GALILEE COAL PROJECT

 

New Mine. New Rail. New Port.
Central Queensland

Overview -

Waratah Coal is proposing to develop a coal mine, railway and port facility in Central Queensland to export high volatile, low sulphur, steaming coal to international markets. The project’s estimated total development cost is AU$5.3 billion.

Processed coal will be transported by a new 495 km rail system from the Galilee Basin to a planned export port facility on the Central Queensland coast.

                        

The new port facility will be developed to facilitate coal export to the growing world market. It will reduce congestion at existing port infrastructure which has hindered the coal industry and limited Australia’s export earnings.

The Waratah Coal Galilee Basin tenements contain an inferred thermal coal resource of in excess of 4.3 billion tonnes. The proposed open cut mine is planned to have an initial annual export capacity of 25 million tonnes. The mine will proceed through a staged development process that targets first coal production in late 2012.

• The mine will generate considerable export income for the Australian economy

• The project provides much needed new rail and port infrastructure in Central Queensland to ease existing congestion

• Additional employment is created with up to 2,200 employees during construction and 760 permanent employees for the long term operation of the mine, rail and port

• Federal and State Government revenue will be increased through taxes and royalties

• The project will generate additional expenditure in the regional economy as local suppliers, service providers and contractors participate in the project

• The project will assist in progressing the general regional development areas of both the Northern Economic Triangle and Central Queensland

• There exists an opportunity for fibre optic cable used along the rail system to provide a platform to enhance the broadband capacity of the region

• The new infrastructure will open a new multi billion tonne coal resource province and assist in driving the growth of Central and North West Queensland

 

Galilee Coal Project -

Thermal coal is used to generate almost 40% of the world’s electricity. Global demand for thermal coal is expected to grow more than 3% per annum over the next 10 to 15 years.  Future world demand is driven by developing Asian and Indian markets and the international market is seeking Australian coal as a secure energy supply that is produced in a stable economic and political environment.

Galilee Basin Coal is high quality and also has ideal characteristics for use as a fuel for low emission technologies including Integrated Gasification Combined Cycle (IGCC) power stations.

The proposed Galilee Basin open cut mine is planned to have an initial annual export capacity of 25 million tonnes. The coal will be processed at an on-site facility north of the town of Alpha, 160km to the west of Emerald.

Processed coal will be transported by a new 495 km rail system from the Galilee Basin to a planned export port facility on the Central Queensland coast.

 
Waratah Coal will construct a state-of-the-art, heavy haul, standard gauge rail system to support 21,000 tonne train units. The system will be equipped with dual gauge rail from the Bowen Basin mining area to the port to accommodate third party users from the Bowen Basin region.

A new port facility will be developed to facilitate coal export to the growing world market. It will reduce the congestion at existing port infrastructure which has hindered the coal industry and limited Australia’s export earnings.  This facility will be located within the Defence Department’s Shoalwater Bay Training Area. The port will have an initial capacity of 50 million tonnes of coal per year and will accommodate a full range of bulk carriers including the new 350,000 DWT Chinamax class vessel.

Potential options for development of a water supply pipeline and high voltage electricity transmission line to service the proposed coal mine are also being investigated as part of the overall project.

 

Train and Ship Movements -

As the rail and port system reaches full annual export capacity of 50 Million tonnes, approximately 50 trains per week will transport coal to the port.

Depending on vessel size, approximately 8 to 10 bulk carriers will enter the port weekly with a range of destinations including Japan, Korea, China, Taiwan, other Asian nations and India.

Environmental Approval Process -

The Galilee Coal Project has been declared a “Significant Project” by the Queensland Government and requires completion of an Environmental Impact Statement (EIS) in the project approval process.

Waratah Coal will progress and prepare an EIS. This will involve extensive stakeholder consultation and scientific study to ensure the project is economically, socially and environmentally sound.

The Draft Terms of Reference that have been prepared by the Queensland

Government to guide the content of the EIS studies will be made available

for public comment.

Waratah Coal is committed to community engagement throughout the project’s development and will introduce a comprehensive schedule of stakeholder consultation to actively pursue input and feedback from key interest groups. 

This will include: