QLD Mining & Energy Bulletin

QLD Mining and Energy Bulletin Winter 2011

QLD Mining and Energy Bulletin

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FOR THE SURAT D espite a number of faltering starts, 2011 will be the year that the Surat Basin will fi nally get out of the starting blocks. David Breese reports. In Queensland’s Surat Basin, State and Federal Environmental Impact Statement (EIS) approvals and Final Investment Decisions (FID) for Major Projects have been fl owing freely over the past few months with BG Group’s US$ 15 billion Queensland Curtis Liquefi ed Natural Gas (LNG) Project receiving FID on 31st October 2010 and Santos’ US$ 16 billion getting FID just 10 weeks later on 13th January 2011. The Origin and ConocoPhillips US$ 35 billion Australian Pacifi c LNG Project joint venture has both State and Federal Approvals in place and will surely follow suit in the not too distant future. Arrow Energy’s Surat Gas Project trails the pack at this stage, with a decision on its State EIS approval expected shortly. CSG to LNG, whilst grabbing a lot of the headlines due to the high level of investment, are not the only significant projects in the region. Xstrata’s Wandoan Coal Project has both State and Federal EIS approvals in place and is, like APLNG, expected to reach FID very soon. The project is rumoured to be the largest open cut coal mine in the Southern Hemisphere and set to export up to 30 million tonnes of thermal coal from the yet to be constructed Wiggins Island Coal Export Terminal in Gladstone to countries across the Asia-Pacific region. However, in order to realise this, a new 214 kilometre railway will need to be constructed to link the Surat Basin region to the port facilities at Gladstone; the existing port facilities at Brisbane simply cannot generate the capacity to cope with an additional 30 million tonnes of coal per year, and the railway through the Lockyer Valley would also be unable to cope with any substantial increased demands. Often referred to as the ‘Southern Missing Link’, the Surat Basin Rail Project will signifi cantly enhance the existing coal rail network in Queensland, and unlock 64 QLD Mining and Energy Bulletin Winter 2011 approximately 6.3 billion tonnes of thermal coal reserves in the Surat Basin. The railway will support 22-24 diesel powered train movements per day and will have the capacity to transport up to 42 million tonnes of coal per year on trains up to 2.5 kilometres in length. The above mentioned projects are by some margin, the largest in the Surat Basin, however, at the last count, there were at least another 40 smaller projects being undertaken throughout the region including numerous LNG and coal fi red power stations; a substantial wind farm project and the largest solar thermal project in the Southern Hemisphere. We should also remind ourselves at this stage that there is much more to the Surat Basin than coal and CSG; manufacturing and agriculture will continue to play a signifi cant role in the economic prosperity of the region and we should as a region, ensure that we are not seduced by the energy and mining boom and commit to appropriate investment in building resilience, innovation and capacity within those more traditional industries. With all projects potentially coming to fruition this year and next, there remain, a number of questions that need to be answered: Where will the workforce come from to support concurrent activity? How will the attraction and draw of relatively higher energy industry salaries impact on the other industries and employers in the region? How will the ‘at capacity’ road and social infrastructure cope with the additional demands? What will the overall impact be on the local communities in the regions and what is being done to minimise that impact? The answers to these question cannot be given by any one individual or organisation and require a collaborative approach to be taken in order to get the best results for the region. Sitting on the sidelines, I see a lot of good work being done by Federal and State Government, Regional Councils and by the Major Projects. Unfortunately much of this good work is conducted in isolation which creates a lack of effi ciency and effectiveness in tackling the issues at hand and it is probably fair to say that this largely unintentional parochialism is actually undermining the pace of development across the region. This is exactly the reason why, in 2006, The Western Downs Regional Development Corporation was formed as an output of the Western Downs Regional Organisation of Councils. Over time, the name of the organisation has changed to the Surat Basin Corporation, but its charter has remained the same, to facilitate long-term, sustainable economic growth and prosperity for the Surat Basin region through: • proactive support of economic development opportunities; • regional advocacy; • guidance on issues and challenges; and, • pursuing opportunities for growth. An enduring partnership between industry, community and government is essential to the continued and integrated development of the Surat Basin and is a role in which the Surat Basin Corporation can act as a key facilitator, thereby creating maximum effect for the region by bringing together all levels of government, businesses, industry and community to achieve common goals for mutual benefi t. The challenge I therefore offer to all stakeholders in the region is to stop working in isolation and to start to work more collaboratively on those issues that can be tackled jointly – cohesion and common goals will make for a far more effective force than the sum of the constituent parts. For example, we would encourage the Major Projects to identify where synergies and common ground exists and join together with their competitors to deliver a lasting benefi t for the community. The man on the street cares not if it has been company A or company B building a sports pitch in the community, but he will remember you forever as a force for good if a signifi cant regional infrastructure SURAT BASIN

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