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Monday, 06/27/2005 8:39:59 PM

Monday, June 27, 2005 8:39:59 PM

Post# of 1286
Which helps to explain.....................
Why Queensland is expanding infrastructure, to accomodate statements like this. Excerpt.....

"Mr McGrady said with world-wide buyers clamouring for Queensland coal it was only a matter of time before major coal buyers in Japan, Korea, China, India and Europe signed on the dotted line to secure additional coal supplies for the coming years.

Intense industrial development in China and India is adding to the pressure to step-up coal production."
................................................................

Complete Article follows.

State fast-tracks $2.1 Billion Coal Planning
The Queensland Government is fast-tracking planning for approximately $2.1 billion worth of infrastructure for the State's expanding coal export industry.
This is in addition to the $1.4 billion of coal infrastructure investments already committed by Government owned trading enterprises.

The planning is a result of the Queensland Government's Coal Infrastructure Coordination Group set up in October last year.

Minister for State Development and Innovation Tony McGrady said massive expansion of the $10 billion coal export industry was forecast.

"The amount of coal railed to central Queensland ports for export is expected to increase by between 5% and 13% per annum over the next five years," Mr McGrady said.

"By 2009/10 somewhere between 215 million tonnes per annum and 235 million tonnes per annum of coal could be railed.

This compares to 143 million tonnes per annum in 2003-2004, and only 79 million tonnes a decade ago. Queensland Rail is on target to rail a forecast 155 million tonnes in 2004-2005, demonstrating that we are getting on with the job.

"We're fast-tracking planning to ensure that government-owned corporations are ready to roll out additional rail and other infrastructure developments to meet this increased demand.

"We've prepared a 'program of actions' which identifies:
* $1.4 billion coal infrastructure projects already committed and underway,
* Over $1 billion for additional projects required to be undertaken, to expand capacity to 215 million tonnes per annum, subject to commercial contracts,
* strategic planning that we'll undertake to cater for a significantly larger increase in the demand for coal, to 235 million tonnes per annum capacity, plus
* Significant additional investment in new locomotives and wagons required to transport coal from the mines to the ports.

"We're committing to this planning, so coal mining companies can sign contracts for the infrastructure work with confidence. This continues the major phased expansion of the essential transport and other supporting infrastructure for the State's coal industry over the past 3 decades, and demonstrates the Queensland Government's on-going commitment to remain a major, reliable supplier of quality coal to our customers."

Mr McGrady said he is encouraging mining companies to enter into contracts for new rail, port, water and energy infrastructure so that these projects can proceed at the earliest time.

"It's time for action," Mr McGrady said.

"The new infrastructure and expansion of the coal industry will be worth billions of dollars and mean thousands of jobs will be created in central Queensland.

"But there's nothing more the State Government can do to move this along until the mining companies sign up.

"Earlier this year the Queensland Government announced we were fast-tracking planning for the "Northern Missing Link" railway between the Goonyella and Newlands coal systems.

"In order to demonstrate this Government's commitment to the expansion of the coal industry we have committed to planning for the projects required to expand capacity to 215 million tonnes per annum in the next 5 years.

Mines Minister Stephen Robertson said the government was also progressing plans for new water infrastructure to ensure a sustainable future for the coal industry.

"SunWater has already completed stage one of an 8,000 megalitre offstream storage at Gattonvale to supply water to the coal mines of the Northern Bowen Basin.

"And negotiations are well advanced between SunWater and coal companies to progress the planned Burdekin to Bowen water pipeline," Mr Robertson said.

Mr McGrady said with world-wide buyers clamouring for Queensland coal it was only a matter of time before major coal buyers in Japan, Korea, China, India and Europe signed on the dotted line to secure additional coal supplies for the coming years.

Intense industrial development in China and India is adding to the pressure to step-up coal production.

"Senior Queensland Government Ministers have received support from representatives of the Queensland Resources Council and coal companies for coal infrastructure actions outlined to them at a recent meeting," Mr McGrady said.

The Coal Infrastructure - Program of Actions includes:

Committed Projects

Complete the currently committed $1.4 billion of coal infrastructure investment by our Government owned trading enterprises, including:
o RG Tanna Coal Terminal - $232M
o Barney Point Coal Terminal - $1.5M
o Blackwater Rail System - $93M
o Goonyella Rail System - $55M
o Gattonvale Off-Stream Storage - $22M
o Electricity to new mines - $35M
o Xstrata has commissioned Queensland Rail to construct and operate the Bauhinia Regional Railway - $233M
o Acquisition of additional rollingstock and upgrade of electric locomotives -$570M
o Other coal rail and port infrastructure - $160M

Complete the committed training and skilling initiatives for the coal mining industry.
o Implement the planned $770,000 of Government funded coal industry skilling and training initiatives.
o Establish the Mining Industry Training Centre of Excellence to address medium and longer term training and skills issues in the coal industry, but also all mining.
o Leverage additional training in the mining industry, including the coal sector, through $1,008,000 grant to the Queensland Mining Industry Training Advisory Body, achieving, at a minimum, the same number of annual hours curriculum as funded by the department.

Detailed planning for over $1billion of new infrastructure - to expand capacity to 215 million tonnes per annum, including
Detailed planning, design and approvals for the required coal infrastructure, so that construction can commence once commercial contracts are in place.
o Upgrades to the Goonyella, Blackwater and Moura Coal Rail Systems
o The Burdekin Water Pipeline
o Ergon Energy to work with mining companies to clarify electricity needs and develop a commercial program to provide power to new or expanded mine sites at the earliest possible time
o Further expansion of coal terminals and our ports at Gladstone, Hay Point and Abbot Point.

Facilitate the expansion of the two major coal terminals at Hay Point by their private sector owners, Prime Infrastructure and the BHP-Billiton Mitsubishi Alliance.

Fast-Track Planning for the $1.1 Billion Northern Missing Rail Link/ Abbot Point Coal Terminal

o Complete the $25M detailed planning studies and rail corridor acquisition committed for the 69km long Northern Missing Rail Link between the Goonyella and Newlands rail systems, and a major expansion of the Abbot Point Coal Terminal. This initial commitment will reduce the lead time for infrastructure development in the future, when the coal companies are in a position to enter into firm commercial contracts for the use of the Northern Missing Link and the additional port capacity. The overall project could be completed within 4 years, if timely commitments by the coal miners to its construction are made.

Strategic Planning for Coal Infrastructure - to expand capacity to 235 million tonnes per annum

Commence strategic planning for infrastructure which may be required to support future coal industry development, so that detailed design and construction can commence, once commercial contracts are in place.
o Wiggins Island Coal Terminal and associated port and rail infrastructure at the Port of Gladstone. Detailed planning will commence in the short term, if there is sufficient commercial interest to proceed.
o Identification (where needed) and more detailed planning for long term water security options in the northern and southern Bowen Basin, and the Surat Basin.
o Evaluation of additional rail capacity enhancements, particularly to the Goonyella Rail System and the restricted Connors Range section, linking to the coal terminals at the Port of Hay Point.
o Transport options for the major coal deposits in the Surat Basin.

Housing
o Update population projections and develop a Housing Action Plan for the Bowen Basin.

Government Liaison with Industry
The Government will continue to liaise with the mining industry and coal infrastructure providers so that emerging coal infrastructure issues can be identified and addressed at the earliest opportunity.

http://www.bowenbasin.cqu.edu.au/news.html#fasttrack


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