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Gladstone Biloela region

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A report prepared by Powers Financial Group highlighting the immmense volume of investment that is underway or planned for the Gladstone-Biloela region.

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Page 1: Biloela Regional Economic Development

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Gladstone Biloela region

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Ken O’Dowd MPFederal Member for Flynn

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Dear Investor

This publication has been prepared by Powers Financial Group and highlights the immense volume of investment that is underway or planned for the Gladstone-Biloela region, with a total of approximately $230 billion of projects in the pipeline of economic activity.

As a former business owner and life long resident in the region, I am proud to spend my time serving the Central Queensland community in the Flynn Electorate and am grateful for the opportunity to play a role in the expansion of Central Queensland’s widely diverse industries. I am excited about the potential growth that these emerging projects will bring and the prosperity they will deliver to our community.

Gladstone and the surrounding region showcases that economic prosperity is continuing in Australia despite the impact of ongoing global financial crises on national economies. The Biloela area is no exception to this, having significant major investments planned and underway in a range of industries.

With cornerstone industries of primary production, mining, energy and meat processing, Biloela is benefiting from the current economic expansion taking place within Central Queensland. With developing projects in minerals, petroleum and coal seam gas, and the required sustainable infrastructure being built to support them, the CQ region is set to thrive as an exporter of resources to the world.

I have been a personal client of the Powers Financial Group for over 25 years and I encourage you to contact Powers Financial Group for further information on investment opportunities in the region.

Ken O’Dowd MPFederal Member for Flynn

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Gladstone Biloela region

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1. Biloela, a Growth Region

•Economic growth projects

•Minerals

•Coal

•Petroleum&CoalSeamGas(CSG)

•MajorInfrastructure

2. GladstoneRegion’sGrowthisSkyrocketing •GladstoneCity:HometoMajorIndustry

•GladstoneRegionSummary

•LNG Industry Developments Under Construction/Development

•MineralsProjectsunderConstruction/Development

•MajorEnergyProjects-Gladstone

•OtherMajorProjectsProposedorStarting

•Infrastructure for the Port of Gladstone

•Other Projects Under Construction

•MajorFutureOpportunities–Gladstone

3. AustralianMiningIndustry •Industry Importance

•IndustryRevenueGrowth

•DemandFactors

•IndustryOutlook

4. AustralianMinerals and Energy Projects

•Industry Highlights 2011

•AdvancedProjects

•LessAdvancedProjects

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Table of figures•Figure 1: Gross Regional Product by Industry

in the Gladstone Region, 2010. 22

•Figure2:AustralianIndustryKeyStatisticsSnapshot(IBISWorld,2012). 39

•Figure3:DistributionofMiningRevenuesbyState(percentageoftotal)- showing the dominance of WA and QLD (IBISWorld,2012). 39

•Figure 4: Key Players in the Australian MiningIndustry,PercentageShare,2012.39

•Figure5:AustralianMiningIndustryProducts and services segmentation (2011-12;IBISWorld);PercentageofIndustryTotal Revenue of AUD $ 205 billion. 40

•Figure6:CompletedMineralsandEnergyProjects to April 2011, and Average CapitalCosts(2010-11AUD$). 41

lisT of Tables•Table 1: Advanced Projects in Australia as

at April 2011 - 28% of the total are in QLD by value but the value is way ahead of most states combined except for WA. 42

•Table2:LessAdvancedMineralsandEnergyProjectsbyState-April2011.44

lisT of illusTraTions/PhoTograPhs•Illustration1:TheGladstone–BiloelaRegionandtheCoalSeamGasLocationsinQueensland. Note Biloela and Gladstone are centraltotheCSGFields. 10

•Illustration2:LocationoftheDawsonMine

Complex relative to Biloela and Gladstone. 10

•Illustration3:MapshowingBowenBasinProjects for Cockatoo Coal. Note the central location of Biloela. 11

•Illustration4:NewMLAareasforXstrataCoal 11

•Illustration5:TheSuratBasinRailLinewillconnectwiththeMouraLineontoGladstone. 12

•Illustration6:MapsshowingtheCoalSeamGasactivitiesofMolopoAustralianearBiloela. 12

•Illustration7:MapoftheWestsideCSGoperationsnearMoura&Biloela. 13

•Illustration8:MapshowingtheGLNGPipeline Route past Biloela to Gladstone. 14

•Illustration9:QCLNGProject-TheQueensland Curtis LNG Project 15

•Illustration10:MapshowingthefinalfewhundredkmoftheArrow-SuratPipelinetoGladstone. 16

•Illustration 11: Location of the Nathan Dam Project relative to Biloela. 17

•Illustration12:Gladstonehas$US16Billionof Foreign Direct Investment - more than anyothercityintheworld(2010).20

•Illustration 13: Images from of Gladstone and its major projects. 21

•Illustration 14: QGC Limited Queensland Curtis Island LNG Project 24

•Illustration 15: Image of the GLNG Curtis Island Facility as Proposed. 24

•Illustration 16: The Arrow LNG Project proposedlayoutfromtheArrowEnergyEIS.25

•Illustration 17: Artists impression of the view from Auckland Point, Gladstone, of the

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various LNG Projects. 25

•Illustration 18: The Australia Pacific LNG project LNG facility on Curtis Island in Gladstone, the first two trains of which will haveaprocessingcapacityofupto9milliontonnes per annum. 26

•Illustration19:LNGLimitedGladstoneProject “Fisherman’s Landing” Proposed Design&Layout 27

•Illustration 20: LNG Limited schematic illustratingitsproposedSpurLineandtheinfrastructure of the other LNG Plants 28

•Illustration 21: Rio Tinto Alcan Bauxite &AluminaYarwun2plantlayout:note;Yarwunexpansionshowninyellow29

•Illustration22:BoyneSmeltersAluminiumproductionprocess.29

•Illustration 23: Wiggins Island Coal Export TerminalConstructionSite 30

•Illustration24:TheMouraLink–AldogaRailProject as proposed. 32

•Illustration25:BoulderSteelPlantLocationand Infrastructure Location and Layout. 33

•Illustration26:MapshowingthePortAlmalocality north of Gladstone. 34

•Illustration27:Mapshowingtheplansforthe dredging and upgrade of the Gladstone Port Western Basin. 36

•Illustration28:Gladstone’sLargeScaleIndustry–EstablishedandProposed37

•Illustration29:GrowthinValueofAdvancedMineralsandEnergyProjectsinAustralia-2010-11 AUD $ billions. 42

•Illustration30:AdvancedMineralsandEnergy Projects April 2011 showing the importanceofQLD&WA. 43

Contact us biloela

54CallideStreet (POBox98)

Biloela Queensland 4715P 07 4995 6677F0749921787

8.30am — 5.00pm

brisbaneL7,269WickhamStreet

(POBox310)Brisbane Queensland 4006

P 07 3251 4444F 07 3251 4422

8.30am — 5.00pm

MonTo3NewtonStreet

(POBox69)MontoQueensland4630

P 07 4166 1366F 07 4166 1343

9.00am—3.00pm

[email protected]

www.powers.net.au

REPORTCOMPOSEDBYEARLSTEVENS

[email protected]

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Biloela is located approximately 600 km North-West of Brisbane and 100 km inland from Gladstone. It is the administrative centreoftheBananaShire.Biloelaisamodern town characterised by very broad streets and a well-established business and service centre.

Two power stations, a meatworks, the nearby mines and a healthy agricultural base, drive Biloela’s economy. The Anglo-AmericanCallideMineisamajorQueensland coal mining operation with a production capacity of around 10 million tonnes each year. Biloela is also the centre of a very successful beef producing area.

biloela is a growth region

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Minerals•First pass drilling by Australian Bauxite Ltd on

the Binjour Plateau.

•AussieQResourcesLtdatWhitewashSouthand Gordon’s molybdenum-copper-silver prospectsnearMonto.

•PlanetMetalsLtdhasdrilledtwodeep,partially coredholes(totalling893m)totestfordown-dip extensions of existing resource base at the MountCannindahcopper-goldprojectnearMonto.

•SolomonGoldPlc.hasreportedadditionaldrilling results at the Crunchie gold deposit within the Rannes gold project northwest of Biloela.

Coal ProjeCTs in The biloela region•AngloAmericanMetallurgicalCoalLtdre-

commencing open cut mining at the Dawson North mine. Dawson mine is an open-cut coal

The following lisT of ProjeCTs have, or will have, a PosiTive eConoMiC effeCT on biloela.

operation with more than 280 million tonnes of existing coal reserves.

The mine combines three adjacent coal mining areas, stretching almost 60 kilometres with the lease area almost twice that length. Dawson NorthMineisLocationnearMoura,about40km from Biloela and 140 km southwest of Gladstone.

•AquilaResourcesLtdandValeAustraliaLtd–IsaacPlainsCoalMine.IsaacPlainsislocatedapprox.180kmSouthWestofMackay,Queensland, in Central Queensland’s Bowen Basin Coal province. Isaac Plains has proven Reservesofover22MtandMeasuredandIndicatedResourcesofafurther30Mt.

•Bandanna Energy Ltd has upgraded total coal resources at the Arcturus deposit near Rolleston by 33%. This sees the Arcturus Project resource increase to 206.3 million tonne. The Arcturus Project is strategically located with respect to existing infrastructure, with the Springsurerailcorridor(servicingtheMinervaMine)tothewestandtheRollestonrailcorridor

Illustration2:LocationoftheDawsonMineComplexrelativetoBiloelaandGladstone.

Illustration1:TheGladstone–BiloelaRegionandtheCoalSeamGasLocationsinQueensland.NoteBiloelaandGladstonearecentraltotheCSGFields.

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Illustration3:MapshowingBowenBasinProjectsforCockatooCoal. NotethecentrallocationofBiloela.

Illustration4:NewMLAareasforXstrataCoal

(servicingXstrata’sRollestonMine)totheeast.

•Bowen Energy Ltd has completed five boreholes totalling 2610 m in the southern area of the Katrina near Rolleston. A preliminary review of analytical results from core samples, received to date suggests the coal seams may contain soft coking coal and thermal coal potential.

•Cockatoo Coal Ltd announced maiden Coal Reserve Baralaba mine Baralaba North Wonbindi.MarketableReservestotalling33.6milliontonnesdefinedintheBaralabaMine.

•XstrataCoal–Wandoan.XstrataCoal’sWandoan Coal Project received conditional environmental approval from the Federal GovernmentinMarch2011.

•The Wandoan Coal Project is a proposed open-cut thermal coalmine immediately west of the Wandoan Township. The mining lease application area covers approximately 32,000 hectares. The proposed mine would include an open-cut coal mine, a coal handling and

preparation plant, and support facilities. With an expected life of more than 30 years, the proposed mine would produce thermal coal that would be exported around the world or sold to the domestic market. It is anticipated that around 30 million run-of-mine tonnes of coal would be mined at Wandoan annually.

•XstrataCoalisparticipatinginajointventurewith QR National and ATEC to investigate the construction of a new rail connection known as theSuratBasinRail,betweenWandoanandtheexistingMoura-GladstonelineatBanana. XstrataCoalisalsoworkingcloselywithQRNetwork regarding upgrades to its existing connectionsfromMouratoGladstone,andpotential new port developments at Wiggins Island and Balaclava Island. Together these developmentscomprisetheSuratBasinCoalValueChain,whichwouldprovidecriticalmasstoopenuptheSuratBasininQueenslandformajor investment and regional development.

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Oftenreferredtoasthe‘SouthernMissingLink’,SuratBasinRailisatransportsolutionfortheregion that will connect to the future Wiggins Island Coal Export Terminal. The 214-kilometre railway will be a new and iconic connection that will significantly enhance the existing coal rail network in Queensland, and unlock approximately 6.3billiontonnesofcoalreservesintheSuratBasin.

TheSuratBasinisa27,000squarekilometreregion that stretches from Queensland to northern NewSouthWales.Theregionhasastrongagricultural industry and a burgeoning resources industry based on its vast reserves of thermal coal.

The railway will support 22-24 diesel powered train movements per day and provision has been made for electrification in the future. In order to accommodate the rail, a corridor of approximately 60metreswide(widerinsections)willbeacquired from affected landowners and fenced along its entire length. By supporting transport to andfromthePortofGladstone,SuratBasinRailalso has advantages for general freight and could

enhance export options for regional producers.

SuratBasinRailoffersarangeofopportunitiesthat will enhance the economic development of regional Queensland. It supports the continued growth of the coal industry, which is Australia’s largest export industry.

The project aims to deliver environmentally-friendly transport of coal by mitigating social, environmental and economic impacts. The railway will have the capacity to transport up to 42 million tonnes of coal per year on trains up to 2.5 kilometres in length.

•TheRange–Wandoan.Targetingafivemilliontonne per annum open cut thermal coal mine, the Range Project is located 24 kilometres south eastoftheWandoantownship,withintheSuratBasin. It is well located relative to existing key infrastructureandtheplannedSuratBasinRailline, which will provide a rail link to the coal ports at Gladstone. The project remains on track for first coal in 2015 subject to statutory approvals being attained and completion of third party infrastructure.

Illustration6:MapsshowingtheCoalSeamGasactivitiesofMolopoAustralianearBiloela.

Illustration5:TheSuratBasinRailLinewillconnectwiththeMouraLineontoGladstone.

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Illustration7:MapoftheWestsideCSGoperationsnearMoura&Biloela.

PeTroleuM and Coal seaM gas (Csg) in The biloela region•MolopoAustraliaLtdcontinueddewateringandgasproductiontestingnearMoura.Molopois the majority owner and operator for ATP’s covering c. 1,370 km2 over 5 project areas in Bowen Basin, west of Gladstone

•MolopoAustraliaLtdproposedGaspowerStationMoura.KnowastheMungiPowerGeneration Project, the project is aimed at enhancingvalueofMungiGasthroughverticalintegration and exposure to post carbon taxed electricity market. The low emissions gas-fired generation provides relative advantage over coal-firedgenerationinpostCPRSmarket.Theplanisfor2x30MWstagesinvolving$65million investment

•WestSideCorporationLtdandMitsuiE&PAustraliaLtdattheMeridianandatParanui.WestSideoperatestheMeridianSeamGasCSGgasfields160kmwestofGladstoneinQueensland’s Bowen Basin in joint venture withMitsuiE&PAustralia.RenamedMeridianSeamGas,thegasfieldscommencedoperationsinthelate1990’sasAustralia’sfirstCSGproducer and comprise a range of assets including a petroleum lease, gas rights in mining leases and gas compression and pipeline infrastructure connected to Queensland’s commercialgasnetwork.WestSidecompletedthe transition from explorer to producer in July 2010afterjoiningwithMitsuiE&PAustraliaPtyLtd(Mitsui)toacquiretheDawsonCSGfieldsnearMourainQueensland’sBowenBasinfromexistingownersAngloAmerican(Anglo)andMitsuiMouraInvestmentPtyLtd(MMI).

The field is currently producing approximately 10 Terajoules(TJ)ofgasperdayundercontract.Aproduction drilling and well workover program now underway aims to increase gas output toward25TJadaybylate2012.WhileMeridianSeamGashascontractstotakeupto25TJaday the pipeline infrastructure has total capacity of 60 TJ a day while the existing compression equipment has total capacity of 30 TJ a day. This excess capacity provides the joint venture with an opportunity to increase production at relatively low cost.

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SantosPipeline(GLNG).SantosLimited(Santos)anditspartnerPETRONASaredevelopingtheirQueenslandcoalseamgas(CSG)resourcesintheBowenandSuratBasinsasfeedgasforaliquefiednaturalgas(LNG)liquefactionandexportfacility on Curtis Island, near Gladstone.

The GLNG project has three components:

•ExplorationandproductionofCSGintheSuratand Bowen Basin gas fields.

•Construction and operation of a 435-kilometre gas pipeline from the gas fields to Gladstone.

•Construction and operation of a gas liquefaction and export facility on Curtis Island and associated infrastructure.

OriginPipeline(APLNG).TheAustraliaPacific LNG Project draws on the extensive experience of Australia’s largest integrated energy company, Origin, and Houston-based company ConocoPhillips, who has assets and operations around the world. The Project

will produce coal seam gas for commercial markets both locally and overseas and already supplies gas to power stations in Queensland, major industrial customers and homes and businesses in south east Queensland. The Australia Pacific LNG project consists of:

•The further development of Australia PacificLNG’sgasfieldsintheSuratandBowen basins in south western and central Queensland

•A gas pipeline from the gas fields to an LNG facility in Gladstone in Queensland.

•An LNG facility on Curtis Island in Gladstone, the first two trains of which will haveaprocessingcapacityofupto9milliontonnes per annum.

•From the LNG facility, Australia Pacific LNG’s cargoes will be shipped to the energy markets of Asia. Australia Pacific LNG’s first cargo is expected to be exported in 2015.

Illustration8:MapshowingtheGLNGPipelineRoutepastBiloelatoGladstone.

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BritishGas(QGCLNG).QGCisdevelopingcoalseamgasintheSuratBasinofsouthernQueensland for domestic and export markets throughitsQueenslandCurtisLNG(QCLNG)Project. The project draws on QGC’s extensive coal seam gas expertise and BG Group’s international experience in liquefied naturalgas(LNG).

Plans for this major, integrated project, involve:

•Expanding QGC’s existing coal seam gas productionintheSuratBasinofsouthernQueensland

•Building a 540 km buried natural gas pipeline network linking the gas fields to Gladstone

•Constructing a natural gas liquefaction plant on Curtis Island, near Gladstone, where the gas will be converted to LNG for export

•The project’s first stage is two processing units, known as LNG trains, at the Curtis Island plant. These trains, which have a design life of at least 20 years, will produce a combined 8.5 million tonnes of LNG a year. The site can accommodate an expansion to 12 million tonnes of LNG a year, subject to demand. The first LNG delivery expected in 2014.

Illustration9:QCLNGProject- TheQueenslandCurtisLNGProject

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•Arrow Energy LNG Project. Formerly known as theShellAustraliaLNGProject,theproposedArrow LNG Plant Project on Curtis Island will be supplied with coal seam gas from Arrow’s reserveslocatedintheSuratBasininsoutheast Queensland and the Bowen Basin in central Queensland. The Arrow LNG Plant Project has been declared a ‘significant project’ by theQueenslandGovernment;thisreflectsthecomplexity of Queensland and Commonwealth approvals required, the project’s potential impacts, and the importance of the Gladstone region to national, state and local economies.

Illustration10:MapshowingthefinalfewhundredkmoftheArrow-SuratPipelinetoGladstone.

•TheASP(formerlytheSurat-GladstonePipeline)formspartoftheArrowLNGProject,which involves the planning, construction and commissioning of a buried 660 mm diameter, high-pressure steel gas transmission pipeline. It is anticipated that construction of the pipeline will start in 2015/16, with first gas supplied two to three years after that. The Project will make a significant contribution to the local, regional, state and national economies, both in the construction phase and through its operational life. It will also provide employment, business and industry opportunities benefiting the wider economy.

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Major infrasTruCTure ProjeCT in The biloela regionThe Nathan Dam and Pipelines Project is a major initiative aimed at providing long-term, reliable water supplies to mining, power, urban andexistingagriculturalcustomersintheSuratCoal Basin and the Dawson-Callide sub-region of Central Queensland.

The proposed Nathan Dam site is located just upstream of Nathan Gorge on the Dawson River, approximately 70 kilometres downstream of Taroom and 315 kilometres upstream of where the Dawson and Fitzroy rivers meet. Depending on the final dam design, it is expected to have a

capacity of up to 888,000 megalitres.The capital cost of the Project is $1,400 million (atpreliminarydesignaccuracy).Theaimistocommission the Project in June 2016. Pending approvals, the construction period is programmed for between July 2013 and June 2016.

This will include a six month early works program in the latter half of 2013 when the required road upgrades will be undertaken and site facilities established prior to the commencement of dam and pipeline construction activities in January 2014.

Illustration11:LocationoftheNathanDamProjectrelativetoBiloela.

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The Gladstone Region begins approximately 450 kilometres north of Brisbane and extends up the Central Queensland coast some 200 kilometres. The region is home to a thriving 21st Century industrial base served by one of Australia’s busiest ports, the Port of Gladstone.

A deep water harbour and excellent transport links close to the massive coal reserves of the Bowen Basin has made the city a strategic industrial hub of central Queensland, and arguably the state’s economic engine room. The Gladstone regional council is the local authority who presides over the total estimated population of 62,660.

A major industrial cluster, where economic competitiveness is balanced with steadily improving environmental performance, Gladstone’s development potential is underpinned by the 22,000 hectare Gladstone StateDevelopmentArea,whichoffersarange of development-ready sites, established infrastructure and growing possibilities for economic development to drive the region’s sustainable growth.

TheGladstoneStateDevelopmentArea(GSDA)wasestablishedin1993.Thepurposewasto

secure and protect a large area of suitable land with ready access to deep-water port for large-scaleindustrialdevelopmentovera30–50year time frame. The result of this development area is a thriving 21st Century Industrial base served by one of Australia’s busiest ports, the port of Gladstone. A major industrial cluster where economic competitiveness is underpinned bythe22,000-hectareStatedevelopmentarea,which offers a range of development ready sites, established infrastructure and growing possibilities for economic development to drive the regions sustainable growth. With recent andcontinuinginvestmentintheLNG&Coalindustries Gladstone’s strong industrial growth looks set to continue.

The Gladstone Region is also gaining momentum as a tourism destination being the only gateway totheentireSouthernGreatBarrierReef.HeronIsland lies 72 km north east off the coast of Gladstone, where you can enjoy some of the world’sbestreefdiving.Snorkelling,fishing,reefwalking and nature walks. Appealing to young singles and couples, Gladstone is expected to experience enormous growth over the next five years. The popularity and its large rental population have encouraged property investors to buy into the area.

gladstone region’s growth is skyrocketingThe GladsTone ReGion

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Gladstone City: Home to major industryGladstone is a well-established industrial city with a number of companies choosing Gladstone to locate their large-scale resource processing businesses and associated industries. Gladstone’s industrial giants operate around the clock, employing thousands of workers.

The region’s major industries include:

•QueenslandAluminaLtd(QAL)-Oneoftheworld’slargestaluminarefineries;

•RioTintoAluminiumYarwunAluminaRefinery-The world’s first Greenfield alumina refinery to be constructedsince1985;

•BoyneSmeltersLtd(BSL)-Australia’slargestaluminiumsmelter;

•CementAustralia-Australia’slargestcementkiln;

•GladstonePowerStation(NRG)-ThelargestpowerstationinQueensland;

•Orica - The world’s largest industrial grade ammonium nitrate plant, a world scale sodium cyanide plant and a chloralkali plant.

gladsTone liquid naTural gas (lng)

Australia is poised to become the world’s largest producer and exporter of liquefied natural gas by 2020,earning36billionannuallybythen(source:TheAustralian07/06/11).LiquidNaturalGas(LNG)projects are further transforming the growing mining industry in Queensland.The below LNG plants have started civil construction works. The core of the work force is expected to start entering the Gladstone market in

first and second quarters 2012.

•QueenslandCurtisLNG–AUD$15billiondevelopment creating 5,000 construction jobs and1,000operationaljobs;

•GladstoneLiquefiedNaturalGasProject(GLNG)–AUD$16billiondevelopmentcreating5,000constructionjobsand1,000operationaljobs;

•Australian Pacific LNG - $14 billion development, creating 3,300 construction jobs and 175 operationaljobs;

In addition to these plants Arrow Energy is planning an LNG plant which will require a peak workforce of 3,500 people during the construction phase. Arrow Energy is anticipating starting construction on the LNG plant in 2013.

The newly announced multibillion-dollar Liquefied NaturalGas(LNG)projectsarebasedonprocessingcoalseamgas(CSG)fromtheSuratand Bowen basins. The proposals include piping CSGtoGladstoneorCurtisIsland,liquefactionoftheCSGtoproduceLNGandexportofLNGtointernational markets.

Potentially, the LNG industry could involve a private sector investment of more than $60 billion, the export of over 50 million tonnes of LNG per annum, which would provide significant economic benefit toQueenslandincludinganincreasedGrossStateProduct of over $3 billion and the creation of over 18,000 jobs.

These announcements along with the many other factorsaffectingandinfluencinggrowthhasflowedthroughtoboththeresidential,retailandcommercial sectors of the community putting huge demands on services spread across all sectors of the market.

Illustration12:Gladstonehas$US16BillionofForeignDirectInvestment-morethananyothercityintheworld(2010).

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gladsTone: world Class Coal PorT

Gladstone has recently reached a major milestone on the way to becoming a world-class coal port. In addition to Gladstone’s existing coal loading facility the first stage of Gladstone’s Wiggins Island Coal Export Terminal has signed up the finance for the first stage of the development, which will handle 27 million tonnes a year.

This employee intensive project involves the funding and construction of a new coal export facility, which will be situated just west of the existing RG Tanna Coal Terminal in Gladstone Harbour. The Terminal will be located at Golding Point on land leased from the Gladstone Ports CorporationwithinGladstoneStateDevelopmentArea. There are a number of coal producers from theSuratandBowenBasinsthatwillusetheTerminal to export their coal. These coalfields are situated to the west and south west of Gladstone.

gladsTone region gross regional ProduCT

The2010(financialyear)estimatedgrossregionalproduct(GRP)oftheGladstoneRegionwasaroundAUD$2.5billion(industryoutputaloneis$2.0billion).Industrycontributionto

the Gladstone Region’s GRP is dominated by the manufacturing,construction,property&businessservices and mining sectors.

Large scale projects in the Gladstone Region such as metal processing refineries and smelters account for the bulk of the region’s value of manufacturing sector output.

The manufacturing sector is the largest contributor to Gladstone’s GRP with output close to 21% of the region’s total industry output. The manufacturing,construction(11%),propertyandbusinessservices(10%)andmining(9%)industries combined represent around 41% of the Gladstone Region’s Industry share of GRP.

And with recent and continuing investment in the LNG industry, which is expected to play an increasingly important role in global energy markets over coming years, the Gladstone Region’s strong industrial growth looks set to continue.

MajorindustryinGladstoneissupportedbytheregion’s thriving and world-class engineering, construction and manufacturing sectors while the region’s traditional agricultural base in cattle farming and horticultural production, continues to underpin the Gladstone Region’s economic base.

Illustration13:ImagesfromofGladstone anditsmajorprojects.

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Gladstone reGion summaryDuring2010GladstoneRegionAttractedUS$16billionofForeignDirectInvestment(FDI),morethan any other city in Australia and comprising a staggering44%oftotalFDIintoAustraliaof$US36.68billion;

•2011 there is a further $50 billion committed to projects which have now commenced construction;

•MatusikreportsthatthereiscurrentlyAUD$88 billion in projects that are either under construction,haveEnvironmentalImpactStudy(EIS)approvalorareproposed/pending.Seethe enclosed summary of these infrastructure projects.

•Suchmajorinfrastructuredevelopmentsareimportant employment generators that promote demand for residential property. For example in 2003, the Queensland branch of the Urban Development Institute of Australia commissioned a study which found that for every $1 million spent on new infrastructure, nine full time jobs werecreated(fiveofwhicharedirectlyinthedevelopment industry and four generated from flowoneffects)acrosstheregioninwhichthese new projects were being housed.

•It is estimated that there are up to 18,000

construction jobs being created in Gladstone from the projects that have started construction this year. In addition to this further jobs will be created as a result of social infrastructure expansion such as hospitals, police, schools, recreation facilities, child care, aged care etc.

•It is estimated that there will be circa 5,500 operational jobs created once the infrastructure work has been completed.

•Gladstone makes a significant contribution to the QueenslandandAustralianeconomy.In2009–2010 30% of Queensland’s exports by tonnage carried by sea were traded through Gladstone.

•Gladstone region has a high resident income profile compared to Queensland with around 26% of individuals in the Gladstone region having a weekly income in excess of $1,000 compared to only 18.5% for Queensland.

•ThemajorityofGladstonehouseholds(47%)earnover$1,200perweekcomparedto39%ofall Queensland households.

•The median house price across the Gladstone region has averaged 10% growth per annum overthelast10years&11%growthperannumover the last 5 years.

Figure1:GrossRegionalProduct byIndustryintheGladstoneRegion,2010.

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lng indusTry develoPMenTs under ConsTruCTion/develoPMenT

•QueenslandCurtisLNG(BGGroup/QGC)-Capital AUD $15 billion.

•GladstoneLNG(Santos/Petronas/Total/Kogas)- Capital AUD $16 billion.

•ArrowEnergyLNGPlant–CapitalCostofAUD$15 billion and annual operating costs of AUD $750 million.

•AustraliaPacificLNG(Origin/ConocoPhillips)–FID pending - Capital AUD $13 billion

•LNG Limited - Capital AUD $1 billion

queensland CurTis lng •BritishGas(QGCLNG)US$15billion(developmentprogram,includinga540kmpipeline network to deliver gas to Gladstone andconstructionofworldscaleLNGplant).The QCLNG Project will consist of project infrastructure to be developed by QGC comprising the following major components (ProjectComponents):

•AsignificantCSGfielddevelopmentand supporting infrastructure in the SuratBasinofsouthernQueensland(GasFieldComponent)includingmanagement of associated water produced

•A network of underground pipelines, including gas and water collection pipelines in the Gas Field Component and a 380 km underground gas transmissionpipeline(ExportPipeline)from the Gas Field to a LNG Facility (PipelineComponent)

•A gas liquefaction facility on Curtis

Island, adjacent to Gladstone, initially comprising two processing units, or “trains”, to be followed by a third train. This component also includes an export jetty and other supporting infrastructure (LNGComponent)

•LNG shipping operations to load the LNG and ship cargos to global export markets (ShippingOperations).

•An additional component, a new shipping channel from the existing channels in the Port of Gladstone and a swing basin at the export jetty, will need to be developed to provide access for the shipping operations. The dredging works required for this Component may be part of a larger shipping channel development program being proposed by Gladstone Ports Corporation (GPC).

gladsTone lng (sanTos/PeTronas/ToTal/Kogas) - CaPiTal aud $16 billion

GLNGisajointventurebetweenSantos,Australia’s largest domestic gas producer, PETRONAS,Malaysia’snationaloilandgascompany and the world’s second largest LNG exporter, French energy major, Total, the world’s fifth largest publicly traded integrated international oilandgascompany,andKOGAS,theworld’slargest buyer of LNG.

TheownershipstructureofGLNGis:Santos30%;PETRONAS27.5%;Total27.5%;andKOGAS15%. GLNG Operations is the joint venture entity accountable for sourcing the gas, constructing the 420 km pipeline and LNG plant on Curtis Island, and facilitating the production and off-take of LNG, on behalf of the joint venture partners.

The facility will be located at the Hamilton Point West site adjacent to China Bay on Curtis Island. The proposed site was selected based on a number of criteria including shipping access, geotechnical suitability, environmental suitability and proximity to infrastructure.

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The lng faCiliTy will ConsisT of The following Key eleMenTs: •A liquefaction facility that includes on-shore gas

liquefaction and storage facilities.

•Marinefacilitieswhichincludeaproductloadingfacility(PLF)forloadingLNGintoshipsforexport,andamaterialsoffloadingfacility(MOF)and haul road for the delivery of equipment, plant and materials to the LNG facility site.

Illustration 15: Image of the GLNG Curtis Island Facility as Proposed.

Illustration14: QGCLimitedQueensland CurtisIslandLNGProject

•A swing basin and an access channel from the existing Targinie Channel in Port Curtis. >> A dredged material placement facility.

•A maximum 2,000-person capacity accommodation facility on Curtis Island for construction workers.

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arrow lng PlanT ProjeCT on CurTis island

(formerlyknownastheShellAustraliaLNGProject)willbesuppliedwithcoalseamgasfromArrow’sreserveslocatedintheSuratBasininsoutheast Queensland and the Bowen Basin in central Queensland.

The key features of the project are:

•LNG facility on Curtis Island - a staged development producing up to 18 million tonnes per annum of LNG

•Anapproximately9kmlongfeedgaspipelinefrom near the Gladstone City Gate traversing Port Curtis in a tunnel

•MarinelogisticsfacilitiesonCurtisIslandandthe mainland

•Construction of jetties, offloading facilities and LNG Carrier Terminal on Curtis Island in the

vicinity of North China Bay, Hamilton Point and behind Boatshed Point

•Dredging of the seabed in Port Curtis and the riverbed at the mouth of the Calliope River to provide access to marine facilities on Curtis Island and the mainland

The project is also supported by a dredging program off Port Curtis being managed by the Gladstone Ports Corporation to extend shipping lanes to berth pockets and develop swings basins for LNG carriers to load and manoeuvre. The Western Basin Dredging Project by the Port is subjecttoaseparateEISapproval.

The liquefaction facility will produce up to 18 milliontonnesperannum(Mtpa)ofLNG,andincludes the phased construction of up to four trains or processing plants on its Curtis Island site.Stage1includestheconstructionoftwotrainsofaround4MtpaofLNGeachonthe Arrow site behind Boatshed Point.

Illustration17:ArtistsimpressionoftheviewfromAucklandPoint,Gladstone,ofthevariousLNGProjects.

Illustration16:TheArrowLNGProjectproposedlayoutfromtheArrowEnergyEIS.

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ausTralia PaCifiC lng (origin/ConoCoPhilliPs)

Australia Pacific LNG is the leading producer of coalseamgas(CSG)inAustraliaandholdsthecountry’slargestCSGreservesposition.AustraliaPacific LNG is proposing to develop a multi-billion dollar,world-classCSGtoLNGexportprojectinQueensland.

Origin and ConocoPhillips are 50:50 joint venture partnersinAustraliaPacificLNG.Sinopechasagreed to subscribe for a 15% equity interest in Australia Pacific LNG. On completion of the transaction, Origin and ConocoPhillips’ ownership interest will be reduced to 42.5% respectively.

The Australia Pacific LNG project consists of:

•The further development of Australia Pacific LNG’sgasfieldsintheSuratandBowenbasinsin south western and central Queensland

•A gas pipeline from the gas fields to an LNG facility in Gladstone in Queensland

•An LNG facility on Curtis Island in Gladstone, the

first two trains of which will have a processing capacityofupto9milliontonnesperannum.

BasedonAustralia’slargest2PCSGreserves,the Australia Pacific LNG project will become a supplier of low emissions fuel to growing international energy markets as well as continuing to contribute cleaner energy through its domestic production, equivalent to more than 40 per cent of Queensland’s current gas requirements.

Total capital expenditure for a two-train project isestimatedtobeUS$20billion,includingapproximatelyUS$2.5billioncontingency,and covers the period from FID until the commencement of gas deliveries from Train 2 expected in early 2016.

First LNG exports are planned to commence in 2015,underpinnedbyanagreementwithSinopecfor the purchase of 4.3 million tonnes per annum of LNG for 20 years. Australia Pacific LNG is in advanced discussions with potential customers regarding further off-take arrangements for the second LNG train.

Illustration18:TheAustraliaPacificLNGprojectLNGfacilityonCurtisIslandinGladstone,thefirsttwotrainsofwhichwillhaveaprocessingcapacityofupto 9milliontonnesperannum.

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lng liMiTed - CaPiTal aud $1 billion

LNG Limited’s Gladstone LNG Project at Fisherman’s Landing, Port of Gladstone. MajorShareholders:

•ChinaNationalPetroleumCorporation(CNPC)ownHQCEC(19.90%).CNPCareChina’slargestoil(54%share)andgas(82%share)producerand supplier

•CopulosGroup(10.18%)

•DartEnergyLimited(6.01%)

•PWBridgwood(4.99%)

•FMBrand(4.80%)LNG Limited so far has completed the following milestones:

•Siteareacanpotentiallyaccommodate4LNGtrainsatguaranteed6Mtpa.

•Environmentapproval(2x1.5MtpaLNGtrains:OSMR®andmembranetank).

•Stage1dredginganddisposalapprovalreceived

•FEEDcompletedbyLNGL/SKEC/LORanddetaildesign commenced.

•MostefficientLNGprocessby30%(~6.5%offeedgasusedforfuel).

•Lowest capital cost LNG project in Gladstone (~US$300/tpafor2LNGtrains).

•Fastestprojectscheduleof~30months(usually40+months).

•Constructionstarted(AUD$50millionspent;5monthsofEPCprogramcompleted).

•PotentialLNGendbuyer(withterminals)andfinancing capabilities.

•Gas spur pipeline approval application lodged.

Illustration19:LNGLimitedGladstoneProject“Fisherman’sLanding”ProposedDesign&Layout

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LNG Limited is now securing its gas supply:

•18,000 PJ* risked forecast 2P reserves uncommitted in Queensland

•Key focus on coal seam gas companies for gas supplyof~4,500PJfor3Mtpa

•Gas supply plan now focused on six suppliers, includingMetgasco

•Gladstone LNG project a potential option for ramp-up gas supply from the planned larger scale LNG projects on Curtis Island, Port of Gladstone

•Gas supply plan is supported by strategic partner CNPC HQCEC

•GassupplyinletpointforallLNGprojects~21km from Fisherman’s Landing.

Illustration 20: LNG Limited schematic illustrating itsproposedSpurLineandtheinfrastructureofthe other LNG Plants

CurTis island village and siTe faCiliTies

Leighton Contractors has been awarded a contract by Bechtel to construct the $84 million Australian Pacific LNG 2600-bed temporary workers accommodation village on Curtis Island, at Gladstone.

•The Curtis Island village and site facilities project will provide much-needed infrastructure to house project teams during the construction ofliquefiednaturalgas(LNG)infrastructure.

•Leighton Contractors’ project team has commenced mobilisation to start construction on the greenfield site which will house a fully-equipped accommodation village as well as landscaping and leisure facilities. Leighton Contractors will also construct roads, services and other infrastructure to support the facility.

•The project is due for completion in 2013.

Illustration20:LNGLimitedschematicillustratingitsproposedSpurLineandtheinfrastructureoftheotherLNGPlants

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Minerals ProjeCTs under ConsTruCTion/develoPMenT

rio TinTo alCan — yarwun aluMina refinery•Stage2ofAluminaProductionFacilityatGSDAYarwunPrecinctwiththeinclusionofagas-fire cogeneration facility worth AUD $2.1 billion. Yarwun2keyfeaturesinclude:

•Yarwunaluminarefineryexpansionwilladd2.0Mtpaofcapacitytotheexistingrefinery

•Totalcapacitywillincreaseto3.4Mtpa

•Gas-fired cogeneration facility guarantees low cost “green” energy

•TechnologyusedisareplicationofYarwun1with additional design improvements leveraging operational experience.

Illustration21:RioTintoAlcanBauxite&AluminaYarwun2plantlayout:note;Yarwunexpansionshowninyellow

Illustration22:BoyneSmeltersAluminiumproductionprocess.

boyne sMelTers lTd•Constructionofanewbakingfurnace(CBF4)

and upgrade of Reduction Lines crane runway, which includes replacement of overhead cranes AUD$685million.RioTintoAlcan(RTA)isthelargestshareholderintheBoyneSmeltersLimited(BSL)jointventure.

•BSLhasbeeninoperationsince1982andovertime has undergone extensive expansion. The smelter underwent a AUD $1 billion expansion in1997introducingathirdreductionlinewhichincreased aluminium production from 260,000 to more than 558,000 tonnes per annum.

•The company is undergoing significant modernisation with the re-building of Carbon Baking Furnace 3 and the construction of a new Carbon Baking Furnace 4 to upgrade technology. The new furnace will be more energyefficientandreduceonsitegreenhousegas emissions. A further project includes overhead crane replacement, a crane runway upgrade and an improved alumina transport system to the cells. These projects will modernise and extend the life of Boyne SmeltersLimitedandatinvestmentofAUD$685 million.

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Major energy ProjeCTs - gladsTone

PowerlinK •Infrastructure upgrades and new large network

assets proposal which includes:

•CalvaletoStanwell275kVtransmissionline–constructionofatransmissionlinebetween Powerlink’s existing Calvale andStanwellsubstations.Thislinewillreinforce electricity supply in the Central and North Queensland regions, including Gladstone, and cater for growth in resource, industrial and residential electricity use.

•CalliopeRiverSubstation–replacementoftheexistingGladstoneSubstationwith a new substation located on Black Harry Island.

•QRRaglanSubstation–constructionofanew275/50kVsubstationatRaglanto help increase the capacity of the electrified CoalRail network between Blackwater and Gladstone.

•QR Wycarbah, Duaringa and Bluff –constructionofthreenew132kVtransmission lines in the localities of Wycarbah, Duaringa and Bluff which will facilitate an increase in the haulage capacity on the CoalRail network. Timing of work is expected to be around 2011 to 2013 depending on other development in Gladstone area

oTher Major ProjeCTs ProPosed or sTarTing

wiggins island Coal exPorT TerMinal (wiCeT) - CaPiTal aud $2.5 billion.

Wiggins Island Coal Export Terminal Pty Ltd (WICET)isownedandbeingdevelopedbyexistingand potential coal exporters located in Queensland to provide increased long term export coal capacity.

The Terminal will be located at Golding Point, to the west of the existing RG Tanna and Barney

Illustration23: WigginsIslandCoalExportTerminalConstructionSite

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Point Terminals.

Once fully commissioned, the multi-billion dollar industry-owned and privately funded Terminal will provideover80milliontonnesperannum(Mtpa)in additional export coal capacity through the Port of Gladstone.

•The first stage of Gladstone’s Wiggins Island Coal Export Terminal will handle 27 million tonnes a year.

•Stage1ofnewcoalterminaltoreceivethermaland coking coals from mines in the Bowen Basin andSuratBasin.

TheWICETconsortiumincludeseightStageOneowners:

•Aquila Resources

•Bandanna Energy

•Caledon Resources

•Cockatoo Coal

•Northern Energy Corporation

•Wesfarmers Curragh

•Yancoal

•XstrataCoal

Currently under construction, WICET has the combined support of the Queensland Government, Gladstone Ports Corporation and other infrastructure providers to deliver the Project using an industry-owned and privately funded structure. The first coal shipments through the initial development of the new Terminal are planned from 2014.

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Moura linK - aldoga rail ProjeCT - ProjeCT CaPiTal aud $500 Million

TheproposedMouraLink-AldogaRailProjectincludes the construction and operation of track and facilities to support electrified and non-electrified haul trains. It is intended that the haul trains will access the proposed new terminal at Wiggins Island both from the north and from the west, on a rail network shared also by trains accessingtheGladstoneStateDevelopmentArea(GSDA)andotherfacilitiesinthevicinityofthePort of Gladstone.

QRaimstoupgradetheMouraandBlackwatersystems to accommodate the growth from coal and general freight to suit industry demand. The ultimate capacity will be refined during the Preliminary Engineering and Environmental ImpactStatement(EIS)phase.Theproposalistoconstruct:

•AnewraillinetocarryMoura/SurattrafficarrivingviatheMouraShortLine(MSL)inthe

southtotheNorthCoastLine(NCL)southeastofMountLarcom,andquadruplicationoftheNCL from the new yard to just east of the townshipofYarwun;and

•A rolling stock maintenance yard and provisioning facilities at Aldoga in the north of theGSDA.

The new corridor passes through rural areas to the west of the Bruce Highway, outside the GSDA.EastoftheBruceHighwaymostoftherailworksarecontainedwithintheGSDA.Fromthenorthernendofthisnewlink,Moura/SurattrafficwillfollowthesamepathasBlackwatertrafficalong an enlarged NCL corridor to the WICT loop, thus avoiding the greater Gladstone urban area. This effective bypass of the Gladstone urban area is a key strategic benefit of the proposal.

It is a direct response to the community’s clearly-statedpreference(asexpressedinsubmissionstotheWICTEIS)thatthecitynotbeexposedtofurther increases in rail haulage of coal through Gladstone.

Illustration24:TheMouraLink–AldogaRailProjectasproposed.

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gladsTone sTeel PlanT ProjeCT (gsPP, boulder sTeel) - CaPiTal aud $2.7 billion

Boulder is proposing to construct and operate an integrated steel plant at a site in the Aldoga PrecinctoftheGladstoneStateDevelopmentArea, which will be a modern, state-of-the-art facility for the production of high quality semi finished steel slabs and billets.

The eventual production capacity of the plant will be5milliontonnesperannum(Mtpa)ofsemi-finished products, with an initial stage of 2.5 MtpatosupplytheexportmarketsinAsiaandtheMiddleEast.

•Located in the Aldoga Precinct of the Gladstone StateDevelopmentArea(GSDA)

To be developed in 2 stages:

•Stage1–2.5Mtpa

•Stage2–5Mtpa(Stage1operationscommence)

Blast furnace technology

•Product: high quality semi-finished steel products(slabsandbillets)

•Predominately for export to Asian markets

•Majorplantcomponents:

•Non-recovery coke ovens

•Sinterplant

•Blast furnace

•Basic oxygen furnace

•SlabandbilletcasterTheGSPPincludesancillaryinfrastructurerequired to transport raw material to the plant and products from the plant to the export facility (Fisherman’sLanding)

•Privatehaulroad(PHR)–17kmfromGSPPsiteto Fisherman’s Landing:

•IMPORT:ironore(WesternAustralia),anthracite(NewZealand/Vietnam)andcontainergoods(nationalandinternational)

•EXPORT:product(Asia)andwaste(largelyslagtocementandconstructionindustries)

•Railloopandconveyor–coaltobetransportedfromBowen/SuratBasinviatheNorthCoastLine(NCL),whereitwillbetransferredvia overland conveyors to stockyards on the GSPPsite.LimestonewillbetransportedoncompletionoftheMouraLinkline.

•Three shipping berths and product / raw material stockyard at Fisherman’s Landing (northernreclamationarea)–Berths6,7and8

Illustration25:BoulderSteelPlantLocationandInfrastructureLocationandLayout.

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Illustration26: MapshowingthePortAlmalocalitynorthofGladstone.

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balaClava island Coal TerMinal (PorT alMa) - CaPiTal aud $1.5 billion

XstrataCoalQueensland(XCQ)proposestoestablish a new coal terminal at Balaclava Island, near Port Alma, approximately 40 kilometres north of Gladstone including:

•a new rail line and conveyor transport system

•stockyard area

•support infrastructure

•ship loading system.

The project would allow access for vessels up to 90,000tonnesandenableuptoanadditional30million tonnes of coal per annum to be exported to Asian markets. Development of Port Alma as a coal terminal would also alleviate demand on existing coal terminals located at Gladstone, Dalrymple and Abbot Point.

•35 million tonnes per annum of coal to be exportedtoglobalmarketsfromtheSuratandBowen Basins.

The proposed project consists of four main

components:

•Construction of a rail spur from the existing North Coast Line near Raglan to a new stockpile area

•Construction of a 10 kilometre overland conveyor from the stockpile to the proposed jetty

•Construction of a new coal export terminal to be located on Balaclava Island

•Development of infrastructure associated with the new port, including water, sewerage, power and telecommunications.

•Planned construction period between 2012 and 2014, approximately 800 jobs are anticipated to be created.

•Significantdredgingislikelytobeinvolved,forboththeXstrataandanyprojectsthatbuildonthe new infrastructure.

•New Port Developments are then likely to follow at both Port Alma and Balaclava Island.

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infrasTruCTure for The PorT of gladsTone

wesTern basin dredging and disPosal ProjeCT - CaPiTal CosT aud $1.3 billion.

The Queensland Department of Infrastructure andPlanning(DIP)andtheCoordinatorGeneral(CG)havepreparedtheDraftPortofGladstoneWesternBasinMasterPlan(MasterPlan)(CoordinatorGeneral,2009).TheMasterPlansets the direction for the Port of Gladstone, in particular the development of its Western Basin, for the next 30 years.

TheMasterPlanaimstoprovidecertaintytoindustry that the area will be developed, and this development will be in a coordinated manner for

mutual benefit and a net reduction in potential cumulative environmental impacts. There are currently two key projects being developed byGPCtoassistinmeetingtheMasterPlan’sstrategic objective of developing the inner harbour:

•Fisherman’s Landing Northern Expansion Project(undergoingaseparateEIS);and

•Port of Gladstone Western Basin Dredging and DisposalProject(thisProject).

The Port of Gladstone Western Basin Dredging andDisposalProject(theProject)isplannedtoaccommodate the progressive development of the Port.

•CapitalandMaintenancedredgingassociatedwith deepening and widening of existing channels and swing basins and creation of new channels, swing basins and berth pockets. In particular to service the emerging LNG industry.

Illustration27: Map showing the plans for the dredging and upgradeoftheGladstonePortWesternBasin.

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oTher ProjeCTs under ConsTruCTion

queensland energy resourCes liMiTed (qer)

SummaryoftheProject:

•ProjectOutline: Oilshaletechnologydevelopmentfacility

•EstimatedCAPEX: AUD$100millionTechnologyDemonstrationPlant

•EstimatedProduction: 35-40Barrelsofsyntheticcrudeoiladay.

•CurrentStatus: Constructioncompleteoperationscommencing.

QER has an oil shale mine, and associated facilities at its New Fuels Development Centre, locatedatYarwun,approximately15kmnorthofGladstone. QER acquired these assets in 2004 and later decommissioned the ATP processing plant that was operating at the site. The plant has now been demolished and QER is constructing a small-scale demonstration plant at thesitetodemonstratetheParahoIITMverticalkiln technology for processing oil shale.

The plant is a key component of QER’s strategic development of its resource assets and is the

second engineering scale-up step in QER’s plans for a commercial-scale, oil shale processing industry.

This will build on the company’s five years of experience gained while operating a smaller scale pilot plant in Colorado.

QER is continuing background evaluations of its other oil shale resources to ascertain the development feasibility of these resources.

Major fuTure oPPorTuniTies – gladsTone•CoalSeamGas,NaturalGasandShaleOil

•Gladstone as a Gas, Petroleum and Energy Hub

•Clean Fuels of the Future

•LiquefiedNaturalGas–predominatelyexport

•EnergyGeneration–1500MWgasfiredpowerstation

•IndustrialProcessing–methanol,ammonia,hydrogen

•Feedstock–fertilisers,biofuelsandotherprocesses

•Transportation–gas,hydrogenandelectricpowered vehicles

•Innovation and Research Centre for Gas, Oil and Petroleum

Illustration28:Gladstone’sLargeScaleIndustry–Established and Proposed

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AustralianMiningIndustryindusTry iMPorTanCeThe ausTralian Mining indusTry oCCuPies an iMPorTanT PlaCe in The ausTralian eConoMy.

MininginAustraliaisexpectedtogeneraterevenue of about $205 billion in 2011-12, up from $138.8 billion in 2006-07, yielding annualised growth of 8.1%. Revenue is expected to grow by 7.2% in 2011-12, having already expanded by 20.7% in the previous year as the division rebounded from the global financial crisis.

Miningisexpectedtogenerateabout8.0%ofAustralia’s GDP in 2011-12. Its 1,320 firms employ 243,152people,payingabout$32.9billioninwages in 2011-12. The industry’s net profit is expectedtobe$59.03billioninthecurrentyear.Miningisheavilyexportoriented,withabout$153.1billion(or74.7%byvalue)ofindustryoutput exported with only minimal processing.

indusTry revenue growTh

Rising production volumes worldwide for a range of mineral commodities are expected to cause price growth to slow over the next few years, although the overall trend will remain upward. Higher prices, combined with strongly rising output from Australia, is expected to support annualised growth in mining revenue of about 9.1%overthefiveyearsthroughto2016-17.Bythat time, industry revenue is expected to be $317.5 billion. Industry profit is expected to grow a little more strongly than revenue, as firms reap productivity gains from growing economies of scale.

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Figure2:AustralianIndustryKeyStatisticsSnapshot(IBISWorld,2012).

Figure4:KeyPlayersintheAustralianMiningIndustry,PercentageShare,2012.

Figure3:DistributionofMiningRevenuesbyState(percentageoftotal)-showingthedominanceofWAandQLD(IBISWorld,2012).

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deMand faCTors

ArangeoffactorsinfluencethedemandforAustralia’s minerals. The pace of industrialisation and growth in Australia’s major trading partners, especially the countries of the Asia Pacific region, plays a key role in driving the demand for minerals. The rising energy intensity of rapidly growing economies such as China is increasing the demand for Australia’s energy resources. This not only relates to coal and gas, but also to metal products(suchasaluminaandaluminium)thathave a high-energy component.

Proximity to markets is also important. Australia is a low cost producer of most minerals and is geographically well positioned to export into Asia.

Demandisalsoinfluencedbyprice.Intheveryshort run, demand for many minerals in not price sensitive, due to contractual arrangements (withbothmineralproducersanddownstreamusersofrefinedmineralproducts)andfixedproduction processes. Over a longer period, these influencesondemandarelessrigid;contractsare renegotiated and mineral processing plants are updated. Typically, demand eases as prices increase.

Movementsinexchangerateshaveadirecteffecton the revenue gained by Australian mineral producers for their exports, since the prices of mostmineralcommoditiesaresetinUSdollars.Rapid, ongoing industrialisation in China has helped to underpin strong growth in demand for a range of Australia’s mineral exports, most notably iron ore. However, this source of demand growth is being hit hard by the global financial crisis and the resulting weakened demand for Chinese exports from the rest of the world.

indusTry ouTlooK

The major factor affecting the performance of theMiningindustrywillcontinuetobethepaceof world economic growth, the competitiveness of Australian producers and the value of the Australian dollar. The demand for a range of metal and energy products is heavily dependent on trendsinworldeconomicgrowth.Slowergrowthultimately reduces the rate at which the demand for minerals expands and holds down mineral prices.

MostofthemineralsthatAustralianproducersexport to markets in the Asia-Pacific region find theirwayintomanufacturedgoods(metalsandarangeofotherproducts)destinedforothermarkets, including the developed economies of theEuropeanUnion,JapanandtheUnitedStates.As a result, performance is not only sensitive to economic growth in local markets, but also to world economic growth.

In markets such as we see currently, the most efficientproducersreapthegreatestgainsduringperiods of high prices and high demand, and are best placed to weather periods of low prices and weak demand. The supply of most minerals is relatively price elastic, which means that relatively small rises in price tend to result in proportionally larger increases in supply.

MostAustralianminingcompaniesoperatelowdown on the cost curve, indicating that they are both globally competitive and well placed to prosper in such a market.

Figure5:AustralianMiningIndustryProductsandservicessegmentation(2011-12;IBISWorld);PercentageofIndustryTotalRevenueofAUD $205billion.

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The australian mining industry and its associated energy projects are the key drivers of the fortunes of the biloela – gladstone regions growth prospects.

indusTry highlighTs 2011

AttheendofApril2011,therewere94projectsatan advanced stage of development, with a record capital expenditure of $173.5 billion. The record value of advanced minerals and energy projects reflects,inpart,thedecisiontoproceedwiththe development of the Gladstone LNG project andBHPBilliton,FortescueMetalsandRioTinto’s commitment to several coal and iron ore developments over the next three years.

In2010–11,explorationexpenditureinAustralia’s

minerals and energy sector is estimated to be $5.9billion,broadlysimilartoexpenditurein2009–10.Investmentinmineralexplorationremains strong, with Australia expected to record its third highest annual mineral exploration expenditurein2010–11.New capital expenditure in the mining industry is estimatedtobe$55.5billionin2010–11,53percenthigherthanin2009–10.

Based on industry intentions from the December quarter2010,AustralianBureauofStatistics(ABS)surveydataindicatecapitalexpenditureintheminingsectorin2011–12maybearound$73.7 billion. The significant increase in capital expenditurereflectsthestartofconstructionofseveral large projects, including in the petroleum, iron ore and coal sectors.

In the six months to April 2011, 10 projects with a combined capital cost of $2.8 billion were completed in Australia.

Figure6:CompletedMineralsandEnergyProjectstoApril2011,andAverageCapitalCosts(2010-11AUD$).

Australian Mineralsand Energy Projects

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advanCed ProjeCTs

Projects in this category are either ‘committed’ or ‘underconstruction’.Ofthe94projects,33areeither newly committed or entered the list at an advanced stage during the previous six months.

Thetotalcapitalexpenditureofthe94advancedprojects at the end of April 2011 is a record $173.5 billion, an increase of 31 per cent from October 2010.

Thesignificantincreaselargelyreflectsthefinalinvestment decision on the Gladstone LNG project (Santos,Petronas,TotalandKogas),whichhasacapitalcostofUS$16billion.

In addition, there were a number of projects advancedbyBHPBilliton,FortescueMetalsGroupand Rio Tinto, including metallurgical coal mining and infrastructure projects in Queensland, thermal coalprojectsinNewSouthWalesandironoremining and infrastructure projects in Western Australia,withatotalcapitalexpenditureofUS$21.7 billion.

for a full lisTing of ProjeCTs – see aPPendix one.

Table1:AdvancedProjectsinAustraliaasatApril2011-28%ofthetotalareinQLDbyvaluebutthevalueiswayaheadofmoststatescombinedexceptforWA.

Illustration29:GrowthinValueofAdvancedMineralsandEnergyProjectsinAustralia-2010-11AUD$billions.

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Illustration30:AdvancedMineralsandEnergyProjectsApril2011showingtheimportanceofQLD&WA.

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less advanCed ProjeCTs

Projects considered to be less advanced are eitherundergoingfeasibility(insomecases,pre-feasibility)study,orhavenotyetbeensubjecttoafinal investment decision since the completion of a feasibility study.

Someprojectsmayfacechangesineconomicor regulatory conditions, or may be targeting the same emerging market opportunities, necessitating rescheduling. In addition, securing finance for project development, even for high-quality projects with a high probability of success, is not guaranteed.Despite the inherent uncertainty in projects at these earlier stages of consideration, the

significant number of large-scale projects at less advanced planning stages under consideration for development is expected to provide a firm platform for future growth in Australian minerals and energy production over the medium term and beyond.

Ofthe399projectsontheApril2011ABARESlist,76percent(305projects)remainuncommitted.Table 4 contains a summary of the numbers and commodity distribution of the 305 uncommitted projects, together with their potential capital expenditure.

Table2:LessAdvancedMineralsandEnergyProjectsbyState-April2011.

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Appendix One:•ABARES’listofmajorminerals and energy projects(April2011) - Queensland

Note: Projects that are under construction or committed are shown in the blue shaded areas. Less advanced projects are shown in the yellow shaded areas.

Source: http://adl.brs.gov.au/data/warehouse/pe_abares99010544/MEprojectsApril2011_LISTING.xlsNOTE:

•a Includes projects expected to commence production over the medium term and for which capital expenditure is expectedtoexceed$40million(exceptforgoldprojects,forwhichtheexpenditurethresholdis$15million).

•b Principal operating companies.

•cTypeofprojectandstageofdevelopment–categoriesoftheformerinclude:‘newproject’and‘expansion’;categories of the latter include: ‘feasibility study under way’, ‘feasibility study completed’, ‘committed’ and ‘under construction’.

• Annual incremental capacity expected in terms of containedmetalorproduct;forexample,zinccontentin zinc concentrates production or salable coal in coal produced.Foroilandcondensatekbd(‘000barrelsaday)andgas(terajoulesaday)andliquidpetroleumgasLPG(Mt).

•e Total capital expenditure as reported by the company in current dollars. Includes cost of development, plant and equipment.

•f Reported employment. Where possible, project employment has been shown at both the construction phase(shownas‘C’againsttheemploymentnumbersbelow)andintheoperationalphase(shownas‘O’).naNotavailable.

Page 46: Biloela Regional Economic Development

46

Proj

eCT

CoM

Pany

blo

CaTi

onsT

aTus

Cex

PeCT

ed s

TarT

-uP

new

CaP

aCiT

yCa

PiTa

l ex

Pend

. e

blaC

K Co

al ―

Min

ing

Proj

eCTs

― ql

d

1.Broadm

eadow(m

ine

lifeextension)

BHPBillitonMitsubishi

Alliance(BMA)

30kmNofM

oranbah

Expa

nsio

n, c

omm

itted

2013

0.4Mtcoking

US$9

00m(A

$928

m)

2. B

urto

nPe

abod

y En

ergy

150km

SWofM

ackay

Expa

nsio

n, u

nder

con

-st

ruct

ion

2012

2-3Mth

ardcoking

na

3.CurraghMine

Wes

farm

ers

200

km W

of R

ockh

amp-

ton

Expa

nsio

n, u

nder

con

-st

ruct

ion

2011

increaseto

8.5Mt

$286

m

4. D

auni

aBH

PBillitonMitsubishi

Alliance(BMA)

25kmSEofMoranbah

New

pro

ject

, com

mitt

ed20

134.5Mtcoking

US$1.6b(A$1.65b

)excl.

pre

FID

fund

ing

5. E

nsha

m b

ord

and

pilla

r un

derg

roun

d m

ine

Ensh

am R

esou

rces

40 k

m N

E of

Em

eral

dEx

pans

ion,

und

er c

on-

stru

ctio

n20

121.5

-2.5Mttherm

al

$166

m

6. In

tegr

ated

Isaa

c Pl

ains

Pr

ojec

tAq

uilaResources/Vale

180km

SWofM

ackay

Expa

nsio

n, u

nder

con

-st

ruct

ion

mid

201

11.6

Mtcokingandthermal

$86m

7. K

estre

l Ri

o Ti

nto

51 k

m N

E of

Em

eral

dEx

pans

ion,

und

er c

on-

stru

ctio

n20

12-1

31.7

Mtcoking

US$1.1b

(A$1.13

b)

8.LakeVerm

ont

Jellin

bah

Reso

urce

s60

KmSEofMoranbah

Expa

nsio

n, u

nder

con

-st

ruct

ion

2013

4Mt

$200

m

9.Middlem

ount(s

tage1)

MacarthurCoal/

Glou

cest

er C

oal

6km

SWofM

iddlem

ount

New

pro

ject

, und

er c

on-

stru

ctio

n20

121.8

Mtcoking(ROM

)$5

00m(includesstage1

and2)

10. N

ewla

nds

Nort

hern

Un

derg

roun

dXs

trata

130km

WofM

ackay

Expa

nsio

n, u

nder

con

-st

ruct

ion

2011

3Mt

US$150

m(A

$155

m)

11.O

akyCreek(phase1)

Xstra

ta90

kmNEofEmerald

Expa

nsio

n, u

nder

con

-st

ruct

ion

late

201

11M

tcoking

US$9

0m(A

$93m

)

12. A

lpha

Coa

l Pro

ject

(Tad’sCo

rner)

Han

cock

Coa

l120km

SWofC

lerm

ont

Newproject,E

ISund

er

way

2014

30Mttherm

al

$7.5b(in

c.m

ine,porta

nd

rail)

13. B

aral

aba

expa

nsio

nCo

ckat

oo C

oal

150

km W

of G

lads

tone

Expa

nsio

n, p

refe

asib

ility

stud

y un

der w

ay20

143Mto

fPCIand

thermal

$350

m

Page 47: Biloela Regional Economic Development

47

14. B

elve

dere

und

er-

grou

ndAq

uilaResources/Vale

160

km W

of G

lads

tone

New

pro

ject

, pre

feas

ibilit

y st

udy

com

plet

ed20

167Mth

ardcoking

$2.8

b

15. B

yerw

en C

oal P

roje

ctQCo

al/JFE

SteelCor

-po

ratio

n100km

SofC

ollinsville

New

pro

ject

, fea

sibi

lity

stud

y un

der w

ay20

1210Mtcoking

na

16. C

arm

icha

el C

oal

Proj

ect

Adan

i16

0 km

NW

of C

lerm

ont

Newproject,E

ISund

er

way

2014

upto

60Mto

ftherm

al

$6.8

b

17.C

avalRidge(P

eak

Downsexpansion)

BHPBillitonMitsubishi

Alliance(BMA)

20kmSWofM

oranbah

Expa

nsio

n, g

ovt a

ppro

val

unde

r way

2013

5.5Mtcoking

$4b

18. C

hina

Firs

t Coa

l pro

-ject(W

aratahGalilee)

War

atah

Coa

l45

0 km

W o

f Roc

kham

p-to

nNe

w p

roje

ct, a

wai

ting

govt

app

rova

lna

upto

40Mttherm

al$7

.5b

19.C

odrilla

MacarthurCoal/CITIC

62kmSEofMoranbah

Newproject,E

ISund

er

way

2014

3.2MtP

CI

na

20. C

ollin

sville

ope

n cu

tXs

trata

77kmSofC

ollinsville

Expa

nsio

n, p

refe

asib

ility

stud

y un

der w

ay20

136Mt

na

21. C

olto

nNo

rthe

rn E

nerg

yMaryborough

New

pro

ject

, fea

sibi

lity

stud

y un

der w

ay20

120.5Mtcoking

$84m

22. C

urra

gh

Wes

farm

ers

200

km W

of R

ockh

amp-

ton

Expa

nsio

n, fe

asib

ility

stud

y un

der w

ay20

142Mtcoking

na

23.D

awsonSo

uth(stage

2)An

glo

Coal

Aus

tralia

/

Mitsui

15 k

m N

W o

f The

odor

eEx

pansion,EISund

er

way

na5–

7Mttherm

alROM

na

24. D

enha

mPe

abod

y En

ergy

160km

WofM

ackay

New

pro

ject

, fea

sibi

lity

stud

y un

der w

ay20

145-6Mtcoking

na

25. D

rake

Coa

l pro

ject

Drak

e Co

al17kmSofC

ollinsville

Newproject,E

ISund

er

way

2012

6Mt

na

26.E

agleDow

ns(P

eak

Dow

ns E

ast u

nder

-ground

)

AquilaResources/Vale

20kmSEofMoranbah

Newproject,E

ISund

er

way

2014

4.6Mtcoking

$988

m

Proj

eCT

CoM

Pany

blo

CaTi

onsT

aTus

Cex

PeCT

ed s

TarT

-uP

new

CaP

aCiT

yCa

PiTa

l ex

Pend

. e

blaC

K Co

al ―

Min

ing

Proj

eCTs

― ql

d

Page 48: Biloela Regional Economic Development

48

Proj

eCT

CoM

Pany

blo

CaTi

onsT

aTus

Cex

PeCT

ed s

TarT

-uP

new

CaP

aCiT

yCa

PiTa

l ex

Pend

. e

blaC

K Co

al ―

Min

ing

Proj

eCTs

― ql

d

27. E

limat

taNo

rthe

rn E

nerg

y30

km

W o

f Wan

doan

New

pro

ject

, fea

sibi

lity

stud

y un

der w

ay20

14-1

55Mttherm

al$5

80m

28. E

llens

field

coa

l min

e pr

ojec

tNe

boCentra

lCoal/Vale

175km

WofM

ackay

Newproject,E

ISund

er

way

na4.5Mttherm

aland

coking

na

29.E

nshamCentra

llong-

wal

l und

ergr

ound

Ensh

am R

esou

rces

40 k

m N

E of

Em

eral

dEx

pansion,EISund

er

way

na8Mttherm

al$1

.0b

30. F

oxle

igh

Plai

ns

Proj

ect

Angl

o Co

al A

ustra

lia12kmSEofMiddlem

ount

Expansion,EISund

er

way

na1.4

MtP

CIROM

na

31. G

olde

n Tr

iang

le

Com

plex

Band

anna

Ene

rgy

150km

NWofM

oura

Newproject,E

ISund

er

way

2014

4Mtinitially(2

0Mt

ultim

ately)

na

32. G

oony

ella

Riv

ersi

de

Expa

nsio

nBH

PBillitonMitsubishi

Alliance(BMA)

30kmNofM

oranbah

Expa

nsio

n, p

refe

asib

ility

stud

y un

der w

ayna

upto

9Mth

ardcoking

na

33. G

rosv

enor

und

er-

grou

ndAn

glo

Coal

Aus

tralia

8km

NofM

oranbah

New

pro

ject

, fea

sibi

lity

stud

y un

der w

ay20

134.3Mth

ardcoking

US$1.3b

t34.

Hai

l Cre

ek e

xpan

sion

Rio

Tint

o120km

SWofM

ackay

Expa

nsio

n, p

refe

asib

ility

stud

y un

der w

ayna

2.5Mth

ardcoking

na

35. J

ellin

bah

East

Jellin

bah

Reso

urce

s90

kmEofE

merald

Expa

nsio

n, p

refe

asib

ility

stud

y un

der w

ay20

141-2Mtcoking

$50-

100m

36. K

evin

’s Co

rner

Han

cock

Coa

lGa

lilee

Basi

nNe

w p

roje

ct, f

easi

bilit

y st

udy

unde

r way

2014

30Mttherm

al

na

37.M

iddlem

ount(s

tage

2)MacarthurCoal/

Glou

cest

er C

oal

6km

SWofM

iddlem

ount

Expansion,EISund

er

way

2013

3.6MtcokingRO

M$5

00m(includesstage1

and2)

38.M

illenniumexpansion

Peab

ody

Ener

gy22

kmEofM

oranbah

Expansion,EISund

er

way

2014

2-3Mt

na

39.M

inyango

Cale

don

Reso

urce

s15

km

N o

f Coo

kNe

w p

roje

ct, f

easi

bilit

y st

udy

unde

r way

2014

4.5Mttherm

aland

coking

$750

m

Proj

eCT

CoM

Pany

blo

CaTi

onsT

aTus

Cex

PeCT

ed s

TarT

-uP

new

CaP

aCiT

yCa

PiTa

l ex

Pend

. e

blaC

K Co

al ―

Min

ing

Proj

eCTs

― ql

d

Page 49: Biloela Regional Economic Development

49

40.M

ontocoalm

ine

(stage1)

MacarthurCoal/Noble

120km

SofG

ladstone

New

pro

ject

, fea

sibi

lity

stud

y co

mpl

eted

na1.2

Mttherm

al$3

5m

41.M

ontocoalm

ine

(stage2)

MacarthurCoal/Noble

120km

SofG

ladstone

Expa

nsio

n, p

refe

asib

ility

stud

y co

mpl

eted

na10Mt

na

42.M

oranbahSo

uth

proj

ect

Angl

o Co

al A

ustra

lia /

Ex

xaro

4km

SofM

oranbah

New

pro

ject

, pre

feas

ibilit

y st

udy

unde

r way

2014

6.5Mtcoking

US$1b(A$1.03b

)

43. N

ew A

clan

d st

age

3Ne

w H

ope

Coal

150

km W

of B

risba

neEx

pansion,EIScom

pleted

2011

5.2Mttherm

alcoal

na

44.O

akyCreek(phase2)

Xstra

ta90

kmNEofEmerald

Expa

nsio

n, p

refe

asib

ility

stud

y un

der w

ay20

153Mt

na

45. O

live

Dow

ns N

orth

MacarthurCoal/CITIC/

Sojitz/Marubeni

30kmSofC

oppabella

New

pro

ject

, fea

sibi

lity

stud

y un

der w

ay20

141M

tcoking

na

46. O

rion

Dow

nsEn

doco

al60

kmSEofEmerald

New

pro

ject

, pre

feas

ibilit

y st

udy

unde

r way

na2.5Mttherm

al

$65m

47. R

ed H

ill un

derg

roun

dAq

uila

Res

ourc

es45

kmNofM

oranbah

New

pro

ject

, pre

feas

ibilit

y st

udy

unde

r way

2014

2MtP

CIand

thermal

na

48. R

olle

ston

ope

n cu

tXs

trata

275

W o

f Gla

dsto

neEx

pans

ion,

feas

ibilit

y st

udy

unde

r way

2014

6Mttherm

alna

49.S

arum

Xstra

ta20

kmSofC

ollinsville

Newproject,E

ISund

er

way

2014

4Mt

na

50.S

outhGalileeCo

al

Proj

ect

Band

anna

Ene

rgy

150

km N

E of

Bla

ckal

lNe

w p

roje

ct, p

refe

asib

ility

stud

y co

mpl

eted

2015

14Mt

na

51.V

ermontE

ast/Wilunga

MacarthurCoal/CITIC

75 k

m N

E of

Cle

rmon

tNe

w p

roje

ct, p

refe

asib

ility

stud

y co

mpl

eted

2014

4MtR

OM

na

52. W

ando

an o

penc

ut

(phase1)

Xstra

ta/Itochu

/Sum

-is

ho C

oal

60kmNofM

iles

New

pro

ject

, gov

t ap-

prov

al re

ceiv

ed20

1522

Mttherm

alna

Proj

eCT

CoM

Pany

blo

CaTi

onsT

aTus

Cex

PeCT

ed s

TarT

-uP

new

CaP

aCiT

yCa

PiTa

l ex

Pend

. e

blaC

K Co

al ―

Min

ing

Proj

eCTs

― ql

d

Page 50: Biloela Regional Economic Development

50

53. W

ashp

ool c

oal p

roje

ctAq

uila

Res

ourc

es26

0 km

W o

f Roc

kham

p-to

nNe

w p

roje

ct, f

easi

bilit

y st

udy

com

plet

ed20

132.6Mtcoking

$396

m

54. W

ilkie

Cre

ekPe

abod

y En

ergy

40 k

m W

of D

alby

Expansion,EISund

er

way

2013

7.7Mttherm

alna

55.W

inchesterS

outh

Rio

Tint

o40

kmSofM

oranbah

New

pro

ject

, pre

feas

ibilit

y st

udy

unde

r way

na4Mto

fcokingand

ther

mal

na

56. W

onbi

ndi

Cock

atoo

Coa

l18

0 km

W o

f Gla

dsto

neNe

w p

roje

ct, p

refe

asib

ility

stud

y un

der w

ay20

133MtP

CIand

thermal

na

57. W

oori

Cock

atoo

Coa

l19kmSofW

andoan

New

pro

ject

, fea

sibi

lity

stud

y un

der w

ay20

133-4Mttherm

alcoal

na

Proj

eCT

CoM

Pany

blo

CaTi

onsT

aTus

Cex

PeCT

ed s

TarT

-uP

new

CaP

aCiT

yCa

PiTa

l ex

Pend

. e

blaC

K Co

al ―

Min

ing

Proj

eCTs

― ql

d

Proj

eCT

CoM

Pany

blo

CaTi

onsT

aTus

Cex

PeCT

ed s

TarT

-uP

new

CaP

aCiT

yCa

PiTa

l ex

Pend

. e

blaC

K Co

al ―

infr

asTr

uCTu

re P

roje

CTs

― qld

1.Abb

ot P

oint

Coa

l Ter

min

al

X50expansion

Nort

h Qu

eens

land

Bul

k Po

rts

Bow

enEx

pans

ion,

und

er c

onst

ruct

ion

2011

Term

inal

cap

acity

incr

ease

fro

m2

5Mtpato50

Mtpa

$818

m

2.Ab

bot P

oint

Coa

l Ter

min

al

yard

refu

rbis

hmen

tNo

rth

Quee

nsla

nd B

ulk

Port

sBo

wen

Refu

rbis

hmen

t, un

der c

on-

stru

ctio

n20

11na

$68m

3.Blackw

aterSystemPow

er

upgr

ade

QR N

atio

nal

Blac

kwat

erEx

pans

ion,

und

er c

onst

ruct

ion

2012

9Mtpa

$140

m

4.Go

onyellato

AbbotPt(rail)

(X50

)QR

Nat

iona

lNo

rth

Goon

yella

to N

ewla

nds

(70km

)Ex

pans

ion,

und

er c

onst

ruct

ion

early

201

250

Mtpa

$1.1b

5. W

iggi

ns Is

land

Coa

l Ter

mi-

nal(stage3)

Wig

gins

Isla

nd C

oal E

xpor

t Te

rmin

alGl

adst

one

Newproject,E

ISund

erw

ay20

20Te

rmin

al c

apac

ity in

crea

se

from5

0Mtpato70

Mtpa

$1b

Page 51: Biloela Regional Economic Development

51

6. B

lack

wat

er/N

orw

ich

Park

CS

Gproject

Bow

Ene

rgy

Bow

en B

asin

, Qld

Newproject,E

ISund

erw

ay20

15na

na

7. C

amde

n Ga

s Pr

ojec

t sta

ge

2(coalseamgas)

AGL

Camden,NSW

Expa

nsio

n, p

lann

ing

appr

oval

re

ceiv

edna

12 P

J pa

$35m

8. C

amde

n Ga

s Pr

ojec

t sta

ge

3(coalseamgas)

AGL

Camden,NSW

Expa

nsio

n, p

lann

ing

appr

oval

un

der w

ayna

na$1

00m

9.Casinoproject

Metgasco

Casino,N

SWNe

w p

roje

ct, f

easi

bilit

y st

udy

unde

r way

na18

PJ

pana

10.G

loucesterC

oalS

eamgas

proj

ect

AGL

Hun

terV

alley,NS

WNe

w p

roje

ct, f

easi

bilit

y st

udy

unde

r way

2016

15-2

5 PJ

pa

$200

m

11. N

arra

bri c

oal s

eam

gas

pr

ojec

tEa

sternStarGas/Santos

Narrabri,NSW

New

pro

ject

, fea

sibi

lity

stud

y un

der w

ay20

14-1

520

PJpa(initially)

(150

PJpaultimately)

$1.3

b

12.S

uratGasProject

Arro

w E

nerg

ySu

ratB

asin,Q

ldNe

wproject,E

ISund

erw

ay20

16-1

818

0-36

0 PJ

pa

na

13.

Glad

ston

e LN

G pr

ojec

tSa

ntos/Petronas/Total/

Koga

sGl

adst

one,

Qld

New

pro

ject

, com

mitt

ed20

157.8MtL

NG

US$16b

(A$16.5b

)(includ

es

prod

uctio

n w

ells

and

435

km

pipeline)

14. Q

ueen

slan

d Cu

rtis

LNG

pr

ojec

tBG

Gro

upGl

adst

one,

Qld

New

pro

ject

, und

er c

onst

ruc-

tion

2014

8.5MtL

NG(12Mtu

ltimately)

US$15b

(A$15.5b

)(BG

Group’sSh

are)

15. A

rrow

Ene

rgy

LNG

Shell/PetroChina

Glad

ston

e, Q

ldNe

w p

roje

ct, F

EED

stud

ies

unde

r way

2017

8Mto

fLNG

na

16. A

ustra

lia P

acifi

c LN

GAP

LNG(Orig

in/ConocoP

hil-

lips)

Surat/Bo

wenbasins/Glad

-st

one,

Qld

New

pro

ject

, aw

aitin

g FI

D20

159MtL

NG(initially)18Mt

(ultimately)

$35b

(basedon18MtL

NG),

incl

udes

pro

duct

ion

wel

ls,

4 LN

G tra

ins

and

400

km

pipe

line

17. F

ishe

rman

’s La

ndin

g LN

G project(tra

in1)

LNG

Ltd

Glad

ston

e, Q

ldNe

w p

roje

ct, e

nviro

nmen

tal

appr

oval

rece

ived

2013

-14

1.5MtL

NGUS

$805

m($

830m

)

18. F

ishe

rman

’s La

ndin

g LN

G project(tra

in2)

LNG

Ltd

Glad

ston

e, Q

ldEx

pans

ion,

env

ironm

enta

l ap

prov

al re

ceiv

edna

1.5MtL

NGUS

$300

m($

309m

)

Proj

eCT

CoM

Pany

blo

CaTi

onsT

aTus

Cex

PeCT

ed s

TarT

-uP

new

CaP

aCiT

yCa

PiTa

l ex

Pend

. e

blaC

K Co

al ―

infr

asTr

uCTu

re P

roje

CTs

― qld

Page 52: Biloela Regional Economic Development

52

Proj

eCT

CoM

Pany

blo

CaTi

onsT

aTus

Cex

PeCT

ed s

TarT

-uP

new

CaP

aCiT

yCa

PiTa

l ex

Pend

. e

PeTr

oleu

M ―

gas

PiPe

line

Pro

jeCT

s

1. Ro

ma

to B

risba

ne p

ipel

ine

Aust

ralia

n Pi

pelin

e Gr

oup

RomatoBris

bane(4

50km),

Qld

Expa

nsio

n, u

nder

con

stru

ctio

n20

1210

PJ

pa$5

0m

2.SouthW

estQ

ueensland

pipeline(stage2and

3)

Epic

Ene

rgy

Wallumbillato

Ballera(7

55

km),Qld

Expa

nsio

n, u

nder

con

stru

ctio

n20

1277

PJ

pa$8

58m

3. C

entra

l Que

ensl

and

gas

pipe

line

Arro

w E

nerg

y /

AGL

MoranbahtoGladstone(4

40

km),Qld

New

pro

ject

, gov

t app

rova

l re

ceiv

edna

20–5

0PJ

pa

$475

m

4. L

ions

Way

pip

elin

eMetgasco

Casinoto

Ipsw

ich(145

km)

Newproject,E

ISund

erw

ayna

27 P

J pa

$120

m

5. N

ewst

ead

to B

ulla

Par

k pi

pelin

eAu

stra

lian

Pipe

line

Grou

pNe

wstead(Qld)toBu

llapark

(NSW

)Ne

w p

roje

ct, f

easi

bilit

y st

udy

unde

r way

nana

$500

m

6.Queensland–

Hun

terg

as

pipe

line

Hun

ter G

as P

ipel

ine

Wallumbilla(Q

ld)toNe

wcas-

tle(N

SW)(83

0km

)Ne

w p

roje

ct, g

ovt a

ppro

val

rece

ived

2013

85 P

J pa

$900

m

7.SuratBasinto

Gladstone

pipe

line

Arro

w E

nerg

ySu

ratB

asinto

Gladstone

(450

km),Qld

New

pro

ject

, aw

aitin

g go

vt

appr

oval

2016

-17

180-

360

PJ p

a$6

00m

Page 53: Biloela Regional Economic Development

53

Proj

eCT

CoM

Pany

blo

CaTi

onsT

aTus

Cex

PeCT

ed s

TarT

-uP

new

CaP

aCiT

yCa

PiTa

l ex

Pend

. e

uran

iuM

/ b

auxi

Te /

CoP

Per

/ go

ld /

lea

d /

ZinC

/ s

ilve

r /

niCK

el /

Tin

/ a

MM

oniu

M /

oTh

er C

oMM

odiT

ies

1.Valhalla(U

ranium

)Su

mmitRe

sources/Pa

ladin

Reso

urce

s25

kmNofM

tIsa,Q

ldNe

w p

roje

ct, o

n ho

ldna

2.7ktU3O

8initially;4

.1kt

U3O8

ulti

mat

ely

$400

m

2. A

uruk

un b

auxi

te m

ine

(Bauxite)

CHAL

COAu

rukunCa

peYork,Qld

New

pro

ject

, on

hold

na6.5Mtb

auxite(feedfor

prop

osed

CH

ALCO

alu

min

a refin

ery)

na

3.BauxiteHills

(Bauxite)

Cape

Alu

min

a95

kmNofW

eipa,Q

ldNe

w p

roje

ct, p

refe

asib

ility

stud

y co

mpl

eted

2014

2Mtintially,10Mtu

ltimately

$200

-250

m(initally)

4.PisoliteHills

(Bauxite)

Cape

Alu

min

a45

km

N o

f Wei

pa, Q

ldNe

w p

roje

ct, o

n ho

ldna

7Mtb

auxite

$400

-500

m

5.SouthofE

mbleyproject

(Bauxite)

Rio

Tint

o Al

can

45kmSWofW

eipa,Q

ldEx

pansion,EISund

erw

ay20

1422

.5Mtb

auxite

US$1b(A$1.03b

)(includ

es

US$4

00mportu

pgrade)

6. E

rnes

t Hen

ry u

nder

grou

nd

(Copper)

Xstra

tane

ar C

lonc

urry

, Qld

Expa

nsio

n, u

nder

con

stru

c-tio

n20

1350

kt C

u, 7

0 ko

z Au

$589

m

7. C

lonc

urry

Cop

per p

roje

ctEx

co R

esou

rces

near

Clo

ncur

ry, Q

ldNe

w p

roje

ct, f

easi

bilit

y st

udy

/EISun

derw

ay20

1225

ktC

u,19

000

ozAu

$200

m

8. E

inas

leig

h Co

pper

pro

ject

CopperStrike

65kmSEofGeorgetow

n,Qld

Newproject,E

ISund

erw

ayna

15 k

t Cu,

3 5

00 o

z Au

, 500

00

0 oz

Ag

$108

m

9.Rockla

ndsCo

pperproject

CuDe

coNW

of C

lonc

urry

, Qld

New

pro

ject

, aw

aitin

g go

vt

appr

oval

2012

3Mto

reth

roughput

$200

-250

m

10. R

oseb

y Co

pper

pro

ject

(phase1)

AltonaMining

60 k

m N

W o

f Clo

ncur

ry, Q

ldNe

w p

roje

ct, f

easi

bilit

y st

udy

unde

r way

na26

kt C

u, 7

500

oz

Ag$2

13m

11. R

oseb

y Co

pper

pro

ject

(phase2)

AltonaMining

60 k

m N

W o

f Clo

ncur

ry, Q

ldEx

pans

ion,

on

hold

na9-14ktC

u$1

00m

12.A

gateCreek(G

old)

RenisonCo

nsolidatedMines

80kmSofG

eorgetow

n,Qld

New

pro

ject

, fea

sibi

lity

stud

y un

der w

ay20

1310

0 00

0 oz

$60m

13.C

hartersTowers(Gold)

Citig

old

Char

ters

Tow

ers,

Qld

Expa

nsio

n, o

n ho

ldna

280

000o

z$9

5m

Page 54: Biloela Regional Economic Development

54

Proj

eCT

CoM

Pany

blo

CaTi

onsT

aTus

Cex

PeCT

ed s

TarT

-uP

new

CaP

aCiT

yCa

PiTa

l ex

Pend

. e

uran

iuM

/ b

auxi

Te /

CoP

Per

/ go

ld /

lea

d /

ZinC

/ s

ilve

r /

niCK

el /

Tin

/ a

MM

oniu

M /

oTh

er C

oMM

odiT

ies

14.C

hillagoe(M

ungana/Red

Dome)

Mun

ganaGoldMines

16 k

m N

W o

f Chi

llago

e, Q

ldNe

w p

roje

ct, f

easi

bilit

y st

udy

unde

rway

2013

120

000

oz A

u,

20

kt

Cu,1.5MozAg

Na

15.M

ountMorgantailin

gs

project(Go

ld)

Nort

on G

old

Fiel

ds38

kmSWofR

ockham

pton,

Qld

New

pro

ject

, fea

sibi

lity

stud

y co

mpl

eted

, see

king

fina

nce

na35

000

oz

Au, 1

kt C

u, 2

00

ktS

$30-

60m

16.M

tCarlton(SilverHill)

(Gold)

ConquestMining

45 K

m N

W o

f Col

linsv

ille, Q

ldNe

w p

roje

ct, f

easi

bilit

y st

udy

com

plet

e20

1268

000

oz

Au,

1.

7 MozAg,2.4ktC

u$1

27m

17.R

avensw

ood(Sarsfield

openpit)(G

old)

ResoluteMining

65km

E o

f Cha

rter

s To

wer

s, Ql

dEx

pans

ion,

feas

ibilit

y st

udy

unde

r way

nana

$72m

18.B

lackStarO

penCu

tDe

eps(Lead–

zinc–silver)

Xstra

taMtIsa,Q

ldEx

pans

ion,

und

er c

onst

ruc-

tion

late

201

1120ktPb/Zn

$130

m

18.D

ugaldRiver(Lead–zinc–

silver)

MineralsandMetalsGroup

87kmNEofMtIsa,Q

ldNe

wproject,E

ISund

erw

ay20

1420

0ktZn,25ktPb,1

MozAg

US$8

50-950

m(A

$876

m-

$980

m)

20.L

adyLoretta

(Lead–

zinc–

silver)

Xstra

ta140km

NofM

tIsa,Q

ldNe

w p

roje

ct, f

easi

bilit

y st

udy

unde

r way

na140ktPb/Zn

/Ag

$460

m

21. G

lads

tone

Nic

kel p

roje

ct

(stage1)

Glad

ston

e Pa

cific

Nic

kel

Mine20

kmSofM

arborough;

Refin

ery:

Gla

dsto

ne, Q

ldNe

w p

roje

ct, e

nviro

nmen

tal

appr

oval

rece

ived

, on

hold

2015

63 k

t Ni,

6.2

kt C

oUS

$4.6b(A$4

.7b)

22. G

lads

tone

Nic

kel p

roje

ct

(stage2)

Glad

ston

e Pa

cific

Nic

kel

Glad

ston

e, Q

ldEx

pans

ion,

on

hold

2018

57 k

t Ni,

5.8

kt C

oNa

23.L

uckyBreak(N

ickel)

MetallicaMinerals/Metals

Fina

nce

140

km W

of T

owns

ville

, Qld

New

pro

ject

, fea

sibi

lity

stud

y co

mpl

eted

2012

0.66

kt N

i$1

2.4m

24.M

arboroughHeapLeach

project(Nickel)

Glad

ston

e Pa

cific

Nic

kel

20kmSofM

arborough,Qld

New

pro

ject

, pre

feas

ibilit

y st

udy

unde

r way

2013

24 k

t Ni,

1.5 C

oNa

25.N

ornico-stage1(Green

-valedeposit)(N

ickel)

MetallicaMinerals

250

km N

W o

f Tow

nsvi

lle,

Qld

New

pro

ject

, pre

feas

ibilit

y st

udy

unde

r way

2013

2.7

kt N

i, 0.

16 k

t Co

Na

26.M

tGarnet(Tin)

ConsolidatedTinMines

nearMtG

arnet,Qld

New

pro

ject

, sco

ping

stu

dy

com

plet

ed20

125ktSn

$124

m

Page 55: Biloela Regional Economic Development

55

Proj

eCT

CoM

Pany

blo

CaTi

onsT

aTus

Cex

PeCT

ed s

TarT

-uP

new

CaP

aCiT

yCa

PiTa

l ex

Pend

. e

uran

iuM

/ b

auxi

Te /

CoP

Per

/ go

ld /

lea

d /

ZinC

/ s

ilve

r /

niCK

el /

Tin

/ a

MM

oniu

M /

oTh

er C

oMM

odiT

ies

27.M

oranbahAm

monium

Nitra

te P

roje

ctIn

cite

c Pi

vot

Moranbah,Qld

New

pro

ject

, und

er c

onst

ruc-

tion

2012

330

kt a

mm

oniu

m n

itrat

e$9

35m

28.A

nduram

baMolybdenu

mAr

cher

Res

ourc

es15

0 km

W o

f Bris

bane

, Qld

New

pro

ject

, on

hold

na95

0tM

o,0.14

ktC

u$8

6m

29.M

erlinMolybdenu

m-

Rheniumdeposit(Cloncurry

Project)

Ivan

hoe

Aust

ralia

52

kmSofO

sborne,Q

ldNe

w p

roje

ct, p

refe

asib

ility

stud

y un

der w

ayna

5.3ktM

o,7.5tR

eNa

30.M

ountCarbine

Icon

Res

ourc

es12

0 km

NW

of C

airn

s, Ql

dNe

w p

roje

ct, p

refe

asib

ility

stud

y un

der w

ay20

132.

4 kt

tung

sten

con

cent

rate

$50m

31. P

arad

ise

Phos

phat

e pr

ojec

tLe

gend

Inte

rnat

iona

l Hol

ding

s5km

SofM

tIsa,Q

ldNe

w p

roje

ct, f

easi

bilit

y st

udy

com

plet

edStage1:20

13;S

tage2:2

017

600

-120

0 kt

am

mon

ium

ph

osph

ate,

15 k

t AI

F3

US$1.8b(A$1.83b

)

32. W

ater

shed

Tun

gste

n pr

ojec

tVitalM

etals

150

km N

W o

f Cai

rns,

Qld

New

pro

ject

, pre

feas

ibilit

y st

udy

unde

r way

na19500

0mtuofW

O3con

-ce

ntra

tes

na

Proj

eCT

CoM

Pany

blo

CaTi

onsT

aTus

Cex

PeCT

ed s

TarT

-uP

new

CaP

aCiT

yCa

PiTa

l ex

Pend

. e

ener

gy P

roCe

ssin

g fa

Cili

Ties

1.MicroLNG

plant

BOC

Cond

amin

e, Q

ldNe

w p

roje

ct, a

wai

ting

govt

ap

prov

al20

1120

kt L

NG$1

00m

Page 56: Biloela Regional Economic Development

56

Proj

eCT

CoM

Pany

blo

CaTi

onsT

aTus

Cex

PeCT

ed s

TarT

-uP

new

CaP

aCiT

yCa

PiTa

l ex

Pend

. e

Min

eral

s Pr

oCes

sing

faC

iliT

ies

1.Yarw

unaluminarefin

ery

expansion(Alumina)

Rio

Tint

o Al

can

Glad

ston

e, Q

ldEx

pans

ion,

und

er c

on-

stru

ctio

n20

1220

00 k

tUS

$1.9b(A$1.96b

)

2. C

HAL

CO a

lum

ina

refin

ery(linkedto

Aurukun

bauxitem

ine)

CHAL

COBo

wen

, Qld

New

pro

ject

, on

hold

na23

00 k

tNa

3. Q

AL re

finer

y ex

pans

ion

(Alumina)

Rio

Tint

o Al

can

/ Ru

sal

Glad

ston

e, Q

ldEx

pans

ion,

pre

feas

ibilit

y st

udy

com

plet

edna

1000

kt

Na

4.BoyneIsland

Smelters

MajorSustainingProjects

(Aluminium)

Rio

Tint

o Al

can

25kmSofG

ladstone,Q

ldUp

grad

e, u

nder

con

stru

c-tio

n20

12nil(Re

ductionLines1&

2Op

timis

atio

n an

d er

ectio

n ofcarbonbakefu

rnace4)

$685

m

5.GladstoneSteelPlant

Project(stage1)Crude

Iron&Steel)

BoulderS

teel

Glad

ston

e, Q

ldNe

wproject,E

ISund

er

way

2014

5Mtb

illets

$1.4

b

Page 57: Biloela Regional Economic Development

57

appendix Two • Mineral Projects Map qld

Page 58: Biloela Regional Economic Development

58

appendix Three - • Mineral Projects Map Gladstone - Biloela

Page 59: Biloela Regional Economic Development

59

Gladstone Biloela region

Contact us biloela

54CallideStreet(POBox98)

Biloela Queensland 4715P 07 4995 6677F0749921787

8.30am — 5.00pm

brisbaneL7,269WickhamStreet

(POBox310)Brisbane Queensland 4006

P 07 3251 4444F 07 3251 4422

8.30am — 5.00pm

MonTo3NewtonStreet

(POBox69)MontoQueensland4630

P 07 4166 1366F 07 4166 1343

9.00am—3.00pm

[email protected]

www.powers.net.au

REPORTCOMPOSEDBYEARLSTEVENS

[email protected]

Page 60: Biloela Regional Economic Development

60