The Cost of Extending a Mine
The Lake Vermont mine and extension could release up to 100 million tonnes of C02-e if approved, before any of its coal is burned.
About
This research evaluates the integrity of the estimated Scope 1 (methane) emissions from the Lake Vermont mine, which is currently seeking approval to expand its underground and surface mining. Ember’s independent assessment of the likely methane emissions from the extension relied upon reported run-of-mine coal production data, State-based emissions factors and comparisons against the average methane intensity of underground mines in the Bowen Basin according to their emissions reporting to the Clean Energy Regulator (2016-2021).
Executive summary
The climate impact of mining at Lake Vermont could be double what is currently estimated
The Lake Vermont mine is currently applying for permission to ramp up coal production and release the carbon equivalent of up to 100 million tonnes of CO2-e over the next 23 years until 2055, as Australia targets net zero by 2050.
Annika Reynolds Climate Policy Advisor, Ember
The Lake Vermont Meadowbrook proposal is symptomatic of a much bigger problem. Proposed coal mines and expansions are under-estimating their methane emissions, relying on lax emissions measurement laws, to avoid regulatory and public scrutiny. Poor estimates prevent regulators from properly assessing the environmental and climate impacts of these projects, leading to inadequate environmental approval conditions or pollution controls. Instead of being a rigorous process that reduces climate harms, coal facilities are getting away with a licence to pollute - risking the safeguard mechanism and Australia’s climate targets.
Climate Impact
Lake Vermont’s methane emissions are a threat to Queensland and Australia’s climate targets
The Lake Vermont mine is currently applying for permission to release the carbon equivalent of up to 100 million tonnes of CO2-e emissions over the next 23 years.
Dr. Sabina Assan Coal Mine Methane Analyst
Australia should be leading international best practice for measuring and mitigating methane emissions from its coal mining sector. Instead, cases such as the Lake Vermont Meadowbrook Extension highlight an inadequate approach to estimating methane pollution, the lack of an independent third party review mechanism, and the clear lack of regulation for onsite mitigation at coal mines. This project does not currently demonstrate integrity in the estimation, or management of methane emissions.
Coal mines have a variety of off-the shelf, cost effective methane mitigation options that have been in practice across the industry for the last 25 years. However, the mine has not made any clear commitments to bring down their potential emissions over the next 30+ years.
The Queensland Department of Resources determined from a study of coal mines in the Bowen Basin, that on average 35% of methane emissions from open cut coal mine operations can be reduced or eliminated through pre-drainage. This could reduce emissions from the open cut operations by 63 thousand tonnes of methane, or more than 5 million tonnes of CO2-e emissions (20 year GWP).
Their underground mining operations have even more cost effective mitigation options available. Not only would pre-drainage increase the safety of underground mining operations, but the mine could also potentially install technologies to capture and destroy the ventilation air methane throughout its operations. Currently, the mine has indicated that this methane will be flared “where practicable” and has no responsible pathway for mitigating these emissions.
This is in clear opposition to international best practices and the objectives of the Federal Government’s safeguard mechanism. In contrast, the EU parliament has recently passed legislation banning any venting of this methane directly into the atmosphere, and ensuring at least a 98% efficiency rating for any methane flaring, capture or utilisation.
Supporting Material
Methodology
Conversion Factors
This submission is based on the GWPs contained in the IPCC’s latest emissions metrics, in order to express methane in CO2-equivalent emissions. Throughout the report, where methane emissions data was reported in metres cubed it has been converted into methane emissions in tonnes using the conversion factors applied by the United States EPA.
Calculating the Estimated Methane Emissions from the EIS and Independently
This submission has calculated estimated methane emissions from the fugitive emissions estimated in tonnes CO2-e by the proponent in the EIS. Methane emissions from the current Lake Vermont mine operations were estimated by using the reported run-of-mine coal production and the relevant State-based emissions factor, and calculations of the estimated underground methane emissions were derived from comparing the open cut mine emissions to the total estimated fugitive emissions provided in the EIS. Our analysis on the average methane intensity of underground mines in the Bowen Basin is based on data reported to the Clean Energy Regulator in CO2-equivalent emissions, averaged over the last five years (2016-2021). To convert to methane emissions, our analysis assumed that 90% of reported CO2-e emissions from underground mines are fugitive methane.
Acknowledgements
This analysis draws from Ember’s submission to the Chief Executive, Queensland Department of Environment and Science, in regards to the Proposed Lake Vermont Meadowbrook Project prepared by Bowen Basin Coal Pty Ltd. The submission was authored by Annika Reynolds and Dr Sabina Assan, with contributions from Chris Wright.
Header imageCoal loading stockpile by night.
Credit: Doug Steley B / Alamy Stock Photo
