For the calendar year of 2009, Hunter Valley Coal Chain throughput increased to 93 million
   To manage ongoing demand for Hunter Valley coal and honour long term coal export
contracts recently signed by PWCS and Hunter Valley coal producers, this expansion work
will add another 20 million tonnes to PWCS’ nameplate capacity.
   The works are scheduled to be completed by the end of 2011 in order for PWCS to meet its
contractual obligation of handling 123.6mt (million tonnes) in 2012.
   Feasibility, procurement and preliminary engineering work for this expansion have been
underway since mid 2008.
Works will include:
  • A new 330 metre coal loading berth (known as ‘K7’), and associated dredging
  • The extension of two key coal stockpiling pads (where coal is stored ahead of being
  • conveyed and loaded onto vessels)
  • The replacement of two coal stacking machines (machines that stack coal into piles on
  • the stockpiling pads)
  • The deconstruction of redundant stackers
  • New coal conveying equipment
The expansion is the largest single advance in terms of capacity addition and expenditure at
PWCS in more than ten years and the biggest in a long line of ongoing infrastructure
expansion programs, the most recent being the largely completed $458 million ‘Project
3Exp’, which lifted PWCS nameplate capacity from 102 million tonnes to 113 million tonnes
in late 2009.
   PWCS Chairman Michael Harvey said the latest commitment set the scene for PWCS to
honour Newcastle’s Long Term Contractual Framework arrangements, which came into
effect on January 1.
   “PWCS played a leading role with industry participants and the New South Wales
Government seeing the Long Term Contractual Framework to fruition, and the onus is now
on us to keep building new terminal infrastructure as quickly and efficiently as possible,” Mr
Harvey said.
   “Given that PWCS has signed contracts with producers, we are in a far better position to
expand terminal infrastructure in a more accurate and timely manner.
   “We are embracing the challenge and getting on with the job.”
   PWCS General Manager Graham Davidson said although the company would utilise global
expertise and materials, much of this would be drawn from the Hunter Valley.
   “PWCS has spent in the vicinity of $200M on Hunter Valley suppliers and contractors and
employed as many as 1,000 skilled local people directly and indirectly on site as part of its
expansion agenda in recent years,” Mr Davidson said.
   “That is set to grow as we embark on our next significant phase of expansion.”
PWCS also announced a producer export allocation reduction of 1.7mt to be
applied on a pro-rata basis, due to coal loading shortfalls over January.
PWCS loaded eight million tonnes in January, despite being scheduled to load 9.7mt.
   The shortfall was due to internal factors such as equipment breakdowns and external factors
including adverse weather, power supply failures and vessel delay issues.
“January was an unusually disappointing month, given that coal loading records were set in
the later months of 2009,” Mr Davidson said.
“It’s regrettable that the reduction has to take place, but it’s necessary in order to keep
demurrage costs as low as possible.
“We expect that new equipment and power-source arrangements coming on-line at PWCS
over the coming months will improve reliability”.
For the calendar year of 2009, Hunter Valley Coal Chain throughput increased to 93 million