biloela regional economic development
DESCRIPTION
A report prepared by Powers Financial Group highlighting the immmense volume of investment that is underway or planned for the Gladstone-Biloela region.TRANSCRIPT
1
Gladstone Biloela region
2
Ken O’Dowd MPFederal Member for Flynn
3
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
4
Gladstone Biloela region
5
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
6
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
7
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
www.powers.net.au
REPORTCOMPOSEDBYEARLSTEVENS
8
9
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
10
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.
11
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.
12
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.
13
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.
14
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.
15
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
16
•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.
17
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.
18
19
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
20
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).
21
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.
22
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.
23
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.
24
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.
25
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.
26
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.
27
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
28
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
29
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.
30
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
31
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.
32
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.
33
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.
34
Illustration26: MapshowingthePortAlmalocalitynorthofGladstone.
35
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.
36
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.
37
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
38
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.
39
Figure2:AustralianIndustryKeyStatisticsSnapshot(IBISWorld,2012).
Figure4:KeyPlayersintheAustralianMiningIndustry,PercentageShare,2012.
Figure3:DistributionofMiningRevenuesbyState(percentageoftotal)-showingthedominanceofWAandQLD(IBISWorld,2012).
40
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.
41
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
42
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.
43
Illustration30:AdvancedMineralsandEnergyProjectsApril2011showingtheimportanceofQLD&WA.
44
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.
45
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.
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
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
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
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
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
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
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
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
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
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
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
57
appendix Two • Mineral Projects Map qld
58
appendix Three - • Mineral Projects Map Gladstone - Biloela
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
www.powers.net.au
REPORTCOMPOSEDBYEARLSTEVENS
60