Article: Gina Rinehart plans private railroad for Queensland mines

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Gina Rinehart plans private railroad for Queensland mines

Gina Rinehart plans private railroad for Queensland mines
Article from: The Courier-Mail

Natalie Gregg

February 21, 2010 11:00pm

AUSTRALIA'S richest woman Gina Rinehart is planning to spend $2.2 billion building Queensland's first major private export railway owned by a single company.

Ms Rinehart's Hancock Coal is proposing to build 495km of standard gauge railway between Alpha in central Queensland to the coal port of Abbot Point near Bowen.

Both Ms Rinehart and billionaire Clive Palmer have competing coal projects in the Galilee Basin near the town of Alpha, worth about $15 billion.

Mr Palmer's Waratah Coal also has its own separate railway plans, but both mining magnates have agreed they would be prepared to share haulage with third parties.

The standard gauge railway can haul twice as much coal per train as Queensland's current coal network.

Queensland Resources Council chief executive Michael Roche said that Queensland was following a Western Australian-style model of private-ownership, with the sell-off of Queensland Rail assets.

"Queensland tradition has been one of government owning the track and providing access to multiple users," Mr Roche said.

"We are now into a new era where government is vacating this space."

Mr Roche said the planned Surat Basin railway, which is owned by a consortium including Queensland Rail, was likely to be the first privately owned railway in Queensland.

In the Galilee Basin, Mr Palmer's Waratah Coal plans to build Australia's biggest mine, capable of exporting 40 million tonnes of coal a year.

Ms Rinehart's Alpha Coal and Kevin's Corner mines are expected to produce 30 million tonnes of coal a year each.

Mr Roche said while Waratah and Hancock Coal were prepared to share railway infrastructure, the sheer volume of coal meant two separate railways could not be ruled out.

"These are mega mines – Queensland exported 156 million tonnes last financial year, so these projects would be adding 100 million to our export capability.

"Ultimately, it's private capital at risk, so no taxpayers' money is involved, but the State Government have made it clear that they don't want numerous (rail) corridors crisscrossing the countryside between the Galilee Basin and Abbot Point."

The State Government's coordinator-general is calling for submissions from those who may be affected by the Hancock Coal rail project.