No Australian vessels were engaged in the coal export trade in 1976-77. Contracts for the sale of Australian coal to the Japanese steelmills are made on an f.o.b. basis, with

shipping arrangements being made by the mills. Some contracts with other purchasers provide for shipping arrangements to be made by the Australian exporter.

TABLE 71.—OVERSEAS SHIPMENT OF COAL—SIZE OF CARGOES AND OWNERSHIP OF VESSELS—YEAR 1976-77—’000 TONNES

Japanese Other Foreign

Flag Vessels Flag Vessels

N o. of Ό00 No. of Ό00 N o. of ’000

Cargoes tonnes Cargoes tonnes Cargoes tonnes

New South Wales— 0-30,000 tonnes . . .. . . .. 17 371 58 1,229 75 1,600

30,001-40,000 t o n n e s ........................................ 65 2,383 31 1,119 96 3,502

40,001-50,000 t o n n e s ........................................ 35 1,529 59 2,671 94 4,200

50,001-60,000 t o n n e s ........................................ 72 3,842 61 3,303 133 7,145

189 8,125 209 8,322 398 16,447

Queensland— 0-30,000 tonnes .. .. . . .. 8 173 18 413 26 586

30,001-40,000 t o n n e s ........................................ 19 702 1 32 20 734

40,001-50,000 t o n n e s ........................................ 8 353 12 558 20 911

50,001-60,000 t o n n e s ........................................ 52 2,929 43 2,421 95 5,350

60,001-80,000 t o n n e s ....................................... 21 1,459 17 1,207 38 2,666

80,001-100,000 t o n n e s ........................................ 3 257 8 734 11 991

100,001-120,000 t o n n e s ....................................... 47 5,209 21 2,478 68 7,687

158 11,082 120 7,843 278 18,925

Australia—· To Japan .. . . ........................... 334 18,452 198 8,867 532 27,319

Elsewhere . . . . ........................... 13 755 131 7,298 144 8,053

T o t a l .................................................... 347 19,207 329 16,165 676 35,372

151

4.16 The tonnage of Australian export coal carried by Japanese-flag vessels in 1976-77 totalled 19,207,000 tonnes compared with 14,202,000 tonnes in 1975-76. Shipments in other foreign-flag vessels totalled 16,165,000 tonnes, virtually unchanged from the previous year. Most of the increased tonnage shipped to countries other than Japan in 1976-77 was carried in other foreign-flag vessels, but the tonnage carried to Japan in such vessels declined from 10,331,000 tonnes to 8,867,000 tonnes. This was despite an increase in export to Japan of 3,479,000 tonnes.

4.17 The average size of cargoes shipped from New South Wales in 1976-77 was 41,324 tonnes, compared with 40,066 in 1975-76 and 36,772 tonnes in 1974-75. The pro­ portion of exports carried in ships up to 30,000 tonnes, increased from 8-6 per cent in 1975-76 to 9-7 per cent in 1976-77. However, this was offset by an increase in the proportion of cargoes in the range 50,000 to 60,000 tonnes from 40-3 per cent to 43-4 per cent. In Queensland the average size of cargo shipped in 1976-77 was 68,075 tonnes compared with 62,985 tonnes in 1975-76. The increase was due to a marked rise, from 31-4 per cent to 40-6 per cent, in the proportion of cargoes in the range 100,000 to 120,000 tonnes. The larger size of cargoes shipped from Queensland is a reflection of the much larger vessels which can be accommodated at ports in that State.

4.18 If New South Wales coals are to remain competitive on world markets it is important that current plans to enable our coal ports to take larger vessels be proceeded with as quickly as possible. It is estimated that by using ships of 55,000 tonne DWT at Balmain in lieu of the present maximum of 44,000 DWT the current freight cost for the European run would be appreciably reduced.

4.19 Australian coal exported to Japan is shipped in vessels mostly on long-term charter. However, considerable tonnages are shipped to Europe in vessels under short-term or spot charters. Spot charter rates are subject to wide fluctuations. In recent years rates from Australia to Europe have varied from $US4.50 per tonne to SUS20.00 per tonne. Due to the depressed state of world trade, spot charter rates weakened during 1976-77. In June

1976 rates for Australia to Europe ranged from $US13 to $US15 per tonne. By January 1977 they had fallen to between $US10.50 and $US13 per tonne and further reductions were reported thereafter.

152

PART 5

DISTRICT REVIEW

I ntroduction

5.1 This part brings together for each of the coal mining districts of New South Wales data on coal production, deliveries of saleable coal from mines and coal preparation plants, exports, major markets in Australia and stocks held at the end of the year at mines, coal preparation plants and ports. Appendix 4 contains maps of each district showing the location of mines in production at the end of the year and a list of mines which commenced

or ceased production during the year. A map showing the location of new mines under development appears in Part 2.

So uth M a it la n d

5.2 This district covers those mines in the vicinity of Cessnock. All mines work the Greta seam which provides a low-ash, high-volatile coal used within Australia for gas­ making and general industrial purposes and exported overseas, principally as a component in blends for the steel, gas and chemical industries in Japan.

TABLE 72.—SOUTH MAITLAND DISTRICT COAL— ’000 TONNES

1973-74 1974-75 1975-76 1976-77

(«)

Initial D e stin a tio n (6)

Ir o n a n d steel— A u s tr a lia ........................................... 24 9 0 0

E lectricity g en eratio n — N .S .W .................................... 20 3

R ailw ays a n d to w n gas—N .S .W ................................. 59 60 52 54

O th e r consum ers— w ithin N .S .W ............................... 50 51 52 44

In te rsta te consum ers ( o t h e r ) ....................................... 71 45 40 41

T o ta l— A u stralia 224 168 144 139

O verseas— direct shipm ents ....................................... 1,773 1,326 902 978

T o ta l ..................... 1,997 1,494 1,046 1,117

In ter-d istrict transfers, sto ck variations a n d losses a t p o rts, m erchants o r in tra n sit ............................................................. — 78 + 19 — 21 + 14

T o ta l deliveries fro m m ines, o r in d u stry w asheries ........... 1,919 1,513 1,025 1,131

P ro d u c tio n — raw coal .................................................................. 1,868 1,802 1,189 1,294

Stocks—a t m ines a n d p o rts a t end o f y ear ......................... 135 160 171 138

(a) 53-week year. ( b) Some coal consigned to the steel industry was subsequently forwarded to another destination.

5.3 Following a sharp decline in 1975-76, raw coal production from South Maitland mines in 1976-77 increased by 9 per cent to 1,294,000 tonnes. At the end of the year there were four mines in production in the district—Aberdare East, Aberdare North, Pelton and Millfield open cut. Aberdare North, which ceased production in November 1975 due to a fire below ground, resumed production on a restricted basis in October 1976. Production

153

at Millfield underground mine, which had been re-opened in April 1976, ceased in May 1977 due to the development of severe roof difficulties. Following withdrawal from the mine, work was commenced on the extraction, by open cut methods, of a small area of coal adjacent to the underground entries. The operator of Millfield, Eric Newham (Wallerawang) Pty Ltd, continued work during the year on the driving of drifts into the company’s Bellbird

mine in order to gain access to some pillar coal. Production from this mine ceased during 1975-76.

5.4 At Aberdare East, the abandonment of development work in a section of the mine due to difficult roof conditions resulted in the dismissal of 31 men in October 1976. Most of these men were re-employed at the Wallarah mine in the Newcastle district. As a result of developments at Aberdare East and Millfield, employment at South Maitland mines fell by 46 during the year to 782 at the end of June. O.M.S. (raw coal) for the district in

1976-77 was 6-8 tonnes compared with 6-2 tonnes in 1975-76.

5.5 There was only a slight increase in the amount of South Maitland coal delivered to market in 1976-77. Local deliveries fell by 5,000 tonnes while exports overseas increased by 76,000 tonnes as a result of increased shipments to Europe. Destinations of overseas exports during the year were:—Japan—861,000 tonnes, Europe—82,000 tonnes, South Korea —27,000 tonnes, Taiwan—6,000 tonnes and Pakistan—2,000 tonnes.

5.6 Work commenced during the year on the sinking of a drift and ventilation shaft for the new Ellalong mine being developed by Peko-Wallsend Ltd adjacent to the company’s existing Pelton mine. Production from the new mine is scheduled to commence during 1978-79. Total capital expenditure in 1976-77 on the development of the Ellalong and Pelton mines amounted to over $8 million. Reference was made in the Board’s 29th Annual

Report to the use of a narrow-width continuous miner at Pelton to drive narrower headings than can be obtained with other machines. The results obtained with the machine have been pleasing and it is hoped that it will facilitate the exploitation of the deeper reserves within the colliery holding.

S ing le to n— N o rth W est

5.7 This district covers mines in the Singleton and Muswellbrook areas as well as mines near Gunnedah, Inverell and Grafton. Production from the district has expanded significantly in recent years and the many seams worked provide a wide variety of high- volatile coking and steaming coals. Large tonnages are supplied for local power station use and for export overseas. Most of the State’s open cut production comes from the

Singleton-Muswellbrook area.

5.8 Raw coal production in 1976-77 was a record 12,410,000 tonnes—3,372,000 tonnes from underground mines and 9,038,000 tonnes from open cuts. Production from Swamp Creek and Ravensworth open cuts, which fell by 511,000 tonnes in 1975-76, increased by 1,216,000 tonnes in 1976-77 to 5,328,000 tonnes. The output of these mines is consumed at Liddell power station. Production from other mines, most of which are geared to the export market, increased by 481,000 tonnes in 1976-77 to 7,082,000 tonnes. Whilst there was a significant growth in exports over the year, several of these mines were forced to

operate below capacity at various times during the second half of 1976 because of increasing stocks.

154

SINGLETON-NORTH WEST DEVELOPMENT

VAW -

Above: Buchanan Lemington No. 1 in foreground with No. 2 mine in the rear.

Left: Buchanan Lemington No. 2 - New washery under construction.

Courtesy: C.S.R. Limited.

TABLE 73.—SINGLETON-NORTH WEST DISTRICT COAL—’000 TONNES

1973-74 1974-75 1975-76 1976-77

(")

Initial Destination (6 )

Iron and steel—Australia ........................................ 32 170 160 15

Electricity generation—N .S.W .................................. 3,816 4,918 4,169 5,463

Railways and town gas—N .S.W ............................... 2 1 1 1

Other consumers—within N .S.W ............................. 1 2 0 87 75 79

Interstate consumers (o th er).................................... 1 3 2

Total—Australia 3,970 5,177 4,408 5,560

Overseas—direct shipments .................................... 3,346 4,530 4,679 5,219

Total ................... 7,316 9,707 9,087 10,779

Inter-district transfers, stock variations and losses at ports, merchants or in transit ......................................................... — 39 + 128 + 25 + 60

Total deliveries from mines, or industry washeries............... 7,277 9,835 9,112 10,839

Production—raw coal .............................................................. 8,427 11,467 10,713 12,410

Stocks—at mines and ports at end of year............................ 764 813 861 751

(а) 53-week year. (б) Some coal consigned to the steel industry was subsequently forwarded to another destination.

5.9 At the end of the year there were 10 underground and 10 open cuts in production in the district. Six of these open cuts are operated in conjunction with underground mines. A new open cut, Durham North, located within the existing Liddell colliery holding, commenced production in May 1977. During the year a new underground entry, “Wambo

Ridge,” was developed into the Whybrow seam in the Wambo colliery holding. However, due to the presence of a clay band in the seam which presented difficulties in the washing of the coal, production from the mine was halted in March 1977 pending modifications to the

coal preparation plant.

5.10 Employment at all mines totalled 2,081 at the end of June 1977 compared with 1,898 a year earlier. Employment at underground mines increased from 1,191 to 1,287 and open cut employment rose from 707 to 794. OMS (raw coal) at underground mines fell from 11-5 tonnes in 1975-76 to 10-8 tonnes in 1976-77, while OMS at open cuts improved

slightly to 46-4 tonnes. OMS at underground mines was particularly low during the early months of 1977 due to roof difficulties encountered by several large mines developing into splits in the Liddell seam. The use of improved roof bolting techniques has largely overcome these problems and productivity has since recovered.

5.11 Deliveries of coal from Singleton-North West mines to market increased by 1,692,000 tonnes during the year to a total of 10,779,000 tonnes. Deliveries to Liddell power station totalled 5,370,000 tonnes. During the year some coal was also delivered to small non-Commission power stations at Inverell and Grafton. Due to reduced coal require­

ments at the Newcastle steelworks, deliveries of Singleton-North West coal to that plant fell to only 15,000 tonnes in 1976-77.

155

5.12 Overseas exports increased by 540,000 tonnes in 1976-77 to the record level of 5,219,000 tonnes. Shipments to Japan totalled 3,894,000 tonnes (3,511,000 tonnes in 1975-76) and to other countries 1,325,000 tonnes (1,168,000 tonnes in 1975-76). Coal exported to Japan is used mainly by the steel industry, although some is also supplied to the gas and chemical industries and to a coke manufacturer. Destinations of coal exported to other countries in 1976-77 were: South Korea—641,000 tonnes, Europe—525,000 tonnes,

United Kingdom—107,000 tonnes, Taiwan—44,000 tonnes and Pakistan—8,000 tonnes. Coal shipped to Europe and the United Kingdom was for use in power stations while exports to the other countries were mainly for steel industry use.

5.13 In July 1976 title to the Ashford open cut mine was transferred from the North West County Council to White Industries Ltd. Ashford supplies coal to a power station operated by the Council, but the new owner hopes to develop a wider market. Work continued during the year on the construction of surface facilities and the driving of entries for the new Lemington No. 2 underground mine being developed by Buchanan Borehole Collieries Pty Ltd in the Warkworth area. Coal production is scheduled to commence in 1978. In February

1977 the Board granted approval to Thiess Bros Pty Ltd for the opening of a trial excavation in the Drayton property at Muswellbrook for the purpose of mining a bulk sample of 5,000 tonnes of Balmoral seam coal. In addition to these developments, prospecting and planning continued during the year for the development of a number of new large scale mining projects in the Upper Hunter Valley and particularly in the Warkworth area (see para 2.85).

5.14 Work on the M t Thorley rail spur and loading facility to serve existing and potential mines in the Warkworth area continued during 1976-77. More details of this project, which is expected to be completed in 1977-78, are given in Part I.

N ew c astle

5.15 This district includes mines within a roughly triangular area bounded by New­ castle, Maitland and Wyong. The district is the major coal producing area in the State and provides large tonnages of coal to power stations and the steel industry in Australia and for export overseas. Both high-volatile coking coals and steaming coals are produced.

5.16 Raw coal production increased by 1,535,000 tonnes in 1976-77 to 12,893,000 tonnes. Underground production totalled 12,165,000 tonnes and open cut production 728,000 tonnes. The increase in production during the year was primarily due to expanded production from mines operated by Elcom Collieries Pty Ltd, and supplying coal for power station use. A number of factors operated during the year to reduce or inhibit expansion of production at

several other mines. Due to reduced demand for coal at the Newcastle steelworks, overtime working was reduced at the steel industry’s mines and from January 1977 the major part of the output of one of these mines was diverted to Vales Point and Wangi power stations.

5.17 Whilst there was growth in the overall level of exports of Newcastle coal in 1976-77, the demand for certain coals was depressed and several mines were forced to reduce production. In July 1976, production was severely reduced at Stockrington and 123 men were retrenched. Most of these men were re-employed at other mines operated by Coal and Allied Industries Ltd. At other mines some men were transferred from production to maintenance

or development work.

156

TABLE 74.—NEWCASTLE DISTRICT COAL—*000 TONNES

1973-74 1974-75 1975-76 1976-77

(a)

Initial Destination (6)

Iron and steel—A u stra lia ........................................ 3,227 3,223 3,054 2,867

Electricity generation—N .S.W ................................. 4,664 3,743 3,849 5,524

Railways and town gas—N .S.W .............................. 1 2 2 1

Other consumers—within N .S.W ............................ 598 595 522 440

Interstate consumers (other).................................... 28 15 31 29

Total—Australia 8,518 7,578 7,458 8,861

Overseas—direct shipments .................................... 2,482 2,778 2,196 2,507

Total ................... 1 1 ,0 0 0 10,356 9,654 11,368

Inter-district transfers, stock variations and losses at ports, merchants or in transit ......................................................... — 130 + 132 — 153 + 124

Total deliveries from mines, or industry washeries ........... 10,870 10,488 9,501 11,492

Production—raw coal ............................................................. 11,876 12,361 11,358 12,893

Stocks—at mines and ports at end of year ....................... 376 699 774 582

(6) Some coat consigned to the steel industry was subsequently forwarded to another destination.

5.18 There were 23 mines—21 underground and two open cuts—in production in the district at the end of the year. In December 1976, production ceased at Wallsend Borehole No. 3 due to exhaustion of recoverable reserves of coal and employees of the mine were transferred to Wallsend Borehole No. 2. At Belmont, production ceased in the Fassifern

seam due to exhaustion of reserves and employment at the mine was gradually reduced by 55 over the year. Most of the displaced men were re-employed at other Newcastle mines. Belmont continues to work the Great Northern seam. At the end of 1976-77 total employment at all Newcastle mines was 4,876 compared with 4,875 at the end of June 1976. After falling to 9·9 tonnes in 1975-76, OMS (raw coal) for all underground mines recovered to 10·7 tonnes

in 1976-77, about the same level as in 1974-75.

5.19 There was a marked recovery in the overall tonnage of Newcastle coal supplied to market in 1976-77. Deliveries to local consumers increased by 1,403,000 tonnes and exports rose by 311,000 tonnes. The increase in local deliveries resulted from a very large increase— 1.675.000 tonnes—in the amount of coal supplied to power stations. However, deliveries to

other local consumers actually declined. Deliveries to the steel industry fell by 187,000 tonnes and there was a further decline in supplies to the general industrial market.

5.20 Exports of Newcastle coal to Japan increased by 572,000 tonnes during the year to 2,002,000 tonnes. The main markets in Japan are the steel and cement industries and coal is also supplied to the gas and chemical industries. Exports to countries other than Japan fell by 261,000 tonnes in 1967-77 to 505,000 tonnes. This reduction was due to the expiry during

1976 of several contracts for the export of steaming coal to the United Kingdom. Destinations of exports to countries other than Japan were: Europe—188,000 tonnes, United Kingdom— 177.000 tonnes, Taiwan—88,000 tonnes, South Korea—39,000 tonnes and Fiji—13,000 tonnes. Coal sent to South Korea was for steel industry use, while exports to the other countries were for use in power stations.

157

5.21 During the year The Broken Hill Proprietary Co. Ltd continued development of the new Macquarie underground mine at Teralba. Production is scheduled to commence in 1978. In October 1976 the Board approved the opening by the Company of a second new underground mine, Wakefield, near Teralba. However, subsequent to the close of the year, development of this mine was suspended due to the general depressed state of the steel industry. In July 1976 the Board approved the development of a new underground mine in the Rathluba

seam within the Bloomfield colliery holding to replace the existing underground mine in the Big Ben seam. Construction of surface facilities and underground entries for the new mine are well underway and production is scheduled to commence in 1978. The Electricity Com­ mission of New South Wales continued its planning during 1976-77 for the establishment of two new underground mines, to be known as Myuna and Cooranbong, in the vicinity of Lake

Macquarie for the supply of coal to Eraring power station.

5.22 An event of major significance for the New South Wales coal industry during 1976-77 was the opening of the new Port Waratah coal loader at Newcastle. Details of this project are given in Part 4.

W est

5.23 Most of the mines in the Western district are concentrated around Lithgow, with two mines near Kandos and one at Ulan. The coal seams worked in the district provide high- volatile coals used predominately for steam raising and cement making, although coal is also supplied for steel industry use both locally and in Japan.

TABLE 75.—WESTERN DISTRICT COAL—Ό00 TONNES

1973-74 1974-75 1975-76

1976-77 («)

Initial Destination (t>)

Iron and steel—A u stra lia ......................................... 294 117 147 121

Electricity generation—N .S.W .................................. 754 158 516 806

Railways and town gas—N .S W.............................. 2 2 1 1

Cement—N .S.W .............. ............................................ 386 457 359 348

Other consumers—within N .S.W ............................. 238 228 254 296

Total:—Australia 1,674 962 1,277· 1,572

Overseas—direct shipments .................................... 109 1,433 1,822 2,048

Total ................... 1,783 2,395 3,099 3,620

Inter-district transfers, stock variations and losses at ports, merchants or in transit ......................................................... + 5 + 16 + 30 + 15

Total deliveries from mines, or industry washeries............... 1,788 2,411 3,129 3,635

Production—raw coal .................................... 1,987 2,658 3,523 4,023

Stocks—at mines and ports at end of year ....................... 189 283 518 552

(а) 53-week year.

(б) Some coal consigned to the steel industry was subsequently forwarded to another destination.

158

5.24 In 1976-77, for the third successive year, there was a significant expansion of production from Western district mines. Raw coal production increased by 14 per cent during the year to a record 4,023,000 tonnes. This followed increases of 32-5 per cent in 1975-76 and 34 per cent in 1974-75. Employment at all mines at the end of June 1977 was 949 compared

with 879 a year earlier. OMS (raw coal), which increased by over 2 tonnes in 1975-76, fell by 0.4 tonnes in 1976-77 to 16-9 tonnes.

5.25 At the end of 1976-77 there were eleven mines in production in the district, one less than at June 1976. Production ceased at the Hermitage mine in November 1976, although work continued at the mine to gain access to an area of virgin coal and production is expected to resume during 1977-78. During the year the Board granted approval to Coalex Pty Ltd for the construction of two drifts at the proposed Clarence mine near Lithgow. However,

development beyond this stage will require the further approval of the Board. Towards the end of 1976-77 the Board also approved the mining, by open cut methods, of outcrop coal at the Lithgow Valley mine in order to reclaim surrounding land and facilitate the development of a new entry into the mine.

5.26 Deliveries of Western district coal to markets increased by 521,000 tonnes in 1976-77 to 3,620,000 tonnes. Deliveries to consumers in Australia increased by 295,000 tonnes, mainly as a result of increased deliveries to Wallerawang power station. A new 500 MW generating unit was commissioned at the power station in 1976-77 and a further 500 MW unit is scheduled for commissioning in 1980. During the year the Electricity Commission continued with the development of its new Angus Place mine in the Newcom Colliery Holding. The new

mine, which is expected to commence production during 1977-78, will provide a major part of the increased coal requirements at the power station. Deliveries of Western coal to all other local consumers showed little change in 1976-77; reduction in supplies to Port Kembla steelworks and to cement plants being offset by increased deliveries to the general industrial

market. In recent years Western coal producers have gained several contracts for the sale of coal to general industry consumers previously supplied by Newcastle mines.

5.27 Overseas exports of Western coal rose by 226,000 tonnes during the year to 2,048,000 tonnes. This increase was due to the sale of 355,000 tonnes of steaming coal to Europe on a short-term basis. Exports to the United Kingdom, under the contract held with the Central Electricity Generating Board, fell from 1,307,000 tonnes to 1,147,000 tonnes while

shipments to Japan rose from 515,000 tonnes to 545,000 tonnes. During the year, small tonnages of Western coal were included in export blends shipped to Taiwan, South Korea and Argentine. In 1976-77, Western coal was exported through Balmain (1,038,000 tonnes), Port Kembla (1,006,000 tonnes) and Newcastle (4,000 tonnes).

5.28 An event of major significance for the Western coalfield during the year was the announcement by the New South Wales Government in June 1977 that the proposed coal loader at Botany Bay would not be proceeded with and that Port Kembla would be the site for a new loader. At the same time the Government stated that the Balmain coal loader would

be upgraded and that coal from the Western district would be given preference at this loader. (The Balmain loader currently handles coal from both the Western and Burragorang Valley districts). It was further stated that when coal from the Western district exceeded the capacity of the Balmain loader, rationalised freight rates would be provided to enable this coal to be

exported through Port Kembla. More details of the proposed upgrading of the Balmain loader are given in Part 4.

159

B u r r a g o r a n g V alley

5.29 The mines in the Burragorang Valley work the Bulli seam which, in this area, provides a medium-volatile coking coal. The Burragorang Valley mines are heavily dependent:: on the export market with the main overseas customer being the Japanese steel industry.

TABLE 76 —BURRAGORANG VALLEY DISTRICT COAL—Ό00 TONNES

1973-74 1974-75 1975-76

1976-77 (a)

Initial Destination (6)

Iron and steel—A u stra lia ......................................... 372 450 589 418

Electricity generation—N .S.W .................................. 72 28 . .

Railways and town gas—N .S.W .............................. 1 1 0 0

Cement—N .S.W ........................................................... 0

Other consumers—within N .S.W ............................. 103 90 92 72

Total—Australia 548 541 709 490

Overseas—direct shipments .................................... 2,679 2,639 2,716 3,101

Total ................... 3,227 3,180 3,425 3,591

Inter-district transfers, stock variations and losses at ports,

+ 52 merchants or in tr a n s it.......................................................... + 26 + 35 — 9

Total deliveries from mines, or industry washeries 3,253 3,215 3,416 3,643

Production—raw coal .............................................................. 3,806 4,518 5,202 5,318

Stocks—at mines and ports at end o f year ........................ 129 443 835 979

(а) 53-week year.

(б) Some coal consigned to the steel industry was subsequently forwarded to another destination.

5.30 Raw coal production in 1976-77 was a record 5,318,000 tonnes, slightly in excess of the previous highest total of 5,220,000 tonnes in 1971-72. The high level of produc­ tion in 1976-77 was achieved despite a higher level of industrial disputes than experienced for several years. Production was more closely aligned with sales in 1976-77, although stocks increased by a further 144,000 tonnes over the year. They had increased by 392,000 tonnes in the previous year.

5.31 Eight underground mines were in production at June 1977, with no mines closing or new mines opening during the year. The life of the Wollondilly mine, which was expected to close during 1976-77, has been extended by development into previously thought unmineable coal. Towards the end of the year a small quantity of Tongarra seam coal was mined from a

trial entry in the Nattai North colliery holding to determine the suitability of the seam for mining in this area. Employment at the Burragorang Valley mines and coal preparation plants at Wollondilly and Glenlee at the end of June 1977 totalled 1,477 compared with 1,451 at June 1976. OMS (raw coal) for 1976-77 was 11-8 tonnes compared with 12·4 tonnes in 1975-76

and 13-0 tonnes in 1972-73.

160

5.32 At the end of the year work was well advanced on the construction of surface facilities and the sinking of drifts and shafts at the new Tahmoor mine south of Picton. The mine is being developed by Clutha Development Pty Ltd as part of a long term programme for the replacement of the Company’s Burragorang Valley mines.

5.33 Deliveries of Burragorang Valley coal to market increased by 166,000 tonnes in 1976-77 to 3,591,000 tonnes. Deliveries to local consumers fell by 219,000 tonnes, mainly as a result of reduction in sales to the steelworks, while exports overseas increased by 385,000 tonnes. Exports to Japan totalled 2,704,000 tonnes compared with 2,476,000 tonnes in

1975-76. Destinations of other exports in 1976-77 were: South Korea—276,000 tonnes, Argentina—74,000 tonnes, Europe—24,000 tonnes and the United Kingdom—23,000 tonnes. Exports to Europe and the United Kingdom comprised coal included in cargoes of steaming coal shipped under contracts held by Western district exporters. In 1976-77, Burragorang

Valley coal was exported through Balmain (1,379,000 tonnes) and Port Kembla (1,722,000 tonnes).

So uth C oast

5.34 The premium coking coals of New South Wales are produced in this district. Production comprises mainly low-volatile coking coal from the Bulli seam and medium- volatile coking coal from the Wongawilli seam. The major market for South Coast coal is the Australian steel industry, although a significant tonnage is exported overseas, principally to the steel industry in Japan.

TABLE 77.—SOUTH COAST DISTRICT COAL—Ό00 TONNES

1973-74 1974-75 1975-76 1976-77

(a)

Initial Destination (b )

Iron and steel—Australia ........................................ 4,764 5,370 4,778 5,170

Electricity generation—N.S.W ................................. 331 315 259 333

Cement—N.S.W .......................................................... 204 239 178 157

Metallurgical coke (other)—N .S.W ........................ 338 402 346 319

Other consumers—within N .S.W ............................ 18 2 0 5 8

Interstate consumers (other).................................... 53 47 60 46

Total—Australia 5,708 6,393 5,626 6,033

Overseas—direct shipments .................................... 2,342 2,106 1,739 2,594

Total ................... 8,050 8,499 7,365 8,627

Inter-district transfers, stock variations and losses at ports, merchants or in transit ......................................................... — 125 — 6 + 87 + 263

Total deliveries from mines, or industry w asheries........... 7,925 8,493 7,452 8,890

Production—raw coal ............................................................. 8 ,6 6 8 9,500 8,605 10,847

Stocks—at mines and ports at end of y e a r ........................... 273 238 356 1 ,0 0 2

(a) 53-week year. (b) Some coal consigned to the steel industry was subsequently forwarded to another destination.

161

G 44102J—11

5.35 Raw coal production increased by 2,242,000 tonnes in 1976-77 to the record level of 10,847,000 tonnes. The previous highest production from the district had been 10,038,000 tonnes in 1972-73. Whilst most mines increased production in 1976-77, the major part of the year’s increase resulted from a very substantial expansion of output at the

South Bulli mine and the commencement of production in October 1976 at the new West Cliff mine. Production from Australian Iron & Steel Pty Ltd’s mines increased by 5-7 per cent. Production at Appin colliery was severely interrupted by a fire in November 1976 which destroyed a large section of the conveyor belt used to haul coal to the surface. Full production was not resumed until March 1977. During this period the full complement of men were retained at the mine on maintenance work and longwall development from which a limited amount of coal was won.

5.36 The number of mineworkers at South Coast mines at the end of June 1977 was 5,750 compared with 5,547 at June 1976. The increase during the year was due mainly to the recruitment of labour for the West Cliff mine. O.M.S. (raw coal) recovered to 8-3 tonnes in 1976-77 after falling to 7-5 tonnes in the previous year. In May 1977 production from the Bulli seam at Wongawilli mine ceased resulting in the retrenchment of 73 men. The Wonga- willi seam continued to be worked at the mine. As mentioned in para 3.40 stocks of coal at

the Port Kembla steelworks rose sharply in 1976-77 and action was taken to reduce the intake of coal to the plant.

5.37 The number of mines (all underground) in production at June 1977 was 17, one more than at June 1976. Work continued during the year on the development of the Tower and Cordeaux mines owned by Australian Iron & Steel Pty Ltd. Tower is scheduled to commence production in 1978 and Cordeaux in 1979. In December 1976 the Board granted approval to Australian Iron & Steel to mine the Wongawilli seam at Kemira colliery to make up for shortfalls in production of Wongawilli seam coal at the company’s other

mines.

5.38 Due to increased deliveries to the steel industry and to Tallawarra power station, total deliveries of South Coast coal to consumers in Australia increased by 407,000 tonnes in 1976-77 to 6,033,000 tonnes. Overseas exports increased strongly in 1976-77 to 2,594,000 tonnes, the highest level since 1972-73. Exports to Japan totalled 2,458,000 tonnes compared with 1,639,000 tonnes in 1975-76. Exports to other countries included 70,000 tonnes to

South Korea and 56,000 tonnes to Taiwan. Stocks of South Coast coal, which have been low in previous years, increased by 646,000 tonnes during the year to 1,002,000 tonnes at the end of June 1977. Most of this increase was due to an accumulation of stocks held by the two main South Coast exporters, The Bellambi Coal Co. Ltd and Kembla Coal and Coke Pty Ltd.

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PART 6

PRIMARY ENERGY

'The W o r ld O u t lo o k

6.1 The rate of growth in the use of primary energy, and changes in the sources from "which the world’s needs will be met, are very important determinants in the growth of the "New South Wales coal industry.

6.2 The studies referred to in the beginning of this Part indicate the type of change in •energy usage which various overseas groups and organisations envisage in the years ahead. The increased dependence on coal which most indicate, suggest major export opportunities. Reference is also made to a number of local studies with particular reference to the need for

increased research if possibilities for coal are to be realised. The final section of the Part records the Australian pattern of primary energy usage in 1976-77.

6.3 There exists potential for considerable shifts in the primary energy consumption patterns for each State, depending on prices, availability of local and imported supplies and user requirements. The relative use of petroleum products derived from crude oil is expected to diminish with increased dependence on coal, natural gas, solar energy and possibly in the

longer term on shale oil and biomass. Some fuels will be used directly but increasing quantities will be converted to electricity, gas, oil or alcohol.

6.4 Among the many examinations and policy statements made during 1977 on future energy supply and demand the National Energy Plan put forward by President Carter attracted the greatest attention worldwide. The President stated:

“Even with vigorous conservation, America’s demand for energy will continue to grow. The United States will need increased domestic energy production if it is to avoid shortages and unacceptable levels of imports . . . Federal policy should stimulate the expanded use of coal, supplemented by nuclear power and renewable resources, to fill

the growing gap created by rising energy demand and relatively stable production of oil and gas . . . Coal constitutes 90 per cent of United States conventional energy reserves, but currently supplies only 18 per cent of energy consumption. . . . Full utilisation of

America’s coal resources has been hindered principally by constraints on demand, rather than by lack of supply.”

6.5 One national energy goal nominated, to be achieved between 1977 and 1985, was to increase coal production by about two-thirds, to more than 1,100 million tonnes annually. A series of tax measures, regulations and research programmes were proposed as Federal policies aimed at achieving this goal. Support was announced for uniform national strip mining legislation and for a study of the national energy transport system. An expansion

of the United States Government’s coal research and development programmes was announced in the following areas: air pollution control systems; fluidized bed combustion systems;

coal cleaning systems; solvent refined coal processes; low Btu gasification processes; synthetic liquids technology;

coal mining technology.

163

6.6 The priority given to some of these areas relates to the high sulphur content of much United States coal (Australian coals almost uniformly have very low sulphur contents). All relate to the stated aim of seeking to expand the substitution of coal for natural gas and petroleum products.

6.7 One important facet of the American situation has been the increasing reliance of the United States on imported oil. The plan recognised that the problems facing the nation were very serious but far less severe than those faced by most other countries and that all nations are involved in the coming energy transition, even though they will be affected very differently. If the current growth of demand for oil continues, the analysis accompanying the plan indicated that:

“By the mid-1980’s the United States could be vying for scarce oil against its allies and other consuming nations, including the Soviet Union. Then, prices could increase dramatically as a result of tremendous pressure on world oil supply” .

6.8 In January 1977 the Organisation for Economic Co-operation and Development (OECD) published “World Energy Outlook” . This report analyses projected trends in energy needs and supplies and the implied oil import demands of OECD and other major global regions for the next 15 years. It also calls for a realisation of the opportunities still available to improve the energy supply-demand balance and thus reduce oil imports. OECD reports that further experience since its 1975 study has produced a lowering of expectations about early response of supply and demand of energy (to higher prices) and also realisation that medium-term economic growth rates may be lower than were expected prior to 1974 and that great uncertainty still prevails in the continuing disequilibrium in both energy markets and world economy.

6.9 The report produced two scenarios for 1985. The first, the Reference case, implies “strenuous effort, in the form of considerable capital mobilization and reduced energy consumption”. The Accelerated Policy alternative reflects additional policy options which could be taken in the fields of conservation and increased production of indigenous sources. Taken together, they represent a saving of 30 per cent under the level of imports that may be required in the absence of prompt policy action.

6.10 The OECD mentions Australia’s large coal reserves and under the reference scenario for Australia and New Zealand, sets their coal production in 1985 at 90 million tonnes of hard coal and 49 million tonnes of brown coal. Exports are expected to increase from 29-4 million tonnes in 1974 to 38 million tonnes in 1980 and to at least 42 million tonnes in 1985. Under the accelerated policy scenario, a 1985 total of 57 million tonnes is suggested as possible, particularly if Japan’s nuclear programme falls behind schedule. The opinion is also expressed that the Australian Government’s intention to reduce the export tax should give a stimulus to greater exports. (N.B. Australian exports had already reached 35 ·4 million tonnes in 1976-77.)

6.11 Two scenarios were also constructed for 1990, a reference or base case and an accelerated policy case. The growth rate assumed in the 1980-85 years (4.1 per cent per year) is continued to 1990. The reference scenario indicates an increase of about 290 million tonnes in coal consumption in the OECD area between 1985 and 1990, a rise of 23-4 per cent. Even assuming a very large increase in dependence on nuclear power, imports of oil are still expected to increase. The accelerated policy assumes that all net increases in electricity capacity after 1985 outside of North America take the form of nuclear power plants. The report states:

164

“If OECD governments were to decide to shift away from nuclear power as the primary future means of generating electricity, on safety and environmental grounds, the consequences for increased oil imports could be grave. They could be made graver by faster electricity growth.”

“ One way to limit these consequences would be to increase coal production. While this opportunity exists in North America, it does not for Europe and Japan. Utilities in these regions could replace nuclear power by coal only by massive coal imports from the United States, Australia, Canada, South Africa and some developing countries.

The reserves are ample to permit large increases in supply, but whether delivered costs would remain less than residual oil prices for the amounts of coal involved cannot be readily determined.”

6.12 Reference is then made to indications that the costs of production of synthetic fuels are very high and lead times are long. Their contribution by 1990 is therefore likely to be modest, as is the expected contribution from solar energy and other forms of new energy. Soon after this report was issued a large mission from the EEC and its member nations visited Australia to investigate possible fuel supplies (see para 1.24).

6.13 Placing greater emphasis on longer term developments is a study sponsored by the Massachusetts Institute of Technology. This is the Workshop on Alternative Energy Strategies (WAES) study published in “Energy-Global Prospects 1985-2000” . However, despite this title the scope of the study is the World Outside Communist Areas (WOCA). The Workshop was designed as a private and informal study group, with government officials taking part as individuals, together with others from industry, finance and academia. The idea was to reach agreement on a plausible range of global energy futures and their implications for national policy and international co-operation. Among the conclusions of this study

were:

“The continued growth of energy demand requires that energy resources be developed with the utmost vigor. The change from a world economy dominated by oil must start now. The alternatives require 5 to 15 years to develop, and the need for replacement fuels will increase rapidly as the last decade of the century is approached.”

“Coal has the potential to contribute substantially to future energy supplies. Coal reserves are abundant, but taking advantage of them requires an active program of development by both producers and consumers.” “ The critical interdependence of nations in the energy field requires an unprece­ dented degree of international collaboration in the future. In addition it requires the will to mobilize finance, labor, research and ingenuity with a common purpose never before attained in time of peace; and it requires it now.”

6.14 Commenting on the quantity of coal which might be ultimately recoverable, the report states: “The picture for coal is less clear than for oil because exploration has been less widespread and generally less intensive. Many estimates of coal reserves were made

during an era when readily available low-cost oil was rapidly displacing coal, resulting in little incentive to look for coal . . . By almost any criterion, coal resources can be re­ garded as ample. What is in doubt is the willingness and ability of the world to accept

large increases in coal production and use.”

165

6.15 A range of scenarios were considered based on world economic growth (high o- low); three oil prices, two national policy responses (vigorous or restrained), four oil pror duction assumptions and two principal replacement fuels, coal and nuclear, in the years 1985-2000. The range of coal demand for the WOCA scenarios was 2,042 million tonnes to

3,169 million tonnes hard coal equivalent in the year 2000 compared with 1,073 million tonnes in 1972. For North America a range from 1,086 to 1,835 million tonnes was indicated. The low estimate assumes constant real energy prices and nuclear energy as the principal replacement fuel for oil. The high estimate assumes rising energy prices and coal as the principal replacement fuel.

6.16 A special study was undertaken for the Workshop by the Bechtel Corporation of some of the costs and other requirements needed to raise, between 1975 and 2000, coal production in the United States from 500 to 2,000 million short tons. The capital cost for the new mines is set at $32 billion dollars (constant 1975 US dollars) with new coal related transport facilities costing an additional $86 billion. The main items included in the totals are:

385 underground mines each 2 million short tons per annum; 75 Eastern surface mines each 4 million short tons per annum; 232 Western surface mines each 6 million short tons per annum;

1,400 unit trains, 3,200 conventional trains, 500 barges and 9,400 trucks together with 9 slurry pipe lines with a carrying capacity of 25 million tons per annum.;

6.17 The report discusses the implications of increased coal exports from the United States and suggests that “it is uncertain if it (United States) would be willing to undertake extensive coal mining and related expansion of transportation systems to provide coal for export” . However, the study goes on to conclude at page 180:

“There are a number of reasons to believe that such a policy would be adopted if the need for the coal were clearly established. Coal in the United States is not a scarce resource. Exporting it to meet the energy needs of other nations and to offset the cost of imported oil would appear to be consistent with the United States foreign policy goals. Such coal development would have a positive effect on economic development, employ­ ment and the balance of payments. It will not happen, however, unless:

(1) demand for coal exports is explicit in the form of firm long-term contracts, based on buyers’ expectations and that the coal would be available for export; (2) the environmental acceptability of western surface mining has been demon­ strated; and (3) there is sufficient advanced planning to provide for infrastructure requirements,

especially deep-water port facilities.”

6.18 The WAES national studies indicate rather limited potentials for the conversion of coal to synthetic fuels to the year 2000 within the WAES scenario assumptions. The study, however, at page 184 says: “Expansion of coal’s market penetration could come from converting coal to

synthetic liquid and gaseous fuels. This could be an attractive alternative to rising imports of oil or liquefied natural gas for countries that have large coal reserves. It would allow consumers to use existing oil and gas-fired equipment, thereby putting the burden of new investments on the energy producers and processors rather than dis­ tributors and consumers. It could also simplify air pollution control by concentrating coal use in fewer locations. However, converting coal to other forms of fuel adds to

166

the consumers’ cost of energy because of the relatively low efficiency of the conversion process (to the order of 60 to 70 per cent) and the cost of the conversion facilities. Con­ version would also mean mining significantly larger tonnages of coal and would require additional water for cooling and land reclamation.”

6.19 Another major study underway during 1976-77 has been that conducted by the Conservation Commission of the World Energy Conference (WEC). It is considering the energy options available to the world during the years 1985 to 2020. A worldwide study has been undertaken of each major traditional resource, of new and renewable resources, and of the potential for energy conservation. Demand was modelled for a range of scenarios.

Draft reports were exposed for comment at the 10th World Energy Conference held at Istanbul in September, 1977. The final report is expected in June 1978.

6.20 Australia had no direct input into the WAES study but has contributed to the WEC project via a special sub-committee set up by the Australian National Committee and by direct representation on two o f the review panels, those on coal and on nuclear and un­ conventional energy resources.

6.21 The discussion paper on coal reported that present-day geological world coal resources were estimated at more than 10,000 x 10® tonnes of coal equivalent (t.c,e.) and that those coal reserves currently estimated as technically and economically recoverable amount to 640 x 10® t.c.e.

6.22 The last of the interim conclusions reads: “Action must be taken now, if maximum use of the potential offered by coal is to be made. Therefore, appropriate policy decisions by governments and by coal consumers are imperative. Their decisions should be aimed to enable potential coal

consumers to commit themselves to long-term contracts. This, again, would enable and encourage potential investors to commit themselves in time, and without unacceptable risks, to the necessary development of coal.”

6.23 As far as Australia is concerned, particular interest attaches to the development of the Japanese market for energy. In June 1977 the Ministry of International Trade and Industry (MITI) published its “Interim Outlook for Long-term Energy Supply and Demand”. This outlined efforts to achieve 13-5 per cent energy savings by fiscal year 1990.

6.24 The basic assumption is that in Japan the economic growth rate from fiscal 1975 to fiscal 1985 will be about 6 per cent per annum, falling to about 5 per cent from 1985 to 1990. Without conservation programmes total energy demand would increase from 390 units in 1975 to 740 in 1985 and to 916 units in 1990, the units being millions of kilolitres of

oil equivalent. A continuation of current conservation measures would reduce the 1985 total to 700 units, but the stepped up measures of conservation proposed would reduce the 1985 demand to 660 units and the 1990 demand to 792 units, a saving of 13-5 per cent. The development of alternative sources of energy is planned as a further means of reducing the

need for imported petroleum, supplies of which it is assumed will be short. The target is to reduce the nation’s reliance on imported oil to 57 ·1 per cent of total energy.

167

6.25 One of the proposals is to increase coal imports from 62-3 million tonnes in fiscal 1975 to either 93 or 102 million tonnes in 1985 and to 144 million tonnes in 1990. In­ cluded in these totals are 6, 16 and 40 million tonnes, respectively, of non-coking coal. The need for 40 million tonnes of imported steaming coal in 1990 could be higher should some of the following assumptions not be achieved:

(a) the saving of 13-5 per cent in total energy usage;

(b) nuclear energy increase from 6-6 M kw in 1975 to 60 M kw in 1990;

(c) imports of LNG rise from 5·05 million tonnes in 1975 to 44 million tonnes in 1990;

(d) domestic coal production of 20 million tonnes per annum (18-6 million tonnes 1975).

6.26 Studies have also been made of the capital investments which Japan will need to make to ensure future supplies of energy. The Overall Energy Council has put forward different “cases” but singles out one recommended target for which the estimated energy related capital needs for the period 1976 to 1985 total SUS255 billion (265 Yen to US dollar at current costs with no allowance for inflation). The largest item is $131 billion for electric power. Also of interest is $9 billion on coal to ensure continued domestic coal production at 20 million tonnes a year and the development of new overseas coal deposits able to ship 16

million tonnes a year of coking coal and 24 million tonnes a year of steam coal, in addition to import supplies already assured. This programme of expenditure envisages increasing the installed capacity of generating stations by 1985 to 106 M kw of thermal capacity, 41 M kw

of the hydro capacity and 33 M kw of nuclear power.

6.27 In anticipation of the expected sharp increase in Japan’s imports of steaming coal, plans to establish several central coal stockpiling centres are under consideration. In addition to the proposal by MITI to establish a 15 million tonne coal centre, referred to in the Joint Coal Board’s 29th Annual Report, further centres are planned in the western and eastern areas of Japan. The construction programme for coal-fired power stations in Japan has been reported by several sources to be:

Company Capacity

Expected Maximum Annual Requirements

Electric Power Development Co. (Matsushima) Electric Power

Development Co. (Takehara No. 3) Electric Power Development Co.

(Matsuura) Kyushu Power Co. (Matsuura) Shikoku Electric

Power Co.

2 x 500 MW. First unit to be com- 2-4 million tonnes missioned 1980. Second unit by 1981. 1 x 1000 MW. Scheduled com- 2-4 million tonnes

pletion date 1982.

2 x 1000 MW. First unit by 1984. 4·8 million tonnes

2 x 700 MW. First unit by 1983. 3 ·4 million tonnes

1 x 500 MW. Expected to be com- 1 ·2 million tonnes missioned by 1985.

168

Almost all the 14 million tonnes per annum of coal required by these plants will need to be imported. Additional power stations will be required if the MITI programme discussed earlier is to be achieved. In April 1977 a large mission representing Japanese power generating authorities visited Australia (see para 1.24). Discussions with potential coal suppliers have

been undertaken only in respect to the requirements for the Matsushima power station (see para 3.67). Procurement policy for the other stations has yet to be determined but the principal supply sources are expected to be Australia, China, South Africa and Canada.

A u st r a l ia n Stu d ie s

6.28 In 1975 The Institution of Engineers, Australia, appointed a Task Force on Energy. Twelve working parties were formed and presented their reports to a national conference in July 1977. Working Party I—Long Term Energy Prospects and Usage Patterns —presented estimates of the World and Australia’s present energy resources and usage patterns. It indicated that, based largely on future levels of population and economic growth

achieved in Australia, primary energy requirements by the year 2000 could be about 7 or 8 exajoules (1EJ = 1018 Joules) compared with 2-53 exajoules in 1973-74. These large increases are based on average GDP growth rates of 4-1 and 4-6 per cent per annum respectively.

6.29 The dissection by type of primary fuel provided in this paper indicates a higher rate of growth for black coal than for total primary energy for each of the two alternative pro­ jections and for each of the two time periods 1972-1985 and 1985-2000. The average growth per annum was given as:

Black coal .. ..

Total primary energy

Projection A 1972-85 1985-2000 per cent per cent

5-9 4-2

5-5 3-9

Projection B 1972-85 1985-2000 per cent per cent

4-5 4-5

4-1 3-5

6.30 Working Party No. 3—Coal as an Energy Source—made the following recom­ mendations : “Australian coal mines are, by world standards, highly productive, reflecting good mining conditions. There is a need to develop mining techniques to achieve a higher

recovery ratio in underground mining, particularly in thick seams, and also to develop safe and effective methods of recovering the deeper seams.” “The economics of the world use of coal are greatly influenced by transport costs,

which frequently represent the major cost component of a coal at the point of use." “The Australian coal industry has a capacity to expand production for foreseeable needs. Limiting factors will be the availability of capital, of infrastructure such as railways and ports, and the availability of experienced engineers and technologists to plan, design,

construct and operate the large operations which are a feature of modern coal mining.” “Information on the disposition and quality of coal resources in Australia should be collected in a standardised format and incorporated in a data bank which will form the basis of estimates of recoverable resources of coal classified by quality and cost para­ meters. Quality characteristics should be stored in the form of test data only and not

inferred end uses such as coking, steaming or conversion coals.”

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G 44102J—12Jf

“A standard approach to the calculation of reserves of coal “in situ” and “extracta­ ble” should be agreed and adopted at a national level, consistent with one of the several international methods now in use.” “Development of underground mining techniques aimed at safe methods of achieving higher recovery ratios and/or increasing productivity should be encouraged and supported at both the research and at the proto-type development stages. Consideration should be given to Government support for mining organisations prepared to install proto-type mining faces and to make available the results of such operations.”

6.31 In March 1976 the Senate referred the matter of solar energy to the Senate Standing Committee on National Resources for investigation and report. The Committee Report, which was tabled on 4 May 1977, apart from specific recommendations regarding various aspects of solar energy, made recommendations of a general nature regarding energy policy and research.

6.32 References to coal include the following: “It is difficult to make a comparison of Australian energy research expenditure with overseas research expenditure because the Australian Government is spending a very small amount—consisting of approximately $20,000,000 on atomic energy, approxi­ mately $2,000,000 on coal research and less than $1,000,000 on solar energy. .

“Research and development of energy resources in Australia is very limited. The only large recurrent expenditure is in respect of the Australian Atomic Energy Commission, $20,000,000 in 1975-76. Research in respect of coal is being carried out for the National Coal Research Advisory Committee by the Australian Coal Industry Research Labora­ tories. The only other major body involved in energy research and development is the CSIRO.

“Overall there has been no co-ordinated funding of energy research by Government, industry or the universities. “The Committee is of the view that steaming coal used for electricity generation should be costed at its opportunity cost rather than extraction cost and that increases

should be phased in over the next decade. “The only evidence taken by the Committee on the likely impact of increasing the price of coal to export parity was that if the cost of coal went up by six times, it would not double the price of electricity. This is because of the high costs of capital equipment and reticulation relative to the cost of coal in producing electricity.”

“Australia has ample coal supplies for the foreseeable future and while the harnessing of solar power to provide heat or electricity may be of value in specialised small scale applications, it is unlikely to contribute on any larger scale of national signifi­ cance.

“Unless unit energy costs can be kept competitive with conventional sources, no real problem is solved by new solar technology. Careful consideration needs to be given to whether even greater problems are not introduced, such as materials and resources required for producing the solar equipment, energy input of manufacture, cost of standby generating equipment and maintenance of an existing energy-reticulation system for back-up in periods of cloudy weather, etc.

“It is the Committee’s view that electricity generation on a large scale using solar energy is a concept for the very long run future.”

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6.33 On 10 February 1977 the Minister for Trade and Resources, the Rt Hon J. D. Anthony, M.P., announced the formation of a National Energy Advisory Committee under the chairmanship of Dr Howard K. Worner. The Committee is to advise the Government on energy matters and assist in the formulation and development of a national energy policy for Australia. Relevant matters include resources, factors likely to influence the pattern of energy

supply and demand, research related to the development of Australia’s energy resources, future costs of energy and economy of use of energy.

6.34 The Advisory Committee has established four Standing Groups to study various aspects of work within the Advisory Committee’s terms of reference. Mr M. J. Smith, a Member of the Joint Coal Board until August 1977, is a member of Group No. 1 and Miss Joan C. Miller, the Board’s Senior Statistician, is a member of Group No. 2.

6.35 The pattern of energy usage within each Australian State is strongly influenced by the type and nature of the energy resources located within that State. A number of State Authorities have published the results of their analysis of the future energy demand and supply situation as seen for their area of responsibility. Examples of such studies are:

Victoria—Green Paper on Energy Report of the South Australian Energy Committee—May 1977 Western Australia—Fuel Demand 1977-1997

6.36 As mentioned in para 1.14, the Joint Coal Board in July 1977 issued “New South Wales Coal—Prospective Markets to the Year 2000”. The graph which appears on a nearby page is taken from that document. It summarises the main results of the study. An important feature is the very significant role of coal exports in the overall prospective market of the in­

dustry.

6.37 In course of preparation, but not available at the time this report was written, is a report by the Hydrocarbons Branch of the Department of National Resources on the forecast demand for primary fuels within Australia. This will replace the study issued in August 1975.

C oal R esearch

6.38 Some of the quotations given earlier from the Senate’s Report on Solar Energy referred to the low level of expenditure within Australia on coal research. The Commonwealth Treasurer in his 1977-78 Budget speech stated: “To finance increased coal research the Government will levy 5 cents a tonne on

coal produced in Australia in the next three years; the levy will have effect from midnight tonight and is expected to provide $3-4 M this year.”

6.39 Considerable interest exists in Australia in utilising a portion of the nation’s coal resources to compensate for the relatively low level of oil resources so far proven.

6.40 In conjunction with the Queensland Coal Board, the Board published “Survey of Australian Black Coals of Conversion Potential” in 1976. The document is to be reviewed prior to a second edition printing. During his visit to South Africa in August 1976 the Board s then Fuel Technologist, Mr R. G. Davies, visited the SASOL conversion plant at Sasolburg. He also discussed the design features of the planned SASOL II plant with officers of the South African company.

171

PROSPECTIVE MARKET RANGES FOR NEW SOUTH WALES COAL — EXPORTS AND CONSUMPTION WITHIN AUSTRALIA - TO THE YEAR 2000. MILLION TONNES

NOTE T h e m a r k e t le ve ls w h i c h t h e N e w S o u t h W a l e s co a l m i n i n g

i n d u s t r y m i g h t r e a s o n a b l y a t t a i n s u b j e c t to t h e n e c e s s a r y

m i n i n g a n d i n f r a s t r u c t u r e i n v e s t m e n t s b e i n g m a d e , t h e

a v a i l a b i l i t y of m a n p o w e r a n d t h e m a i n t e n a n c e of p r o d u c t i v i t y

le v e ls a n d m a r k e t c o m p e t i t i v e n e s s . No a l l o w a n c e h a s b e e n

m a d e in t h e f i g u r e s f o r t h e c o n v e r s i o n o f co a l to liqu id

a n d g a s e o u s f u e l s .

TOTAL

PROSPECTIVE ACTUAL

EXPORT

DOMESTIC

TOTAL

DOMESTIC

EXPORT

YEAR 1955

6.41 The Australian Coal Industry Research Laboratories Ltd. (ACIRL), primarily with funds supplied by the National Coal Research Advisory Committee (NCRAC), expand­ ed its programme of work on coal conversion during 1976-77 and constructed a mini coal- to-oil pilot plant at its North Ryde laboratory. The objective is to test Australian black and brown coals for their ability to produce high yields of liquid products from which to manu­ facture petrol, diesel fuel, aviation fuel, heating oil and chemicals. The process to be tested is a combination of solvent extraction and hydrogenation at moderate to high pressures, 5 to

30 megapascals, and temperatures of 400 to 450 degrees Celsius. It is claimed that these pro­ cesses are thermally more efficient for producing liquid fuels from typical high volatile bitu­ minous coals of the type found in New South Wales.

6.42 The Australian Government and several State Governments, particularly the New South Wales and Victorian Governments, have shown considerable interest in a proposal put forward by the West German Ministry of Research and Technology for a joint feasibility study into the conversion of Australian coal. Known as the Imhausen proposal, the study

would indicate which coal source would be appropriate for a commercial plant producing about 3 million tonnes per annum (Mt/a) of gaseous and liquid products from 8 to 9 Mt/'a of black coal or about 23 M t/a of brown coal (as mined).

6.43 A Coal Conversion Course was held in Surfers Paradise in June 1977 to review the state of the technology covering process routes, engineering aspects and economics. Economic analyses presented during the course, based on conceptual designs and incorporating the latest technical developments, showed that the capital costs of conversion plants are very high, hence interest rates charged and the rate of inflation are very significant factors in assessing whether or not plants could be constructed now and operated viably in competition

with oil at its current international price. Representatives of the Joint Coal Board participated in the course.

6.44 One aspect of coal utilisation to which considerable research effort is being devoted both in the United States and in England is the development of the fluidised bed. This technique can be applied in a wide range of situations. Within Australia one particular application is under study. A report on this project appears in para 1.43 to 1.48.

Pr im a ry E n e r g y— A u str a lia

6.45 Australian usage of primary energy increased in 1976-77 at a rate comparable with the increases experienced prior to 1974-75. The increase in terms of black coal equivalent (BCE) was 5,811,000 tonnes, giving a total usage of 102,072,000 tonnes. In 1963-64 usage was 51,709,000 tonnes.

6.46 The rise of 6-0 per cent in 1976-77 contrasts with rises of 0-9 per cent in 1975-76 and 3-9 per cent in 1974-75. President Carter has set a target for the United States of lowering the annual increase in energy usage to 2 per cent per annum. The recent World Energy Conference held at Istanbul received a report from its Conservation Commission suggesting

that the world will have great difficulty in sustaining, in the medium to long term, an energy growth rate of 4 per cent per annum (see para 6.19). This world figure of 4 per cent is an average based on a rate of about 2 per cent for the OECD with higher rates for the centrally planned and developing nations.

173

6.47 The Australian increase in energy usage in 1976-77 is surprisingly high in the light of the continued low level of activity in the steel industry and in a number of other industries which are considerable users of energy. On the other hand, Australian alumina and aluminium plants operated at very high levels. Generation of electric power in Australia rose by 8 per cent in 1976-77 and much of the increased demand came from domestic consumers.

T A B L E 78.— C O N S U M P T IO N O F P R IM A R Y E N E R G Y — IN T E R M S O F BLACK C O A L E Q U IV A L E N T — Ό 00 T O N N E S

Australia 1953-54 1972-73 1973-74 1974-75 1975-76 1976-77 (a)

N.S.W. black coal—N.S.W ............ 11,784 19,153 19,088 20,079 18,884 20,857

N.S.W. black coal—Interstate .. 2,453 954 937 927 753 583

Other black coal ........................... 3,786 5,758 6,141 7,299 7,969 8,768

Brown coal .................................... 3,192 8,576 9,301 9,641 1 0 ,221 10,795

Total coal ................... 21,215 34,441 35,467 37,946 37,827 41,003

Petroleum products— Market sales ................................ 8,740 36,145 39,546 39,541 39,744 42,213

Refinery fuel ............................... 75 3,837 4,075 3,867 3,810 3,845

Total petroleum ___ 8,815 39,982 43,621 43,408 43,554 . 46,058

Natural gas .................................... 4,955 5,877 6,449 7,193 8,497

Firewood ........................................ 1,214 509 470 437 408 396

Hydro-electric power ................... 961 5,619 6,324 7,139 7,279 6,118

Total primary energy.. 32,205 85,506 91,759 95,379 96,261 102,072

(a) 53-week year in respect of black coal.

6.48 The share of the energy market supplied by each of the various sources of energy utilised in Australia is set out in Tables 78 and 79. Non-fuel petroleum products, such as bitumen, solvents, lubricants, and petro-chemical feedstocks have been excluded, as has bagasse used by the sugar industry. However, it has not been possible to exclude the natural gas used as a feedstock by a fertilizer factory in Queensland. The figures for natural gas therefore include all uses of this gas. The various fuels have been converted to a black coal equivalent (BCE) on an equivalent specific energy (as-received) basis, with no allowance for variation in efficiency of utilisation of one fuel against another.

6.49 In 1976-77 the use of natural gas increased by 18T per cent to supply 8-3 per cent of all primary energy. Usage of petroleum products rose by 5*7 per cent but the generation of power by hydro-electric plants fell by 15-9 per cent to become a smaller contributor than natural gas.

6.50 Usage of coal rose by 8-4 per cent, a figure slightly inflated by the inclusion of an additional week’s usage in the year’s black coal figures. Since 1972-73 Australia’s usage of coal has risen by 19 T per cent. Over the same years the use of petroleum products derived from crude oil rose by 15 2 per cent. Coal’s share of the Australian energy market is now

40-2 per cent of which black coal contributes 29-6 per cent and brown coal 10-6 per cent.

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TABLE 79.—CONSUM PTION OF PRIMARY ENERGY—IN TERMS OF BLACK COAL EQUIVALENT—PERCENTAGE

Australia 1953-54 1972-73 1973-74 1974-75 1975-76 1976-77(0)

N.S.W. black coal—N .S.W ............ 36-6 22-4 2 0 -8 2 1 -0 19-6 20-4

N.S.W . black coal—Interstate .. 7-6 1-1 1 -0 1 -0 0 -8 0 -6

Other black coal ............................ 1 1 -8 6 -8 6-7 7-6 8-3 8 -6

Brown coal .................................... 9-9 1 0 0 10-1 10-1 1 0 -6 1 0 -6

Total coal ........................ 65-9 40-3 38-6 39-7 39-3 40-2

Petroleum products— Market sales ................................ 27-1 42-2 43-1 41-4 41-3 41-3

Refinery fuel ................................ 0-3 4-5 4-5 4-1 3-9 3-8

Total petroleum ........... 27-4 46-7 47-6 45-5 45-2 45-1

Natural gas .................................... 5-8 6-4 6 -8 7-5 8-3

Firewood ......................................... 3-7 0 -6 0-5 0-5 0-4 0-4

Hydro-electric power ................... 3-0 6 -6 6-9 7-5 7-6 6 -0

Total primary energy .. 1 0 0 -0 1 0 0 -0 1 0 0 -0 1 0 0 -0 1 0 0 -0 1 0 0 -0

Change 1972-73 to 1976-77 Change 1975-76 to 1976-77

Ό00 tonnes per cent Ό0 0 tonnes per cent

N.S.W. black coal—N .S.W ............ + 1,704 + 8-9 + 1,973 + 10-4

N.S.W. black coal—Interstate .. — 371 - 38-9 — 170 — 2 2 -6

Other black coal ............................ + 3,010 + 52-3 + 799 + 1 0 -0

Brown coal .................................... + 2,219 + 25-9 + 574 + 5-6

Total coal ................... + 6,562 + 19-1 3,176 + 8-4

Petroleum products— Market sales ................................ + 6,068 + 16-8 + 2,469 + 6 -2

Refinery fuel ................................ + 8 + 0 -2 + 35 + 0-9

Total petroleum ........... + 6,076 + 15-2 + 2,504 + 5-7

Natural gas .................................... + 3,542 + 71-5 + 1,304 + 18-1

Firewood ......................................... — 113 - 2 2 -2 — 12 — 2-9

Hydro-electric power ................... + 499 + 8-9 — 1,161 — 15-9

Total primary energy .. + 16,566 + 19-4 + 5,811 + 6 -0

(a) 53-week year in respect of black coal.

6.51 Market sales of petroleum products rose in 1976-77 by 2,469,000 tonnes (BCE), a much higher increase than in 1975-76. Inland sales of fuel oil, after falling by 2,001,000 tonnes between 1973-74 and 1975-76, increased by 583,000 tonnes in 1976-77. Sales increased by more than 10 per cent for lighting kerosene, heating oil and automotive distillate. Usage

of refinery fuel has fallen from 4,075,000 tonnes in 1973-74 to 3,845,000 tonnes in 1976-77. Since refinery input of crude oil increased over this period by 6Ό per cent, there has been a reduction in the use of refinery fuel per tonne of input.

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6.52 Details of primary energy usage in the various States are given in Table 47 of the Statistical Appendix. Usage in 1976-77 increased in all six States and in the Northern Territory. The largest increase was in Victoria, but the rate of growth was most rapid in Western Australia. The relatively low New South Wales rate was influenced by the reduced level of steel production in that State. The changes compared with 1975-76 were:

Tonnes Per cent

(BCE)

New South Wales .. .. + 1,206,000 + 3-3

Victoria .. .. .. + 1,554,000 + 6-2

Queensland .. .. .. + 882,000 + 7-1

South Australia .. .. + 591,000 + 7-6

Tasmania .. .. .. + 189,000 + 4-4

Western Australia .. .. + 1,306,000 + 14-4

Northern Territory .. .. + 83,000 + 7-7

+ 5,811,000 + 6 0

6.53 The proportion of primary energy supplied by black coal increased in several States. In New South Wales the proportion rose to 55-2 per cent from 51-8 per cent in 1975-76. The increases in Queensland, to 41-0 per cent, and in Tasmania, to 3-7 per cent, were much smaller. In South Australia and Western Australia black coal’s contribution fell from 25-6 per cent to 24T per cent and from 16-8 per cent to 16-1 per cent, respectively.

6.45 Natural gas made an initial contribution during 1976-77 of 0-9 per cent to primary energy usage in New South Wales. Supplies did not become available till December 1976 and the Sydney industrial market has proved to be highly competitive. In both Victoria and South Australia natural gas made further advances to supply 15-9 per cent and 30Ό per cent, respectively, of primary energy. In Western Australia and Queensland, with supplies

of gas limited, the contribution of this fuel fell to 11-0 per cent and 2-4 per cent, respectively.

6.55 The large increase in energy usage in Western Australia included 1,158,000 tonnes (BCE) of petroleum products. Included in this total was 224,000 tonnes for ships bunkers and 647,000 tonnes of fuel oil for inland consumers. This increase in fuel oil usage in Western Australia contrasts with position in the rest of Australia where fuel oil usage fell by 64,000 tonnes. In New South Wales, despite the reported offers of fuel oil at very low prices (see para 1.31), inland sales of fuel oil increased by less than 10,000 tonnes to 1,115,000

tonnes. Dependence on petroleum products ranged in 1976-77 from 72-3 per cent in Western Australia to 31T per cent in Tasmania.

6.56 Hydro-electric power stations in New South Wales, Victoria and Western Australia generated less electricity in 1976-77 than in 1975-76. Generation in Tasmania rose by 4-8 per cent. This was more than sufficient to enable hydro power to maintain a situation in which it supplies more than 64 per cent of all primary energy used in that State. Substantially less hydro-electric power was generated in New South Wales than for some years (see para 3.27).

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PART 7

THE MINEWORKER

Safety and A ccident Experience

7.1 There was an increase of 768 or 9 4 per cent to 8,946 in the number of accident and occupational disease claims lodged by New South Wales coal miners during 1976-77 compared with 1975-76. This was more than the rise of 4-0 per cent in the average number of employees. Between 1972-73 and 1974— 75 there was a very rapid increase in the number

of claims lodged per employee. The increase did not continue in 1975-76 but an increase re-occurred in 1976-77.

7.2 The average number of lost-time accidents per million man-hours worked increased from 271 in 1975-76 to 278 in 1976-77. The rate fell in two districts, Newcastle and South Maitland, but rose sharply in the South Coast to 398. This was twice the Newcastle rate.

T A B L E 80.—F R E Q U E N C Y R A T E O F L O S T -T IM E A C C ID E N T S (a) N .S .W . C O A L IN D U S T R Y — BY D IS T R IC T S

1970-71 1973-74 1974-75 1975-76 1976-77

Underground mines: South Maitland ............................................ 127 224 237 208 204

Singleton-North West ............................ 165 190 246 273 274

Newcastle ..................................................... 92 172 184 226 197

W e s t.................................................................. 90 145 209 224 236

Burragorang Valley ................................ 141 224 264 262 268

South Coast ............................................. 182 322 381 367 398

Total ............................................. 138 236 275 283 289

Open-cuts ............................................................. 46 90 82 68 81

All m in e s ........................................ 136 229 265 271 278

(a) No. of lost-time accidents per million man-hours worked.

7.3 A second measure of accident experience is the level of absence of men from work while in receipt of workers’ compensation. District details are given in Table 81. By this measure accident experience improved slightly in 1976-77, the percentage of manshifts lost falling from 2·67 per cent to 2-65 per cent. This measure also records an improved position in the Newcastle and South Maitland districts and a deterioration on the South Coast.

7.4 Table 82 shows that the great majority of accident claims lodged are lost-time claims. The percentage of such claims rose by 44-2 per cent between 1972-73 and 1974-75 and by 13-9 per cent between 1974-75 and 1976-77. The number of claims involving an absence of more than 7 days rose by 61-1 per cent between 1972-73. and 1974-75 and by 14-6

per cent between 1974-75 and 1976-77. During these two periods the number of accident claims lodged increased by 31-2 per cent and 13-2 per cent respectively.

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T A B L E 81.— M A N S H IF T S L O S T D U E T O M E N O N C O M P E N S A T IO N — A S A P E R C E N T A G E O F P O S S IB L E M A N S H IF T S — N .S .W . C O A L IN D U S T R Y

1970-71 1973-74 1974-75 1975-76 1976-77

Underground mines— South Maitland ................................................

per cent per cent per cent per cent per cent

1 .8 6 3 02 2-80 2-33 2-17

Singleton-North West .................................... 1.51 2-15 1-92 2-06 2-25

Newcastle ......................................................... 0.87 1-89 1-8 8 2-45 2-08

W e s t..................................................................... 1.16 1-44 1-15 1-81 1-96

Burragorang Valley ........................................ 1.33 2 -2 2 2 -2 0 2-25 2-35

South Coast ..................................................... 1.97 3-23 3-48 3-65 3-82

Total ................................................. 1.46 2-51 2-54 2-79 2-77

Open-cuts ............................................................. 0.49 0-89 0-60 0-42 0-40

All m in e s............................................ 1.44 2-45 2-45 2-67 2-65

T A B L E 82.— N U M B E R O F A C C ID E N T C L A IM S L O D G E D BY R E S U L T — 1974-75 T O 1976-77 N E W S O U T H W A LE S C O A L IN D U S T R Y

1974-75 1975-76 1976-77

Change 1974-75 to 1976-77

Total number of claims lodged ................................ 7,657 7,949 8,665 + 1,008

Number of lost-time accidents ................................ 6,287 6,543 7,158 + 871

Results— Fatal (a) ................................................................. 15 4 1 0 — 5

Permanent injury ................................................ 28 30 19 — 9

Lost-time in year of claim-

3,350 greater than 7 days ............................................ 3,050 3,495 + 445

1 to 7 days ......................................................... 2,912 2,885 3,457 + 545

Less than 1 day ................................................ 78 107 149 + 71

None but lost time anticipated....................... 282 274 177 — 105

Other claims by nature of payments made in year of claim— 789 816 Medical expenses ............................................ 833 — 17

Changes to aid or clothing......................... 64 43 52 — 12

Other payments ............................................ 8 8 9 + 1

N o payments made ........................................ 387 453 481 + 94

(a) Includes periodic journey accidents.

7.5 Table 83 shows the cost of workers’ compensation insurance to the coal-mining industry as a percentage of total wages paid and as a percentage of the pit-top value of coal from 1955, when the accident rebate scheme was first introduced. Table 84 shows wages declared and net premium income for the Workers’ Compensation Insurance Scheme in

each of the last ten years.

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TABLE 83.—RELATIVE COST OF WORKERS’ COMPENSATION PREMIUMS N .S.W . COAL INDUSTRY

N et premium as a per cent of

Year

Total wages and salaries paid (a) Pit top value o f coal produced

(6)

Premium rate

per cent per cent per cent

Base rate before rebate

1955 .......................................................... 7-7 3-6 10 from 30 Sept. 1954

1957 ......................................................... 7-1 3-2 10 to 30 Sept. 1957

1958 ......................................................... 7-7 3-4 9-5 to 9 Dec. 1958

1960 ......................................................... 6-7 2-9 9-625 to 30 Sept. 1960

1962 ......................................................... 5-8 2-3 9 to 30 Sept. 1962

1963 ......................................................... 4-9 2 -0 8-5 to 30 Sept. 1963

1967 ......................................................... 5-1 2-1 8 to 30 Sept. 1967

1968-69 ................................................. 4-4 2 0 7-25 to 30 Sept. 1969

1971-72 ................................................. 4-3 1-8 6-75 to 30 Sept. 1972

1972-73 ................................................. 4-7 2 0 7-5 to 31 May 1973

1973-74 (c) ...................................... 5-4 2-5 8 to 30 Sept. 1974

Average rate

1974-75 0 ) ............................................. 5-8 2-1 6 - 25 to 1 May 1975

7- 75 to 30 Sept. 1975

1975-76 (c) ............................................. 7-0 2-1 8-4 to 30 Sept. 1976

1976-77 (c) ...................................... not available 8-5 to 30 Sept. 1977

1977-78 (c) ...................................... not available 7-5 from 1 Oct. 1977

(o) Wages and salaries paid—Australian Bureau of Statistics.

(b) Pit top value of coal—Australian Bureau of Statistics.

(c) Includes accident pay.

TABLE 84.—DECLARED WAGES AND PREMIUM INCOME (Workers’ Compensation Fund Only)

Year

Wages declared by policy holders (b)

Net premium income

Net premium income as a per cent o f declared wages

$ ’0 0 0 $ ’0 0 0 per cent

1967-68 ..................................................... 49,165 2,109 4-3

1968-69 ..................................................... 55,501 2 ,0 0 2 3-6

1969-70 ..................................................... 61,464 2,743 4-5

1970-71 ..................................................... 70,146 3,207 (a) 4-6

1971-72 ..................................................... 77,625 3,834 (a) 4-9

1972-73 ..................................................... 81,585 4,548 (a) 5*6

1 9 7 3 - 7 4 ..................................................... 91,087 5,984 (a) 6*6

1974-75 ........................................ . . 141,237 9,555 (a) 6-8

1975-76 ..................................................... 166,075 14,055 (a) 8-5

1976-77 ..................................................... 212,597 18,443 (a) 8-7

(а) After deduction of training rebates. Net premium income is inclusive of common law surcharge.

(б) Some wages are excluded e.g. holiday pay.

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7.6 As mentioned in para 1.142 under the Joint Coal Board’s workers’ compensation scheme the premium rates paid vary according to the accident experience as indicated by two factors. One takes account of costs, including estimated future costs, resulting directly from injuries sustained within the four financial years immediately preceding the relevant policy year. For this purpose, claims based on disease are excluded. The second factor is based

on the number of claims lodged within the preceding financial year which involved death, permanent injury or absence from work in excess of one week. These factors, which give weight to more recent experience, are then combined in such a manner as to give approximately equal weight to the two components. The combined factor is regarded as indicating the accident experience of the establishment and all policies are ranked accordingly. Policies, in this order, are then divided into ten approximately equal groups, equal, that is, in respect of the amount of wages declared during the preceding financial year.

7.7 The average premium rate payable, sa mentioned in para 1.142, in the 1977-78 policy year will be 7-5 per cent of declared wages, a reduction from 8-5 per cent. Set out below are the premium rates payable in the policy years 1976-77 and 1977-78.

Policies falling in :

Group 1 Group 2 Group 3 Group 4 Group 5 Group 6 Group 7 Group 8 Group 9 Group 10

Premium rate before addition of surcharge for additional common law indemnity (per cent of declared wages) 1976-77 1977-78

4 2-5 or 3

5 4

6 5

7 6

8 7

9 8

10 9

11 10

12 11

13 12 or 12-5

7.8 Policies which have been in Group 1 for four consecutive years will pay premium at the rate of 2-5 per cent of declared wages, while other policies in that Group will pay premium at 3 per cent. Similarly, policies which have been in Group 10 for less than four consecutive years will pay premium at 12 per cent of declared wages, while other policies in

that Group will pay premium at 12-5 per cent. Policies which were current less than one year at 30 June, 1977 and which, therefore, had not established any significant accident experience, as well as policies which commence in the 1977-78 policy year, will pay premium at a rate determined by the management, having regard to the risk involved, but at a rate not less than 9 per cent of declared wages.

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7.9 In 1976-77 the Board and the colliery proprietors subsidised the purchase of 14,770 pairs of safety boots. On and after 1 September 1976 the Board lifted the limit on its contribution from $2 to $3 per pair. On 14 September 1976 the Coal Industry Tribunal decided in response to a claim re industrial clothing that:

“(e) Where appropriate an employee be provided with one pair of safety boots per year without charge;”

Table 85 gives details of the number of lost-time claims from toe injuries over recent years.

TABLE 85.—SAFETY FOOTWEAR AND INCIDENCE OF TOE INJURIES

Year Average

Employment Footwear subsidised (pairs)

' N o. of

lost-time toe accidents («)

Lost-time claims per million man-hours

worked (a)

1957 ............................................................. 16,659 nil. 353 12-0

1966-67 ..................................................... 12,076 7,379 81 3-5

1969-70 ..................................................... 13,497 8,908 48 1-9

1970-71 ..................................................... 14,116 9,326 63 2-4

1971-72 ..................................................... 14,331 10,395 84 3-4

1972-73 ..................................................... 13,734 10,051 70 3-0

1973-74 ..................................................... 13,494 8,978 83 3-7

1974-75 ..................................................... 14,447 10,074 89 3-7

1975-76 ..................................................... 15,175 9,860 107 4-4

1976-77 ..................................................... 15,787 14,770 84 3-1

7.10 During 1976-77 the Board continued a range of activities directed towards accident prevention. The activities included the supply to collieries of quarterly accident statistics, a supply of safety posters, a library of safety films and a scheme to subsidise the purchase of safety boots. The Board continues to be represented by Mr A. C. Girard on the

Coal Mines Safety Advisory Committee established by the New South Wales Government. The Committee met regularly during the year.

Colliery Employees’ Training R ebate Scheme

7.11 The Colliery Employee’s Training Rebate Scheme was introduced by the Board in 1970 to encourage colliery proprietors to assist mineworkers to qualify as deputies, under­ managers, managers, surveyors, and electrical and mechanical engineers.

7.12 Under the scheme, colliery proprietors are allowed a rebate of $1,500 on workers’ compensation insurance premiums for each sponsored employee who successfully completes any of the following examinations or courses: (a) Department of Mines examination for certificate of competency to be a deputy.

(b) Stages I, II, III, and IV of the Department of Technical and Further Education Certificate Courses in Coal Mining, Coal Mine Surveying, Electrical Engineering and Mechanical Engineering. These courses are designed to prepare students to sit for the appropriate Department of Mines examinations for statutory certificates of competency. (c) Department of Technical and Further Education Post-Certificate Course in

Coal Mining provided the Department of Mines certificate of competency to be a manager is subsequently obtained.

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7.13 The maximum number of rebates allowable in respect of any one mineworker is six. In a period of six years it is practicable for a mineworker to complete (a) both the coal mining and coal mine surveying certificate courses, or (b) both the electrical and mechanical engineering certificate courses.

7.14 The maximum number of rebates allowed for each colliery in any one year is two per cent of the colliery’s workforce and the proprietor must certify that he has met all college fees and paid the men concerned for all training time, whether on or off shift.

7.15 The number of rebates approved in 1976-77 was 214 compared with 185 in 1975-76. The 1976-77 rebates were distributed between the various courses and examinations as follows:

Deputy Certificate Examination .. . . .. .. .. 57

Coal Mining Certificate .. .. .. .. .. .. 55

Coal Mining Post-Certificate .. .. .. .. .. .. 1

Coal Mine Surveying Certificate ................................................ 55

Mechanical Engineering Certificate .. .. .. .. .. 24

Electrical Engineering Certificate .. .. .. .. .. 22

Total ...................................................................................214

P neumoconiosis Prevalence Study

7.16 Prevalence studies of pneumoconiosis occurring among working coal miners have been carried out at intervals since 1948. With the transfer of the Board’s medical histories of mineworkers to a computer data bank nearing completion, it was possible during 1976-77 to make a preliminary examination of the prevalence of pneumoconiosis as revealed during the routine medical examinations of mineworkers carried out between June 1970 and June

1973.

7.17 Pneumoconiosis is detected by observing radiographic changes in chest X-rays. Thus, progression studies which follow the history of individual mineworkers during their work life are regarded as of particular significance in measuring the degree to which pneumoconiosis is related to mining conditions. Such studies have been carried out in respect

of the workers at selected mines and wider studies are planned. The study reported below is a measure of the radiographic state of 13,099 persons, virtually all persons employed in the industry, with the exception of office workers and those persons with less than about three years experience. The study covers a three year period because most mineworkers

have a routine examination once every three years.

7.18 The current classification used to interpret chest X-rays is called the ILO U/C 1971 International Classification. The 1968 classification used category O to indicate no sign of pneumocomosis (pn) and three main categories, 1, 2 and 3 in ascending order of severity. The 1971 classification divides each of these grades into 3 sub-groups, thus enabling radiographs whose appearance falls between the older categories to be given an appropriate

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classification rather than arbitrarily placed into one or other of two broad groups neither of which was really appropriate. The new classifications are: 0/- 0/0 0/1—No radiological signs of pneumoconiosis 1/0 1/1 1/2—Early radiological pneumoconiosis

2/1 2/2 2/3—Recognisable radiological pneumoconiosis 3/2 3/3 3/4—Obvious radiological pneumoconiosis

7.19 This is an x-ray severity grading and in general has no relation to the clinical condition or health of the mineworker. In the absence of coincident respiratory or cardiac disease, coal dust retention in the lungs as seen on x-ray is not an indication of disability. It is generally recognised that physical disability does not usually occur before x-ray category

2 is reached and from then onwards deterioration is dependent on further dust exposure, plus the effects of ageing and cigarette smoking.

TABLE 86.—PNEUM OCONIOSIS PREVALENCE STUDY 1970-1973—NEW SOUTH WALES MINEWORKERS—EXCLUDING NEW ENTRANTS AND CLERICAL STAFF

Category ILO U/C/1971

Number Per cent

Category 0/0 . 0/1 .

Category 1 /0 . 1/1 ·

1/2 .

Category 2/1 . 2/2 .

2/3 .

Category 3/4 .

Total

10,533 1,973 }

95-5

403 162 17

1

I

4-4

3 5 1 0 0 8

2

13,099 1000

7.20 This new analysis shows that there were 11 mineworkers, or 0-08 per cent, with category 2/1 pn or worse, their average age being 55 years. There were 582 mineworkers, or 4-4 per cent, with category 1/0, 1/1 or 1/2 pn of whom 403 were category 1/0. The average age of the 582 men was 50-8 years.

7.21 The data currently analysed records the mine at which the employee was working at the time of, or had most recently worked prior to, the medical examination. This does not necessarily indicate the mine or the district in which most exposure had occurred. The following district prevalence rates are given subject to this qualification.

7.22 These results indicate the need for further examination of medical records and of the need for continual vigilance of mining operations and of the health of mineworkers.

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TABLE 87.—PNEUM OCONIOSIS PREVALENCE, N.S.W . MINEWORKERS—BY DISTRICTS, 1 9 7 0 -1 9 7 3

N o. examined Category 1/0 or worse Category 2/1 or worse

No. Per cent No. Per cent

South Maitland ................................ 1,102 66 6 0 nil 00

Singleton·—North W e st................... 1,233 39 3-2 2 0-16

Newcastle ........................................ 4,170 164 3-9 4 0-10

W e s t.................................................... 454 27 5-9 nil 00

Buiragorang Valley ....................... 1,156 35 3-0 1 0-09

South Coast .................................... 4,984 262 5-3 4 0 0 8

N.S.W ........................................... 13,099 593 4-5 | 11 0 08

7.23 The change in the system of x-ray classification means that direct comparison between the 1970-1973 prevalence study and earlier studies cannot be made. As shown in Table 86, there were 403 radiograms classed as category 1/0. These were borderline cases between the 1968 categories 0 and 1. Under the 1968 system some would have been placed in category 0 and some in category 1. Under the 1971 system all x-rays classified as 1/0 are now included as pneumoconiotics. Thus the use of the new classification causes an apparent increase in prevalence compared with the older system. If comparisons are to be made with

earlier studies then some allowance must be made for the change in the system of classification. Experts working in this field have indicated that it is probably reasonable to assume that half of the x-rays in category 1/0 would, using the 1968 classification, have been placed in category 0 and half in category 1.

7.24 Using this assumption the results of the 1970-1973 study can be expressed in terms of the 1968 classification as: Category 1—380 or 2-9 per cent Category 2 or worse—11 or 0-08 per cent

No additional adjustment has been made at the boundaries of category 2 since the numbers involved are very small. Using these adjusted rates the overall percentages of pneumoconiotics found in various prevalence studies of New South Wales mineworkers can be compared. The results are set out in Table 88.

TABLE 88.— COMPARISON OF PREVALENCE RATES USING 1968 CLASSIFICATION OF PNEUMOCONIOSIS—NEW SOUTH WALES COAL INDUSTRY

Date of survey 1948

1957 to 1960

1960 to 1963

1963 to 1965

1970 to 1973 (a)

Number of mineworkers exam ined................... 1,555 12,518 9,889 6,897 13,099

Percent of sample classified as having:— Progressive massive fibrosis ....................... 0-7 002 001 00 00

Pn. category 2 or worse ........................... 4-5 1-0 0*6 0-4 0Ό8

Pn. category 1 ............................................ 11-5 2-6 2-9 2-6 2-9

All pneumoconiotics ............................................ 160 3-6 3-5 3 0 3 0

(a) 19ΊΙ classification adjusted.

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7.25 The reduction in the prevalence of the more severe classifications is most marked, falling from 4-5 per cent of the 1948 sample to about 0.5 per cent during the 1960’s to less than 0-1 per cent during the early 1970’s.

M ovements in th e L a b o u r F orce

7.26 The net increase in employment in the New South Wales coal industry during 1976-77, after allowing for retirements, dismissals and resignations, was 437, close to the increase in the preceding year. This increase was achieved despite the dismissal of 334 men during the year. Included in the latter number were significant reductions in the level of manning at Stockrington No. 2, Belmont and Wongawilli. Throughout the year there were vacant positions at some mines but the number of vacancies fell sharply when Australian Iron

and Steel Pty Ltd, due to high coal stocks and reduced demand, adopted a policy of, in general, not replacing men who resigned or retired. Employment at the company’s mines fell by 143 between December 1976 and 2 July 1977 (including 73 dismissals at Wongawilli).

TABLE 89.—EMPLOYMENT CHANGES AND LEVEL OF UNEMPLOYMENT DURING RECENT YEARS—N .S.W . COAL INDUSTRY

Year ended June—

N o. of men dism issed...................

N o. of new entrants ...................

Net change in employment . . . .

N o. employed at end of year . . . .

N o. of mineworkers registered as unemployed at end o f year . . . .

1972 1973 1974

1,339 525 2 1 2

1,142 692 1,236

- 4 6 5 - 3 4 4 + 144

13,914 13,570 13,714

61 16 9

1975 1976 1977

94 362 334

1,931 1,375 1,264

+ 1,284 + 480 + 437

14,998 15,478 15,915

9 43 36

7.27 Table 89 summarises employment changes in recent years. For the purpose of this and the following table “new entrants” comprise new-comers to the industry, together with those who have re-entered the industry after having been away from it for at least two years. The number of new entrants accepted for employment fell to 1,264 in 1976-77,

close to the level in 1973-74 and well below the very high level of 1,931 in 1974-75. Because of a tendency for coal stocks to increase, there was throughout 1976-77 some concern regarding security of employment. However the number of employees continued to increase and the number of mineworkers registered with the Commonwealth Employment Service as

unemployed continued to be relatively low. Many of the men who were dismissed found employment within the industry, sometimes at mines operated by the same company.

7.28 An analysis of labour movements during 1976-77, showing separate data for each of the six coal mining districts, is given in Table 90. A total of 2,555 persons left their employment during the year. This total included the 334 dismissed men referred to above, and 2,221 “ other leavers” who resigned, retired or died. In 1975-76 other leavers had been

185

1,955. The number of starters, at 2,992, included 1,264 new entrants and 1,728 others, most of whom would have been men who had resigned from other mines, or having been dismissed, accepted offers of positions at other mines. As in 1975-76 the net result was an increase in employment in all districts except South Maitland.

7.29 For each of the three northern districts the level of labour turnover was higher in 1976-77 than in 1975-76. For the Burragorang Valley labour turnover was lower, with the number of leavers falling from 151 to 118 and the number of starters from 264 to 144.

TABLE 90.—EMPLOYMENT CHANGES—N.S.W . COAL INDUSTRY— 1976-77

South Maitland Singleton- North

West

New­ castle West

Burra­ gorang Valley

South Coast Total

Leavers— Dismissed ........................... 73 18 170 73 334

Others (a) ............................ 241 370 674 127 i i s 691 2 ,2 2 1

Total ................................ 314 388 844 127 118 764 2,555

Starters— N ew entrants (b) ............... 25 230 21 1 117 105 576 1,264

Others (c) ........................... 243 341 634 80 39 391 1,728

Total ................................ 268 571 845 197 144 967 2,992

Change in total employment - 46 + 183 + 1 + 70 + 26 + 203 + 437

Employment 2 July, 1977 . . . . 782 2,081 4,876 949 1,477 5,750 15,915

(a) “ Other leavers” includes retirements because o f age or ill-health, death and resignation.

(b) “New entrants” are persons obtaining employment at a mine, not having been so employed during the preceding two years and been accepted as medically fit for such employment.

(c) “ Other starters” includes men who commenced work at mines following resignation or dismissal at the same or other mines.

TABLE 91.—NUMBER OF N.S.W. MINEWORKERS REGISTERED AS UNEMPLOYED AT SELECTED DATES

Commonwealth Employment Service area

27 June 1975

2 July 1976

1 Oct. 1976

31 Dec. 1976

1 April 1977

2 July 1977

Charlestown ....................................

Cessnock ........................................ 28 2 0 14 8 12

Maitland ........................................ 2 3 4 3 4 5

Newcastle ........................................ 4 1 2 , ,

Lithgow ............................................ 2

Wollongong .................................... 3 9 8 i i 14 19

Total .................................... 9 43 34 29 26 36

N o. o f mineworkers employed .. 14,998 15,494 15,594 15,784 15,999 15,915

186

7.30 Table 91 shows for selected dates the number of minworkers registered as unemployed with the Commonwealth Employment Service. Throughout 1976-77 the total was lower than in June 1976, falling to 26 on 1 April 1977, but increasing to 36 on 2 July 1977.

7.31 On 2 July 1977 advice was received by the Board of the existence of about 65 vacancies. This number included 10 deputies, a number of shotfirers, some tradesmen, several staff and some members of the Miners’ Federation.

E a r n in g s of E mployees

7.32 In 1975-76 the average amount earned by New South Wales coal miners was $12,981 per employee, $1,924 more than in 1974-75. A survey carried out in respect of the week ended 3 July 1976 showed that the average earnings at the end of 1975-76, at $294, were well above the average rate of $250 per week achieved over the whole year. Earnings include

award and over-award payments, allowances and special rates and overtime. Average earnings for 1976-77 were not available at the time this report was being prepared.

7.33 Wages and salaries paid to New South Wales mineworkers in 1975-76 amounted to $199,457,000. Average weekly earnings for each of the six coal mining districts are given in Table 92. They were prepared by the Commonwealth Statistician. The 1975-76 data reveals considerable variation from a low of $209 per week in the South Maitland district to $365 per week in the Burragorang Valley. Earnings in all districts, except the Burragorang Valley, were seriously reduced during the earlier months of the year as a result of an industrial

dispute. For Queensland, average weekly earnings in 1975-76 were $268 per employee.

TABLE 92.—WAGES AND SALARIES—N.S.W . COAL INDUSTRY—AVERAGE PER EMPLOYEE PER WEEK

1972-73 1973-74 1974-75 1975-76

$ $ $ $

South Maitland .................................... 113 130 178 209

Singleton-North West ........................... 138 166 236 279

Newcastle ................................................ 130 148 198 227

West ......................................................... 151 175 219 269

Burragorang Valley ............................... 127 2 0 2 290 365

South Coast ............................................ 129 144 205 233

N.S.W .................................................... 129 153 213 250

Source-—Australian Bureau o f Statistics.

7.34 The adjacent graph shows the growth in average weekly earnings of New South Wales mineworkers from 1968 to 1975-76. Also indicated are the average earnings of these workers in each of three surveys. The Board did not carry out a wage survey during 1976-77. In addition, the graph shows the levels of average weekly earnings per adult male unit in

New South Wales.

187

WEEKLY WAGES AND SALARIES

AVERAGE PAID PER CAPITA

NEW SOUTH WALES

P E R W E E K $ C o a l M i n e s - a v e r a g e e a r n i n g s

★ M a y 1 9 7 4 S u r v e y .

* J a n u a r y 1 9 7 5 S u r v e y .

- A - J u n e 1 9 7 6 S u r v e y .

Q U E E N S L A N D .

N . S . W .

N . S . W . C O A L M I N E R S

A V E R A G E OE A N N U A L E A R N I N G S

O ' L O *

N . S . W

Q U E E N S L A N D ★ * /

- . . I - · " 1"

M I N I M U M W A G E

( A D U L T M A L E -

S Y D N E Y )

1968 1969 1970 1971 1972 1973 1974 1975 1976 1977 Y E A R

188

7.35 Wage rates, coal prices and the level of the export tax have all changed rapidly in recent years. Total wages and salaries paid as a percentage of total pit-top value of coal produced was 41.9 per cent in 1972-73, and 45.5 per cent in 1973-74, fell to 36.3 per cent in 1974-75 and to 30.4 per cent in 1975-76. However, if the revenue collected by the export

tax is deducted from the pit-top value, wages represented 32.3 per cent.

7.36 The production bonus continues to be an important component in the earnings of almost all New South Wales mineworkers. During the year ended December 1976 the average payment per week was $45. The district averages are shown in Table 93. Since 1974 the average bonus has increased by 60 per cent. For Western district and Burragorang Valley mineworkers the increase has been at least 90 per cent and the average bonus per week exceeded $80 in 1976.

TABLE 93.—LEVEL OF BONUS— COMPARISON—AVERAGE PRODUCTION BONUS PER WEEK PER EMPLOYEE—N.S.W. COAL INDUSTRY

District

Year 1974

Year 1975

Year 1976

South Maitland.............................................................

$

1 1 .2 0

$

14.60

$

16.10

Singleton-N.W............................................................... 36.65 44.00 44.60

28.50 28.20 40.80

West .......................................................................... 45.45 67.80 89.50

Burragorang V a lle y ..................................................... 42.35 74.90 80.50

South Coast ................................................................. 23.55 29.00 36.50

28.20 36.00 45.00

A w a r d V ar iatio ns

7.37 Award variations during 1976-77 comprised the application of the National Wage decisions of the Conciliation and Arbitration Commission providing wage increases as follows: (1) Commission decision of 12 August. Award rates above $166 per week increased

by 1.5 per cent and those below $166 increased by $130 per annum. (2) Commission decision of 22 November. Award rates increased by 2.2 per cent. (3) Commission decision of 31 March. Award rates increased by $5.70 per week. (4) Commission decision of 24 May. Award rates up to $200 per week increased

by 1.9 per cent and rates above $200 per week increased by $3.80 per week.

As a result the award rate for a coal cutting machineman has varied as follows: $

17 May 1976 ................................................ 175.00

16 August 1976 .. ......................... 177.60

22 November 1976 .. 181.50

4 April 1977 187.20

30 May 1977 ................................................ 190.80

189

A P P E N D IX 1

DECISIONS OF THE COAL INDUSTRY TRIBUNAL

1. During the twelve months ended 30 June 1977 the Coal Industry Tribunal issued ninety-one reported decisions, orders or awards including the following:

The C lutha I nterim A ward

2. On 6 August 1976 (CR print N o. 2500) the Tribunal issued its decision upon an application by Clutha Development Pty Limited for a variation of the “Clutha Interim Award” in consequence of increases in the Consumer Price Index for the 1976 March and June quarters.

3. The application in effect sought reversal of a decision by the Tribunal on 11 June 1976 (CR print N o. 2498) and in determining the matter the Tribunal said, in te r a lia , that:

“The decision which it is now sought to have reversed refused the application on the ground that it was a time to call a halt to the Tribunal’s approbation of a situation of diverging award rates. On that occasion I also said:

“In the absence of any union denial of Mr Winning’s fears that ratification by the Tribunal by way of a consent award could lead to industrial unrest—a denial that was forthcoming in February, but not in the present proceedings—I consider that this argument is of itself sufficient to warrant my refusal of the application and the matter is so decided.” On this occasion it was made clear that the Clutha system of adjustment of base rates on economic grounds is regarded by the unions as setting the pace for the industry generally.

In these circumstances to re-open the earlier decision must involve the implication that the basis of the decision of 15 September with regard to wages was wrong. To grant the application to adjust the Clutha interim award in the manner sought by the company as a result of the March movement of the Consumer Price Index would undermine the decision of 15

September, action which is untenable. Further, granting the application would approve the arrogation by Clutha Development Pty. Limited to itself of the right to set award rates of pay for the coal mining industry in general, for in the recent history of this industry the continued assertion by the company that the Tribunal should approve variations to the base wage it pays its employees, amounts to nothing less than that. The arguments in support of the application, summarised earlier, may establish that the interests of the parties immediately concerned and indeed the revenue needs of governments, have been well served but these are, in my belief, outweighed by the matters referred to in this paragraph when considering what is “right and fair . . . having regard to the interests . . . of society as a whole”.

I therefore refuse the application in so far as it relates to the March quarter, but in pursuance of the request that an appropriate order be made, I propose to vary the “Clutha Interim Award" by providing for the same increases as applied to all other employees in the industry for that quarter. Similarly the said increase of $3.80 per week shall operate as from

17 May 1976, with an additional increase of $1.10 per week for ‘A ’ Division staff employees to operate as from 7 June 1976. So far as that part of the application is concerned which seeks to apply the June quarter movement in the Consumer Price Index, I stand it over generally. It may be revived when it is clear what (if anything) will be applicable to the coal mining industry generally as a result of

that Consumer Price Index movement.”

West Cliff C olliery Project

4. Following receipt of a notification from the Amalgamated Metal Workers Union of a dispute between it and a number of contractors performing work at the West Cliff mining project, the Tribunal summoned a compulsory conference of the parties and after discussion decided to convene a sitting of the Tribunal to hear and determine the following question:

Is the work being performed by the employees of Coal Development Services, Hornibrook Group, Torresan Engineering Pty Limited, Warman International Limited and Transfield Pty Limited at West Cliff Colliery work within the coal mining industry for the purposes of the Coal Industry Acts?

5. An inspection of the site took place on 30 July and the hearing proceeded at Sydney on 2nd and 3rd August 1976.

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A P P E N D IX 1— c o n tin u e d

6 . The Tribunal in its decision (CR print N o. 2501) found on the facts of the case that no dispute existed between Coal Development Services and Amalgamated Metal Workers’ Union and after referring to other facts and circumstances of the case as disclosed by the evidence; the submissions of the parties and previous decisions, including that of the Tribunal in the N ew Redhead Railway case (CRB print N o.

1003), that o f Kelly J. in the Kemira Tunnel case (1949 N.S.W. A.R. 143) and that of the High Court in the National Oil Company case (6 8 CLR 51), the Tribunal determined the question in manner following: “I . . . hold that the fact that the activity is being carried on at a project which falls within the definition o f a coal mine under the Coal Mines Regulation Act is not the sole determinant

of the issue, although it is one o f the many facts that have to be taken into account. In this connection, D ixon J., as he then was, said at page 141 o f the Thiess (Repairs) case (supra): “The difference must depend on circumstances, the chief of which must be separateness of

establishment in point of control, organisation, place, interest, personnel and equipment. It must in the end come down to a matter of degree” . In such a situation the existence o f the roping-in award cannot affect the limits of what is the coal mining industry for the purpose of the Acts under which the award is made. The award cannot have wider scope than the Act

under which it is made.

To determine the question it is therefore necessary to look at the whole of the evidence. That evidence discloses: (1) The West Cliff project is regarded as a mine under the Coal Mines Regulation Act for the purpose of enforcing safety regulations on the site.

(2) O f the employees affected by the application, the majority are based off the site—that is it is anticipated that on completion of the West Cliff contracts they will go elsewhere with the same employer, doing the same kind o f work they are currently doing. (3) The work being done by the employees has, apart from the site, no special connection

with coal mining. (4) The four employers are supplying services to West Cliff which they supply to many other industries and the services being supplied to West Cliff do not in any sense represent a substantial part o f their activities.

(5) N o coal is currently being produced. In my opinion the cumulative effect of the evidence leads inexorably to the conclusion that the four employers with whom I am now concerned and their employees are not engaged in the coal mining industry for the purpose of the Coal Industry Acts. Therefore, the answer

to the question raised is no” .

N ational W age I ncreases

7. On 20 August the Tribunal extended to mine workers the National Wage increases that had been awarded on 12 August 1976 to other workers by the Australian Conciliation and Arbitration Commission.

8 . Junior rates and experienced tradesmen’s rates were increased by two per cent, adult rates up to $166 per week were increased by $2.50 a week and those for adults above $166 per week were increased by one and a half per cent. The increases became operative from 16 August 1976 (CR print N os 2502 to 2513 inclusive).

U nion C laims—E mployer Counter C laims

9. On 14 September 1976 (OR print N o. 2514) the Tribunal delivered its decision on 24 union claims and 4 employer counter-claims that had been submitted to it for determination.

10. The union claims related to an employment guarantee, annual leave, sick leave, long service leave accident pay, longwall mining allowance, minimum rate, meal break, meal allowance, collection o f union dues, industrial clothing, shift allowances, special rates, washing plants, bonuses, severance pay, overtime, call backs, holiday work, travelling allowance, compassionate leave, and three particular claims, namely gratuity payment, shift seniority and superannuation made on behalf of deputies and shotfirers.

11. The counter claims related to a “52 week working year”, spread of ordinary hours, tolerance times, and severance pay.

12. The hearing of the claims and counter claims occupied 27 sitting days and inspections were conducted at the Newdell, Lemington, Burwood and Wallarah washeries.

191

A P P E N D IX 1— con tin u ed

13. In its decision the Tribunal retraced the history o f the dispute which had given rise to the claims and counter-claims and after having stated the current overall picture o f the industry to be:

“(1) Production is rising, currently at a slower rate than in recent years.

(2 ) Employment is rising relatively rapidly.

(3) Output per manshift is showing different trends in the four main sections of the industry, when 1975 is compared to 1969-70—rising in New South Wales open cuts, falling in both underground and open cut mines in Queensland and oscillating in New South Wales underground mines. (4) There has been a significant upward trend in manshifts lost for all reasons expressed as a

percentage of manshifts possible.

(5) Wages have risen sharply since 1974.

(6) In New South Wales accident claims have risen at a rate faster than has total employment.

(7) The rate of capital expenditure is increasing but this has maintained production rather than increased it.

(8) Exports are showing different trends in the last year. Exports to Japan from New South Wales were growing, but exports elsewhere have fallen. Exports from Queensland overall are growing. (9) There are certain sections of the industry in New South Wales experiencing difficulty in

finding markets and stocks in both states are growing. (1 0 ) The open cut and underground sectors o f the industry have differing needs and requirements over a wide range o f matters. (11) Notwithstanding items (1) to (9) no argument is raised by employers of their capacity to

pay.”

then dealt in turn with the union claims, the wage indexation package and the employers’ counter-claims.

14. The Tribunal’s conclusions on the matters dealt with were summarised thus:

The U nion C laims

For the reasons now published the Tribunal has decided that: (a) Payment for all unused sick leave be made to an employee who is retrenched, whose services are terminated because o f age or ill health or who dies, provided that at the date thereof his unused sick leave exceeds 1 0 days; (b) Long service leave accrue under relevant awards at the rate o f “five thirty-seconds o f a

shift for each five shifts worked” instead o f “for each five consecutive shifts worked” ; (c) An employee shall not be compelled to work for more than 5 hours without a break for crib; -

(d) The meal allowance be increased to $2.00 per meal; (e) Where appropriate and as from January next an employee be provided with one pair of safety boots per year without charge; ff) Open-cut shift allowances be increased to $1.00 per shift for afternoon shift and $2.00 per

shift for night shift; (g) A disability allowance of $6.50 per week be paid to employees employed in and around washeries. Such payment to be in substitution for all other disability payments except water money; (h) The existing severance pay provision be replaced by a provision to apply to any employee

who has completed a minimum o f five years continuous employment with the one employer at one or more mines or establishments within the coal mining industry and is retrenched because of a reduction of hands; (i) The existing travelling allowance provision with respect to employees who finish overtime

when their normal means of transport are unavailable be extended to cover preshift overtime.

192

A P P E N D IX l — c o n tin u e d

(j) Bereavement leave be applicable to deaths outside Australia, that it embrace the death of an employee’s step-child or parent-in-law and that “spouse” and “parent” include “de facto wife or husband” and “foster parent” respectively; (k) The shift seniority claim by deputies and shotfirers be upheld in principle, but be the subject

of discussion between the parties for the purposes of drafting a suitable award provision; (l) Decisions on the accident pay claim, longwall allowance and the wage claim for deputies and shotfirers be deferred; (m) All other union claims be refused.

The E mployer Counter C laims

Also for the reasons now published the Tribunal has decided that:

(i) The claim seeking abolition o f tolerance times again be refused but with such rejection being entirely without prejudice to applications made to local authorities on particular facts and circumstances. This decision is not to be seen as in any way inhibiting the possibility o f local agreements on the abolition or reduction of tolerance times; (ii) The claim for a five shift roster for non-productive work spread over the seven days of the I week is also refused but in regard to open-cut examiners at both Blackwater and Moura

I the parties are directed to confer in an attempt to effect a better arrangement. In the

$ absence o f agreement, leave is reserved to the Queensland Coal Owners’ Association to make application for appropriate orders in relation to that classification; (iii) The claim for a 52 week working year for production is also refused.

D ate of O peration and D uration

Except with respect to safety boots, the improvements arising from this decision will operate, on and from Monday, 20 September 1976 and after having considered the submissions o f Messrs ; Phillips and Cram for the unions and of Messrs Winning and McLeod for the employers I have decided that the said variations dealing with conditions of employment should remain in force for

a period o f two years thereafter or until further order. Formal orders for variation will issue as early as practicable.”

ij Clutha I nterim A ward H 15. On 18 September 1976 (CR print N o. 2515) the Tribunal again dealt with an application by ! ? Clutha Development Pty Limited for ratification of wage indexation increases.

i | 16. After stating the principles applicable to such matters to be: i “ 1. The agreement relied on is not one made in writing before the Tribunal and the application is again evaluated on the arguments presented before me. :: 2. The award wage fixation processes of the Tribunal are currently determined, so far as matters : within the industry are concerned by the principles enunciated on 15 September 1975 which

are referred to on pages 2 and 3 of the “Clutha” decision, issued on 6 August 1976 (CR print j N o. 2500). There are additional matters which in the public interest are to be considered

i and these are summarised in the decision on the claims for award variations issued today. : I quote from page 37 of that decision:

“By now it should be apparent to all that so far as wage claims are concerned, a party which comes before the Tribunal seeking wage increases outside the principles of wage fixation laid down by the Commission bears, in addition to the usual onus of establishing that the increases sought are justified on industrial grounds, the onus of showing that

it is not against public interest that an exception should be made to the general rule that there should be no wage increases outside those principles.” ’ the Tribunal again rejected the application and in so doing said: “I have listened carefully to union arguments in support of the application, but neither they nor the applicant company have convinced me that I should grant it. Rather, I am totally unconvinced that a case has been made out which satisfies the tests referred to above. Nothing has been said which convinces me that employees of Clutha Development are entitled to wage increases, based solely on national economic grounds, higher than those applicable to mineworkers generally or the bulk of the nation’s workforce.

193

G 44102J— 13

A P P E N D IX 1— c o n tin u e d

Whatever benefits the alleged agreement may have conferred on the company and its employees, the continued attempts by the company to seek arbitral approval of wage adjustments outside the principles applied to the rest of the industry could prove industrially divisive and merits the strongest condemnation. This is particularly so in the light of the present wage structure of the industry, its industrial history over the last two years and what I have said earlier

on this occasion. For these reasons I refuse the application in the terms in which it is brought. Since Mr Brown has shown this morning that the company has in the past pursued its own course whatever the views of the arbitral body charged with the responsibility for the industry in which the company so profitably operates, I would accede to Mr Cram’s argument, though not accepting his reasons, that no o th e r o rd e r should be m a d e .”

Extraction of Pillar C oal U nder Tidal W aters

17. The Tribunal’s decision upon an application by mining unions for a 20% wage increase for mining pillar coal under tidal waters at Newvale No. 2 Colliery was delivered on 22 November 1976 (CR print No. 2524).

18. After having summarised the respective cases submitted by the parties, the Tribunal dealt with an “apprehension” argument advanced by the unions by stating that: “It appears from the evidence that the removal of pillars is effectively prohibited at any mine without the consent of the Minister for Mines (section 53ba of the Coal Mines Regulation; Act).

The management of Newvale No. 2 made application for such consent in August 1974. The consent was given in October 1975 subject to a set of guidelines, one of which, the evidence discloses, is apt for the removal of pillars whatever the nature of the cover and the second of which is headed “Guidelines for extraction of coal under tidal waters” . That consent followed, apart from any

departmental consideration a comprehensive report on mining under tidal waters prepared by Mr K. Wardell, an English consulting mining engineer, commissioned by the Minister for Mines. The report deals specifically with mining under tidal waters in the area in question and recommends procedures and restrictions for safe working. It counsels continuing supervision of the operation and the evidence discloses that one form of such supervision was undertaken by the special committee for investigating pillar extraction methods in the Newvale-Munmorah area. This body, on which are representatives of management, men and the Department of Mines apparently has a brief as wide

as its name implies but, on its visits to Newvale No. 2 on June last concerned itself with the goaf fall and the water referred to in Mr Hoddinott’s evidence. The report of the committee was tendered (Exhibit 2) and it contains the conclusion that: “The committee generally felt that pillar extraction of the area was being done within the

guidelines set down and that if this continued it should be satisfactory . . . The Committee consider that the management and men were to be congratulated on a job being well done.” Mr Williams states—and the other employer witnesses supported him—that if the operation is carried out within the guidelines it is safe although he agreed that safety in mining is relative. Assertions of this nature and the evidence on safety matters generally given by management witnesses were thoroughly probed and tested by Mr Phillips. They were not shaken.” -

19. On the industrial merits of the claim the Tribunal said:

“However, the evidence and inspections lead me to the conclusion that the care, skill and responsibility exercised by machine crews in pillar extraction under tidal waters at Newvale No. 2 are no greater than those required of such operators elsewhere. In specific terms, the evidence and the inspections at Newvale No. 2 and Chain Valley leave me in no doubt that the work being performed by face crews at the latter is of the same high order as that at Newvale No. 2 and that in each case the types of skill, co-operation and physical effort are of a kind comprehended in the fixation of award rates of pay for such operations from time to time (see CR print No. 1888, especially pages 13 and 54).

The only distinguishing feature of the work currently being carried out in certain places underground at Newvale No. 2 is that it is being carried out under tidal waters. The union witnesses all deposed that they were always conscious of the body of water above them. It is that consciousness which I conclude leads to the “apprehension” relied on by Mr Phillips. It is distinguishable from

194

A P P E N D IX 1— c o n t in u e d

any feeling of danger in a tangible sense and consequently does not raise a safety issue. I do not see it as justification for a general increase in award rates for the whole of the employees at a mine. It cannot in any event, justify an increase in award rates for workers on the surface and even for those working underground I cannot see any measurable way in which it can be distinguished from

a consciousness of other factors, like poor roof, gas or heatings.”

20. Turning to the last ground relied upon by the unions—a claim that the colliery’s economic ability was improved by the fact that reserves imder water might now be recovered—the Tribunal said: “The union witnesses put the claim as having been aired at meetings of the men. I have had occasion to note before that economic considerations have played a part in previous decisions of the

Tribunal but I cannot accept that the value of the work being performed by all employees at a colliery is affected in any way at all by the reserves of coal available to it. In this respect the position at Newvale No. 2 is completely distinguishable from the position which gave rise to the decision reported in CR print No. 1034 and which extended to the whole industry—including those not directly

concerned with the mechanical extraction of pillars—part of the economic value of the increased productivity expected by the then new development. I also agree with Mr Winning that if the availability of additional reserves is to be accepted as a ground to increase rates, then a contraction of such reserves should result in a reduction in classification rates.”

21. The Tribunal then rejected the claim and finally said: “In rejecting the arguments on responsibility and related work value matters I should not be taken to be dissenting from the views expressed by Gallagher J. in CR print Nos 1034 and 1604, especially the statement in the latter reserving to the Miners’ Federation the right to apply to a Local

Coal Authority for an additional payment where it is claimed that special difficulties in pillar extraction exist. Indeed, the novelty of the present operation, the fact that the Wardell Report recommends continued review of working procedures and the possibility of variations from mine to

mine and even within a mine suggest that that reservation should be re-expressed in this case—and I so do.”

I a t io n a l W a g e I nc reases

22. Consistently with the decision of the Australian Conciliation and Arbitration Commission, ublished on 27 November 1976, the Tribunal, on 30 November 1976 increased all weekly award rates »r mineworkers by 2-2%. It also increased leading hand and experienced tradesman’s allowances by ■2%. The increases took effect on and from 22 November 1976 (CR print Nos 2525 to 2536 inclusive).

C ollieries’ Staff C laims

23. On 9 March 1977 (CR print No. 2541) the Tribunal delivered its decision upon claims by the tustralian Collieries’ Staff Association which sought: (1) A restoration of salary relativities. (2) Amendment of the hours agreement.

(3) Implementation of equal pay for female officers on the principles adopted by the Conciliation and Arbitration Commission in the 1972 National Wage and Equal Pay Case (147 C.A.R. p. 172). (4) The abolition of incremental scales in certain classifications.

(5) An award prescription with respect to employment agreements. (6) Preference in employment. In addition application was made for the extension to New South Wales of classifications already existing in the Queensland section of the award, viz. dust sampler and laboratory assistant and these are now grouped as:

(7) New classifications.

24. The hearing which commenced on 8 December 1976, occupied fourteen sitting days with nspections on a further two days. Sixteen witnesses were called by the applicant Association and four witnesses were called by the respondent employers.

195

A P P E N D IX 1— c o n t in u e d

Whatever benefits the alleged agreement may have conferred on the company and its employees, the continued attempts by the company to seek arbitral approval of wage adjustments outside the principles applied to the rest of the industry could prove industrially divisive and merits the strongest condemnation. This is particularly so in the light of the present wage structure of the industry, its industrial history over the last two years and what I have said earlier on this occasion.

For these reasons I refuse the application in the terms in which it is brought. Since Mr Brown has shown this morning that the company has in the past pursued its own course whatever the views of the arbitral body charged with the responsibility for the industry in which the company so profitably operates, I would accede to Mr Cram’s argument, though not accepting his reasons, that no other order should be made.”

Extraction of Pillar Coal U nder Tidal Waters

17. The Tribunal’s decision upon an application by mining unions for a 20% wage increase for mining pillar coal under tidal waters at Newvale No. 2 Colliery was delivered on 22 November 1976 (CR print No. 2524).

18. After having summarised the respective cases submitted by the parties, the Tribunal dealt with an “apprehension” argument advanced by the unions by stating that: “It appears from the evidence that the removal of pillars is effectively prohibited at any mine without the consent of the Minister for Mines (section 53ba of the Coal Mines Regulation; Act).

The management of Newvale No. 2 made application for such consent in August 1974. The consent was given in October 1975 subject to a set of guidelines, one of which, the evidence discloses, is apt 1 for the removal of pillars whatever the nature of the cover and the second of which is headed “ Guidelines for extraction of coal under tidal waters”. That consent followed, apart from any I departmental consideration a comprehensive report on mining under tidal waters prepared by Mr K. Wardell, an English consulting mining engineer, commissioned by the Minister for Mines. The report deals specifically with mining under tidal waters in the area in question and recommends procedures and restrictions for safe working. It counsels continuing supervision of the operation and the evidence discloses that one form of such supervision was undertaken by the special committee for investigating pillar extraction methods in the Newvale-Munmorah area. This body, on which are representatives of management, men and the Department of Mines apparently has a brief as wide as its name implies but, on its visits to Newvale No. 2 on June last concerned itself with the goaf fall and the water referred to in Mr Hoddinott’s evidence. The report of the committee was tendered (Exhibit 2) and it contains the conclusion that:

“The committee generally felt that pillar extraction of the area was being done within the guidelines set down and that if this continued it should be satisfactory . . . The Committee consider that the management and men were to be congratulated on a job being well done.” Mr Williams states—and the other employer witnesses supported him—that if the operation is carried out within the guidelines it is safe although he agreed that safety in mining is relative. Assertions of this nature and the evidence on safety matters generally given by management witnesses were thoroughly probed and tested by Mr Phillips. They were not shaken.” -

19. On the industrial merits of the claim the Tribunal said: “However, the evidence and inspections lead me to the conclusion that the care, skill and responsibility exercised by machine crews in pillar extraction under tidal waters at Newvale No. 2 are no greater than those required of such operators elsewhere. In specific terms, the evidence and the inspections at Newvale No. 2 and Chain Valley leave me in no doubt that the work being performed by face crews at the latter is of the same high order as that at Newvale No. 2 and that in each case the types of skill, co-operation and physical effort are of a kind comprehended in the fixation of award rates of pay for such operations from time to time (see CR print No. 1888, especially pages 13 and 54).

The only distinguishing feature of the work currently being carried out in certain places underground at Newvale No. 2 is that it is being carried out under tidal waters. The union witnesses all deposed that they were always conscious of the body of water above them. It is that consciousness which I conclude leads to the “apprehension” relied on by Mr Phillips. It is distinguishable from

194

A P P E N D IX 1— c o n t in u e d

i any feeling of danger in a tangible sense and consequently does not raise a safety issue. I do not see it as justification for a general increase in award rates for the whole of the employees at a mine, ί It cannot in any event, justify an increase in award rates for workers on the surface and even for ; those working underground I cannot see any measurable way in which it can be distinguished from

a consciousness of other factors, like poor roof, gas or heatings.”

20. Turning to the last ground relied upon by the unions—a claim that the colliery’s economic «ability was improved by the fact that reserves under water might now be recovered—the Tribunal said: “The union witnesses put the claim as having been aired at meetings of the men. I have had 1 occasion to note before that economic considerations have played a part in previous decisions of the

Tribunal but I cannot accept that the value of the work being performed by all employees at a colliery is affected in any way at all by the reserves of coal available to it. In this respect the position at Newvale No. 2 is completely distinguishable from the position which gave rise to the decision reported in CR print No. 1034 and which extended to the whole industry—including those not directly

concerned with the mechanical extraction of pillars—part of the economic value of the increased productivity expected by the then new development. I also agree with Mr Winning that if the availability of additional reserves is to be accepted as a ground to increase rates, then a contraction of such reserves should result in a reduction in classification rates.”

21. The Tribunal then rejected the claim and finally said: “In rejecting the arguments on responsibility and related work value matters I should not be taken to be dissenting from the views expressed by Gallagher J. in CR print Nos 1034 and 1604, especially the statement in the latter reserving to the Miners’ Federation the right to apply to a Local Coal Authority for an additional payment where it is claimed that special difficulties in pillar extraction exist. Indeed, the novelty of the present operation, the fact that the Wardell Report recommends continued review of working procedures and the possibility of variations from mine to mine and even within a mine suggest that that reservation should be re-expressed in this case—and

I so do.”

N a t io n a l W a g e I n c r e a ses

22. Consistently with the decision of the Australian Conciliation and Arbitration Commission, published on 27 November 1976, the Tribunal, on 30 November 1976 increased all weekly award rates for mineworkers by 2-2%. It also increased leading hand and experienced tradesman’s allowances by 2-2%. The increases took effect on and from 22 November 1976 (CR print Nos 2525 to 2536 inclusive).

C ollieries’ State Claims

23. On 9 March 1977 (CR print No. 2541) the Tribunal delivered its decision upon claims by the | Australian Collieries’ Staff Association which sought: (1) A restoration of salary relativities. (2) Amendment of the hours agreement.

(3) Implementation of equal pay for female officers on the principles adopted by the Conciliation and Arbitration Commission in the 1972 National Wage and Equal Pay Case (147 C.A.R. p. 172). (4) The abolition of incremental scales in certain classifications.

(5) An award prescription with respect to employment agreements. (6) Preference in employment. In addition application was made for the extension to New South Wales of classifications already existing in the Queensland section of the award, viz. dust sampler and laboratory assistant and these are now grouped as:

(7) New classifications.

24. The hearing which commenced on 8 December 1976, occupied fourteen sitting days with inspections on a further two days. Sixteen witnesses were called by the applicant Association and four Witnesses were called by the respondent employers.

1 9 5

A P P E N D IX 1— c o n tin u e d

25. Dealing with items (1) and (2) together, the Tribunal summarised the evidence and submissions of the parties and said, inter alia: . . in the light of the evidence put before me on this occasion, I believe that the present agreement undervalues overtime actually worked by “A” division “staff” to such an extent that the

m o n e ta r y compensation now made is no longer adequate and is a direct cause of the anomaly that in some situations supervisors working the same hours as their subordinates receive less than them. Another feature of the agreement which is conducive to this is the failure to differentiate fully between time worked between Monday and Friday and that worked on week-ends or holidays. As the award to which the agreement was related in CR print No. 2054 has since run its term, it seems to me that in all of the circumstances the time is now appropriate to adopt the suggestion first put forward by

Mr Winning in 1970 and to relate the hours for the “A” division (other than statutory officials) to the standard hours in the industry. The provision submitted by the Association will therefore be adopted in principle, but on the understanding that the existing figure of 50 hours is to be reduced to 44 hours as proposed by Mr Winning in 1970.” and then with respect to “in charge A” division classifications went on to say:

“In the absence of evidence to support it I do not believe it proper to prescribe overtime payments for such classifications. However, the anomaly which affected the majority of “A” division staff applies with equal force to this minority, and in the circumstances I believe the appropriate action is to re-appraise the award rates position for these classifications. In the 1970 case they were awarded a 20 per cent increase substantially by consent and the new rates now to be adopted have taken into account their exclusion from the new hours prescription for other “A”

division classifications. The award will be varied to provide as follows: C la s s ific a tio n —

Under-manager (in charge)— (a) at mines producing less than 300 tons of coal per day (b) all others .. . . .. . . ..

Engineer-electrician (in charge) .. . . ..

Engineer (in charge) . . .. . . ..

E lectrician (in charge) . . . . . . ..

Rate per week $ .

312.90 329.80 316.80

316.80 316.80.”

26. Dealing with the “equal pay” claim the Tribunal said: “As an interim measure I propose to substitute the rates at present payable under the award for clerks, both juniors and adults of the age of 21 years, for the rates payable thereunder to all employees currently classified as females. This course of action could, of course, result in a situation in which a female above the age of 22 years and performing general duties of a repetitive nature may, if classified as an adult clerk, be in receipt of a higher rate of wage than a senior stenographer or comptometer operator. But on the limited amount of relevant evidence before me I am satisfied that this is the only course presently open for adoption. Also on an interim basis, the present “keyboard” allowance will be retained. In view of the way in which the 1972 decision of the Conciliation and Arbitration Commission has been implemented I strongly hold th e v ie w th a t the “female” classification should be eliminated from the award and upon the presentation of a full and proper case as to the duties performed throughout the industry by persons currently classified as - - - - - - . - - - “females” this course of action may be capable of fulfillment, to seek to have this matter reopened at any time.” Leave is reserved to any of the parties said:

27. Turning to the question of incremental scales, the Tribunal rejected the claim and in so doing

“The evidence on the matter establishes that there is potential for inflexibility and frustration in certain cases. It certainly does not establish that there is any real industrial merit in the application —particularly when considered against the background of the multiplicity of awards in the clerical field which retain—it would seem in a positive rather than passive fashion—incremental scales. Taking note of Mr Lawrie’s observations that companies might be expected to take action to recognise individual cases of initiative, interest or ability and subject to some doubt as to whether years of age over 21 are to be preferred to years of service as an adult at the higher end of the scales I reject the application.”

28. As to the claim with respect to employment agreements under which heading the Association sought the insertion in the award of a clause requiring employers to submit terms of employment for “staff” positions to the Association for its approval prior to entering a contract of employment with the proposed employee, the Tribunal, after having stated that the evidence in support “centred on the

196

A P P E N D IX 1— c o n t in u e d

relationship between Thiess Peabody Mitsui Coal Pty Limited on the one hand and certain of its members on the other” referred to section 125 of the Commonwealth Conciliation and Arbitration Act and then said: “I come to no definite conclusions concerning the allegations about “Thiess Peabody Mitsui”.

I am concerned, however, that a situation exists to which both sides appear to have contributed. I drew attention during the hearing to the attempt by management to alter award conditions in relation to the giving of notice (in Exhibit P). The Association did not press the point, but the evidence by Mr Wilson that over-award payments for persons in one classification range from $19.88 to $94.54 per week strongly suggests, without any explanation for the reasons therefor, that either new classifications are appearing de facto or that award classifications in some cases are quite inappropriate.

However, even allowing some credence to the claim with regard to “Thiess Peabody Mitsui”, I nevertheless accept the submissions by Messrs Lawrie and Hollinworth that the whole of the industry should not be burdened with the prescription sought. This is a cogent submission and taken with the fact that as presently advised I am unable to believe the Commonwealth Inspectorate has no role in the enforcement of Coal awards I reject the application. I would add that the “Staff”

award contains neither a “Time and Wages Book" nor a “ Right of Entry” provision and if the Association is so minded it would be open to it to make application to the Tribunal for determination of a claim for their insertion.”

29. The preference in employment claim was stood over generally by and with the consent of the parties and under the heading of new classifications it was decided to make award provision for a “dust sampler” to cover the work performed by Mr A. Walters at the Wyee State Mine.

30. The Tribunal in refraining from adopting an award classification of “laboratory assistant” for New South Wales said: “Although the employers did not oppose the adoption of the classification for New South Wales, in the light of the decision reached by Gallagher J. on 2 March 1962 in the Aberdare

Laboratory case (CR print No. 1490) I have decided that the Federated Mining Mechanics’ Association should be afforded the opportunity of expressing its views on the claim. Accordingly, the present application is refused but with leave reserved to the Association to revive the matter by way of special application if it be so advised.”

31. The award variations flowing from the decision operated on and from 14 March 1977.

N ational Wage I ncreases

32. On 6 April 1977 the Tribunal extended to mine workers the wage increases that had been awarded to other workers by the Australian Conciliation and Arbitration Commission on 31 March 1977.

33. Award wages for adults were increased by $5.70 per week and junior rates were increased by the proportion of $5.70 that existing junior rates bore to the “ Six Capital” minimum wage of $100.70. The increases becoming operative from 4 April 1977. (See CR print Nos 2544-2555 inclusive).

C o n s o l id a t e d A w a r d s

34 On 12 April 1977 the Tribunal published consolidated awards for members of the Australian Coal and Shale Employees Federation, the Federated Mining Mechanics Association, the Amalgamated Metal Workers Union and the Electrical Trades Union employed in the coal mining industry in New South Wales and Queensland. (See CR print Nos 2556-2559 inclusive.)

35. On 14 April 1977 consolidated awards were published for colliery deputies, employed at mines in New South Wales. (See CR print Nos 1561 and 2562.)

Lorry D rivers 36 On 1 June 1977 (CR print No. 2565) the Tribunal increased the additional payment per tonne for the driving of vehicles with capacities in excess of 12 tonnes from 20 cents to 25 cents per tonne.

197

A P P E N D IX 1— continued,

37. In so deciding the Tribunal said: “Clearly the application is concerned with wage rates and in accordance with the principles expressed in CR print No. 1514 at page 20 to the effect that: . . . a party which comes before the Tribunal seeking wage increases outside the principles

of wage fixation laid down by the Commission bears, in addition to the usual onus of establishing that the increases sought are justified on industrial grounds, the onus of showing that it is not against public interest that an exception should be made to the general rule that there should be no wage increases outside those principles. .

any such application based simply on a restoration of relativities cannot succeed. However, as the 20 cents additional payment is indeed part of the wage rate it is fair and just that it be indexed and this indeed was put by Mr Burke. In view of the most recent indexation decision of the Australian Conciliation and Arbitration Commission and taking into account the 1-9 per cent increase which is to flow to mineworkers from the decision reached earlier today, I have decided to increase the rate per tonne payable under classification 33 (f) of the “ Mechanics” Award for New South Wales by 5 cents to 25 cents per week extra. I have also decided that a further adjustment of the extra payment may be sought whenever future percentage National Wage increases, either singly or in the

aggregate, amount to 4 per cent or more.”

N ational Wage I ncrease

38. The Tribunal on 1 June 1977 followed the decision delivered by the Australian Conciliation and Arbitration Commission on 24 May 1977 and awarded mineworkers an increase of 1-9% on award wages up to $200 per week and a flat increase of $3.80 per week on award wages in excess of $200 per week. The increases became operative from 30 May 1977. (See CR print Nos 2566 to 2577 inclusive.)

198

A P P E N D I X 2

COAL DRILLING IN NEW SOUTH WALES, 1976-77

In this table the number of bores sunk includes those bores completed or deepened during the year ended 2 July 1977, but excludes uncompleted bores. The total length drilled is the actual for the year including lengths for uncompleted bores.

Prospecting area

Bores

Authority meeting cost of work

Number

Length drilled (metres)

Open hole | Cored

Singleton-N orth W est D istrict— Ashford ......................... 25 672 43 White Industries Ltd.

Boggabri ..................... 59 8,223 7,292 Amax Iron Ore Corp./The Broken

Hill Pty Co. Ltd.

Breeza ......................... 3 1,015 N.S.W. Dept of Mines.

Broke ............................ 25 624 552 The Broken Hill Pty Co. Ltd.

Buchanan Lemington---- 50* 2,644 Buchanan Borehole Collieries Pty

Ltd.

Camberwell ..................... 10 914 N.S.W. Dept of Mines.

Denman ......................... 21 9,033 Carpentaria Exploration Co. Pty

Ltd.

Durham............................ 10* 1,733 Consolidated Goldfields Aust. Ltd.

Glennies Creek................. 9* 3,140 Gollin Wallsend Coal Co. Ltd.

Gunnedah ..................... 10* 1,918 Gollin Wallsend Coal Co. Ltd.

Jerry’s Plains ................. 35 342 5,505 The Newcastle Wallsend Coal Co.

Pty Ltd.

Liddell ............................. 4 716 Coal and Allied Industries Ltd.

Mitchells Flat ................. 29* 1,040 3,396 Barix Pty Ltd/Texasgulf Inc.

Mount Arthur N o rth ---- 107* 12,625 Electricity Commission of N.S.W.

Mount Thorley ............. 25* 5,049 R. W. Miller and Co. Pty Ltd.

Vickery............................ 30* 1,680 5,218 Amax Iron Ore Corp.

Wambo ......................... 90 1,030 1,951 Wambo Mining Corporation Pty

Ltd.

Warkworth ..................... 148* 14,856 Warkworth Associates Joint Ven-

ture.

Warkworth ..................... 268 2,622 7,735 Coal and Allied Industries Ltd.

West Muswellbrook . . . . 10 1,448 N.S.W. Dept of Mines.

Sub-total ................. 16,233 86,783

T o ta l......................... 968 103,016

C larence D istrict— Clarence Basin ............. 15 3,694 N.S.W. Dept of Mines/Joint Coal

Board.

T o ta l........................ 15 3,694

N ewcastle D istrict— B e lm o n t.................................. 4 36 158 R. W. Miller & Co. Pty Ltd.

Newvale ........................ 1* 11 157 E lco m Collieries Pty Ltd.

12 78 450 The Broken Hill Pty Co. Ltd.

Wallarah-Mooney . . . . 6 450 200 Coal and Allied Industries Ltd.

Wangi-Eraring ............. 68* 215 5,333 Electricity Commission of N.S.W.

Sub-total ................. 790 6,298

T o ta l........................ 91 7,088

* Supervised and/or logged and/or selected by Joint Coal Board Geologists.

[continued

199

APPENDIX 2—continued

Bores

Prospecting area

Number

Length drilled (metres) Authority meeting cost o f work

Open hole Cored

. 7* 3 786

. 7 789

. 5 80 6 6 6

. 3 238 277

. 1 11 269

. 1 70

. 3 137 453

9* 2,178 1,531

. 1 30 76

. 2 2 1,052 533

. 4 176

. 3 44 51

. 6 1 ,1 0 0 1,259

4,870 5,361

. 58 10,231

. 8 392 975

. 8 1,367

4 807 459

3 30 657

4 21 532

3 7 99

2 392 604

4 40 454

1 72 65

. 4 51 6 6 8

1 3 37

1,423 3,575

26 4,998

G l o u c e s t e r D is t r ic t— Gloucester Trough .

Total

W e s t e r n D is t r ic t -Charbon ..........

Clarence ..........

Hartley ..........

Hermitage . . . .

Invincible . . . .

Lithgow-Newnes Lithgow Valley.. Ulan ...............

Wallerawang-----Western Main Wolgan Valley

Sub-total

Total

B u r r a g o r a n g V a ll ey D is t r ic t — Tahmoor ...................

Total

S o u t h C o a st D is t r ic t — A v o n .................................

Avon (Authority No. 11). Berrima .........................

Corrimai .....................

East Bargo .....................

Loch Catherine .............

Meryla .............................

Mount Alexander ........

South Bulli

Sub-total

Total

O a k l a n d s D is t r ic t— Oaklands .................

N e w S o u t h W ales— Sub-total . . . .

Total

B.M.I. Mining Pty Ltd.

Blue Circle Southern Cement Ltd. Coalex Pty Ltd. Austen & Butta Ltd. Coalex Pty Ltd. Austen & Butta Ltd.

Electricity Commission of N.S.W. Coalex Pty Ltd. White Industries Ltd. Coalex Pty Ltd. Clutha Development Pty Ltd. Coalex Pty Ltd.

Clutha Development Pty Ltd.

Austen & Butta Ltd. Australian Iron & Steel Pty Ltd. Blue Circle Southern Cement Ltd. Australian Iron & Steel Pty Ltd. N.S.W. Department of Mines Blue Circle Southern Cement Ltd.

(Receiver Appointed)

5 135 11 2

5 247

1,178

23,846 107,584

131,430

Mitsubishi Development Pty Ltd.

* Supervised and/or logged and/or selected by Joint Coal Board Geologists.

2 0 0

APPENDIX 3

IN D E X TO STATISTICAL APPENDIX

Table N o.

P r o d u c t io n —

Australia—Each State, 1935-77 . . . . .. . . . . . . . . . . . . 1

Australia—Each State—Underground and Open Cut, 1947-77 .. . . .. .. . . 2

New South Wales—Underground Mines, 1951-77 . . .. Open Cut, 1951-77 ...........................

All Mines, 1951-77 ...........................

New South Wales—Each Seam, 1975-77 .. .. ..

New South Wales—Captive and Non-Captive Mines, 1954-77 .. .. .. .. .. 7

New South Wales— Coal Washeries, 1958-77 .. . . .. .. .. . . . . 8

M a r k e t—

Australia—Exports, Imports and Available Supplies of Black Coal, 1956-77 ............................9 New South Wales Coal—Production, Exports, Consumption and Stocks, 1956-77 .. . . 10 Supply and Consumption o f Black Coal, 1968-77— New South Wales .. .. .. .. .. .. .. .. .. . . 1 1

Queensland .. . . .. .. .. .. .. .. .. .. .. 12

Tasmania .. . . .. .. .. .. .. .. .. . . . . 1 3

Victoria ................................................................................................................................ 14

South Australia ................................................................................................................... 15

Western Australia .. .. .. .. .. .. . . .. . . . . 1 6

Australia .. . . .. . . .. .. .. . . . . .. .. 17

New South Wales and Queensland Overseas Exports, by Regions, 1941-77 .. .. .. 18

New South Wales and Queensland Overseas Exports, by Destination, 1972-77 .. .. 19 Australia—Exports by Ports, 1950-77 .. .. .. .. .. .. .. .. 20

New South Wales—Exports, Interstate and Overseas, 1967-77 .. .. .. .. .. 21

New South Wales—Deliveries by Size, 1971-77 .. .. .. .. .. .. .. 22

New South Wales—Deliveries—Intrastate, Interstate and Overseas, by Production Area, 1975-77 23

C o n s u m p t io n —

Australia—Each State and Source of Coal Consumed, 1955-77 .. . . .. .. . . 24

New South Wales— Major Consumer Groups, 1968-77 . . .. . . .. . . . . 25

New South Wales—Average Weekly Consumption—Consumer Classification, 1968-77 . . 26

S t o c k s— Australia—Each State and Source o f Stocks Held, 1956-77 .. .. ........................... 27

New South Wales—Major Consumer Groups, 1967-77 . . .. .. . . .. . . 28

E m pl o y m e n t— Australia—Each State, 1930-77 .. .. .. .. .. .. . . . . .. 29

New South Wales—Underground and Open Cut—by Districts and Classification, 1952-77 .. 30 New South Wales—Pre-employment Medical Examinations— Number Accepted—District and Age Distribution, 1962-77 . . . . . . .. 31

Number Rejected—District, Age Distribution and Reason, 1964-77 . . .. . . 32

201

G 441021— 1411

Vi 4^

APPENDIX l —continued

Table

Λ No.

O u t p u t P e r M a n s h if t—

Australia—Each State— Underground and Open Cut, 1952-77 .................................................... 33

New South Wales— Underground and Open Cut— by Districts, 1952-77 ........................... 34

O v er tim e—

New South Wales—Length of Working Week and Year, 1964-77 ....................................... 35

L osses f r o m S t o p p a g e s in N e w S o u t h W ales—

Detailed Classification and Tonnage Lost, 1975-77 ........................... .. .. .. 36

Analysed according to Type of Stoppage, 1975-77— Tonnage Lost, Percentage of Possible Production Lost .. .. .. .. .. 37

Analysis into Districts, Underground and Open Cut— Tonnage Lost, 1961-77 ..................................................................................................... 38

Percentage of Possible Production Lost, 1956-77 .. .. .. ........................... 39

M a n sh if t s W o r k e d a n d L ost in N e w So u t h W ales—

Open Cut Mines, 1951-77— ;

Manshifts Worked and Lost, Percentage o f Manshifts Lost by Type of Loss .. .. 40

Underground Mines, 1951-77— Manshifts Lost by Districts, Percentage of Manshifts Lost by Type of Loss .. .. 41

All Mines, 1976-77 (by Periods)— ;

Manshifts Worked and Lost, Percentage of Manshifts Lost by Type of Loss .. .. 42

M e c h a n is a t io n in N e w So u t h W ales—

Capital Expenditure, 1976-77 ..................................................................................................... 43 j

Method o f Mining and Loading—Underground Mines, 1964-77 .. .. .. .. . . 4 4

R eg io n s of N e w S o u t h W ales—

Production, Employment and Consumption by Regions, 1974-77 ....................................... 45

C o n s u m p t io n o f P r im a r y E n e r g y —■

In tonnes of Product and in Terms of Black Coal Equivalent— Australia, 1953-77 ................................................................................................................. 46

By States, 1964-77 ................................................................................................................. 47

THE “STATISTICAL” YEAR

Joint Coal Board statistics are based on fortnightly returns and annual figures quoted in this report usually refer to a period o f 52 weeks (i.e. 26 fortnights). However, in order to keep the Boards’ “statistical” year reasonably in line with calendar and financial years proper, it is necessary from time to time to cover 53 or 54 weeks in the “statistical” year. Thus, “statistical” years 1959 and 1959-60 consist of 54 weeks and the years 1948, 1965, 1965-66, 1971, 1971-72, 1976 and 1976-77 each consists o f 53 weeks.

202

APPENDIX 3—continued

TABLE 1

PRODUCTION OF BLACK COAL (Ό00 tonnes) (a) AUSTRALIA

(Figures prior to 1942 are based on data supplied by the Mines Departments of the respective States.)

Y e a r

1935 .. 1936 .. 1937 .. 1938 .. 1939 ..

1940 .. 1941 .. 1942 ..

1943 . .

1944 ..

1945 . . 1946 .. 1947 .. 1948 (6 ) 1949

1950 .. 1951 .. 1952 .. 1953 .. 1954 ..

1955 .. 1956 1957 .. 1958 ..

1959 (c)

1960 .. 1961 .. 1962 .. 1963 ..

1964 .. 1965 (6 ) 1966 .. 1967 .. 1968 .. 1969 ..

1970 ........

1971 (b) .

1972 ........

1973 ........

1974 ........

1975 .........

1976 (b).. .

1952- 53 . 1953- 54 . 1954- 55 . 1955- 56 .

1956- 57 . 1957- 58 . 1958- 59 . 1959- 60 (c)

1960- 61 .

1961- 62 .

1962- 63 .

1963- 64 .

1964- 65 .

1965- 66 φ )

1966- 67 .

1967- 68 .

1968- 69 .

1969- 70 .

1970- 71 .

1971- 72 (A) 1972- 73 .

1973- 74 .

1974- 75 .

1975- 76 .

1976- 77 (6)

N.S.W . Victoria Q ueensland South A ustralia W estern A ustralia Tasmania A ustralia

8,838 484 1,069 545 126 11,062 9,346 434 1,064 574 134 11,552 10,213 262 1,138 563 92 12,268 9,724 312 1,131 615 85 11,867 11,375 371 1,338 567 101 13,7529,703 272 1,306 548 84 11,913 11,954 331 1,477 566 112 14,440 12,401 316 1,750 596 126 15,189 11,658 291 1,760 537 145 14,391 11,220 261 1,716 35 5 77 148 13,957 10,339 249 1,664 42 556 148 12,998 11,365 195 1,594 139 654 161 14,108 11,870 182 1,917 182 743 162 15,056 11,910 177 1,784 252 755 184 15,062 10,908 135 2,003 342 764 181 14,33313,003 139 2,363 263 830 215 16,813 13,729 148 2,521 400 863 239 17,900 15,262 145 2,801 423 840 249 19,720 14,401 154 2,574 455 894 240 18,718 15,325 144 2,793 501 1,037 269 20,069 14,972 135 2,807 466 922 303 19,605 15,047 122 2,762 491 851 305 19,578 15,636 118 2,706 616 852 269 20,197 16,105 113 2,619 758 886 281 20,762 15,964 91 2,634 720 9 29 305 20,64318,021 85 2,704 897 937 306 22,950 19,325 68 2,854 1,132 779 266 24,424 19,335 55 2,858 1,417 934 275 24,874 19,243 52 3,297 1,542 923 201 25,258 21,030 49 3,875 1,764 998 152 27,868 24,516 42 4,258 2,015 1,010 103 31,944 25,877 36 4,771 2,063 1,078 86 33,911 27,242 33 4,866 2,078 1,079 78 35,376 30,834 28 6,794 2,115 1,104 93 40,968 33,973 1 8,698 2,236 1,108 120 46,13635,900 0 10,470 1,862 1,217 126 49,575 34,567 11,455 1,505 1,192 124 48,843 39,176 17,684 1,620 1,169 133 59,782 37,885 19,977 1,502 1,170 112 60,646 38,694 21,085 1,665 1,448 127 63,019 40,210 22,810 1,820 2,117 162 67,119 44,744 25,806 1,903 2,271 190 74,91414,492 154 2,719 421 779 245 18,810 15,165 146 2,639 477 965 248 19,640 14,832 143 2,822 502 991 284 19,574 14,787 125 2,701 456 886 302 19,257 15,474 120 2,793 532 856 286 20,061 15,905 119 2,629 720 866 271 20,510 16,014 100 2,639 735 918 297 20,703 17,349 90 2,766 777 954 315 22,25118,454 79 2,640 1,019 753 294 23,239 19,388 59 2,950 1,247 945 257 24,846 19,025 54 2,934 1,496 948 242 24,699 20,562 50 3,727 1,632 931 180 27,082 22,163 47 3,957 1,939 974 132 29,212 25,411 39 4,653 2,043 1,076 98 33,320 26,625 35 4,812 2,053 1,096 75 34,696 28,566 31 5,627 2,106 1,074 86 37,490 32,243 13 7,536 2,179 1,116 107 43,194 35,322 0 9,467 2,149 1,172 123 48,23335,719 11,123 1,620 1,183 124 49,769 36,964 14,373 1,555 1,205 123 54,220 38,060 18,818 1,582 1,154 126 59,740 36,632 20,024 1,485 122 42,306 23,902 1,793 1,877 138 40'590 23,921 1,819 2,143 175 68,048 46,785 25,671 1,945 2,376 197 76,974(a) Saleable coal for Queensland, all other States raw coal. (6) 53-week year. (c) 54-week year.203

APPENDIX 3—continued

[continued

APPENDIX 3—continued

PRODUCTION OF BLACK COAL (’000 tonnes) (a ) AUSTRALIA

TABLE 2— contin ued

O V t

Year or period

1963- 64 . . . 1964- 65 . . .

1965- 66 (b) 1966- 67 . . . 1967- 68 . . . 1968- 69 . . .

1969- 70 . . .

1970- 71 .. . 1971- 72 (b) 1972- 73 . . . 1973- 74 . . .

1974- 75 . . . 1975- 76 . . . 1976- 77 (b)

1 9 7 6 - Period 1 .. 2 ..

3 ..

4 ..

5 ..

6 ..

7 ..

8 . .

9 ..

1 0 ..

11 ..

1 2 ..

13 ..

One Week

1 9 7 7 - Period 1 .. 2 3 ..

4 ..

5 ..

6 . .

UNDERGROUND MINES

N.S.W. Victoria Queens­ land Western Australia Tas­

mania Australia

19.914-1 49-4 2,634-4 617-1 180-4 23,395-4

21,272-9 46-2 2,859-6 594-8 131-6 24,905-1

24,429-2 38-8 3,236-7 505-7 98-3 28,308-7

25,497-7 34*2 3,218-7 506-7 75*9 29,333*2

27.106-9 32-0 2,933-9 496-1 8 6 -1 30,655-0

30,309-9 13-4 3,066-7 484-7 106-5 33,981-2

32,414-2 0-4 3,055-1 485-0 121-5 36,076-2

33,131-3 3,504-4 435-7 123-4 37,194-8

32,286-1 3,876-3 415-9 123-1 36,701-4

32,604-4 3,798-9 427*5 126-2 36,957-0

30,154-6 3,483-3 434-8 122-5 34,195-2

32,957-0 3,449-4 535-6 137-8 37,079.8

32,213-9 2,942-0 559-1 174-8 35,889-8

37,014-2 3,320-6 539-5 196-9 41,071-2

1,475-2 107-8 22-3 1-9 1,607-2

2,890-1 267-5 49-0 14*9 3,221-5

3,049-5 236-0 47-9 15-6 3,349-0

2,811-7 270-2 42-4 17-1 3,141-4

2,102-5 263-3 39-1 10-3 2,415-2

2,981-4 307-1 44-8 15-2 3,348-5

2,972-7 300-0 4 4 .4 14-1 3,331-2

2,665-5 277-4 47-0 15-5 3,005-4

2,343-1 189-0 42-9 18-9 2,593-9

2,997-9 283-8 40-9 17-9 3,340-5

3,079-8 278-0 43-1 15-2 3,416-1

3,213-2 277-5 45-6 15-8 3,552-1

3,208-1 195-5 45-8 17-8 3,467-2

1-9 1-9

1,645-6 219-5 2 2 -1 3-9 1,891-1

3,135-6 280-2 41-1 9-8 3,466-7

3,208-5 240-9 41-8 17-6 3,508-8

2,242-7 230-8 31-3 13-2 2,518-0

3,052-2 243-7 44-6 16-3 3,356-8

3,065-6 294-6 49-2 18-3 3,427-7

OPEN CUT MINES

N.S.W.

647-8 889-7 981-5 1,127-6

1,458-8 1,933*4 2,907-8

2,588-3 4,677-4 5,455-7 6,477-2 9,348-7

8,376-6 9,770-9

372-6 631-9 650-1 619-4

556-6 814-2 714-5 757-1 585-0 744-1 817-0 807-5 881-7

450-8 780-0 670-8 639-7

717-9 950-9

Queens-

1,092-5 1,098*0 1,416-3

1,593*2 2,692-4 4,469*0 6,412-1

7,618-4 10,496-4 15,018-6 16,540-5 20,452-9

20,979-5 22,350-8

603-7 2,331-0 1,977-1 1,756-9

1,966-6 2,016-9 2,167-0 1,688-5 1,233-9

1,767-2 1,980-9 1,542-9

1,519-9

1,153-8 1,958-5 1,650-4 1,912-2

1,769-9 2,156-9

South Australia

1,631-9 1,939-8 2,043-1 2,053-2 2,105-9 2,179-1 2,148-8

1,620-4 1,555-0 1,581-9 1,484-9 1,793-4 1,818-7 1,944-5

122-9 136-9 160-1 139-7

136-9 153-4 79-0

139-5 161-5 178-4 152-5 170-7 157-1

14-0

125-1 159-1 154-5 129 4 138-8 149-7

Western Australia

314-0 379-8 570-0 589-6

578-6 631-2 687-4

746-8 789-8 726-3 761-8 1,341-4

1,583-7 1,836-8

63-4 123- 9

146- 4

121-2 124- 5

132-7 129-5 147- 5

135- 2

136- 2

147-9 150-2 157-3

77-6 155-4 159-0 109-9 154-0 158-9

Tas­ mania Australia

3,686-2 4,307-3 5,010-9

5,363*6 6,835-7 9,212-7 12,156-1

12,573-9 17,518-6 22,782-5 25,264-4

32,936-4 32,758-5 35,903-0

1,162-6 3,223-7 2,933-7 2,637-2

2,784-6 3,117-2 3,090-0 2,732-6 2,115-6 2,825-9 3,098-3 2,671-3 2,716-0

14-0

1,807-3 3,053-0 2,634-7 2,791-2 2,780-6

3,416-4

Under­ ground and Open

Cut

Australia

27,081-6 29,212-4 33,319-6 34,696-8

37,490-7 43,193-9 48,232-3

49,768-7 54,220-0 59,739-5

59,459-6 70,016-2 68,648-3

76,974-2

2,769-8 6,445-2 6,282-7 5,778-6

5,199-8 6,465-7 6,421-2 5,738-0 4,709-5 6,166-4 6,514-4 6,223-4 6,183-2

15-9

3,698-4 6,519-7 6,143-5 5,309-2

6,137-4 6,844-1

The periods referred to above ate 4-weekly periods; Period 1 1976, commenced on 28 December 1975, Period 6 1977, ended on 18 June 1977. (a) Saleable coal for Queensland, all other states raw coal. (Z>) 53-week year. (c) 54-week year.

APPENDIX 3—continued

TABLE 3

PRODUCTION OF BLACK COAL (’000 tonnes raw coal) NEW SOUTH WALES—UNDERGROUND MINES

period

South Maitland Singleton— North

West

Newcastle

1962 ..........

1963 ..........

1964 ..........

1965 (6 ) . . . .

1966 ..........

1967 ..........

1968 ..........

1969 ..........

2,839*5 2,226-5 2,223-6 2,409-1

2,461 -2 2,533-4 2,507-3 2,601-0

1,109-5 860-9 979-8 1,678-0 1,778-3 1,848-2 1,870-8 2,120-4

5,422-6 5,936-7 6,950-6 7,974-5

8,591-4 9,198-0 10.878-8 11,869-9

North Total

9,371-6 9,024-1 10,154-0 12,061-6 12,830-9 13,579-6 15,256-9 16,591-3

West

Burra- gorang Valley

1,541-8 1,665-0 1,619*5 1,713-6

1,604-4 1,561-2 1,899-9 1,798-4

2,178-3 2,052-3 2 , 101-1 2,948-0

3,469-7 3,503-6 3,876-4 4,349-2

Average

South

5,395-3 5,889.8 6,427-8 6,883-2

6,782-3 7,456-0 7,819-6 9,009·!

South N.S.W. Total Total

7,573-6 7,942-1 8,528-9 9,831-2 10,252-0

10,959-6 11,696-0 13,358-3

18,487-0 18,631-2 20,302-4 23,606-4 24,687-3 26,100-4 28,852-8

31,748-0

ground production

working day (a)

79-0 81-7 87-5 1 0 0 0 106-9 113-0 124-9 138-0

1970 ..........

1971 (b) . . . .

1972 ..........

1973 ..........

1974 ..........

1975 ..........

1976 ( b ) ..

2,590-4 2,400-3 2,236-6 1,955-7

1,796-0 1,465 0 1,191-9

2,233-4 1,876-7 1,936-5 2,499-5 2,814-0

3,093-7 3,377-5

12,799-2 11,960-2 12,554-0 11,861-8 11,015-6

10,366-8 12,084-4

17,623-0 16,237-2 16,727-1 16,317-0

15,625-6 14,925-5 16,653-8

2,066-2 2,230-9 2,301-8 1,922-2

2,322-4 2,902-9 4,063-2

4,981 ·3 5,013-4 4,641-1 4,149-4 3,795-0

5,111-4 5,190-8

8,373-7 7,938-4 9,881-4 9,885-2 8,593-0

8,472-4 9,884.8

13,355-0 12,951-8 14,522-5 14,034-6 12,388-0

13,583-8 15,075-6

33,044-2 31,419-9 33,551-4 32,273-8

30,336-0 31,412-2 35,792.6

143-7 133-7 145-9 140-3 131-9

136-6 152-3

1951- 52 .

1952- 53 .

1953- 54 .

1954- 55 .

1955- 56 .

1956- 57 .

1957- 58 .

1958- 59 .

1959- 60 (c)

1960- 61 .

1961- 62 .

1962- 63 .

1963- 64 .

1964- 65 .

1965- 66 {b) 1966- 67 .

1967- 68 .

1968- 69 . 1969- 70 .

1970- 71 .

1971- 72 Cb) 1972- 73 .

1973- 74 .

1974- 75 .

1975- 76 .

1976- 77 (b)

3,281-4 3,268-5 3,572-2 3,389-0

3,322-7 3,426-2 3,353-1 2,927-4 2,938-1

3,125-9 2,736-8 2,592-2 2,218-0 2,262-8 2,494-7 2,522-1

2,513-2 2,536-0 2,515-6

2,749-9 2,195-3 2,036-9 1,868-0

1,802-3 1,189-2 1,288-8

465-9 579-2 658*9 691-0

880-8 792-8 814-0 847-0 873-3

4,326-5 4.097-0 4,468-6 4,402-3

4,246-8 4,394-3 4,633-5

5,336-4 5,867-0

8,073-8 7,944-7 8,699-7

8,482-3 8,450-3 8,613-3 8,800-6 9,110-8 9,678-4

1,500-8 1,510-1 1.617- 9

1,752-7 1,723-2 1,681-0 1,605-2 1,630-0 1.618- 2

548-4 602-3 716-9 799-3

861 ·2 1,015-5 1,154-1 1,172-8 1,322-7

2,138-4 2,321-9 2,527-4 2,679-8

2,883-6 3,387-0 3,545-6 3,617-7

4,134*1

2 ,686-8 2,924-2 3,244-3 3,479-1

3,744-8 4,402-5 4,699-7 4,790-5

5,456-8

12,261-4 12,379-0 13,561-9 13,714-1 13,918-3 14,696-8 15,105-5 15,531-3 16,753*4

51-3 51-6 57-0 57- 4

58- 2 61-5 63- 2

64- 7 67*3

925-4 1,183-0 887-2

937-4 1,218-2 1,804-1 1,891-0 1,745-2 2,023-3 2,227-5

5,658-5 5,654-2 5,471*0

6,610*9 7,319-0 8,281-2 8,924-3 9,813-2 11,471-3 12,356-4

9,709-8 9,574-0 8,950-4

9,766-3 10,800-0 12,580-0 13,337-4 14.071-6 16,030-6 17,099-5

1,583-9 1,568-0 1,610*4 1,658-7 1,636-0 1,695-8 1,571-5

1,738-1 1,820-2 1,949-9

2,223-3 2,592-6 3,101-9 3,178-5

3,371-8

12,939-0 11,846-7 12,207-4 11,232*7 11,390-9 10,516-0 12,165-3

17,858-6 15,748-6 16,467-6

15,693*3 16,295-1 14,883-7 16,825-9

2,150-6 2,372-2 2,027-7 1,987*2

2,644-7 3,523-7 4,023-0

1,761-2 2,082-1 2,149-6 2,171-7 2,324-5

3,315-1 3,443-4 3,646-1 4,111-9 4,587-8

4,578-1 5,199-5 5,683-0 6,317-4 6,512-5 6,838-3

7,145-4 7,651-1 8,347-2

8,777-0

6,339-3 7,281-6 7,832-6 8,489-1

8,837-0 10,153-4 10,588-8 11,297-2 12,459-1 13,364-8

17,633-0 18,423-6 18,393-4 19,914-1 21,273-0 24,429-2 25,497-7 27,106-9

30,309-9 32,414-2

75-4 78-7 78-6 85-9 92-0 103-5 110-3 117-3 131-8 140-9

5,104-1 5,220-2 4,070-7 3,806-5 4,517-8

5,201-8 5,318-1

8,018-0 8,945*1 10,038-4 8,667*6

9,499-4 8,604-7 10,847-2

13,122-1 14.165- 3

14,109-1 12,474-1 14,017-2 13,806-5 16.165- 3

33,131-3 32,286-1 32,604-4 30,154-6

32,957-0 32,213-9 37,014-2

144-0 137-4 141-8 131-7

143-3 140-0 157-5

1976- Period 1 2 3

4 5 6 7

8 9

10 11 12 13

One week 1977- Period 1 2

3 4 5

6

52-1 97-6 95-5 102-6

63-8 91-7 90-3

86-0 82-6 110- 3

94-3 113.9 111- 2

171-2 265-5 289-8 261-0

212-6 296-7 234-3 276-1 221-1

269 291-3 280-2

308-3

469-8 943-4 973-9 956-9

697-7 1,028-9 1,036-4

946-4 779-7 1,059-8 1,040-5 1,079-5 1,071-5

693-1 1,306-5 1,359-2 1,320-5

974-1 1,417-3 1,3610 1,308-5

1,083-4 1,439-5 1,426-1 1,473-6

1,491-0

169-4 324-6 347-1 323-5 225-7

366.6 355-4 329-3 331-5 287-0

341- 1

342- 6

319-4

182-8 407-0 457-2 413-9

321-9 454-3 480-2 371-4

262-5 487-2 410-3 466-5

475-6 0-0

429-9 852-0 886-0 753-9 580-8 743-1 776-1 656-3 665-6

784-2 902-4 930-5 922-1

1*9

612-7 1,259-0 1,343-2 1,167.8

902-7 1,197-4 1,256-3 1,027-7

928-1 1,271-4 1,312-7 1.397- 0

1.397- 7

1-9

1,475-2 2,890-1 3,049-5 2,811.8

2,102-5 2,981-3 2,972-7 2,665-5 2,343-0

2,997-9 3,079-9 3,213-2 3,208-1

1-9

147 -6(d) 152-1 152-5 148.0 150-10/) 149-1 156-5 133-3 141-7 (d) 160-800 162-1 160-7 160-500

0 000

58-8 110-8 113.9 69-1 112-9 114-2

139.5 274-8 254-5 177-2

292-0 298-7

530-3 983-5 1,019-1 696-1

960-5 949-2

728-6 1,369-1 1,387-5 942-4 1,365-4

1,362-1

162-8 353-4 367-8 251-9

317-3 295-1

252-5 492-0 429-0

301-5 423-2 451-7

501 -7 921-1 1,024-2 746-9

946-2 956-6

754-2 1,413-1 1,453-2 1,048*4 1,369-4

1,408-3

1,645-6 3,135-6 3,208-5 2,242-7

3,052-1 3,065-5

164*100 165-0 160- 4 160-200 162-6 161- 3

"The periods mentioned above refer to 4-weekly periods; Period 1 1976 commenced on 28 December 1975, Period 6 1977, ended

206

APPENDIX 3—continued

TABLE 4

PRODUCTION OF BLACK COAL (’000 tonnes raw coal) NEW SOUTH WALES—OPEN CUTS

Year or period Maitland

Singleton— North West Newcastle North Total West

Burra- gorang Valley

South N.S.W.

Total

No. o f

working days in year or period

Average open cut production per

working day

1962 .......... 847-8 847-8 847-8 234 3-6

1963 .......... 612-0 612-0 612-0 228 2-7

1964 .......... 727-9 727-9 727-9 232 3-1

1965 ( a ) . . . .

1*19-6

909-7 909-7 909*7 236 3-9

1966 ......... 1,069-1 1 -2 1,189-9 1,189-9 231 5-2

1967 .......... 144-6 961-4 35-6 1,141-6 1,141-6 231 5-0

1968 .......... 283-2 1,466-2 232-2 1,981-6 1,981*6 231 8 - 6

1969 .......... 316-9 1,524-2 373-5 2,214-6 10-3 2,224-9 230 9-7

1970 .......... 288-2 1,773-7 598-8 2,660-7 195-0 2,855-7 230 12-4

1971 ( a ) . . . . 174-8 2,352-8 617-8 3,145-4 1-5 3,146-9 235 13-4

1972 .......... 72-3 4,920-9 63V2 5,624-4 5,624-4 230 24-4

1973 .......... 4.1 5,167.4 439.8 5,611.3 5,611.3 230 24.4

1974 .......... 7,442-0 911-1 8,353-1 4-4 8,357-5 230 36-3

1975 .......... 7,879-6 909-1 8,788-7 9-3 8,798-0 230 38-3

1976 (ti) .. 8,239-7 711-9 8,951-6 8,951-6 235 38-1

1951-52 .. 182-0 971-8 265-8 1,419-6 1.288-4 2,708-0 239 11-3

1952-53 .. 135-2 946-2 173-7 1,255-1 858-3 2,113-4 240 8 -8

1953-54 .. 115*3 861-7 79-2 1,056-2 546-6 1,602-8 238 6-7

1954-55 .. 8 6 -0 706-7 1 0 -0 802-7 315-6 1,118-3 239 4-7

1955-56 .. 78-9 784-1 1-9 864-9 3-5 868-4 239 3-7

1956-57 .. 78-4 698-4 776-8 776-8 239 3-2

1957-58 .. 78-7 720-7 799-4 799-4 239 3-3

1958-59 .. 52-2 430-7 482-9 482-9 240 2 -0

1959-60 (A) 4-8 591-2 5960 596-0 249 2-4

1960-61 .. 10-4 8100 820-4 820-4 234 3-5

1961-62 .. 964-7 964-7 964-7 234 4-2

1962-63 .. 631-1 631-1 631-1 234 2-7

1963-64 .. 647-8 647-8 647-8 232 2-7

1964-65 .. 889-6 889-6 889-6 231 3-9

1965-66 (a) *47-8 933-7 981-5 981-5 236 4-2

1966-67 .. 140-9 982-1 4-6 1,127-6 1,127-6 231 4-9

1967-68 .. 204-8 1,132-5 121-5 1,458-8 1,458-8 231 6-3

1968-69 .. 278-4 1,330-9 324-0 1,933-3 1,933-3 230 8-4

1969-70 .. 334-7 1,999-4 435-8 2,769-9 137-9 2,907-8 230 12-7

1970-71 .. 221-4 1,618-6 679-3 2,519-3 69 0 2,588-3 230 11-3

1971-72 (a) 145-9 3,893-4 638-1 4,677-4 4,677-4 235 19-9

1972-73 .. 30-0 4,950-0 475*7 5,455*7 5,455-7 230 23-7

1973-74 .. 5,834.2 642.9 6,477.1

13-7

6,477.1 229 28.3

1974-75 .. 8,364-7 970-3 9,335-0 9,348-7 230 40-7

1975-76 .. 7,534-6 842-0 8,376-6 8,376-6 230 36-4

1976-77 (a) 5-4 9,037-7 727-9 9,771.0 9,771-0 235 41-6

1 976- Period 1 ., 336-0 36-6 372·6 372-6 10 37-6 (c)

2 .. 547-1 84-8 631-9 631-9 19 33-3

3 .. 550-7 99-4 650-1 650-1 2 0 32-5

4 .. 544-7 74-6 619-3 619-3 19 32-6

5 .. 512-6 43-9 556-5 556-5 14 39-8

6 783-5 30-7 814-2 814-2 2 0 40-7

7 .. 678-4 36-1 714-5 714-5 19 37-6

8 .. 719-4 37-7 757-1 757-1 2 0 37-9

9 .. 550-9 34-1 585-0 585-0 15 38-9(c)

1 0 .. 696-3 47-8 744-1 744-1 2 0 37-2

11 .. 766-4 50-6 817-0 817-0 19 43-0

1 2 .. 747-8 59-7 807-5 807-5 2 0 40-4

13 .. 805.9 75.8 881.7 881.7 2 0 44.1

One week ..

1 977- Period 1 .. 407-6 43-2 450-8 450-8 10 45-1

2 .. 701-2 78-8 780-0 780-0 19 41-1

3 .. 616-7 54-1 670-8 670-8 2 0 33-5

4 .. 614-3 25-4 639-7 639-7 14 45-7

5 .. 0-1 649-4 68-4 717-9 717-9 19 37-8

6 .. 0-3 868-1 82-5 950-9 950-9 19 50-0

The periods mentioned above refer to 4-weekly periods: Period 1 1976» commenced on 28 December 1975; Period 6 1977, ended on 18 June 1977. {a) 53-week year, (6) 54-week year, (c) Allowance made for variation ie annual holiday periods.

207

APPENDIX 3—continued

TABLE 5

PRODUCTION OF BLACK COAL (’000 tonnes raw coal) NEW SOUTH WALES—ALL MINES

period

South Maitland Singleton—■ North

West

Newcastle North Total West Burra- gorang Valley

South Coast

South Total

Average production

N.S.W. per

Total working day («)

1962 ..........

1963 ..........

1964 ..........

1965φ ) . . . .

1966 ..........

1967 ..........

1968 ..........

1969 ..........

2,839-5 2,226-4 2,223-6 2,409-0

2,580-8 2,678-0 2,790-5 2,917-9

1,957-3 1,473-0 1,707-7 2,587-7 2,847-4 2,809-6 3,337-0 3,644-6

5,422-6 5,936-7 6,950-6

7,974-6 8,592-6 9,233-6 11, 111-0 12,243-4

10,219-4 9,636-1 10,881-9 12,971-3

14,020-8 14,721-2 17,238-5

18,805-9

1,541-8 1,665-0 1,619-5 1,713-6

1,604-4 1,561-2 1,899-9 1,808-7

2,178-3 2,052-3 2 , 101-1 2,948-0

3,469-7 3,503-6 3,876-4 4,349-2

5,395-3 5,889-8 6,427-8 6,883-2 6,782-3 7,456-0 7,819-6 9,009-1

7,573-6 7,942-1 8,528-9 9,831-2 10,252-0 10,959-6 11,696-0 13,358-3

19,334-8 19,243-2 21,030-3 24,516-1 25,877-2 27,242-0 30,834-4 33,972-9

82-6 84-4 90-6 103-9

112-1 118-0 133-5 147-7

1970 ..........

1971 (6 ) . . . .

1972 ..........

1973 ..........

1974 ..........

1975 ..........

1976 (6 ) ..

2,878-6 2,575-1 2,308-9 1,959-8 1,796-1

1,465-0 1,191-9

4,007-1 4,229-5 6,857-4 7,666-8 10,255-9

10,973-3 11,617-3

13,398-0 12,578-0 13,185-2 12,301-7 11,926-7

11,275-9 12,796-2

20,283-7 19,382-6 22,351-5 21,928-3 23,978-7

23,714-2 25,605-4

2,261-2 2,232-4 2,301-8 1,922-2

2,326-8 2,912-2 4,063-2

4,981-3 5,013-4 4,641-1 4,149-4

3,795-0 5,111-4 5,190-8

8,373-7 7,938-4 9,881-4 9,885-2 8,593-0

8,472-4 9,884-8

13,355-0 12,951-8 14,522-5 14,034-6 12,388-0

13,583-8 15,075-6

35,899-9 34,566-8 39,175-8

37,885-1 38,693-5 40,210-2 44,744-2

156-1 147-1 170-3 164-7 168-2

174-8 190-4

1951- 52 .

1952- 53 .

1953- 54 .

1954- 55 .

1955- 56 .

1956- 57 .

1957- 58 .

1958- 59 .

1959- 60 (c)

1960- 61 .

1961- 62 .

1962- 63 .

1963- 64 .

1964- 65 .

1965- 66 (6) 1966- 67 .

1967- 68 .

1968- 69 .

1969- 70 .

1970- 71 .

1971- 72 (6) 1972- 73 .

1973- 74 .

1974- 75 .

1975- 76 .

1976- 77 (5)

3,463-3 3,403-7 3,687-5

3,475-0 3,401-7 3,504-6 3,431-8 2,979-6 2,942-8

1,437-8 1,525-4 1,520-6 1,397-7 1,664-8 1,491-1 1,534-7

1,277-8 1.464-6

4,592-3 4,270-7 4,547-8 4,412-3 4,248-7 4,394-3 4,633-5

5,336-4 5,867-0

9,493-4 9,199-8 9,755-9 9,285-0 9,315-2 9,390-0 9,600-0

9,593-8 10,274-4

2,789-0 2,368-4 2,164-5 2,068-3

1,726-7 1,681-0 1,605-2

1,630-0 1,618-2

548-4 602-3 716-9 799-3 861-2 1,015-5 1,154-1 1,172-8 1,322-7

2,138-4 2,321-9 2,527-4 2,679-8 2,883-6

3,387-0 3,545-6 3,617-7 4,134-1

2, 686-8 2,924-2 3,244-3 3,479-1

3,744-8 4,402-5 4,699-7 4,790-5

5,456-8

14,969-2 14,492-4 15,164-7 14,832-4 14,786-7 15,473-5 15,904-9

16,014-3 17,349-4

62-6 60- 4

63- 7

62-1 61- 9

64- 7

66-5 66-7 69-7

3,136-3 2,736-8 2,592-2 2,218-0 2,262-8 2,542-4 2,663-0 2,718-0

2,814-5 2,850-3

1,735-4 2,147-7 1,518-3

1,585-2 2,107-8 2,737-8 2,873-1 2,877-7

3,354-2 4,226-9

5,658-5 5,654-2 5,471-0 6,610-9 7,319-0 8,281-3 8,928-9 9,934-7 11,795-3 12,792-2

10.530- 2

10,538-7 9,581-5 10,414-1 11,689-6

13,561-5 14,465-0 15.530- 4 17,964-0 19,869-4

1,583-9 1,568-0 1,610-4 1,658-7

1,636-0 1,695-8 1,571-5

1,738-1 1,820-2 2,087-8

1,761-2 2,082-1 2,149-6 2,171-7 2,324-5

3,315-1 3,443-4 3,646-1 4,111-9 4,587-8

4,578-1 5,199-5 5,683-0 6,317-4 6,512-5

6,838-3 7,145-4 7,651-1 8,347-2 8,777-0

6,339-3 7,281-6 7,832-6 8,489-1 8,837-0 10,153-4 10,588-8 11,297-2

12,459-1 13,364-8

18,453-4 19,388-3 19,024-5 20,561-9 22,162-6 25,410-7 26,625-3 28,565-7 32,243-3 35,322-0

78-9 82-9 81-3 88-6 95-9 107-7 115-2 123-6 140-2 153-6

2,971-3 2,341-2 2,066-9 1, 868-0

1,802-3 1,189-2 1,294-2

3,788-3 5,600-0 7,173-3

8,426-9 11,466-7 10,713-1 12,409-5

13,618-3 12,484-8 12,683-1

11,875-6 12,361-1 11,358-0 12,893-2

20,377-9 20,426-0 21,923-3 22,170-5 25,630-1

23,260-3 26,596-9

2,219-6 2,372-2 2,027-7 1,987-2

2,658-4 3,523-6 4,023-0

5,104-1 5,220-2 4,070-7 3,806-5 4,517-8

5,201-8 5,318-1

8,018-0 8,945-1 10,038-4 8,667-6

9,499-4 8,604-8 10,847-2

13,122-1 14.165- 3 14,109-1

12,474-1 14,017-2 13,806-6

16.165- 3

35,719-6 36,963-5 38,060-1 36,631-8 42,305-7

40,590-5 46,785-2

155-3 157-3 165-5

160-0 183-9 176-5 199-1

1 976- Period 1 2 3

4 5 6 7 8

9

10 11 12 13

One week

52-1 97-7 95-5 102-6

63-7 91-7 90-3 86-0

82-6 110- 3

94-3 113-9 111- 2

507-2 812;5 840-5 805-7 725-3 1,080-2

912-7 995-6 771-9 965-7 1,057-7 1,028-0

1,114-3

506-4 1,028-2 1,073-3 1,031-5

741-6 1,059-6 1,072-4

984-1 813-9 1,107-6

1,091-1 1,139-3 1,147-2

1.065- 7

1.938- 4 2,009-3 1.939- 8 1,530-6 2,231-5 2,075-4

2.065- 7 1,668-4 2,183-6 2,243-1 2,281-2

2,372-7

169-4 324-6 347-1 323-5 225-7

366-6 355-5 329-2 331-6 287-0

341- 1

342- 5

319-4

182-8 407-0 457-2 413-9

321-9 454-3 480-2 371-4

262-5 487-2 410-3 466-5

475-6 0-0

429-9 852-0 886-0 753-9

580-8 743-1 776-1 656-3

665-6 784-2 902.4 930-5 922-1

1-9

612-7 1,259 0 1,343-2 1,167-8

902-7 1,197-4 1,256-3 1,027-7

928-1 1,271-4 1,312-7 1.397- 0

1.397- 7

1-9

1,847-8 3,522-0 3,699-6

3,431-1 2,659-0 3,795-5 3,687-2

3,422-6 2,928-1 3,742-0 3,896-9 4,020-7 4,089-8

1-9

185-2(d) 185-4 185-0 180-6 189-9(d)

189-8 194-1 171-1

180-6(d) 187-l(d) 205-1 201-0 2045(d)

0 -0 (d)

1 9 7 7 - Period 1 2 3

4 5 6

58-8 110-8 113-9

69-1 113- 0

114- 5

547-1 976-0 871-2

791-5 941-4 1,166-8

573-5 1,062-3 1,073-2 721-5 1,028-9 1,031-8

1,179-4 2,149-1 2,058-3

1,582-1 2,083-3 2,313-1

162-8 353-4 367-8 251-9

317-3 295-1

252-5 492-0 429-0 301-5

423-2 451-7

501-7 921-1 1,024-2 746-9

946-2 956-6

754-2 1,413-1 1,453-2 1,048-4 1,369-4 1,408-3

2,096-4 3,915-6 3,879-3

2,882-4 3,770-0 4,016-5

209-2(d) 206-1 194-0 205-9(d)

198-4 211-4

The periods mentioned above refer to 4-weekly periods: Period 1 1976, commenced on 28 December 1975; Period 6 1977, ended on 18 June 1977. (a) See Table 4 for number of possible working days. _ Φ ) 53-|[e f· ^ yeargr *0

208

APPENDIX 3—continued

TABLE 6

PRODUCTION OF BLACK C O A I^-BY SEAM (Ό00 tonnes raw coal) NEW SOUTH WALES

NAME OF SEAM 1975-76 1976-77 (a)

NORTHERN COALFIELD— Permian— Newcastle Coal Measures

1,056-8 3,738-9

- .....

1,397-1 1,040-8 1,411-3 85-3

652-0 938-9

Yard ..........................................................................................

10,373-3 11,926-7 Tomago Coal Measures 10-5

135-4 576-2 262-6

429-7 320-4

984-7 966-5 Singleton Coal Measures 321-0 96-2 1,264-9

f 8 .6 ' 1

1,208-8 2,923-0 407-3 135-4 2,994-8

583-6

Liddell ..........................................................................................

9,355-1 10,796-9

Greta Coal Measures—Cessnock/Maitland Area—

1,294-2

1,189-2 1,294-2

Greta Coal Measures—Muswellbrook Area—

1521

206-6 263-5

Greta C oal Measures—Cranky Comer Area—

66-5 57-5

Greta Coal Measures—Balmoral Area—

442-0 564-5

Ashford Coal Measures—

72-0 67-3

NORTH-WESTERN COALFIELD— Permian— -

Black Jack Coal Measures—Gunnedah Area—

542-5 634-7

WESTERN COALFIELD— Permian— Iltawarra Coal Measures

2,863-5 3,335-0

3,523-7 4,023-0

SOUTHERN-SOUTH WESTERN COALFIELD— Perm ian— Illawarra Coal Measures— Bum .............................................................................................. 12,356-7

264-3 2,695-4 3,089-2

13,806-5 16,165-3

OTHER AREAS— Triassic— Nymboida Coal Measures—

28-4

NEW SOUTH WALES ............................................ 40,590-5 46,785-2

(a) 53-week year.

209

APPENDIX 3—continued

TABLE 7

CAPTIVE AND NON-CAPTIVE M INES—PRODUCTION (Ό00 tonnes raw coal) NEW SOUTH WALES

Year 1954 1963-64 1973-74 1975-76 I 1976-7'

(?)

1973-74 j 1975-76 1916-17

South Maitland—

3,724 2,218 1 ,8 6 8 1,189 1,294

Per cent

5-1

of Total Production 1 3-0 2-8

Singleton-North West—

96 254 3,763 4,184 5,328 10-3 10*3 11*4

U331

0 - 0

13-1 1,384 4,664 6,529 7,082 12-7 161

1,480 1,585 8,427 10,713 12,410 23 0 26-4 26-5

Newcastle—

902 2,066

1,971 2,574

4,165 2,847 4,864

3,365 2,390 5,603

4,458 2,533 5,902

1V4 8-3 9-6

1,156 2,437

7-7 5-9 5-4

13-3 13*8 12 6

Totiri 4,495 6,611 11,876 11,358 12,893 32-4 28-0 27-6

West—

457 669 454 458 536 1 2 M M

230 302 286 366 466 0 -8 0-9 1*0

1,517 6 8 8 1,247 2,663 3,021 3-4 6*6 6-5

2,204 1,659 1,987 3,487 4,023 5-4 8 -6 8 -6

Burragorang Valley—

'770

248

3,806 5,202 5,318 12 8 11-3 1,924 10-4

Tntfll 770 2,172 3,806 5,202 5,318 10-4 12-8 11-3

South Coast—■

253 764

4,009 204

4Λ35 178

4,252 157

lb -9 9*1 1,236 180 2,788 160

lb-o

0 - 6 0-4 0-3

983 2,605 4,455 4,392 6,438 1 2 -2 1 0 -8 13-8

2,652 6,317 8 ,6 6 8 8,605 10,847 23-7 2 1 -2 23-2

New South Wales—

1,708 2,392 410

4,001 4,759 462

8,382 6,856 490

8,007 6,425 544

10,322 6,785 623

22-9 19-7 2 2-1

18-7 15-9 14-5

1*3 1*3 1-3

4,510 9,222 15,728 14,976 17,730 42-9 36-9 37-9

9,413 1,402

10,715 625

18,190 2,724

21,385 4,193

23,727 5,328

49-7 52-7 50-7

7-4 10-4 11 4

10,815 11,340 20,904 25,578 29,055 571 631 62-1

15,325 20,562 36,632 40,554 46,785 1 0 0 -0 1 0 0 -0 1 0 0 -0

Captive output as a percentage of total output 29 451 43 37 38

A “Captive” mine is defined as a mine owned or controlled by the a u th o rity o r co m p a n y to which the whole, or a substantial portion, of the output is supplied. Mines now in this category are those controlled by the Electricity Commission of N.S.W., The Broken Hill Proprietary Co. Ltd, Australian Iron & Steel Pty Ltd, Kandos Cement Holdings Ltd. and by the Blue Circle Southern Cement Ltd.

(a) 53-week year.

210

APPENDIX 3— continued

TABLE 8 ■

COAL WASHERIES—N.S.W,

Year

No. of washeries in operation at end of year

Input of raw coal Refuse

Output of washed coal Refuse as percentage

of raw coal

Raw coal as percentage of total production

COAL INDUSTRY WASHERIES

* 0 0 0 tonnes ‘0 0 0 tonnes ‘0 0 0 tonnes per cent per cent

1960 ................................. 32 6.817 1,009 5,808 14-8 37-8

1962 ................................. 32 8,856 1,320 7,536 14-9 45*8

1964 ......................... .. 32 9,704 1,526 8,178 15-7 46*1

1966 ................................. 32 13,812 2,243 11,569 16-2 V 53*4

1968 ................................. 33 16,399 3,012 13,387 18-4 53*2

1970 ................................. 35 19,398 4,094 15,304 2 1 1 540

1971 (a) .......................... 37 19,492 4,635 14,857 23-8 56*4

1972 ................................. 35 21,037 5,099 15,938 24-2 53*7

1973 ................................. 34 20,548 5,063 15,485 24-6 54*2

1974 ................................. 35 20,048 4,981 15,067 24-8 51-8

1975 ................................. 35 22,943 5,991 16,952 261 57-1

1976 (a) ......................... 34 24,578 6,834 17,744 27-8 54-9

1958 59 ........................ 29 4,943 658 4,285 13-3 30*9

1959-60 <61 ..................... 31 6,300 975 5,325 15-5 36*3

1960-61 ......................... 32 7,127 1,001 6,126 140 38*6

1961-62 ......................... 32 8,727 1,306 7,421 150 45*0

1962-63 ......................... 31 8,548 1,258 7,290 14-7 44*9

1963 64 ......................... 32 9,312 1,448 7,864 15-5 45*3

1964^65 ......................... 31 10,672 1,663 9,009 15-6 48*2

1965-66 t o ..................... 32 13,028 2,038 10,990 15-6 51*3

1966-67 ................. ....... 32 14,388 2,395 11,993 16-6 540

1967-68 ......................... 33 15,289 2,737 12,552 17-9 53*5

1968-69 ......................... 33 17,226 3,230 13,996 18 8 53*4

1969-70 ......................... 37 19,470 3,873 15,597 19-9 55*1

1970-71 ......................... 35 19,279 4,442 14,837 23 0 54*0

1971 72 (al ..................... 36 20.838 4,981 15,857 23-9 56*4

1972 73 ......................... 34 20,376 4,917 15,459 24Ί 53*5

1973-74 ......................... 34 19,309 4,759 14,550 24-6 52-7

1974-75 ......................... 36 23,054 5,888 17,166 25-5 54*5

1975 76 ......................... 34 22,944 6,170 16,774 26-9 56*6

1976 77 t o ..................... 34 25,332 7,054 18,278 27-8 54*1

CONSUMERS’ WASHERIES

20*9 1960 ................................. 2 3,769 585 3,184 15*5

1962 ................................. 2 4,503 764 3,739 170 23-3

1964 ................................. 2 4,705 978 3,727 2 0 - 8 22*4

1966 ................................. 2 5,454 1,123 4,331 2 0 - 6 2 1 -1

1968 ................................. 2 7,088 1,460 5,628 2 0 - 6 23*0

1970 .......................... 3 7,348 1,553 5,795 2 M 20*5

1971 (a) ................. . 3 6,857 1,323 5,534 19-3 19*9

1 9 7 2 .................................. •3 7,306 1,375 5,931 18-8 18*6

1973 ........................ 3 7,478 1,398 6,080 18-7 19*7

1974 ................................. 2 7,310 1,444 5,866 19*8 18*9

1975 ................................. 2 6,861 1,280 5,581 18*6 17*1

1976 (a) ......................... 2 6,833 1,130 5,703 16-5 15*3

1958-59 ......................... 2 2,999 461 2,538 15-4 18*7

1959-60 (6) ......................... 2 3,722 594 3,128 160 21*5

1960-61 ......................... 2 3,770 622 3,148 16-5 20*4

1961-62 ......................... 2 4,310 763 3,547 17-7 22*2

196263 ......................... 2 4.667 790 3,877 16-9 24*5

1963 64 ......................... 2 4,795 8 8 6 3,909 18-5 23*3

1964-65 ......................... 2 4,993 1,071 3,922 21-5 22-5

1965 6 6 (a) ..................... 2 5,488 1,179 4,309 21-5 21*6

1966-67 ......................... 2 5,955 1,255 4,700 21*1 22-4

1967-68 ......................... 2 6,906 1,391 5,515 2 0 1 24-2

1968-69 ......................... 2 7,115 1,515 5,600 21-3 2 2 -1

Ϊ969-70 ......................... 3 7,492 1,582 5,910 2 H 2 1 -2

1970-71 ......................... 3 7,286 1,454 5,832 2 0 0 20-4

1971-72 (a) ..................... 2 6,755 1,263 5,492 18-7 18*3

1972-73 ......................... 3 7,443 1,383 6.060 18*6 19-6

1973-74 ......................... 2 7,277 1,445 5,832 19*9 19-9

1974-75 ......................... 2 7,740 1,486 6,254 19-2 18-3

1975-76 ......................... 2 6,647 1,068 5,579 16*1 16*4

1976-77 (a) ..................... 2 6,374 1,238 5,136 19-4 13*6

(a) 53-week year. (W 54-week year.

211

continued

A P P E N D IX 3— continued

T otal

18,248 18,638 19,489 19,928 20,569 20,137 20,854

14.439 14,254 14,395 15,504

15,337 15,027 14,880 15,733 16,231 16,704 16,925 17,605 18,091 18,611

18,253 18,553 20,107 20,025

21,006 19,637 21.440

C h a n g e i n S t o c k s

I n t e r s t a t e I n N.S.W.

- 31 + 1,415

+ 9

4* 2

- 1,823

+ 2,870

80 + 984

+ 28 - 709

- 8 - 577

- 3 + 2,119

- 18 + 2 1 0

+ 46 + 303

- 43 + 277

28 - 288

- 1 0 + 191

- 71 - 117

+ 39 + 36$

- 34 + 275

63 - 413

+ 14 + 313

- 11 + 188

+ 111 - 2 2

- 33 + 522

54 + 626

+ 764

- 8 + 639

35 + 1,830

29 - 862

- 38 + 527

+ 65 + 600

- 21 + 1,748

T otal Stocks a t END of Y ear

6,909 5,095 7,967 8,871 8,190 7.605

9,721

2,942 3,291 3,525 3,209

3,390 3,202 3.606 3,847 3,371 3,698 3,875 3,964 4,453

5,025

5,790 6,421 8,216 7,325 7,815

8,480 10,207

APPENDIX 3—continued

1975-76 1976-77 0 )

Total change 1969-70— 1976-77

tonnes per cent

40,590 46,785 + 11,463 + - 32

117 18 + 11 4- 157

817 562 847 - 60

14,054 16,447 + 4,226 + 35

18,884 20,857 + 3,709 + 22

86 49 .+ 42 + 600

7,947 7,421 + 494 + ’ 7

9,047 11,692 + 4,395 + 60

8 7 — 162 - 96

48 50 — 318 - 86

553 453 — 79 . - ' 15,

346 318 — 145 - 31

— 2 - 100

1,021 965 — 432 - 31

18,970 20,906 + 3,751 + 22

APPENDIX 3—continued

APPENDIX 3—continued

APPENDIX 3—continued

APPENDIX 3—continued

APPENDIX 3—continued

T o ta l change 1969-70— 1976-77

tonnes per cent

+ 28,741 + 60

+ 17,407 + 97

+ 468 + 6

+ 6,755 + 52

- 282 - 97

- 436 - 79

+ 46 + 5

- 162 - 31

3 - 100

+ 244 + 10

+ 6,630 + 26

2,829

3,801

+ 42

- 100

- 96

+ 88

APPENDIX 3—continued

TABLE 18

BLACK COAL EXPORTS—BY REGIONS (Ό00 tonnes) Source: N.S.W. Statistical Register to 1947 and then Joint Coal Board

Year J apan

AS[A

Europe

Pacific Islands Incl. N ew Z ealand

A merica, A frica and Others

Total

FROM N.S.W.— » 7 1 ( a ) ................................ 9,561 26 3,085 198 45 12,915

1972 .................................... 10,411

537

1,178 47 11,636

1973 .................................... 11,295 177

356

12,009

1974 ..................................... 9,819 1,070 2,462 11 13,718

1975 .................................... 10,365 729 3,083 10 308 14,495

1976 (a) ................................ 11,151 1,049 2,656 13 68 14,937

1941-42 ................................ 9 233 3 245

1942-43 ................................ 2 242 14 258

1943-44 ................................ 158 2 160

1944-45 ................................ 188 4 192

1945-46 ................................ 76 76

1946-47 ................................ 45 45

1947-48 (a )........................... 54 54

1948-49 ................................ 33 33

1949-50 ................................ 64 64

1950-51 ................................ 68 68

1951-52 ................................ 129 129

1952 53 ................................ 56 15 166 237

1953 54 ................................ 203 193 396

1954-55 ................................ 95 190 285

1955 56 ................................ 9 19 179 207

1956-57 ................................ 233 107 224 564

1957-58 ................................ 432 134 183 50 799

1958-59 ................................ 382 79 151 102 714

1959-60 (6) ....................... 893 67 159 48 1,167

1960-61 ................................ 1,679 73 126 1,878

1961-62 ................................ 3,010 137 66 3,213

1962 63 ................................ 2,279 146 45 2,470

1963 64 ................................ 2,770 131 142 3.043

1964-65 ................................ 4,377 160 204 io 4,751

1965-66 la )........................... 5,847 172 281 6,300

1966-67 ................................ 6,746 133 249 7,128

1967 6 8 ............................. 7,728 161 1 221 8,111

1968 69 ................................ 9,873 178 252 10,303

1969 70 ................................ 10,927 72 956 229 37 12,221

1970-71 ................................ 9,169 125 2,273 256 162 11,985

1971-72 (a) ..................... 10,040 7 2,447 120 35 12.649

1972-73 ................................ 10,690 156 311 11 11,168

1973-74 ................................ 10,787 1,033 842 4 65 12,731

1974-75 ................................ 9,951 847 3,438 7 569 14,812

1975 76 ................................ 10,432 704 2,854 17 47 14,054

1976 77 (a) ........................ 12,464 1,258 2,638 13 74 16,447

FROM QUEENSLAND— 7,530 360 7,906 1971(6) ................................ 16

1972 .................................... 10,214 1,792 12,006

1973 .................................... 13,774 2,365 16,139

1974 .................................... 13,006 2,634

'46

15,640

1975 .................................... 12,354 16 2,965 5 15,386

1976 (a) ............................... 15,586 27 3,585 19,198

1961 62 ................................ 297 297

1962 63 ................................ 234 i o 244

1963 64 ................................ 801 16 817

1964-65 ................................ 1,186 1,186

1965 66 (at ....................... 1,731 i o 1,741

1966-67 ............................... 1,735 6 1,741

2,369 1967 68 ............................... 2,366 3

1968-69 ............................... 4,103 4,103

1969-70 ................................ 5,706 10 26 5,742

1970 71 ................................ 6,937 22 16 6,975

1971 7 2 (a) ....................... 8,268 932 9,200

1972 73 ................................ 12.425 2,233 14,6 38

1973 74 ................................ 13,085 2,560

*46

15,645

1974-75 ................................ 14,197 3,364 3 17,610

1975 76 ...............................

1976 77 (a) .....................

13,408 16 2,945 2

•45

16,371

14,855 144 3,879 2 18,925

(a) 53-week year. (b) 54-week year.

221

APPENDIX 3—continued

TABLE 19

BLACK COAL EXPORTS—BY DESTINATION (’000 tonnes)

A ctual D estination 1972-73 1973 1973-74 1974 1974-75 1975 1975-76 1976

(a)

1976-77 (a)

FROM N.S.W.— Japan ......................... 10,690 11,295 10,787 9,819 9,951 10,365 10,432 11,151 12,464

United Kingdom ..

173

286 1,053 1,947 2,233 2,359 2,267 1,463

Northern European ports 37 352 901 1,038 751 418 312 1,175

Greece .. .. .. 138 140 204 458 404 99

"48 "48 R o m a n ia ......................... 50 49

Yugoslavia .. .. 29 29

European total .. 311 177 842 2,462 3,438 3,083 2,854 2,656 2,638

Argentina .. .. 27 27 50 74

Bangladesh .. ..

Brazil ......................... "40 126 8 6

1 0 1 0

Buena ......................... 35 74 39

"2 9

:: :: ::

108 1 0

167 1 0

8 8

Fiji.................................... 4 11 7 10 17 13 13

Indonesia .. .. .. 8 8

Mexico .. .. .. 18 18

New Caledonia .. ..

South Korea .. ..

11

140 "422 '684 630 "568 '631 '645 966 1,053

Taiwan .. .. .. 16 115 349 397 197 59 59 73 195

United States of America .. 65 198 239 107 *·

Others t o t a l ......................... 167 537 1 ,1 0 2 1,437 1,423 1,047 768 1,130 1,345

T o t a l .................................... 11,168 12,009 12,731 13,718 14,812 14,495 14,054 14,937 16,447

FROM QUEENSLAND— Japan .................................... 12,425 13,774 13,085 13,006 14,197 12,354 13,408 15,586 14,855

United Kingdom .. .. 127 2 0 1 133 170 217 256 451 467 385

B e lg iu m .................................... 362 320 286 251 312 183 145 260 316

Holland .. .. .. .. 467 554 562 549 626 471 349 504 652

F r a n c e .................................... 119 111 232 255 516 650 739 814 832

Italy .................................... 656 881 1,027 1,135 1,408 1 ,1 0 0 828 1,026 1,109

201 Greece .. .. .. .. 427 298 320 274 285 236 109 57

Romania .. .. .. ..

Spain .................................... " 7 5 "69 "324

52

405

52

332

European total .. .. 2,233 2,365 2,560 2,634 3,364 2,965 2,945 3,585 3,879

Argentina .........................

F iji...............................................

46 3

46 5 " 2 *’ 2

Mexico .. .. ,. .. 45

South Korea .. .. .. 15 60

T a i w a n .................................... 16 16 1 2 63

Vietnam .. .. .. .. 21

Others total .. .. .. 49 67 18 27 191

T o t a l .................................... 14,658 16,139 15,645 15,640 17 610 15,386 16,371 19,198 18,925

(a) 5 3-week year.

222

APPENDIX 3—continued

BLACK COAL EXPORTS—BY PORTS (Ό00 tonnes)

TABLE 20

Y ear N ewcastle Sydney Port K embla G ladstone H ay Point Bowen B u n b u r y A u s t r a l ia

1965(a ) .................. 2,182 1,818 1,580 1,482 7,062

1966 ....................... 2,855 2,249 1,807 1,730 3 8,644

1967 ....................... 3,536 2,313 1,735 1,756 19 1 9,360

1968 ....................... 4,806 2,653 1,687 3,314 40 1 12,501

1969 ....................... 5,886 2,753 2,508 5,043 53 1 16,244

1970 . . : ................. 6,387 2,360 3,199 6,362

981

10 (c) 2 18,320

1971 ( a) ............... 7,507 2,919 2,489 6,901 24 3 20,824

1972 ....................... 5,903 2,244 3,489 7,149 4,719 138 1 23,643

1973 ....................... 6,306 2,085 3,618 7,611 8,444 8 4 1 28,149

1974 ....................... 8,605 2,103 3.010 7,016 8,583 41 10 29,368

1975 ....................... 8,039 2,753 3,703 5,287 10,053 46 29,881

1976(a) ............... 7,797 2,404 4,736 6,163 13,005 30 34,135

1950-51 ............... 22 46 68

1951 52 ............... 27 h 91 12 141

1952 53 ............... 128 5 104 37 274

1953-54 ............... 305 7 84 8 404

1954-55 ............... 177 5 103 285

1955 56 ............... 98 14 95 207

1956-57 ............... 324 118 122 564

1957-58 ............... 662 23 114 13 812

1958 59 ............... 444 96 174 714

1959 6 0 ( 6 ) ........... 504 186 477 39 1,206

1960 61 ............... 863 337 678 48 1,926

1961 62 ............... 1,667 736 810 297 3,510

1962-63 ............... 586 1,038 846 244 2,714

1963-64 ............... 583 1,198 1,262 817 3,860

1964-65 ............... 1,627 1,612 1,512 1,186 5,937

1965-66 ( a ) ........... 2,548 2,056 1,696 1,741 1 8,042

1966-67 ............... 3,058 2,255 1,815 1,728 13 2 8,871

1967-68 ............... 4,022 2,471 1,618 2,349 20 2 10,482

1968-69 ............... 5,499 2,823 1,981 4,056 47 0 14,406

1969-70 ............... 6,507 2,532 3,182 5,705 37 2 17,965

1970-71 ............... 6,775 2,618 2,592 6,971

2,574

4(c) 4 18,964

1971-72 ( a) ........... 6,892 2,611 3,146 6,526 100 21,849

1972-73 ............... 5,766 2,142 3,260 7,597 6,960 101 1 25,827

1973-74 ............... 7 . 5 9 7 (d ) 1,848 3,286 7,352 8,233 60 11 28.387

1974-75 ............... 8,550 2,692 3,570 6,715 10,838 57 32,422

1975-76 ............... 7,663 2,362 4,029 5,402 10.936 33 30,425

1976-77 ( a ) ............. 8,376 2,749 5,322 6,123 12,786 16 35,372

(a) 53-week year. (b) 54-week year. (c) Includes 4,000 tonnes ex Brisbane,

(d) Includes 2,000 tonnes ex Catherine Hill Bav.

223

APPENDIX 3—continued

APPENDIX 3—continued

TABLE 22

COAL DELIVERIES, REFUSE, DUMP LOSSES, STOCKS, ETC. NEW SOUTH WALES MINES (Ό00 tonnes)

Y e a r

S o u t h M a it l a n d

Sin g l e t o n — N o r t h W e st N e w c a s t l e W est

B u r r a g o r a n g V a l l e y So u t h C o a st N.S.W.

1974 .................. 176 51

Large Coal 55 Delivered 98 0 72 452

1975 ................. 173 38 37 56 0 156 460

1976 (a )............... 8 6 18 435 62 196 797

1971-72 (a) . . . . 183 70 61 274 1 0 0 6 8 8

1972-73 ........ .. 1 0 2 32 57 1 1 0 46 347

1973-74.............. 142 9 64 188 69 472

1974-75 .......... 179 82 49 47 0 89 446

1975-76 .......... 147 1 0 23 59 187 426

1976-77 (a) . . . . 51 18 634 93 2 0 1 997

3974 .................. 1,717 5,203

Small Coa 7,863 Delivered 1,831 2,760 3,224 22.598

1975 ................. 1 ,1 0 0 5,877 6,831 2,534 3,534 3,305 23,181

1976 (a )............... 799 5,972 7,852 3,228 3,249 3,891 24,991

1971-72 (a) . . . . 1,953 4,032 8,855 1,901 2,978 3,510 23,229

1972-73 .......... 1,479 3,697 8,365 1,744 2,991 3,719 21,995

1973-74 .......... 1,763 4,392 8 ,0 1 1 1,600 2,978 3,176 21,920

1974-75 ......... 1,333 5,774 7,687 2,223 3,065 3,772 23,854

1975-76 .......... 875 5.678 7,049 3,001 3,316 3,194 23,113

1976-77 (a) . . 1,078 6,260 8,386 3,239 3,620 4,406 26,989

1974 ................. 0 0

Fine Coal 0 Delivered 0 23 323 346

1975 ................. 1 0 10 13 27 54 105

1976 (a )............... 2 27 19 53 101

1971-72 (a) . . . . 1 14 149 164

1972 73 .......... 526 526

1973-74..............

**24

556 556

1974-75 .......... 0 0 7 13 99 143

1975-76 .......... 2 25 13 25 49 114

1976-77 (a) . . . . 2 2 13 19 6 6 10 2

1974 .................. 5 4,065

Unscreened Co 2,705 al Delivered 2 0 276 4,205 11,275

1975 .............. 0 3,400 2,547 8 8 150 3,988 10,173

1976(a).............. 1 3,914 2,511 148 2 4,296 10,872

1971-72 (a) . . . . 76 176 2,315 115 401 4,213 7,296

1972 73 .......... 1 2,705 2,577

2,796

333 4,541 10,157

1973-74.............. 14 2,876 274 4,124 10,084

1974-75 .......... 1 3,950 2,745 56 227 4,533 11,512

1975-76 .......... 1 3.399 2,416 69 75 4,022 9,982

1976-77 (a) ___ 0 4,559 2,459 303 2 4,219 11,542

3974 .................. 1,898 9,319

Total Coal 10,623 Delivered 1,949 3,059 7,824 34,672

1975 ................. 1,274 9,315 9,425 2,691 3,711 7,503 33,919

1976(a).............. 8 8 8 9,931 10,817 3,438 3,251 8,436 36,761

1971-72 (a) . . . . 2 ,2 1 2 4,279 11,245 2,290 3,379 7,972 31,377

1972-73 .......... 1,582 6,434 10,999 1,854 3,324 8,832 33,025

1973-74............. 1,919 7,277 10,870 1,788 3,253 7,925 33,032

1974-75 .......... 1,513 9,806 10,488 2,339 3,316 8,493 35,955

1975-76 .......... 1,025 9,112 9,501 3,129 3.416 7,452 33,635

1976-77 (a) . . . . 1,131 10,839 11,492 3,635 3,643 8,890 39,630

1974 ................. 1,796 10,256

Total Coal Pro 11,927 duction (Raw) 2,327 3,795 8,593 38,694

1975 ................. 1,465 10,973 11,276 2,912 5,111 8.473 40,210

1976 (a )............... 1,192 11,617 12,796 4,063 5,191 9,885 44,744

1971-72 (a) . . . . 2,341 5,600 12,484 2,373 5,221 8,945 36,964

1972 73 .......... 2,067 7,173 12,683 2,028 4,071 10,038 38,060

1973 74............. 1 ,8 6 8 8,427 11,876 1,987 3,806 8 ,6 6 8 36,632

1974-75............. 1,802 11,467 12,361 2,658 4,518 9,500 42,306

1975-76 .......... 1,189 10,713 11,358 3.523 5,202 8,605 40,590

1976-77 (a) . . . . 1,294 12,410 12,893 4,023 5,318 10,847 46,785

[continued

225

G 44102J—15

APPENDIX 3—continued

TABLE 22— continued

COAL DELIVERIES, REFUSE, DUMP LOSSES, STOCKS, ETC. NEW SOUTH WALES MINES (Ό00 tonnes)

Y e a r S o u t h

M a it l a n d

Sin g l e t o n — N o r t h W est N e w c a s t l e W est

B u r r a g o ra n c V a lley So u t h C oast N.S.W.

Miners’ Coal

1974 ................ 8 1975 ................ 1 0 1 2 2 1976 (a)............ 1 0 3 2 61971-72 (a) . . . . 2 0 1 4 0 4 11 1972-73 .......... 2 0 1 3 o 3 1973-74.............. 1 0 1 4 0 2 8 1974-75 ............. 2 0 1 3 1975-76 ............. 1 1 2 1976-77 (a) . . . . 1 0 3 2 6Colliery Consumption 1974 ....................... 0 0 1 0 1 2 1975 ....................... 0 0 0 0 1 1976(a).................. 0 0 1 0 0 11971-72 (a) . . . . 0 0 1 0 0 1 2 1972-73 ............. 0 0 1 1 0 2 1973-74.................. 0 0 1 0 ' 0 1 2 ‘ 1974-75 ............. 0 0 1 0 1 2 · 1975-76 .......... 0 0 1 0 0 1 1976-77 ( a ) . . . . 0 0 1 0 " i 0 11Mine Wasbery Refuse 1974 1................. 276 1,357 1,501 155 I 733 947 4,969 1975 ................. 179 1,653 1,637 313 1,290 980 6,052 1976 ( a )............. 2 0 1 1,626 1,740 328 1,484 1,409 6,7881971-72 (a) . . . . 315 865 1,406 159 1,407 827 4,979 1972-73 .......... 306 878 1,443 130 1,105 1,055 4,917 1973-74.............. 272 1,155 1,384 137 856 955 4,759 1974-75 .......... 271 1,655 1,690 218 1,063 1,019 5,916 1975-76 .......... 141 1.528 1,649 342 1,375 1 ,1 1 0 6,145 1976-77 (a) . . . . 214 1,756 1,682 304 1,529 1,569 7,054Colliery Dump and Siding Losses ( + indicates a stock gain)1974 ................. 23 28 8 15 + 1 4 1975 ................. + 1 5 3 58 + 6 19 1976 (a).............. + 9 + 24 + 1 44 33 01971-72 (a) . . . . 19 + 9 3 161 0 2 0 1972-73 .......... 4 '2 + 2 3 3 6 1973-74.............. 19 1 0 + 5 + 18 + 1 + 17 1974-75 .......... 5 26 10 36 0 5 1975-76 .......... + 9 4 + 1 2 2 5 14 1976-77 (a) . . . . 1 + 2 2 10 61 40 07778 4319416128235 90Change in Mine and Siding Stocks1974 ................... — 402 448 207 + 204 + 3 - 185 - 1975 ................... + 11 40 + 210 258 + 251 21 1976 (a )............... 110 - f 84 -l· 240 4 - 250 423 + 38 +1971-72 (a) . . . . 207 464 17! 241 + 435 + 121 + 1972-73 ........... + 173 141 + 241 + 37 361 + 142 + 1973-74............... 338 4 365 + 87 295 192 1974-75 ........... + 12 60 172 34 + 275 21 1975-76 ........... + 31 68 207 24 + 406 + 37 + 1976-77 (a) . . . . 53 - 163 292 + 20 + 106 + 386 +Stocks held at end of year (including former Government Stockpile)1,035153401911,10734472541974 ................... 37 648 238 827 133 113 1975 ................... 48 608 448 569 384 92 1976 (a)............... 158 691 687 819 807 1311971-72 (a) . . . . 285 832 427 590 750 261 1972-73 ........... 458 691 668 627 389 403 1973-74............... 113 676 293 703 88 205 1974-75 ........... 125 616 465 670 362 184 1975-76 ........... 157 684 672 688 768 221 1976-77 (a) . . . . 103 521 381 708 875 6071,9962,1493,2933,1453,2362,0782,4223,190 3,195(a) 53-week year226

APPENDIX 3—continued

C O A L S E N T T O A U S T R A L IA N C O N S U M E R S O R E X P O R T E D F R O M N .S .W .—BY P R O D U C T IO N A R E A — (Ό 00 tonnes)

TABLE 23

Year 1975-76— Iron and steel—Australia (a ) ...........

Electricity generation—N .S.W .......... Railway locomotives— N.S.W . .. Town gas—N .S.W ................................

Cement—N .S.W ...................................

Metallurgical coke (other)—N.S.W. Other consumers—within N.S.W. .. Interstate consumers (other) ...........

South Mait­ land

Single­ ton- North West

N ew ­ castle West

Burra- gorang Valley

South Coast N.S.W.

0

" 4

48

" 52 40

160

4,169 1

" 75 3

3,054 3,849 2

'522 31

147 516 1

359

254

589 28 0

" 92

4,778 259

178 346 5 60

8,728 8,821 8 48

537 346

1 ,0 0 0 134

Total—Australia ...................

Overseas shipments ........................

144

902

4,408

4,679

7,458

2,196

1,277

1,822

709

2,716

5,626

1,739

19,622

14,054

Total ........................................ 1,046 9,087 9,654 3,099 3,425 7,365 33,676

Inter-district transfers, stock vari­ ations and losses at ports,

merchants and in transit . . . .

Total deliveries from mines or indus­ try washeries ................................

- 2 1 + 25 -1 5 3 + 30 - 9 + 87 - 4 1

1,025 9,112 9,501 3,129 3,416 7,452 33,635

Year 1976-77— Iron and steel—Australia (a ) . . . . 0 15 2,867 121 418 5,170 8,591

Electricity generation—N.S.W .......... 5,463 5,524 806 333 12,126

Railway locomotives—N.S.W . .. 4 1 1 1 0 7

Town gas—N .S.W ................................ 50 50

Cement—N .S.W .................................... 348 0 157 505

Metallurgical coke (other)—N.S.W . 319 319

Other consumers—within N.S.W . .. 44 79 440 296 72 8 939

Interstate consumers (other) ----- 41 2 29 46 118

Total—Australia ................... 139 5,560 8,861 1,572 490 6,033 22,655

Overseas shipments ....................... 978 5,219 2,507 2,048 3,101 2,594 16,447

Total ........................................ 1,117 10,779 11,368 3,620 3,591 8,627 39,102

Inter-district transfers, stock vari­ ations and losses at ports,

+ 263 + 528 merchants and in transit ...........

Total deliveries from mines, or indus-+ 14 + 6 0 + 124 + 15 + 52

3,643 8,890 39,630 try washeries ................................ 1,131 10,839 11,492 3,635

(o) These figures represent the total intake of coal of the iron and steel industry. Some of this coal, after washing and blending, was shipped interstate or supplied to other local consumers..

(6 ) 53-week year.

227

APPENDIX 3—continued

APPENDIX 3—continued

C O N S U M P T IO N O F B LA C K C O A L — IN D U S T R IA L G R O U P S —N E W S O U T H W A L E S (Ό 00 tonnes) (a)

N M N M K )

APPENDIX 3—continued

TABLE 27

S T O C K S O F B LA C K C O A L (a) (Ό 00 tonnes)

A U S T R A L IA

APPENDIX 3—continued

to U >

Source o r Production

N.S.W. N.S.W. Qld

1970 ......................... 6,754 11

1971 ......................... 4,931 15

1972 ......................... 7,801 5

1973 ......................... 8,786 2

1974 ......................... 8,077 0

1975 ......................... 7,499 1

1976 ......................... 9,618 1

1956-57 ................. 2,655 1 2 0 72

1957-58 ................. ;2,958 157 47

1958-59 ................. 3,235 126 42

1959-60 ................. 2,947 106 2 0

1960-61 ................. 3,138 115

1961-62 ................. 3,021 6 6

1962-63 ................. 3,386 92

1963-64 ................. 3,661 75

1964-65 ................. 3,248 49

1965-66 ................. 3,561 54

1966-67 ................. 3,749 44

1967-68 ................. 3,727 54

1968-69 ................. 4,249 25

1969-70 ................. 4,875 2 0

1970-71 ................. 5,639 7

1971-72 ................. 6,278 17

1972-73 ................. 8,108 2

1973-74 ................. 7,246 1

1974-75 ................. 7.773 1

1975-76 ................. (6) 8,404 1

1976-77 ................. 1 0 ,1 2 1 1

Vic. N.S.W. Qld S.A. N.S.W. Qld N.S.W. Tas­ mania

140 171 1,462 3 2 2

146 167 1,095 2 14

158 168 2,545 2 23

81 17 162 1,643 1 19

1 1 0 2 0 167 1,947 3 16

101 2 0 125 3,738 4 31

99 8 6 216 3,815 3 30

4 137 61 4 521 11 29

9 147 70 3 489 5 28

6 146 107 2 463 4 25

4 131 133 4 458 5 28

2 111 164 2 451 4 33

3 94 1 0 2 3 518 4 2 1

2 97 167 5 500 5 18

2 93 185 5 554 4 19

3 62 2 0 2 1 581 3 11

2 71 2 2 0 557 1 17

4 70 157 705 1 9

2 171 163 826 1 1 0

175 179 980 3 13

128 178 1,158 1 17

141 2 0 2 1,451 2 17

1 2 2 177 2,531 3 9

103 27 175 2,126 2 18

76 2 0 160 1,700 1 16

40 15 169 2,351 1 15

101 56 131 4,098 5 27

79 47 269 4,242 6 19

W e s t e r n A u s t r a l i a

N o r t h -J

E R N T e r r i ­

t o r y

N.S.W. W.A. N.S.W.

1 164 6,909

1 145 5,095

1 131 7,967

1 163 8,871

133 8,190

178 7,605

169 9,721

15 47 2,942

21 51 3,291

12 76 3,525

16 78 3,209

2 0 70 3,390

14 1 0 2 3,202

21 82 3,606

9 78 3,847

8 95 3,371

11 93 3,698

11 113 3,875

11 87 3,964

1 121 4,453

1 134 5,025

1 132 5,790

1 136 6,421

1 117 8,216

127 7,325

153 7,815

142 8,480

162 10,207

A u s t r a l i a

Other States

1,819 1,421 2,867 2,004 2,283 4,092 4,316

734 694 719 721 720

746 769 838 892 889 988 1,088 1,293 1,487

1,802 2,853 2,463 2,023 2,703 4,485 4,739

Total

8,728 6,516 10,834 10,875

10,473 11,697 14,037

3,676 3,985 4,244 3,930 4,110

3,948 4,375 4,685 4,263 4,587 4,863

5,052 5,746 6,512

7,592 9,274 10,679 9,348 10,518 12,965 14,946

(а) For this purpose stocks consist o f coal within a State and coal in transit to that State from other parts of Australia. (б) Includes 31,000 tonnes o f Queensland coal.

APPENDIX 3—continued

M iscellaneous

Held at Mines and Sidings

Former Government Stockpile

I Held at Ports j

1

Held by Merchants

In Transit (Est.)

1,018 829 185 9 13

555 825 2 0 0 16 28

882 825 333 2 0 24

1,692 825 412 32 2

2 ,0 2 2 665 509 35 31

2,630 514 517 1 0 17

2,722 514 670 9 U

1,564 514 302 4 25

2,034 388 601 6 42

2,984 206 530 7 16

2,989 206 1,015 34 5

1,727 206 460 12 6

1,873 206 496 21 9 2,163 206 538 23 - 4 2,632 206 476 8 11 2,731 206 535 9 7 2,946 206 602 8 13 3,083 206 492 15 1 0 3,297 206 481 15 - 3 3,108 206 466 11 51 3,031 206 5781 36 33 2,977 206 6 6 6 31 31 3,018 206 699 25 7 3,218 206 878 51 16 3,087 206 790 29 1 22,774 206 708 58 1 0 2,857 206 797 36 14 3,025 206 848 48 - 7 2,568 206 839 48 - 1 2 2,608 206 927 10 - 2 6 2,837 206 1,029 15 - 1 3

Total S t o c k N.S.W.

3,749 3,727 4,249 4,875

5,639 6,278 8,208 7,246 7,773 8,404 10,121

6,642 7,145 7,741

8,157 8,057 8,542 8,487

8,533 8,111 8,498 9,011

9,465 10,155 9,618

8,771 9,210 9,590 9,058 9,409 9,854

APPENDIX 3—continued

N U M B E R O F M IN E W O R K E R S E M P L O Y E D IN T H E P R O D U C T IO N O F B LA C K C O A L

A U S T R A L IA

TABLE 29

Year N.S.W. victoria Queensland South Australia

( a )

Western Australia Tasmania AUSTRALIA

Average Number Employed—

1930 ..................................... 21,343 2,080 2,768 896 441 27,528

1931 ..................................... 15,522 1,897 2,362 752 363 20,896

1935 ..................................... 12,788 1,397 2,455 689 358 17,687

1939 ..................................... 16,144 1,376 2,615 752 238 21,125

1943 ..................................... 16,808 1,263 2,881 838 278 22,068

1945 ..................................... 17.020 1,016 2,968 91 860 278 22,233

1946 ..................................... 17,008 924 3,012 1 2 0 995 276 22,335

1947 ..................................... 17,204 860 3,337 134 1,032 289 22,856

No. Employed as at—- 1948, June ..................... .. 17,719 847 3,253 248 1,160 280 23,507

1949, June ......................... 18,187 774 3,377 362 1 ,1 2 1 314 24,135

1950 June ..., ..................... 18,208 788 3,544 430 1,124 324 24,418

1951, June ......................... 18,665 776 3,493 447 1,133 321 24.835

1952, June ......................... 20,191 810 3,738 463 1,310 355 26,867

Dec............................... 20,310 918 3,801 385 1,383 338 27,135

1953, Dec............................... 19,956 868 3,752 429 1,509 363 26,877

1954, June ......................... 2 0 ,2 1 0 811 3.759 281 1,596 371 27,028

1955, June ......................... 19,417 739 3,728 262 1,360 374 25,880

1956, June ......................... 17,934 694 3,603 242 1 ,2 1 1 372 24.056

1957, June ......................... 16,749 637 3,533 226 1,172 288 22,605

1958, June ......................... 15,428 580 3,303 242 1,086 285 20,924

1959, June ................. .. 13,380 432 3,221 258 1,028 315 18.634

I960. June ......................... 13,315 409 3,254 271 990 317 18,556

1961, June ......................... 12,589 372 3,036 286 663 289 17.235

1962, June ................. .. 12,098 329 2,906 268 755 230 16,586

1963, June ......................... 11,492 298 2,736 260 759 181 15,726

1964, June ......................... 11,414 252 2,657 264 769 114 15,470

1965, June ......................... 11,660 2 2 0 2,425 273 759 57 15.394

1966,June ......................... 11,905 196 2,339 282 733 59 15.514

1967, June ......................... 12,134 134 2,278 271 698 54 15,569

1968, June ......................... 12,766 11 2 2,239 253 648 61 16,079

1969. June ......................... 13,214 3 2,238 247 628 61 16,391

1970, June ......................... 13,809 2 2,294 253 642 57 17,057

1971, June ......................... 14,379 3,193 207 624 51 18,454

1972, June ......................... 13,914 3,847 2 0 2 613 51 18,627

Dec............................... 13,790 3,947 2 1 1 620 51 18,619

1973, June ......................... 13,570 4,095 198 621 44 18,528

Dec............................... 13,371 4,374 2 0 0 619 45 18,609

1974, June ......................... 13,714 4,531 204 668 54 19,171

20.575 Dec............................... 14,455 5,072 205 787 56

1975, June ......................... 14,998 5,383

5,575

2 1 2 849 63 21.505

Dec............................... 15,148 218 854 77 21,872

1976, June ......................... 15,478 5,777 219 859 78 22,411

Dec............................... 15,784 6,028 2 1 2 857 80 2 2 961

1977, June ......................Γ. 15 915 5,955 218 864 85 23,037

No. on Long Service Leave (in­ cluded above)— 1966, June ......................... 70 9 3 1 12 1 96

1967, June ......................... 48 4 16 2 6 1 77

1968, June ......................... 55 1 4 2 9 71

1969. June ......................... 33 9 1 7 50

1970, June ......................... 14 15

" 2

29

1971, June ......................... 76 9 1 15 103

1972, June ......................... 132 7 1 1 0 1 151

1973, June ......................... 86 7 1

1

14 108

1974, June ......................... 81 17 6 1 1U6

1975. June ......................... 1 1 2 9 1 8 130

1976, June ......................... 96 15

'* 2

1 0 121

1977, June ......................... 103 7 7 119

[continued

233

G 4 4 1 0 2 J — 16U

APPENDIX 3—continued

n u m b e r o f m in e w o r k e r s e m p l o y e d in t h e p r o d u c t io n o f b l a c k c o a l

AUSTRALIA

TABLE 29— contin ued

Year N.S.W. Victoria Queensland

South A ustralia («)

Western A ustralia T a sm an ia A ustralia

U nderground M ines No. Employed as a t June—

17,423 18,805 19,557 18,980 17,586

776 3,294 975 321 22,789

24,498 25,524 24,741 23,147 21,829

20,193 18,056

810 3,503 1,025 355

811 3,524 i.26l 371

374 739 3,494 1,154

694 3,419 1,076 372

288 285

16,486 15,137 13,254

13,186 12,441

637 3,359 1,059

580 3,162 1,029

432 3,084 971 315

1"60 409 3,120

924 317

289 230 181

17,956 16,497 15,813 15,039 14,742 14,539 14,538 14,550

372 2,832 563

11,940 11,359 11,284 11,503 11,698

11,912 12,478 12,885

13,432 13,986 13,451 13,102

329 2,693 621

298 2,546 655

659 560

252 2,433

220 2,199

196 2,067 519

134 1,937 513

469 449

112 1,599

H 8 7 4 3 1,476 2 1,491 436 57 15,418

2,018 416

407 408

1,903 1,869

13,181 14,324 14,716

1,832 425

449 448 448

1.990 2,065

15,038 2,073

Open Cut Mines No. Employed as at June—· 1,242 199 447 158

267

2,046

1,386 235 463

653 235 281 335

206 437 234 262

348 184 242 135

263 174 226 113

291 140 242 58

126 137 258

129 133 271

286

67 600

148 204

■ 158 213 268

133 190 260

110 130 224 264

157 226 273

285 976 207 271

222 341 271

288 640 253

329 762 247

377 803 253

207 202 198

206 1,639 1 QR1

393 1,175 7 R!5

463 1,944 3,105

3.679 4.679 5.104 5,393

468 2,226

533 2,699 204

674 3.393 212

762 3.712 219

218

1977 ........................................ 877

3,882

ία) Figures for some years prior to 1954 include workers on other than mine work.

234

APPENDIX 3—continued

Total

J.S.W. South Maitland Singleton- North West

Newcastle West N.S.W.

164 162 713 121 542 1,538

16 2 0 * 19

138 250 "Ϊ9

"31

138 288

35 28 289 29 377

69 428 35 463

72 442 26 468

75 497 36 533

84 619 55 674

96 707 55 762

113 2 1 794 62 877

8 6 654 59 713

8 8 652 71 723

94 685 6 6 751

98 701 61 762

93 692 67 759

96 708 55 763

97 718 61 779

96 700 54 754

96 703 53 756

89 6 6 6 65 731

1 0 0 724 58 782

101 713 60 773

96 685 58 743

105 720 67 787

103 721 64 785

111 764 63 827

1 1 2 766 61 827

107 6 780 62 848

114 7 785 61 853

+ 3 + 55 + 10 +65

4-9 4-122 + 19 4-141

+ 12 4 -8 8 0 4 -8 8

+ 17 + 2 1 4-87 + 7 4-115

1976, commenced on 28 December 1975; Period 6 1977 ended on 18 June 1977. [continued

APPENDIX 3—continued

NUMBER OF PERSONS EMPLOYED AT NEW SOUTH WALES COAL MINES (a) UNDERGROUND MINES

TABLE 30— con tin u ed

South Maitland

October 1952..........

October 1964..........

June 1968..........

1970..........

1972..........

1973..........

1974..........

1975..........

1976.........

June 1977..........

1976— Period 1 .............

2 ............

3 .............

4 ..........

5 ..........

6 ............

7 ........

8 ........

9 ............

10 11

. 12

13

1977- Period 1 2 3

4 5 6

2,260

289 281 300 243

241 233 223 165

162

177 176 176 158

157 164 174 174

175 173 191 209 174

180 185 180

179 162 162

Change during year— 1973- 7 4 .... 1974- 75.........

1975- 76.........

1976- 77.............

- 8 - 1 0 -5 8 - 3

Below Ground—at the Coal Face

Singleton- North West Newcastle West gorang

Valley

South Coast

223 2,144 645 83 1,092

198 904 198 205 1,152 148 911 149 305 1,281 204 1,073 137 306 1,390 183 1,091 121 472 1,437 2 2 2 1,053 130 324 1,573 263 1,098 2 1 2 309 1,627 279 1,187 293 300 1,544 312 1,229 350 300 1,767 335 1 ,2 2 2 353 314 1,876302 1,315 319 300 1,691 305 1,276 331 300 1,693 312 1,275 341 300 1,727 319 1,276 342 300 1,760 320 1,237 344 300 1,770 313 1,219 344 300 1,767 315 1,231 344 314 1,765 328 1,177 346 314 1,767 329 1,194 354 314 1,765 314 1,186 354 314 1,785 333 1,191 355 314 1,836 334 1,196 354 314 1,809 328 1,217 356 294 1,828329 1,209 354 314 1,880 335 1,184 358 314 1,908 333 1,184 358 314 1,904 335 1,2 0 1 356 314 1,902 332 1,189 354 314 1,874 339 1 ,2 1 1 357 314 1,876+41 +45 1 +82 -1 5 + 54 + 16 + 89 +81 - 9 —83 + 33 +42 + 57 0 +223 +23 - 7 +3 + 14 + 109The periods referred to above are four-weekly periods: ·*-Period 1 1976, commenced on 28 December 1975; Period 6 1977, ended on 18 June 1977 [continued

APPENDIX 3—continued

TABLE 30— c o n tin u e d

NUMBER OF PERSONS EMPLOYED AT NEW SOUTH WALES COAL M INES (a )

U N D ER G R O U N D MINES

October 1952 . . . .

October 1964..........

June 1968..........

June 1970.........

1972..........

1973..........

1974..........

1975..........

1976..........

June 1977.........

1976— Period I 2 3

4 5 6 7 8

9

to 11 12 13

1977- Period

Change during year- 1973- 74.......

1974- 75...................

1975- 76...................

1976- 77........

Above Ground—General

South Maitland Singleton- North

West

Newcastle West Burra- gorang Valley

South Coast

New South Wales

1,514 191 1,622 525 6 8 996 4,916

479 148 1,030 161 158 918 2,894

398 163 1,052 144 173 990 2,920

386 196 1,124 156 215 972 3,049

319 166 1,090 137 183 949 2,844

299 192 973 1 2 2 181 928 2,695

259 2 1 0 1,006 147 194 876 2,692

283 254 1,026 195 241 921 2,920

2 2 2 264 1,035 217 256 922 2,916

187 312 1,027 242 237 976 2,981

2 2 0 254 1,092 2 1 2 258 924 2,960

219 268 1,091 213 258 921 2,970

219 260 1,075 214 258 924 2,950

224 257 1,067 217 258 923 2,946

226 264 1,050 219 258 919 2,936

2 2 2 265 1,036 217 255 918 2,913

227 257 1,043 219 240 924 2,910

227 270 1,023 224 239 942 2,925

234 272 1,018 225 237 950 2,936

225 315 1 ,0 2 2 227 237 941 2,967

225 282 1,024 226 239 952 2,948

229 281 1 ,0 1 1 224 234 970 2,949

232 319 1,019 229 246 988 3,033

229 289 1,049 232 229 1 ,0 0 2 3,030

229 298 1,024 238 230 1,001 3,020

227 295 1,024 247 230 1,004 3,027

225 292 1,033 247 230 1,004 3,031

2 0 2 311 1,029 243 238 978 3,001

2 0 1 305 1,024 243 237 977 2,987

-4 0 + 18 + 33 +25 + 13 -5 2 - 3

+24 +44 + 2 0 +48 +47 +45 +228

-61 + 10 +9 + 2 2 + 15 + 1 - 4

-3 5 +48 - 8 +25 -1 9 +54 +65

Above Ground—Administrative and Clerical

South Maitland

163 157 169 165

143 129 130 120 112

116 116 117 116 117 119

121 121 120 118 116 118 119

120 118 118 119 115 111

-1 4

+1 - 1 0

- 8

Singleton- North West

36 50 68 66 90 100 114 133 144

123 127 126 126 134 132

130 134 135 148 136 134 145

136 140 139

137 145 142

+ 10 + 14 + 19 + 11

Newcastle

316 399 460 491 466 506 528 557

558

555 556 553

553 559 557 557

552 549 554 557 557

562

575 563 557 560 560 559

+40 + 22 +29 + 1

West

78 57 57 68 60 71 82 85 91

87 88 85 87

85 85 87

89 92 89 90

92 90

90 88 91 92 92

90

+ 11 + 11 +3 + 6

Burra- gorang Valley

48 55 60 69

67 68 62 62 74

62 62 62 62

62 62 63

63 63 63 63 64 59

64 64 64

64 69 74

+ 1 - 6

0

+ 12

South Coast

204

369 440 490 487 476

467 500 508 530

510 514 509 522 511 511 510

512 510 507 520 514 520

522 528 532

533 532 529

—9 + 33 + 8 + 22

New South Wales

1,010 1,158 1,304 1,346 1,302 1,341 1,416 1,465 1,509

1,453 1,463 1,452 1.466 1.468 1.466 1.468 1,471 1.469 1.479 1,482

1.479 1,495

1,507 1.501 1.501 1.505 1,513 1.505

+39 +75 +49 +44

The periods referred to above are four-weekly periods: Period 1 1976, commenced on 28 December 1975; Period 6 1977. ended on 18 June, 1977. [continued

APPENDIX 3—continued

TABLE 31

PRE-EMPLOYMENT MEDICAL EXAMINATIONS

NUMBER ACCEPTED AS FIT FOR EMPLOYMENT AT COAL MINES (a )

NEW SOUTH WALES

40-44 45-49 50-54 55-59 60-64

Average Age (Years)

162 91 45 4 29-8

111 54 29 3 28-6

37 19 6 1 26-7

26 17 7 1 26*6

108 50 11 27-5

98 45 20 28 ·4

73 27 14 3 27-6

40 21 9 1 28*6

63 33 7 5 30*0

115 50 26 12 301

126 69 30 5 3 0 0

131 77 25 12 i 30-6

173 87 50 22 1 31-9

130 80 37 14 30-6

162 99 51 9 30‘8

139 70 37 2 29-1

75 37 15 3 27-9

30 19 4 1 26*4

60 29 11

•4 27-2 117 53 16 28-0

80 33 15 2 28-1

68 31 16 5 27-7

1 1

10 8 12

1 1 1 2

4 3 5

*7 7 11 8

continued

APPENDIX 3—continued

TABLE 33

O U T P U T P E R M A N S H IF T W O R K E D (tonnes)— A U S T R A L IA (a)

Year N.S.W. Victoria Q ueensland South A ustralia

W estern A ustralia T asmania A ustralia

(X) UNDERGROUND MINES—Production per manshift worked at the coal face.

1972 ................... 37-78 23-80 11-10 24-59 34-68

1973 ................... 38-42 23-48 11-39 25-20 35-07 1974 ................... 36-19 22-83 14.06 26-36 33-46 1975 ................... 36-45 22-81 15-96 25-31 33-97 1976 (6) ........... 36-27 23-61 15-60 34-04 34-131952-53 ........... 9-77 2-20 6-45 5-60 6-38 8-63 1956-57 ........... 12-21 2-03 7-04 5-60 7-46 10-371961-62 ........... 25-69 2-01 8-97 8-71 9-69 19-81 1966-67 ........... 36-22 2-45 17-02 9-58 15-07 30-40 1971-72 (6) . . . . 37 06 23-06 10-58 22-90 33-86 1972-73 ........... 38-44 23-72 11-30 24-89 35-15 1973-74 ........... 36-68 22-66 12-01 28-00 33-64 1974-75 ........... 37-27 23-54 15*74 25-78 34-65 1975-76 ........... 35-45 23-18 15-91 27-27 33-31 1976-77 (6) . . . . 36-59 23-91 15-05 36-09 34 Ά 6(2) UNDERGROUND MINES—Production per manshift worked overall.1972 ..................... 1973 .................. 1974 .................. 1975 .................. 1976 (b) ..........1952-53 .......... 1956-57 ..........1961-62 .......... 1966-67 .......... 1971- 72(6) . . . . 1972- 73 ....... 1973- 74 ....... 1974- 75 ....... 1975- 76 .... 1976- 77 (6) . . . .1972 .. 1973 . . 1974 . . 1975 . . 1976 (6)1952-53 1956-571961-62 ........... 1966-67 ........... 1971- 72 (6) . . . . 1972- 73 ........ 1973- 74 ........ 1974- 75 .......... , 1975- 76 ........ 1976- 77 (6) . . . . 10-04 10-15 4-89 10-58 9-57

10-14 7-10 4-91 10-08 9-60

9*78 6-56 5-67 9-60 9-23

9.76 6-16 6-09 9-79 9-22

10-03 6-06 5-97 9-91 9-44

3-04 0-82 2-58 1-64 3-13 2-82

3-77 0-84 2-77 2-59 3-59 3-47

6-53 0-79 3-56 4-32 4-46 5-81

9-03 1-02 6-27 4-49 5-90 8-39

9-50 7-15 4*82 9-55 9-08

10-16 7-27 4-88 10-48 9-64

9-81 6-64 5-16 10-47 9-25

1001 6-55 6-01 9-57 9-45

9-73 6-00 6-10 9-66 9-18

10-20 6-16 5-78 10-03 9-60

(3) OPEN CUT MINES—Production per manshift worked overall.

39-92 23-59 3M 9 15-48 26-39

43-96 24-59 29-97 14-85 27-13

55-91 22-59 32-42 15-23 27-39

49-42 22-90 34-06 16-93 26-91

43-06 21-71 33-85 17-88 25-11

7-63 11-46 3-50 5*57 4-56 6-87

1 0 - 8 6 V. 13-21 8*58 6*27 9-41 10-05

24-28 11-72 17*07 1 0 * 6 6 13-03 15-83

19-35 16-64 29-78 1301 19-99

35-98 22-44 29-94 15*90 25-05

41-67 23-82 31 09 14*63 26-43

49-55 23-76 29-35 14-68 27-18

53-99 23-36 34-70 16-72 27-90

44-19 22-51 33-05 16*64 25-76

45-93 21-24 34-91 1914 25-35

1972 ...................

1973 ...................

1974 ...................

1975 ...................

1976 (6) ...........

1952-53 ...........

1956-57 ...........

1961-62 ...........

1966-67 ...........

1971- 72 (6) . . . .

1972- 73 ...........

1973- 74 ...........

1974- 75 ..........

1975- 76 ...........

1976- 77 (6 ) . . . .

(4) ALL MINES—Production per manshift worked overall.

11-25 15*81 31-19 8-69 10*58

11-45 16-69 29-97 8-59 1008

11-90 16-20 32-42 9*69 9-60

11-84 16-89 34-06 11-56 9-79

11-85 16-38 33-85 12-02 9-91

3-33 0*81 3-21 3-50 2-34 3-14

3*90 0-84 3*33 8-58 2-96 3*73

6-78 0*79 4*33 17-07 5-45 4-40

9-25 1*02 7*90 29-78 6-92 5-90

10-47 14*23 29-94 8-86 9*55

11-39 16*32 31*09 8-41 10*48

11-43 16*40 29-35 8-79 10-47

1D-71 17-05 34-70 11-09 9-57

1 -60 16*82 33-05 11*47 9*66

12*18 16-13 34-91 12*56 10 03

(a) Raw coal basis, except in Queensland where O.M.S. is on a saleable basis. (6 ) 53-week year.

12-46 12- 89

13.22 f3-43 13- 34

3-18 3-73

6-34 9-22 11- 44

12- 73

12- 85

13- 72

13-21 13 51

241

APPENDIX 3—continued

TABLE 34

OUTPUT PER MANSHIFT WORKED (tonnes raw coal)—NEW SOUTH WALES

Year or period South Maitland . Singleton- North West

Newcastle North Total J West Burragorang Valley South

Coast N.S.W.

Underground Mines— at the Coal Face

1973 ..................... 33-61 44*57 47*49 44*82 54*75 40*71 29*16 38-42

1974 ..................... 35-93 45-98 44*65 43-66 42-87 39-65 2601 36-19

1975 ............... . 30-73 45-74 40-38 40-12 42-08 53-16 26*11 36-45

1976 (a) ............. 30-03 42-96 42.14 41-11 45-60 53-01 25*04 36*27

1952-53 ............. 7*42 11-37 10*32 8*94 1 0 6 9 30-27 10-71 9* 77

1956-57 ......... 7*78 13-34 15*11 10*89 13*85 21*05 13*93 12*21

1966-67 .............. 35*29 51*67 43*81 42-78 43*77 45*97 25*40 36*22

1971-72 (a) . . . . . . 32-86 45-33 48-41 45-10 59-49 36*29 26-45 37*06

1972-73 .............. 36-06 44-52 48-08 45-70 62-12 37-54 28*94 38*44

1973-74 ............. 34-60 45-09 45*51 43-80 47-37 37*96 26-95 36*68

1974-75 .............. 34*65 46-98 44*35 43-46 40-32 46-84 27-35 37-27

1975-76 ............. 28-90 44*39 38*55 38*60 45*72 54*24 24-58 35*45

1976-77 ( a ) .......... 32-36 42-02 44-13 42-52 44-67 51-30 25-69 36*59

1976— Period 1 .......... 30-23 47-42 34-92 36*89 39*16 44*31 24-40 32-89

2 .......... 31-57 44-08 38*35 38-75 46-97 51-19 26-45 35-77

3 .......... 28-61 47-80 39*03 39*56 49-06 53*40 25-40 35-93

4 .......... 31-81 44-62 39*35 39*54 47-12 51-68 23-25 34*85

5 .......... 29-41 41-38 39-48 39-00 40-77 53-93 23-18 34*16

6 .......... 27-48 43*27 41*33 40*39 48-25 55-11 2 2 -6 6 35-61

7 .......... 28-30 35-84 41-75 39-39 49-00 57-73 23-92 3600

8 ......... 28-32 44-04 43-34 42-02 45-58 51-88 23-94 36*54

9 .......... 32-16 40^36 44-07 42-09 44-93 53*10 25-00 36-22

1 0 .......... 32-98 40-97 45*96 43-65 45.0 1 54*74 27-73 39-17

11 ......... 30-25 44-14 46-40 44-37 46-09 47-99 27-69 38*18

12 . . . . . . 27-91 42-35 46-48 43-44 45-55 54-30 25-90 37-38

13 .......... 32-24 44-50 4510 43-68 41-84 57*84 25-44 37*20

1977— Period 1 .......... 32-76 37-15 43-73 41-21 42-02 47-42 26-12 35-71

2 .......... 32-97 41-24 44-14 42-38 47-18 55-94 24-78 36-56

3 ......... 33-34 40-93 42-72 41-43 47-82 48-87 26-83 36-40

4 .......... 34-06 41-23 41-85 41-04 44-13 38-31 26-29 34-53

5 .......... 34-52 42*67 43-56 42-45 44-11 50-27 25-11 35-71

6 .......... 37-50 43*39 42-29 42-07 40-29 51*72 24-84 35-26

Underground Mines—by all Employees

1973 . . . .

1974 . . . .

1975 . . . .

1976 (a)

1952-53

1956-57

1966-67 1971- 72 (, 1972- 73 1973- 74 1974- 75 1975- 76

1976— Period 1 2 3

4 5 6 7

8 9

10 11 12 13

1 9 7 7 - Period 1 2 3

4 5 6

7-41 11-62 10-99 10-47 15-59 12*30 8-50

7-48 11-81 10*70 10-37 15*31 10-94 7*84

6-54 11-64 10*15 9*88 15-81 12-61 7-58

6-29 1 1 *10 10-52 10-14 17-62 12*14 7-81

2-40 3*83 3*23 2-85 3-68 9-43 2-82

2*64 4*55 407 3-37 4*71 7*96 3*92

7-23 13-62 9*77 9*52 11-83 14*38 6*81

6*75 10-84 10*53 9*79 15-78 12-59 7*31

7-41 11*35 10*96 10*40 16-98 13 04 8-41

7-54 11-82 10*79 10*41 15-07 1 1 -0 0 7*96

7-27 11-76 10-77 10-39 15-09 12*03 811

6 -2 0 11-49 9-87 9*70 17*51 12*43 7-46

3 ) ......... 6-83 10-84 10-75 10*31 16*89 11*80 8*29

5*98 10*84 806 8*69 13*75 10*51 6*65

6-91 11*35 9-95 9*87 18*28 1 1 -6 6 8*27

.......... 6*44 11*92 1 0 -1 1 10*03 18*98 12-19 8*17

.......... 6*86 11*98 10-24 10*14 18*58 11-77 7*43

5*68 10*53 9-72 9*44 15*80 12-18 7*38

5*68 11*48 10-38 10*05 19*08 12-33 7*24

r .......... 5*57 9*73 11.04 10*15 19*49 13-28 7*64

1 .......... 5*51 11*53 10-64 10*18 18*04 11-93 7*35

> .......... 617 10*43 10-45 9*92 17*69 1 2 -8 8 7*80

> .......... 6*66 10*33 11-29 10*54 17*10 12-77 8*29

6*28 11*76 11-36 10*85 17*80 11-09 8*62

7*00 11*13 11*40 10*82 17*61 12-64 8*24

.......... 6*90 11*60 11*32 10*86 16*24 12-51 813

6*63 8*23 9*33 8*82 12*94 10-29 7-16

7-17 10*85 10*65 10-28 18-07 12-81 8*34

7-05 10*34 10-48 10*06 17*93 11-13 8*90

6-61 9-99 9-79 9-50 16-32 8-71 8-75

8-26 12-05 11-28 11-09 17-24 12-03 9-26

7-83 11-59 10-39 10-34 15-17 1 2 -0 1 8-59

1014 9-78 9-76 1003

3 04

3-77

9 03 9-50 1016 9 81 1001

9-74 10-20

8- 47 1003 1018 9- 89

9-45 9-94 10*25 9*98 1003 10*48 10*54 10*52

9*77

8*67 10*40 10*28 9*56

9*28 10*21

The periods referred to above are 4-weekly periods: Period 1 1976, commenced on 28 December 1975; Period 6 1977, ended on 18 June 1977. (a) 53-Week Year. [Continued

OUTPUT PER MANSHIFT WORKED (tonnes raw coal)—NEW SOUTH WALES

APPENDIX 3—continued

TABLE 34— con tin u ed

Year or period Maitland Singleton- North West Newcastle North

Total West

Burragorang Valley South Coast N.S.W.

Open Cuts—by all Employees

1973 ...................... 4-38 43-54 54-80 43-96 43-96

1974 ...................... 53-30 92-51 55-88 55-91

1975 ..................... 48-52 58-20 49-37 49-37

1976(a) .............. 43-57 37-92 43-06 43*06

1952-53 .............. 3-85 8-49 7-88 7-45 7-91 7-63

1956-57 .............. 4 08 13-35 1 0 -8 6 1 0 -8 6

1966-67 .............. 2205 19-02 19-96 19-35 19-35

1971-72 ( a ) .......... 26-11 34-49 55-37 35-98 35-98

1972-73 .............. 1214 41-33 54-63 41 -67 41 -67

1973-74 ......... 47-95 71-13 49-55 49-55

1974-75 .............. 51-90 81-11 53-91 53-99

1975-76 .............. 44-02 45-73 44-19 44-19

1976-77 ( a ) .......... 12-25 46-35 42-05 45-93 45-93

1976—- ..

Period 1 .......... 38-76 37-28 38-61 38-61

2 . . . . . . 38-28 50-50 39*56 39-56

3 .......... 38-30 54-76 40*14 40-14

4 .......... 34-78 42-84 35-58 35-58

5 .......... 41-52 38-02 41 -22 41-22

6 .......... 45-62 19-37 43-40 43-40

7 .......... 42-55 25-45 41 >15 41-15

8 . . . . . . 45-00 24-34 - 43-18 43-18

9 .......... 41-94 30-13 41-01 41-01

1 0 .......... 48-58 31-72 46-98 46-98

11 .......... 49-55 35-62 48-38 48-38

1 2 .......... 46-40 42-94 4613 4613

13 .......... 52-50 54-63 52-68 52-68

1977— Period 1 .......... 42-96 57-31 44-02 44-02

2 .......... 45-46 59-30 46-56 : 46*56

3 .......... 36-96 41-01 37-26 37-26

4 .......... 46.93 2 2 - 2 0 44-94 44-94

5 .......... J -16 44-24 51-43 44-65 44-65

6 .......... 2-41 50-09 55-19 50-13 50-13

All Mines—by all Employees

1973 ..................... 7-40 22-96 11-31 13 00 15-59 12-30 8-50 11-45

1974 .................... 8-55 27-14 11-48 14-47 15-34 10-94 7-84 11-90

1975 ...................... 6-54 25-62 10-87 14-04 15-86 12-61 7-58 11-84

1976(a) .............. 6.29 23-54 10-96 13-84 17-62 12-13 7-81 11-85

1952-53 .............. 2-55 4-69 3-31 3-12 4-56 9-43 2-82 3-33

1956-57 .............. 2 - 6 6 6 - 58 4-07 3-58 4-71 7-96 3-92 3-90

1966-67 .............. 7-51 15-09 9-77 9-92 11-83 14-38 6-81 9-25

1971-72 ( a ) .......... 7-07 20-72 10-97 11-82 15-78 12-59 7-31 10-47

1972-73 .............. 7-45 22-73 11-30 12-78 16-98 13-04 8-41 11-39

1973-74 .............. 7-54 24-71 11-31 13-53 15-07 1 1 -0 0 7-96 11-43

1974-75 ........... 7-27 26-98 11-56 14-71 15-17 12-03 8*11 12 -2 1

1975-76 .............. 6 - 2 0 23-92 10-48 13-50 17-51 12-43 7-46 11-61

1976 77 ( a ) .......... 6-85 24-52 1 1 -2 2 14-42 16-89 11-80 8-29 1218

1976—

5.98 20-74 17-31 17-07 13-75 10-51 6-65 11-79

2 .......... 6-91 21-56 10-65 13-07 18-28 1 1 -6 6 8-27 11-58

3 .......... 6-44 21-72 10-94 13-25 18-98 12-19 8-17 11-71

4 .......... 6 - 8 6 21-52 10-83 13-14 18-58 11-77 7-43 11-37

5 .......... 5-68 22-29 10-17 13-12 15-80 12-18 7-38 11-26

6 .......... 5-68 25-11 10-53 13-96 19-08 12-33 7-24 11-91

7 .......... 5.57 22-80 11-26 13-70 19-49 13-28 7-64 11-99

8 .......... 5*51 24-93 1 0 -8 8 14-15 18-04 11-93 7-35 1 2 -0 2

9 .......... 6.17 22-49 10-74 13-51 17-69 1 2 -8 8 7-80 11-81

1 0 .......... 6 - 6 6 23-90 11-61 14-33 17-10 12-77 8-29 12.40

11 .......... 6.28 26-28 11-73 15-13 17-80 11-09 8-62 12-60

1 2 .......... 7-00 24-90 1 1 -8 6 14-85 17-61 12-64 8-24 12-45

13 .......... 6-90 26-57 11-95 - 15-40 16-24 12-51 8-13 11-85

1977-----

Period 1 .......... 6.63 20-69 9-96 12-70 12-94 10-29 7-16 10-48

2 .......... 7-17 23-94 11-34 14-34 18-07 12-81 8-34 12-30

3 .......... 705 21-09 10-89 12-47 17-93 11.13 8-90 11-41

4 .......... 6-61 25-68 9-99 13-94 16-32 8-71 8-75 11-58

5 .......... 8 - 2 2 24-19 1 1 -8 8 14-97 17-24 12-03 9-26 10-93

6 .......... 7-78 27-07 1 1 -1 1 15-35 15-17 1 2 0 1 8-59 12-58

The periods referred to above are 4-weekly periods: Period 1 1976, commenced on 28 December 1975; Penod 6 1977, ended on 18 June 1977. (a) 53-week year.

243

TABLE 36

LOSSES FROM STOPPAGES AT COAL MINES (’000 tonnes raw coal) DETAILED CLASSIFICATION NEW SOUTH WALES

APPENDIX 3—continued

Classification of Type of Stoppage 1976-77 {a)

1. T erms of E mployment— A. Wage Rates— (1) Over claim for increase ..........

(2) Over claim for decrease..........

(3) O th e r.........................................

(4) Combined wage—hours claim

B. Hours of Work— (1) Over claim for reduction (2) Over claim for increase . (3) O th e r...............................

C. Leave, Pensions, Compensation and other provisions— (1) Holiday, long service, annual and sick leave . . . (2) Pensions and retirement ...................................

(3) Workers* compensation ...................................

(4) O th e r......................................................................

D. Matters of Managerial Control— (1) Computation o f wages and allowances payable, hours worked, leave due, etc. (2) Docking pay, fines, etc.............

(3) All other disciplinary methods (4) Principles o f promotion or filling positions .......................

(5) Personal disagreements, employment of particular persons,

(6) Disputes re production limits or quotas ...............................

E. Physical Working Conditions— (1) Alleged safety issues .................................................................

(2) Protective clothing or equipm ent............................................

(3) Uncomfortable working co n d itio n s........................................

(4) Supply and condition o f amenities ........................................

(5) Claim for assistance.....................................................................

(6) Shortage, unequal or unfair distribution o f equipment and m aterial .............................................................................

(7) Equipment out o f order or in poor condition ...................

(8) Disputes about major re-organisations ................................

(9) Adoption o f new methods and equipment ...........................

1 . T rade U nionism— A. Against employment o f non-unionists ................................................

B. Inter-union disputes ..................................................................................

C. Intra-union disputes D . Sympathy with another union in another industry _ .....................

E. Disputes between employers and employees over union activities .

3. M iscellaneous— A. Protests directed against persons or situations other than employer or employee— (1) L o c a l..........................................................................................

(2) N on-local........................................................ ..

B. Dismissals due to lack o f trade, closures, etc....................... ...........

C. Statutory or local holidays not covered by award .....................

D . Funerals not arising from mine accidents ..................................

E. Following a fatal accident .................................................................

F. N o reason advised to management ..............................................

G. Other .....................................................................................................

4. N on-Industrial Stoppages— A. Inadequate transport (external to mine holding) .........................

B. Effect of abnormal weather (within mine holding) .....................

C. Mechanical breakdowns, falls, heating, shortages o f supplies, electricity, etc........................................................................................

D. Lack o f trade ..............................................................................

2,123-4

The above classification of stoppages at coal mines has been in use since January 1952. It was adopted following consultation with the Commonwealth Statistician and the New South Wales Department of Labour and Industry. This information is based upon fortnightly returns received from mine managers. The Board is not able to make an independent check of the reasons given and cannot, therefore, accept formal responsibility for them. Experience, however, has shown that the reports arc substantially correct and the figures shown in this table do give a good general picture of the reasons tor which stoppages take place.

(a) 53—week year.

245

APPENDIX 3—continued

TABLE 38

APPENDIX 3—continued

L O S S E S F R O M S T O P P A G E S A T C O A L M IN E S (Ό 00 tonnes raw coal)

N E W S O U T H W A L E S

Year or Period

1972 ........

1973 .........

1974 ........

1975 ........

1976(a) . . .

1961-62 . . .

1966-67 . . . 1972- 73 . . .

1973- 74 .

1974- 75 . . .

1975- 76 . . .

1976- 77 (a),

1 9 7 6 - Period 1 2 3

4 5 6

7 8

9

10 11 12

13

1 9 7 7 - Period 1 2 3

4 5 6

Industrial

U nderground M ines

Non-Industrial

North West South Total North West South Total

373 8 396 777 14 28 3 45

273 3 701 977 11 54 22 87

753 37 763 1,553 34 8 52 94

1,501 193 1,379 3,073 22 1 35 58

439 86 933 1,458 36 21 199 256

78 11 334 423 13 1 4 18

269 9 436 714 42

28

15 57

226 5 509 740 18 10 56

465 28 1,006 1,499 39 52 26 117

925 67 540 1,532 8 1 37 46

1,150 150 1,167 2,467 30 9 70 109

386 90 889 1,365 42 19 288 349

1-2 1-2 13-4

181

13-4

41-3 8-3 26-6 76-2 3-3 0-6 22-0

80-4 3-4 7-5 91-3 0-5 9-4 9-9

44-1 3-8 35-9 83-8 0-3 4-4 5-0 9-7

8 0 23-3 31-3 3-0 3-0

3-2 101-4 104-6

9*2

4-0 4-0

30 39-1 42-1

0-8

9-2

203-8 36-0 310-8 550-6 0-1

Ϊ-4

0-9

3-1

6-4

277-6 280-7 2-2 3-6

7-1 3-4 16-9 8-3 2-7 110

5-7 13-7 59-2 78-6

1-1

3-7

79-7

3-7

19-7 14-8 19-5 54-0 2-1 82-9

18-2 29-2 47-4 0-2 82-8 83*0

4-6 4-6 9-2 0-9 40-0 40*9

13-0 41-7 54-7 3-7 1-6 76-0 81-3

40 ·6 601 100-7 7-1 4-0 8-0 19-1

57-5 2-8 14-0 74-3

11-8

0-7 0-7

2-2

6-0 17-2 23-2 11*8

4 0 6-2

Open Cut Mines

Industrial

North West South Total North

85 85 183

271 271 18

218 218 30

698 698 59

296 296 168

"ie ‘ ie * 2

239 239 133

204 204 35

323 323 5

592 592 182

228 228 181

21-1

52-8 52-8 36-3

49-8 49-8 39-3

17-5 17-5 10-0

33-2 33-2 61

19-2 19-2 24-8

14-5 14-5 17-6

0-7 0-7 4-1

80-0 80-0

14-7 14-7 6.0

13-4 13-4 2.3

3-2 3.2 32-7

7-9 7-9 71-3

7-2 7-2

37-9 68-0 68-0

15-1 15-1

A ll Mines

Non-Industrial

West South Total

Indus­ trial

Non- Indus­ trial

183 18 30 59 168

862 1,248 1.771 3.771 1,754

228 105 124 117 424

2

133 35 5 182 181

423 730 979 1,703 1,855 3,059 1,593

18 59 189 152

51

291 530

21*1 36-3 39-3 10*0

61

24-8 17-6 4-1

6-0 2-3

1-2

1290 14M 101-3 64-5

104-6 61-3 565-1 281-4

96-9 93-3 67-4 47-4

34*5 58*3 49-2 19-7

9*1 4 0 34-0 18-5

7-7 110 9-7 85-2 83-0

32.7 71-3

37-9

9-2 40-9

57-9 114*0 108-6 90*4

81-5 0-7

91-2 49-7

21-3

Total

1,090 1,353 1,895 3,888 2,178

441 789 1,168 1,855 1,906 3,350 2,123

35-7 187-3 190-3 121-0

73-6 108-6 95-3 583-6 289-1

107-9 103-0 152-6 130-4

50-1 171-9 199-0 82-2

140-9 21*3

This information ie based upon reports received from mine managers. The Board is not able to make an independent check of the reasons given and cannot, therefore, accept formal responsibility for them. Experience, however, has shown that the reports are substantially correct. The periods mentioned above refer to 4-weekly periods: Period 1 1976, commenced on 28 December 1975; Period 6 1977, ended on 18 June 1977. (a) 53-week year.

APPENDIX 3—continued

A ll M ines

Non-Industrial

North West South Total

6-84 9-68 5-40

3*10 0‘3I 0- 36

0-62 1- 78

2- 52

0-27

2*64 0*23

O -b 3*94 13*73 5-90

10-82 2-63 2-29 0- 52

0*06 1- 99

1-78

Ind. Non-Ind. Total

3-48 0*51 3-99

6-38 1-17 7-55

10-42 0*58 11.00

2-14 0-56 2-70

3-18 0-27 3-45

4-36 0-31 4-67

8-55 0-27 8-82

3-74 0-90 4-64

5-70 0-64 6-34

5-70 018 5-88

2-87 008 2-95

3-03 013 3 16

2-96 0-27 3-23

2-13 0 09 2-22

2-58 0-38 2-96

1*89 0 3 0 2-19

1-56 0-36 1-92

2-98 01 0 3 08

2-67 0-21 2-88

2 06 0-27 2-33

3-24 1-02 4-26

5-99 0-61 6-60

4-21 1-20 5-41

9-37 0-36 9-73

2-50 0-48 2-98

4-42 0-40 4-82

4-19 0-12 4-31

6-96 0-66 7-62

3-26 1-08 4*34

- has correct.SIVen and cannot* therefore, accept formal

•BRCENTAGE OF MANSHIFTS POSSIBLE

APPENDIX 3—continued

Other causes

Men on compen­ sation Men on

sick leave

Men absent-causes

Total lost

0-37 1-83 0-22 4*77

0'68 1-62 0-30 3-41

0-94 1-97 0-49 5*18

00 0 0-75 2-15 0*56 4-50

0-46 1-98 0-37 7*19

0*00 0-39 2-24 0-43 5*82

006 0-62 1-83 2*41 8-95

001 0-63 3-11 0-91 6 00

058 1-39 M 0 3-07

0-02 0-54 2-12 0-68 4-17

0-05 0-53 1-87 0*49 6*46

0-30 1-68 0*29 3-72

0-99 1-84 0*38 5*0!

0-89 2-04 0‘54 4-83

0 0 0 0-60 2-10 0*43 4-65

0-00 0*42 2-05 0-41 7*39

0·0ί 0-40 2-36 0-54 5-59

T A B L E 41

M A N S H IF T S W O R K E D , L O S T A N D P O S S IB L E — N E W S O U T H W A L E S U N D E R G R O U N D C O A L M IN E S

APPENDIX 3—continued

Year

THOUSANDS OF MANSHIFTS LOST THOUSANDS OF MANSHIFTS POSSIBLE

South Maitland

l i

S *

Newcastle

West

Burragorang Valley

South Coast

New South Wales

South Maitland

Singleton— North West

Newcastle

West

Burragorang Valley

South Coast

New South Wales

1971 (a) . . . . 50 23 129 16 35 204 457 379 202 1,256 162 442’ 1,398 3,839

1972 ........ 10 7 39 3 17 80 156 334 179 1,222 144 400 1,359 3,638

1973 ........ 24 16 85 7 33 167 332 288 231 1,165 130 370 1,329 3,513

1974 ........ 31 24 112 10 33 191 401 271 262 1,140 162 380 1,288 3,503

1975 ........ 33 31 152 21 32 248 517 258 297 1,173 204 438 1,365 3,735

1976(a) . . . . 17 31 113 20 ^46 201 428 207 336 1,262 250 473 1,467 3,995

1951-52 . . . . 273 198 64 116 651 1,789 1,505 458 908 4,660

1956-57 . . . 236 123 44 154 557 1,708 1,202 400 1,144 4,454

1961-62 . . . 41 10 52 18 132 253 539 164 895 245 1,230 3,073

1966-67 . . . 27 9 58 9 26 131 260 376 148 971 141 266 1,180 3,082

1969-70 . . . 36 15 98 11 30 180 370 361 188 1,171 143 347 1,253 3,463

1971-72(e). 47 20 128 16 38 188 437 373 177 1,254 166 453 1,412 3,835

1972-73 . . . 22 14 77 7 33 150 303 297 210 1,190 126 346 1,344 3,513

1973-74 . . . 29 22 97 9 34 196 387 277 241 1,138 141 380 1,285 3,462

1974-75 . . . 28 23 122 12 31 182 398 276 287 1,179 187 407 1,354 3,690

1975-76 . . . 27 35 143 20 34 229 488 219 311 1,208 222 452 1.382 3,794

1976-77(a).. 20 32 106 21 45 205 429 208 343 1,238 260 496 1,512 4,057

(a) 53-week year.

MANSHIFTS WORKED AS A PERCENTAGE OF MANSHIFTS POSSIBLE

South Maitland

Singleton— North West

Newcastle

West

Burragorang Valley

South. Coast

New South Wales

86-77 88-84 89-76 89-91 9211 85-40 88-11

92-18 92-58 93-53 94-28 92-23 89-81 91-85

91-68 93-03 92-70 94*90 90-98 87-46 90-56

88-62 90-89 90-22 93-87 91-24 85-13 88-55

87-04 89-51 87-08 89-82 92-59 81-81 86-14

91-70 90-69 91-07 92-09 90-38 86-27 89-29

84-75 86-87 85-92 87-27 86-04

86-19 89-75 89-08 86-54 87-50

92-36 94-05 94-17 92-41 89-31 91-76

92-73 93-95 94-02 94-00 90-13 88-95 91-58

90-02 92-30 91-63 92-58 91-21 85-64 89-33

87-30 88-69 89-81 90-64 91-53 86-70 88-61

92-64 93-12 93-51 94-61 90-33 88-86 91-36

89-35 90-94 91-47 93-68 91-03 84-78 88-82

89*69 92-03 89-67 93-39 92*33 86-58 89-21

87-58 88-81 88-20 90-81 92-46 83-45 87*14

90-48 90-62 91-42 91-78 90-92 86-48 89-42

[continued

APPENDIX 3—continued

M A N S H IF T S W O R K E D , L O S T A N D P O S S IB L E —N E W S O U T H W A L E S

M A N S H IF T S L O S T E X P R E S S E D A S A P E R C E N T A G E O F M A N S H IF T S P O S S IB L E

U N D E R G R O U N D C O A L M IN E S

TABLE 41— continued

CLASSIFICATION OF TYPE OF LOSS

I n d u s t r ia l D is p u t e s N e w S o u t h W a les

Year Days

Possible is ! 1

South Maitland

l l I I Newcastle

West

I f t> mSouth Coast New Souti Wales

Breakdowi weather, et

Accidents to men

Transport and trade

1 s & a o Individual

absenteeisi

1 9 7 1 ( a ) .................. 235 5-98 5-4 7 5*21 5*29 4-9 9 6-57 5-7 7 0-0 4 0*06 6-02

1972 ....................... 2 3 0 0-77 1*52 0*93 0.23 0 .9 8 1*43 1*11

0-00

0 0 9 0*03 6-92

1973 ....................... 2 3 0 0*51 0-92 0*80 0*06 2 1 5 2*64 1*60 0*06 0*04 7*74

1974 ...................... 2 3 0 2-88 2 -4 2 2-61 0*81 1*92 4-24 3-06 0 0 5 0*07 0*08 8*19

1975 ....................... 2 3 0 4-95 4*29 5*54 5-12 0*60 8*45 5*86 0*00 0*02 0-11 7*87

1976 ( a ) .............. 235 1 0 9 2*32 1-32 1*52 3*00 4*43 2-74 0*00 0*00 0-0 4 7-93

1 9 5 1 -5 2 ............. 239 6 1 7 5 0 0 5*08 4*20 5*30 0-0 6 0*02 0-0 2 0-15 8*41

1 9 5 6 -5 7 ............. 239 5*21 2*35 1*49 4*53 3*93 0-0 0 0*08 0-23 0*13 8-13

1 9 6 1 -6 2 ............. 2 3 4 0*88 0 0 2 0*12 0*46 1.69 2*94 1*32 0-01 0*01 0-13 6-77

1 9 6 6 -6 7 ............. 231 1*31 0*60 1*18 0*41 2*25 2-81 1-85 0-01 0*07 0*15 6*34

1 9 6 9 -7 0 ............. 2 3 0 3*16 2*33 3*19 1*87 3*22 5*74 4*01 0*07 0-13 6 -4 6

1 970-71 ............. 2 3 0 2*34 1*82 1*90 1-46 2*81 3*75 2-68 0*03 0*12 6*28

1 9 7 2 -7 3 ............. 2 3 0 0 -2 2 1*16 0*69 0*16 2 0 0 1-89 1*25

0-01

0*09 0*03 7*27

1 9 7 3 -7 4 ............. 2 2 9 2*23 2 6 2 1-49 0-87 2*06 5 0 7 2-99 0*04 0*05 8*09

1 9 7 4 -7 5 ............ 2 3 0 2-4 2 1-57 3*28 1*73 0*77 3 .1 4 2-67 0-03 0*08 0*08 7-93

1975 7 6 ............. 2 3 0 4*44 4*51 4*13 3*55 0*88 7*05 4*82 0*00

0 -00 0-00

0*11 7*93

1 9 7 6 -7 7 ( a ) ............. 2 3 5 2-08 2*43 1*32 1*87 2*68 4*19 2·73 0-00 0 -0 4 7-81

TOTAL

South Maitland

Singleton— North West

Newcastle

j West J

Burragorang Valley

South Coast

New South Wales

13*23 11*16 10*24 10*09 7*89 14*60 11*89 7*82 7.42 6*47 5*72 7*77 10-19 8-15

8*32 6*97 7*30 5*10 902 12-54 9*44

11*38 9*11 9.78 6.13 8-76 14-87 11.45

12*96 10*49 12-92 10-18 7*41 18-19 13-86

8*30 9*31 8*93 7*91 962 13-73 10-71

15-25 13-13 14-08 12-73 13-96

13-81 10-25 10*92 13-46 12-50

7*64 5*95 5*83 7*59 10*69 8-24

7*27 6 05 5*98 600 9*87 11*05 8*42

9-98 7*70 8-37 7-42 8-79 14-36 10-67

9*55 7*89 7-14 6*54 6-20 12-22 9-11

7*36 6*88 6*49 5*39 9*67 11-14 8*64

10*65 9-06 8*53 6*32 8-97 15-22 11*18

10*31 7*97 10-33 6*61 7*67 13-42 10*79

12*42 11*19 11*80 9*19 7*54 16-55 12-86

9*52 9*38 8*58 8*22 9*08 13-52 10*58

(a) 53-week year. [continued

APPENDIX 3—continued

MANSHIFTS WORKED, LOST AND POSSIBLE—NEW SOUTH WALES

MANSHIFTS LOST EXPRESSED AS A PERCENTAGE OF MANSHIFTS POSSIBLE

UNDERGROUND COAL MINES

TABLE 41-—contin ued

1971 (e) 1972 .

1973 ..

1974 ..

1975 ..

1951-52

1956-57

1961-62 1966-67 1969- 70

1970- 71 1972- 73 1973- 74 1974- 75

1975- 76 1976- 77 __(a)

INDIVIDUAL ABSENTEEISM

M en on Compensation M en on Sick Leave

South Maitland

Singleton— North West

1

Newcastle

West

l

Burragorang Valley

South Coast

New South Wales

South Maitland

Singleton— North West

__

1

Newcastle

I

Burragorang Valley

South Coast

! New South Wales

1-81 1-62 1-02 1-26 1-46 211 159 4.49 3*32 3 46 3-04 1-25 4-09 3*51

2 0 6 1-65 1*25 1-40 2-14 2-56 1-94 4-23 3-26 3-77 3-27 3*71 4-48 4-03

2-68 1-90 1*56 112 2-22 3*02 2*28 4*40 3*50 4-22 3*07 4*03 4*50 4-23

3-06 2-03 1-86 1-40 2-24 3*32 2-52 4*83 3*72 4*50 2-86 4-04 4-84 4-47

2-50 1-95 2-27 1-58 2*17 3*82 2*78 4-55 3-50 4-23 2*82 3-81 4*28 4-09

M 0 2-19 2-29 1-92 2*47 3-53 2-73 4.67 3-62 4-48 3*67 2.48 4*53 4*15

2-31 2-35 1-58 2-05 2-20 3-86 3-30 3-09 2*97 3-43

2-37 2-36 2-68 2-85 2-52 4-02 3-49 3-98 3-04 3-62

2 1 4 1-77 1-38 1-69 2-20 1-89 3-88 3*32 3-39 3-63 3-42 3-50

1-39 1-43 102 1-13 1*46 1-97 1-49 4 00 3*10 3-20 4-07 2-75 3-84 3-54

1 -73 1-53 0*92 1-29 1-41 2 06 1*51 4-51 3-37 3-76 3-56 3-33 4-14 3-90

1-86 1*51 0*87 1-16 1-33 1*97 1-46 4-63 3-91 3·80 3-48 1-72 4-38 3*85

2-35 1-51 1-26 1-44 2-59 2*72 2 0 6 4-24 3*37 3-96 3-19 4-27 4-48 4-15

3-02 2*15 1*89 1*44 2*22 3*23 2-51 4*63 3*58 4-36 2*83 3*99 4*55 4*29

2-80 1-92 1*88 1*15 2.20 3*48 2*54 4*64 3*57 4*43 2*83 4-19 4*71 4 37

2-33 2-06 2*45 1*81 2-25 3-66 2-79 4-58 3*64 4*32 3-25 2*98 4-41 4*09

2-17 2*25 2-08 1-96 2-35 3*82 2-77 4*79 3-45 4-23 3*51 2-44 4-34 3-97

M en A bsent— Other Causes

South Maitland

Singleton— North West

Newcastle

I West

i Burragorang Valley

South Coast

A

I I

r

0-74 0*74 0-49 0-50 0*10 1*70 0-92

0-63 0-84 0-47 0-80 0-73 1-54 0-95

0*72 0-66 0-64 0-83 0-50 219 1*23

0*61 0-78 0-66 1*00 0-54 2*11 1*20

0-41 0-75 0-69 0-60 0*73 1-58 1-00

0-44 1*17 0-81 0-79 1*67 1*17 1*05

2-78 2-17 3-74 3-29 2-78

1-63 1-53 2-67 2-78 1*99

0-72 0-84 0-87 1-80 2-03 1-38

0-52 0-82 0-47 0-39 3-41 1-95 1-31

0-51 0-47 0*42 0-70 0-83 1-98 1-05

0-57 0*63 0*50 0-43 0*28 1*85 0*97

0-55 0-72 0-51 0-57 0-66 1-86 1-06

0*78 0*65 0-70 M 3 0-56 2-26 1*28

0-45 0-82 0*60 0-81 0*40 1*76 1-02

0-42 0-98 0*76 0*57 1-43 1*36 1*05

0*48 1-22 0-89 0-88 1*61 1-10 1-07

(o) 53-week year.

Manshifts Lost as a Percentage of Manshifts Possible

APPENDIX 3—continued

Men

Other Men on Men on

Sick Leave Absent— Total

Causes Compen­ sation

Other Causes

Lost

0-00 2-44 3-38 0-94 6-80

0-04 2-37 3-92 1-05 9-18

0-05 2-61 4-23 1-08 10-07

0-03 2-80 4-06 0-99 10-50

0-01 2-73 418 1-05 8-72

0-05 2-67 416 1-05 10-56

0-03 2-74 512 M 0 10-30

0-08 2-73 416 1-17 19-52

002 2-97 4-10 1-16 16-10

0-07 2-88 4-11 1-04 8-47

0.04 2-76 3-80 1-00 9-24

0-03 2-86 4-23 1-13 9-59

002 2-70 4-25 0-91 8-77

0-01 2-70 2-96 0-86 6-86

0-05 2-68 3-61 0*94 8-25

0-05 2-69 3-89 1.09 9-57

0-05 2-73 3-22 MO 8-95

0-02 2-72 3-92 1-22 12-58

0-04 2-86 405 1-09 8-58

0 06 1-83 0-31 2-89

0-20 1-75 0-34 7-47

0-60 1-87 0-62 11-24

0-57 2-14 0-27 5-82

0-01

0-33 2-10 0-45 503

0-34 2-54 0-35 3-24

0-75 2-64 0-66 4-72

0-36 2-18 0-32 8-28

0-02

0-40 2-37 0-23 3-00

0-15 1-91 0-19 8-02

0-01 0-30 2-25 0-52 5-62

0-02 0-39 2-52 0-57 4-64

0-45 2-79 0-69 3-93

0-02

007 1-89 1 00 3-45

0-45 2-43 0-70 5-15

0-01 0-43 2-30 0-70 4-78

0-40 1-91 0-65 4-83

0-40 2·51 0-65 11-13

0-01 0-54 2-52 0-49 4-38

1976 commenced on 28 December 1975; Period 6—1977, ended on 18 June 1977.

APPENDIX 2,—continued

TABLE 43

CAPITAL EXPENDITURE (including replacements) ($’600’s)

NEW SOUTH WALES COAL MINES

Year ended June 1977

UNDERGROUND— Face equipment ..........................

Transport—men, materials, coal . Other .............................................

OPEN CUT— Coal and overburden equipment ..

SURFACE— Coal preparation plants .................

Coal transport, storage, loading .. Buildings and land ........................

Other ...............................................

MINE DEVELOPMENT Shafts, drifts, etc...............................

PROVING RESERVES AND PROSPECTING ............................

TOTAL—N.S.W.......................

South Maitlanc Singletor New­

castle

Burra- South New

-North West

West gorang Valley Coast (a)

South Wales

707 1,559 3,039 577 2,086 4,317 12,285

1,211 1,776 5,279 616 230 8,656 17,768

626 708 1,324 538 3,360 2,933 9,489

3,650 3,650

102 7,630 451 3,187 505 2,806 14,681

2,054 179 100 762 1,781 2,898 7,774

97 1,900 659 607 1,000 3,704 7,967

702 1,238 1,010 746 210 6,610 10,516

3,542 4,587 2,125 3,167 6,278 9,680 29,379

76 7,528 371 424 300 492 9,191

9,117 30,755 14,358 10,624 15,750 42,096 122,700

(a) Includes expenditure for Coorabin-Oaklands District.

254

APPENDIX 3—continued

METHOD OF MINING AND LOADING OF COAL—UNDERGROUND MINES NEW SOUTH WALES

TABLE 44

ftAL WON BY— Longwall units— As at June 1968 1970

1974 1975

, 1976

1977

Continuous miners— As at June 1964 .. 1966 (a) 1968 ...

1970 ..

1974 ..

1975 ..

1976 ...

1977 ..

Coal cutters— As at June 1964 1966 1968

1970 1974 1975 1976

1977

Mined by hand, or grunched- As at June 1964 ..........

1966 ..........

1968 ..........

1970 ..........

1974 ..........

1975 ..........

1976 ..........

1977 ..........

KAL LOADED BY— Longwall units— As at June 1968 1970

1974 1975 1976 1977

AVERAGE DAILY PRODUCTION—TONNES

South Maitland

7,286 8,824 9,117 9,830

7,481 7,496 4,588 6,491

813 1,384 346 584

448 457

1,291 1,116 940 462

313

Continuous miners without “ pick-up” lo ader— As at June 1964 1966 (a) 1968 ..

1970 ..

1974 ..

1975 ..

1976 ..

1977 ..

7,286 7,250 6,011

6,870 7,293 7.410 4,588

6,491

Singleton -North West

1,967 6,512 8,186 10,630 11,603 13,953 14,190

14,896

1,489 939 340 457

939 695 423 517

552 740 763

984

1,081 5,386 9,864 11,047 13,953 14,190

14,896

New­ castle

16,884 25,874 39,036 53,065

46,121 46,991 47,174 45,125

12,368 8,628 7,528 7,412 5,146 3,928 2,773

3,523

800 666 445 500

’ *895 1,302 1,458

12,206 20,484 33,196 45,023

39,912 41,279 44,675 43,092

Mobile loader operating as “ pick-up” behind a continuous miner— As at June 1964 1966 1968

1970 1974 1975 1976

1977

1,574 3,106 2,961 188

86

1,967 5,431 2,800 766

556

4,678 5,391 5,839

8,041 6,209 5,712 2,499 .2,033

West

2,715 4,234 5,080 6,768

9,756 13,876 17,892 16,427

4,084 2,615 3,800 1,562

644 360 361 337

186 103 80 947

45 106 187

2,715 4,234 5,080

6,768 9,756 13.876

17,892 16,427

Burra- gorang Valley

9,421 15,472 16,520 21,912

16,355 22,253 23,911 23,608

3,875 7,771 9,101 15.604 16,355 22,253 23,911 23,608

5,546 7,700 7,419 6,307

-TONNES

Percen­ tage of total produc­

tion

South Coast

New South Wales

252 252 0-2

7,489 7,489 4-7

3,519 3,519 2-5

3,902 3,902 2-5

5,021 5,021 3-2

8,767 8,767 5-3

24,830 63,103 71-9

27,701 88.617 82-7

33,533 111,472 88 0

36,669 138,874 870

35,658 126,974 91-9

40,359 144,928 930

36,498 144,253 92-9

42,278 148,825 90-8

1,223 19,977 22-8

823 14,389 13-4

685 12,699 100

384 10,399 6-5

485 6,723 4-9

509 5,254 3-4

557 3,691 2-4

3,860 2.4

1,450 4.666 5-3

1,575 4,155 3-9

325 2,213 1*8

400 2,826 1-8

910 0-7

23 1,764 11

2,252 1-5

21 2,463 1*5

252 252 0*2

7,489 7.489 4-7

3,519 3,519 2-5

3,902 3,902 2-5

5,021 5,021 3*2

8,767 8,767 5-3

14,814 40,896 46-6

17,963 58,783 54*9

25,828 84,602 66-8

32,185 116,314 72-9

35,291 119,654 86-7

39,955 138,726 890

35,674 140,930 90-8

40,847 145,361 88-7

10,016 22,207 25*3

9,738 29,834 27-8

7,705 26,869 21 *2

4,484 22,559 141

367 7,320 5*3

404 6,202 4 0

824 3,323 2-2

1,431 3,464 2-1

{continued

255

APPENDIX 3 — continued

TABLE 44— c o n tin u e d

METHOD OF MINING AND LOADING OF C O A L -U N D E R G R O U N D MINES NEW SOUTH WALES

' u'- ' " ..

AVERAGE DAILY PRODUCTION—TONNES

South Maitland Singleton -North

West SE

West

Burra- gorang Valley

South Coast

Mobile loaders (not Included above)— 1,309 1,533 12,402

8,784

4,140 2,696 3,854 2,509

1,374 1,159 685 736

485

1,946 939

802 340 7,700

584 457 7,912

5,146 479 424 457 613 4,823

4,075 4,981

505

557

643 21

1977 .............................

Scraper loaders—- 796

860

288 27

555 379 325

236 485 299 462 392

282 50

57 51 69

Hand—

New South Wales

20,758 15,524 13,381 12,198

7,223 6,891 5,823 6,199

1,616 1,280 1,046 854

332 57 51 69

2,268 1,739 486 173

78 70 69 55

97- 4

98- 4

99- 6

99-9 1000 1 0 0 0 1000 100-0

79,871 99,411 122,713 151,009 134,197 151,819 150,127 155,093

87,745 107,166 159,588 138,126 155,848

155,217 163,915

Percen­ tage cf Total Produc­

tion

23-7

S i 4-4: 3·| 3-8 B 0-6 0-2 00 O O , 0-0 12-6 1-6 SI °' S' S' 0-1 0 0 910 92-8 96- 9

94-6 97- 2

97-4 96-7 94-6

(a) Includes mechanised longwall. (6) Includes a smalt quanmy n , nyurau.a. u„, (c) Includes front-end type loader transporters (2,132 tonnes as at June 1976).

256

APPENDIX 3—continued

Consumption o f coal during one typical week—‘000 tonnes

May 1975 May 1976 May 1977

O' 7 1-3 1*1

1*8 1*6 2*1

0*2 0*2 0*2

0*6

0 0 0*0

0*7 0*5

17*3 11-9 30-0

0*2 0*3 0*2

165 0 1560 162-9

129-4 115*7 94*6

70*0 90*7 92-8

9*7 13*8 11-5

395-0 392 0 396-0

APPENDIX 3—continued

259

APPENDIX 3—continued

{continued

APPENDIX 3—continued

Western Australia

’000 tonnes

1*524

6,357

per cent

Northern Territory Australia

*000 tonnes

1,077

per cent

100-0

*000 tonnes

19,637 7,969 10,221

' 39,744 3,810 “ 7,193 408

7,279

per cent

20-4 8-3 10-6

9,081

l‘,669

7,515

100-0

72-3 11-0 0-6 0-0

10,387 100-0

1,077

1,160

100-0

100-0

96,261 100-0

21,440 8,768 10,795

/ 42,213 \ 3,845

8,497 396 6,118

21-0 8-6 10-6

1,160 100-0 102,072 100-0

. 1-000 Tasmanian Black Coal .. . . . . 0-883 Firewood . . . . . . . . . . 0-583

. 0-800 to 1-167 Victorian Black Coal .. . . .. 0-825 Petroleum Products .. . . . . . . 1-600

. 0-500 Brown Coal (Victoria) . . . . . . 0-312 to 0-458 Natural Gas . . 1 mill, c a m · » 1,335 tonnes Black Coal

. 0-708

Hydro-electric energy has been converted to black coal equivalent units assuming 23-7 per cent efficiency of steam plant (544 tonnes = 1 million kWh) for the period to and including 1959-60 and an assumed efficiency of 27-5 per cent (467 tonnes == 1 million kWh) for the period after 1959-60.

APPENDIX 4

COAL M INES IN NEW SOUTH WALES

The mines listed below were in production at 2 July 1977. Their locations are indicated on the maps which follow. Against each mine is shown the name of the appropriate owner group or individual owner.

So u t h M a it l a n d

Aberdare East Aberdare North Millfield (O) . . Pelton ..

Coal & Allied Industries Ltd.

Coal & Allied Industries Ltd. Eric Newham (Wallerawang) Pty Ltd. Peko-Wallsend Ltd.

Sin g l e t o n - N o r t h W est

Ashford (O) . . . . . . .

Bayswater N o. 2 (O) .. .

Buchanan Lemington .. .

Buchanan Lemington (O) .

Durham North (O) . . .

Foybrook N o. 1 ..........................

Foybrook (O) . . .. .

Great G reta .......................................

Gunnedah N o. 2 . . .. .

Howick North (O) . . .. .

Liddell ......................................

Liddell State .. .. .

Muswellbrook N o. 1 .. .

Muswellbrook N o. 2 Extended (O' N y m b o id a ......................................

Preston Extended . . .. .

Ravensworth N o. 2 (O) . . . .

Swamp Creek ( O ) ..........................

Wambo N o. 1 .. .. .

Wambo ( O ) ......................................

White Industries Ltd. Bayswater Colliery Company Pty Ltd. Buchanan Borehole Collieries Pty Ltd. Buchanan Borehole Collieries Pty Ltd.

Coal & Allied Industries Ltd.

Clutha Development Pty Ltd. Clutha Development Pty Ltd.

Barix Pty Ltd. Gollin Wallsend Coal Company Ltd.

Clutha Development Pty Ltd. Coal & Allied Industries Ltd.

Elcom Collieries Pty Ltd (a). Muswellbrook Coal Company Pty Ltd. Muswellbrook Coal Company Pty Ltd. Union Coal Mining Co. Pty Ltd.

R. W. Miller (Holdings) Ltd. Electricity Commission of New South Wales (b) Electricity Commission of New South Wales(c). Wambo Mining Corporation Pty Ltd.

Wambo Mining Corporation Pty Ltd.

N e w c a st l e

Awaba State Belmont ..

Bloomfield ..

Bloomfield (O) Borehill ..

Burwood ..

Chain Valley

Elcom Collieries Pty Ltd (a). R. W. Miller (Holdings) Limited. Bloomfield Collieries Pty Ltd. Bloomfield Collieries Pty Ltd.

Buchanan Borehole Collieries Pty Ltd. The Broken Hill Proprietary Co. Ltd. Coal & Allied Industries Ltd.

261

G 44102J— 18fl

APPENDIX 4—continued

Delta .. ..

Gretley . . ..

John Darling ..

Lambton .. ..

Mount Sugarloaf .. Munmorah State ..

Newstan . . ..

Newvale N o. 1 ..

Newvale N o. 2 ..

Stockrington No. 2 .. Stockton Borehole .. Wallarah .. ..

Wallsend Borehole N o. 2 Wallsend Borehole (O) West Wallsend N o. 2 Wyee State . . ..

R. W. Miller (Holdings) Limited. Peko-Wallsend Ltd.

The Broken Hill Proprietary Co. Ltd. The Broken Hill Proprietary Co. Ltd. Mount Sugarloaf Collieries Pty Ltd. Elcom Collieries Pty Ltd (a).

Elcom Collieries Pty Ltd (a).

Elcom Collieries Pty Ltd (a).

Elcom Collieries Pty Ltd (a).

Coal & Allied Industries Ltd. The Broken Hill Proprietary Co. Ltd. Coal & Allied Industries Ltd.

R. W. Miller (Holdings) Limited.

R. W. Miller (Holdings) Limited.

Coal & Allied Industries Ltd.

Elcom Collieries Pty Ltd (a).

W est

Blue Mountains . Charbon . . .

Eastern Main .

Hartly Main N o. 4 . Invincible .. .

Ivanhoe No. 2 .

Kandos N o. 3 .

Lithgow Valley .

Newcom . . .

Ulan . . .

Wallerawang .

Blue Mountains Colliery Pty Ltd. Blue Circle Southern Cement Ltd. Clutha Development Pty Ltd. Austen & Butta Ltd.

Austen & Butta Ltd. Blue Circle Southern Cement Ltd. Australian Portland Cement Ltd. Coal ex Pty Ltd.

Newcom Colliery Pty Ltd (a). White Industries Ltd.

Coalex Pty Ltd.

B u r r a g o r a n g V a lley

Brimstone N o. 1 ..

Brimstone No. 2 ..

Nattai Bulli . . ..

Nattai North ..

Oakdale . . ..

Valley No. 1—N o. 2 entry Valley No. 3 .. ..

Wollondilly . . ..

Clutha Development Pty Ltd. Clutha Development Pty Ltd. Clutha Development Pty Ltd. Clutha Development Pty Ltd. Clutha Development Pty Ltd.

Clutha Development Pty Ltd. Clutha Development Pty Ltd. Clutha Development Pty Ltd.

262

APPENDIX 4— continued

S o u t h C o a st

Appin . . .. ........................................ Australian Iron & Steel Pty Ltd.

Avon . . .. .. .. .. . . Austen & Butta Ltd.

Avondale .. .. .. .. .. .. Avondale Colliery Pty Ltd.

Berrima . . .. .. . . .. .. Blue Circle Southern Cement Ltd.

B u l l i ............................ . . . . .. . . Australian Iron & Steel Pty Ltd.

Coal Cliff . . .. .. .. .. . . Kembla Coal & Coke Pty Ltd.

Corrimal . . .. . . . . .. . . Australian Iron & Steel Pty Ltd.

Huntley . . .. ........................................ Huntley Colliery Pty Ltd (a).

Kermira . . .. .. .. .. .. Australian Iron & Steel Pty Ltd.

Metropolitan .. ........................................ Australian Iron & Steel Pty Ltd.

Nebo . . .. .. .. .. . . Australian Iron & Steel Pty Ltd.

South Bellambi .. ........................................ Woonona Mining & Engineering Pty Ltd.

South Bulli . . .. ........................................ The Bellambi Coal Co. Ltd.

South Clifton .. .. .. .. .. North Bulli Collieries Pty Ltd.

West Cliff . . .. . . . . .. .. Kembla Coal & Coke Pty Ltd.

Wongawilli . . .. .. . . .. .. Australian Iron & Steel Pty Ltd.

Yellow Rock .. ........................................ Austen & Butta Ltd.

The following mines ceased production during the year 1976-77 on the dates indicated:

Hermitage .. .

M ii lf ie l d .........................

Wambo Ridge .. .

Wallsend Borehole N o. 3

22 November 1976 fon development work since). 3 May 1977. 22 March 1977. 24 December 1976.

The following mines commenced production during the year 1976-77 on the dates indicated:

Aberdare North .. . . .. .. 25 October 1976.

Durham North (O) ............................ 10 May 1977.

Miilfield (O) ........................................ 17 June 1977.

Wambo Ridge .. .. .. .. 16 November 1976.

West Cliff ........................................ 18 October 1976.

(O) Open cut. (a) Subsidiary of Electricity Commission of New South Wales. (b) Operated by Costain Australia Ltd, contractor to Electricity Commission o f New South Wales (c) Operated by Hebden Mining Co., contractor to Electricity Commission of New South Wales.

263

SINGLETON - NO RTH WEST DIS TR IC T I

Dartbrook,

^A berdeen

I SAKoo1^r''''Me'cu^i i ^ nly / Gap

ψ ?β"'"' ^Muswellbrook N °2 Extended

Antiene

Durham Worth

Bayswater IM° 2 &

LIDDELL POWER S T A T IO N r* Jk l

NEWDELL SIDING & CENTRAL WASHERY ' <

Liddell S t a t e d

S o u th M a n U m ^ M u ie s ^ ™ ^ ? ' R e s c u e S t a t i o n - S u b S t a t io n __ *

Howick N orth^ [Ravensworth

Ravensworth N°2 Glennies Creek

Nundah

tartindale iamberwell

‘Glen Gallic

Warn bo N°1

Reference Railways - Private Railways - Public Highways

do φ θ /C, φ υ /G Location of Collieries

JO IN T COAL BOARD

L O C A T I O N O F C O L L I E R I E S PLAN N ? D S -232 Λ

2 6 4

SINGLETON - NORTH WEST DISTRICT II

) lw e e d H e a d : Q U E E N S L A N D

NXshford V/

V i s m o r e ,

T e n t e r f i e l d

M o r e e

Inverell

Railways - Private

N a r r a b r i

" G o f f s H a r b o u r A r m i ' d a l e '

G u n n e d a h N92\punnedahi 'la m w o rth / / , < / /

liar/ J / p P o r t M acquarie

.Muswellbrook 2 l / t

) S I

G reat Greta

P resto n ExtdT

SEE D S - 2 3 2

Mudgee-Ί

SOUTH MAITLAND DISTRICT \ M m d a r i b b a '

VsidiX ngn B r a n x to n κΜ Π I < ·»---

A V • A b e r g l a s s y n B e i f o r d ^ — i — ^ , AYRFlELO N °3 W ASHER'G r e t a M i n i m b a h M a i t l a n d

L o c h i n v a r

A l l a n d a l e *

ft. M a i t l a n d

E . G r e t a

R o t h b u r y

A b e r m a i n ,

P o k o l b i n

A b e r d a r e Worth, N e a t h

• A b e r d a r e

\ Aber dar e Ea st

? " - ' ? M u l b r i n g

SC ALE JOIN T COAL BOARD

L O C A T I O N O F C O L L I E R I E S p l a n n 0 d S - 2 3 3 A

265

NEWCASTLE DISTRICT

Wallsend B ^ e h o l i f N° 2 & Γ e W a l l s ^ d j .orehple^ / f a,,ac,,M ..........

/ M tS u g a d o a f·...^ ....^ 5 / Wa''Sr ; 0 f S S ^ gEWCASTLE

1... West Wallsend W°2 i_Ne w c a s t | Γ " ' ' ■ J 5 n £ 5 i U U · ^

fjvesi Wafisen cf / .......... ■ ·â–  ■ 6 "i-e i m i v / fAdamstown#

Stockton Borehole'V ^ ha r je s t o w n ' ■ ■ ■ „ JFBurwood

J m ’ / ’ ° STEELWORKS CENTRAL WASHERY ’ vC anw an Coal S to r a g e W / ^ J ^ ^ ^ - H R . W . MiMei· Coal S to rag e

S t O C k t o n - DYKE COAL LOADER f f j - f — BASIN COAL LOADER

J C-8 District Office

M ines R escu e S tn

K i l l i n g w o r t h . o - d C ' /

A,,,____ r·-.....J^raica

' \

W ang! P o l ' '

P ro p o s e d E raring P o w e r^ S tn ^ Λ V 1 ί Π |?

f c

Reference:

Railways - Private do Pubhc

Highways Other Roeds Location of ColUenei

lu m im u ii

6 ° / c i φν/α

Vales Pt. Pov-e7 1.1 ‘ Southern’ Lakes Branclr Newcastle'Mines Rescue Stn! Wyee^V DoyalsorTj

f ' ^ WQhain Valiev

y m m

u u y a i s u n a jd i'V ^M ^m S rah^P ow e!· Sin.”

IVIunmorah StatiT 'J ^ U o / Z h Lake Mewvale N9 2 11(( dgewoi

T . u g g e r a h L a k e

S C A L E date 15-4-71 JOINT COAL BOARD

3 0 3 6 km . L O C A T I O N O F C O L L I E R I E S

DATE 30-6-77

r a

PLAN N ? D S - 1 9 7 F

2 ' o 2 4 M

SHEET I OF I SHEETS

266

WESTERN DISTRICT

S a n d y HoM pw ·

p e n r n a n

^Ν τφ - U l a n ' X ,

B y l o n g

. G u l g o n g

R y l s t o n e

C u d g e g o n g 0 .....

C l a n d u t l a

J$ofal<

C a p e r t e e

Bathurst

Mt. Victoria

B l a y n e y

- & % ' H a m p t o n

O b e r o n

JO IN T COAL BOARD

3 6 9 km. PLAN N ? DS-198F L O C A T I O N O F C O L L I E R I E S

267

BURRAGORANG VALLEY DISTRICT

Cam dei

W0U0N0ILLY EXTD. CENTRAL WASHERY O

1 Appin

I N S E T S C ALE

Brimstone N?2-■ ..../ Brimstone N91 .........

• Oakdale

Nattai North f

.-''^O akdale / Nattai Bujji^ ....-Aiattai

S X Λ % Wollondilly

Valley N9 1

Railways - Public

H ig hw ays

Valley N?3 %

JOINT COAL BOARD

PLAN N ? D S - 1 9 9 F L O C A T I O N O F C O L L I E R I E S

268

SOUTH COAST DISTRICT

D. WEST, GOVERNMENT PRINTER, NEW SOUTH WALES—1978