Media release: Massive interest in Abbot Point sees super-expansion approved

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Ministerial Media Statement -> click here

Joint Statement:

Premier and Minister for Reconstruction
The Honourable Anna Bligh

Deputy Premier, Treasurer and Minister for State Development and Trade
The Honourable Andrew Fraser

Thursday, December 01, 2011

Massive interest in Abbot Point sees super-expansion approved

The Bligh Government has announced plans for a 'super-expansion' of the Port of Abbot Point, following overwhelming demand from the private sector for development of the Port.

Premier Anna Bligh said the Government had expected to approve an expansion from the currently approved three terminals to seven, but a spike in interest from some of the country's biggest mining companies will now take the total number of proposed terminals to nine.

These developments could be worth investment of $9 billion and deliver tens of thousands of jobs.

The Premier said Abbot Point was destined to become one of the nation's and the world's key export hubs.

"This is a major new development that will drive an enormous economic surge through north Queensland, potentially creating tens of thousands of jobs," Ms Bligh said.

"The super-expansion of Abbot Point will turbo-charge the local economy and boost Queensland's exports to the world.

"It's a huge vote of confidence in the long-term viability of Queensland's resources sector, and will create jobs both locally and around the state.

"It will increase the export capacity of the Port to almost 400 million tonnes per annum – making it one of the largest coal export facilities in the world.

"The companies chosen will now progress to the next stage of contract negotiations for the development of new coal terminals at the Port."

The Port of Abbot Point currently has one export terminal (T1), and two that are being developed by BHP (T2) and Hancock (T3).

This expansion proposal involves Terminals four to nine (T4-9) with first coal exported in 2017.

The Preferred Respondents for the expansion are:

• Anglo American Metallurgical Coal
• Macmines Austasia
• North Queensland Coal Terminal (consortium of Macarthur Coal, Peabody Energy, New Hope Corporation, Middlemount Coal and Carabella Resources)
• Rio Tinto Coal
• Vale, and
• Waratah Coal

Preferred Respondent status means each proponent can now negotiate commercial agreements with North Queensland Bulk Ports Corporation. It does not confer development rights.

The Port of Abbot Point has experienced significant growth in recent years.

• In 2007, export capacity was 15 mtpa
• In 2008, export capacity was 21 mtpa
• In 2009, export capacity was 25 mtpa
• In 2011, export capacity was up to 50 mtpa
• From 2017 export capacity is expected to reach approximately 385 mtpa

Ms Bligh said the expansion was in addition to the Multi-Cargo Facility, which will provide a sheltered harbour capable of accommodating up to 12 Capesize berths to facilitate future exports from the Port.

Deputy Premier and Treasurer Andrew Fraser said there was significant industry interest in the expansion.

"There is no shortage of appetite for export capacity within Queensland's coal network, underlining the potential the mining industry sees in the state's economic future," Mr Fraser said.

"This is a huge vote of confidence in the future, and shows the market is there for increased private sector investment in new coal export infrastructure in Queensland.

"The Government is putting in place the building blocks to allow private sector proponents to progress their mine, rail and port development proposals. The Government will seek to leverage private funding for these developments to allow the State to focus public investment on core service delivery."

MEDIA CONTACT: Deputy Premier and Treasurer's Office - 07 3224 6900
Premier's Office - 07 3224 4500