QLD Mining & Energy Bulletin

QLD Mining and Energy Bulletin Winter 2011

QLD Mining and Energy Bulletin

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RECOVERY AT QUEENSLAND’S PORTS Brad Fish F ollowing January’s devastating fl oods, the focus has been on returning to business as usual at the North Queensland coal ports that play a vital role in meeting the worldwide demand for Queensland coal. North Queensland Bulk Ports Corporation (NQBP) manages Hay Point, one of the world’s largest coal export ports, and Abbot Point, Australia’s most northerly coal port. NQBP chief executive offi cer, Brad Fish, said the extreme weather left port infrastructure largely untouched – but the impact on the industry was signifi cant. “The fl oods in late 2010 and early 2001, Cyclone Yasi and continuing heavy rain in the region have left their mark on the coal supply chain,” Fish said. “The impact varied from mine to mine. Even if mines were able to continue operations, they faced the challenges of widespread road damage and damage to the rail system. “Less coal made it to the port than was expected for that time of year, and the entire throughput for 2010-11 may be less than originally predicted. We won’t recover everything lost by fl ood, but even taking that into account, we are predicting a record year for the Port of Hay Point.” The expectation follows a record throughput of 99,465,091 tonnes for the port in 2009- 10 – more than 36 million tonnes through the 36 36 QLD Mining and Energy Bulletin Winter 2011 Hay Point Coal Terminal and about 63 million tonnes through the neighbouring Dalrymple Bay Coal Terminal. That total was close to 17 million tonnes higher than the previous year. The corporation is also looking to an expanded future at Hay Point, with the Queensland Government announcing in March it had engaged consultants Aurecon Hatch to prepare a Port Development Master Plan for Dudgeon Point, four kilometres north of the existing coal terminals at Hay Point. “The international demand for Queensland coal is signifi cant and is forecast to continue to increase,” Queensland’s Ports Minister, Craig Wallace, said. “Based on initial requests from industry, the Port of Hay Point could potentially double in export capacity within the next fi ve to 10 years.” The announcement follows endorsement last year of Dalrymple Bay Coal Terminal Management (DBCT) and the Adani Group as the preferred proponents for the development of the proposed new coal export infrastructure at Dudgeon Point. Fish said Dudgeon Point offered huge potential, with preferred proponents the Adani Group and DBCT Management working with NQBP to plan and construct additional coal infrastructure. “We could see about 120 million tonnes in place at Hay Point within the next ten years,” he said. DBCT Management leases the adjacent Dalrymple Bay Coal Terminal which it has recently expanded to 85 million tonnes per annum - the maximum capacity on the available footprint. DBCT Management plans to provide new capacity in the Port of Hay Point in response to requests from the mining industry. At Abbot Point, 25 kilometres north of Bowen, the ports corporation is has nearly completed the X50 expansion. “Current exports are 17-18 mtpa,” Fish said. “That will expand to 50 million tonnes by 2015- 16. That is pretty strong growth. “On top of that, we have awarded preferred developer status to BHP Billiton and Hancock Coal Pty Ltd for two major expansions (known as terminals two and three) at the Port of Abbot Point. That will happen over the next three to four years.” The two additional terminals will eventually add an estimated 110 million tonnes of coal per annum to the port’s throughput, with an initial capacity of 50 million tonnes per annum. Fish said NQBP was in discussions with the coal market about future terminals past terminals two and three. QUEENSLAND PORTS

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