Liddell Colliery is located in the Hunter Coalfield, within the north-eastern portion of the Sydney Basin. The north-eastern boundary of the basin is the New England Block and is marked by the Hunter–Mooki thrust.

The coal seams currently mined at the Liddell Colliery include the Lemington, Pikes Gully, Arties, Liddell and Barrett seams.

The coal seams targeted by current and future mining operations range from 0.7 metres to 9.5 metres in thickness and include semi-soft and thermal coal types.

During the 2021 mining operations were undertaken using the excavator and truck /shovel method of operation. LCO has consent to extract no more than eight million tonnes of run-of-mine (ROM) coal per annum. Product coal, both semi-soft and thermal, is transported to Newcastle Port by rail via the Hunter Valley Rail Loop and Main Northern Railway Line, for sale to the export market.

The open cut mining sequence at LCO includes:
- Land preparation including vegetation removal and pre-stripping topsoil;
- Removal of overburden;
- Coal extraction, predominantly using excavators-and tucks;
- Coal processing and transport.

Mining will continue in accordance with the MOP targeting coal from the Lemington, Pikes Gully, Arties, Liddell, Barrett and Hebden seams. These seams range from 0.7 metres (m) to 9.5 m in thickness, and include semi-soft and thermal coal types. Mining operations utilises hydraulic excavators and trucks to recover coal from multiple seams.

No mining was undertaken using dragline or highwall extraction methods during 2021.

During the reporting period there was no noncompliance with the sites approved production limits.

Coal is transported from the open cut areas by truck to a ROM stockpile with an approximate capacity of 200,000 tonnes for storage prior to processing in the CHPP.

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