Waratah Coal Pty Ltd (“Waratah Coal” or the “Company”), an exploration and coal development company, has lodged an application with the North Queensland Bulk Ports Corporation (NQBP) to bid for one tranche of the Port of Abbot Point Terminals 4-7 program.
Waratah Coal is focused on developing its proposed ‘Galilee Coal Coal Project’, which is located in the undeveloped Galilee Basin in Central Queensland. The $8 billion Galilee Coal Project includes a large scale thermal coal mine near Alpha, west of Emerald. The complex will include four underground mines, two surface mines and associated coal handling and processing facilities. The mine will be linked to a new coal terminal at Abbot Point near Bowen by a new 471km standard gauge, heavy haul railway line.
Waratah Coal is the coal development company of the Mineralogy Group. Mineralogy operates Queensland Nickel in Townsville as a wholly-owned subsidiary. As a diversified resources company, our vision is to capitalise on the growing demand for resources primarily in the People’s Republic of China through the cooperative development of large-scale projects with PRC-based companies.
The Galilee Coal Project and Waratah’s Galilee Power project have both been granted ‘significant project’ status by the Coordinator-General of Queensland in November, 2008, and September, 2009, respectively.
A link between the Galilee Basin’s abundant resources and export infrastructure will open the Galilee Basin for future development and also reduce hurdle rates for future resource developments.
Potentially the link could support a capacity upwards of 400Mtpa, to which Waratah Coal has received significant interest from other Galilee Basin proponents.
The project is estimated to generate $4.6 billion per annum in export revenues and increase Queensland government and federal government revenues by $343 million per annum and $709 million per annum respectively. All of the project’s benefits are predicated on Waratah Coal gaining access to coal export facilities at Abbot Point.
Timing of the benefits is conditional on coal exports commencing in early 2015. Pending approvals, construction of open cut and underground mines is proposed to commence in early 2012 and be completed by late 2014. Utilities and mine area infrastructure is due to commence in mid-2012 while rail construction is scheduled to commence in early 2012 and finish in late 2014. The project timetable has also been used as the basis of our proposal to accelerate the construction of the Multi Cargo Facility (MCF). The timetable is our current best estimate and may be subject to change.
Waratah Coal is looking forward to a productive relationship with the NQBP and proposes an equitable basis for the allocation of contributions fee charges and bond securities based on joint efforts to accelerate the program for first coal exports to early 2015.