Article: Rinehart's coal railway gets court's approval

[ozbob]

From the Brisbanetimes click here!

Rinehart's coal railway gets court's approval

Rinehart's coal railway gets court's approval
Marissa Calligeros
November 10, 2011 - 4:53PM

Mining billionaire Gina Rinehart has retained the right to build a controversial coal rail corridor in central Queensland, after the state government successfully quashed a Supreme Court challenge led by QCoal.

Rinehart's Hancock Coal won approval from the Bligh government late last year to build a $2.2 billion railway from its Alpha Coal Mine in the Galilee Basin, about 360 kilometres southwest of Mackay, to the Abbot Point coal port near Bowen.

The state government declared the Alpha Coal Rail Corridor Project as an ''infrastructure facility of significance'' because it would increase the state's overall coal production by 35 per cent and provide employment and business opportunities.

The state also stands to gain an additional $430 million in royalties each year through the project, with Australia's annual export revenue set to receive a $1 billion boost.

The declaration meant land necessary for the project could be compulsorily acquired by the state, and then leased back to Hancock Coal on a long-term basis.

However, the corridor traverses land owned by around 40 different interest holders, including at least five other mining companies.

Five companies that hold tenements or mining leases in the area challenged the legality of the government's approval in an application to the Supreme Court lead by QCoal against Queensland Infrastructure Minister Stirling Hinchliffe, who, with the state's Coordinator General, was responsible for the significant project declaration.

They argued in court before Justice Martin Daubney in March that the proposed railway could not possibly be deemed ''significant'' because it terminated about 20 kilometres west of the port facility at Abbot Point.

Hancock Coal had given no consideration to how it would get the coal from that point to the port for shipping, they argued.

It was also submitted that the government exceeded its authority in approving an area of land ''at least five times wider than the width of the corridor of land required''.

While the 495-kilometre rail corridor itself would be between 60 and 100 metres wide, Hancock gained approval for a footprint of land 500 metres wide to accommodate drainage, access roads and other infrastructure.

QCoal argued the extended approval would effectively ''sterilise'' coal reserves for which it holds exploration permits.

The project hit a major hurdle in September last year, when the Supreme Court repealed the state government's ''significant declaration'', on the grounds it was mishandled.

As a result, Hancock Coal was forced to realign the rail corridor completely outside the Bowen Basin in order to gain approval again, although this raised the opportunity for other coal companies to object.

In his written judgment, published today, Justice Daubney rejected the application by QCoal in favour of the Queensland government and Hancock Coal.

He ruled that the government correctly deemed the project significant because of its potential to contribute to economic growth, and that the amount of land approved was within the legal requirements.

''The decision with which this case is concerned required an assessment and consideration for future potential, not of present certainty,'' he said.

''I am not persuaded that the applicants [including QCoal] have demonstrated that the decision maker took irrelevant considerations into account in making this decision.''

He ordered that the applicants, including QCoal, pay legal costs for the state government and Hancock Coal.

- with AAP

Read more: http://www.brisbanetimes.com.au/queensland/rineharts-coal-railway-gets-courts-approval-20111110-1n95u.html

[O_128]

Before people comment yes I know that resumptions, etc etc etc make rail expensive. But can whoever is building this please build our suburban railways? 2.2 billion for 500km of rail is a pretty good deal. I'd assume its single track so thats 250km of rail if it were double but still. we are really ripped off.

[Golliwog]

What I don't get about this project is that isn't it basically just mirroring the Newlands Line for most of its length? Why not just connect into that and look at increasing the capacity of the Newlands line?

[SurfRail]

Before people comment yes I know that resumptions, etc etc etc make rail expensive. But can whoever is building this please build our suburban railways? 2.2 billion for 500km of rail is a pretty good deal. I'd assume its single track so thats 250km of rail if it were double but still. we are really ripped off.

It's largely through flat, unimproved land with no residences nearby.  Bit different to building in a city.  The length also enables economies of scale.

[HappyTrainGuy]

You can also throw in noise barriers, local drainage plans, railway stations, extensive earthworks, fencing, signaling, construction schedules impacting other operations etc which don't have to be provided aswell.

[colinw]

What I don't get about this project is that isn't it basically just mirroring the Newlands Line for most of its length? Why not just connect into that and look at increasing the capacity of the Newlands line?

Simple reason: it is going to be standard gauge.

http://hancockcoal.com.au/files/publication/HCPL%20HGPL_Investment.pdf

A multi-user rail infrastructure project that includes 495 kilometres of standard gauge track to
be built by Hancock Coal Pty Ltd and Hancock Galilee Pty Ltd to connect Alpha Coal and Kevin's
Corner mines to the Abbot Point Terminal, will significantly advance additional development in
the Galilee Basin and create opportunities for important sustainable regional development.

The rail connection to Abbot Point includes both mine and port rail loading loops, passing loops,
signalling and communications, access roads and other crossings, railway rollingstock and
support facilities such as workshops, stores, administration buildings and accommodation.

[Golliwog]

I thought I'd heard that about it a while ago. Which leads to my next question of why? I get that the wider gauge means they can have a larger load per length of train, but surely the benefit of that would be outweighted by the fact they have to duplicate a line that IIRC is something like 150km long, plus get their own standard gauge rollingstock?

[HappyTrainGuy]

Would be interesting to see how they get the standard gauge rollingstock there

[colinw]

Back of a truck, from the nearest appropriate port. They will be drawing on Pilbara experience, and I expect this railway will more closely resemble a Pilbara iron ore line than anything we've seen in QLD previously.

[somebody]

Simple reason: it is going to be standard gauge.

That only makes sense if going to Pilbara type standards.  NSW standards or even US standards probably wouldn't justify SG.  There's a mine at Clermont not too far away.  I take it that the existing line there wouldn't have the capacity?  I'd also expect that at least some of this line needs to be double track, or it wouldn't be worth it.

[colinw]

By the way, Hancock is not the only independent railway planned for Central QLD:

http://www.adanigroup.com/coalmining.html

Australia Operation

Carmichael Coal Mine and Rail Project

Adani Mining Pty Ltd a subsidiary of Adani Enterprises Limited (AEL) has recently acquired a 100% interest in Galilee Coal Tenement (EPC 1690) which is now called as Carmichael Coal Project with 7.8 BnT resources. Adani Mining Pty Limited Propose to establish a 60 million tonne per annum (MTPA) coal mine in the Galilee Basin, Central Queensland with mine life of more than 100 years. This is the largest ever investment by any Indian Company in Australia. The Carmichael Coal Project is also the single largest tenement in Australia in terms of Coal resources. Tenement covers an area of 82 sub-blocks in Galilee Basin.

The Carmichael Coal Mine is located mostly on the Moray Downs cattle station, within the jurisdiction of Isaac Regional Council, with railway development located in Mackay and Whitsunday Regional Council areas. The mine is located approximately 160 Km to the north-west of Clermont, which in turn is located approximately 100 Km north of Emerald.

The Galilee Basin is the last undeveloped coal resource within Queensland and is expected to become the largest coal producing region in the State. When fully developed, the Carmichael Coal Mine will be the largest coal mine in Queensland.

The proposed mine involves the development of both a greenfield open-cut mine and an underground mine, supported by rail facilities leading to coal export terminals at either Abbot Point or Hay Point or both these ports. The mine has an expected life of more than 100 years. Export coal from the Project and will predominantly service the Indian domestic power market.

The initial output of 2 Mtpa in 2014 (year 1 of operation) will increase to deliver a maximum of 60 Mtpa from 2022.

The mine infrastructure, rail and port will require a total investment of approximately $6.8 billion for construction to the Port of Abbot Point and $6.0 billion for the construction to the Port of Hay Point .

Due to the remote location of the mine and the excessive road distance for regular commuting, Adani's preference would be to establish a local township. However, the proponent would also construct an onsite airstrip to provide site access for some of its Fly-In-Fly-Out work force.

It is projected that a significant number of additional jobs will be created for local and state suppliers and contractors in combined with increased employment opportunities for local communities in the region.

[colinw]

Simple reason: it is going to be standard gauge.

That only makes sense if going to Pilbara type standards.  NSW standards or even US standards probably wouldn't justify SG.  There's a mine at Clermont not too far away.  I take it that the existing line there wouldn't have the capacity?  I'd also expect that at least some of this line needs to be double track, or it wouldn't be worth it.

I believe Pilbara standards are exactly what is planned.

The Galilee Basin is a fair distance west of Clermont, and on the other side of the Drummond Range (Great Dividing Range).  The existing QR crossing of the Drummond Range is of low standard, with steep gradients and curves down to 4 chains. It was partially re-aligned some years ago, but the project magically stalled before the necessary 2nd stage was delivered (sound familiar?) - so the end result was no practical improvement.

[HappyTrainGuy]

But the nearest DG point is on the border. Considering the amount of wagons that are on coalies it should equal a lot of trucks which should be interesting to see 

[somebody]

But the nearest DG point is on the border. Considering the amount of wagons that are on coalies it should equal a lot of trucks which should be interesting to see 

Probably they will be new wagons built OS.  So they might just dock the ship at Abbott Pt and put them straight on the tracks.

[HappyTrainGuy]

Forgot it was going to a port hahaha.

[Golliwog]

As far as I'm aware though, Abbott Pt doesn't have freight capabilities for anything other than coal (or similar types of material). So I don't think you'd be able to unload standard gauge carriages here.

7km long trains would be impressive to watch though.


Edited for clarity.

[colinw]

I read somewhere (can't remember where) that standard gauge coalies of around 22,000 tonne gross are planned for these lines.  I think that makes for a 3-4 km long train.