Have you ever stopped to think what would happen if Tarong Coal ever run out of coal, or could not supply enough coal for the requirement of Tarong Power Stn. Where would the coal come from to run the Tarong Power Station, to supply power to SE Qld? The Qld government who own Tarong Power Station including the Tarong Coal Mine have recently shelved plans to develop Kunioon coal mine. This development needed to happen because Tarong Coal Mine is fast running out of good steaming coal to supply the Tarong Power Station. Why have they done this?
We all know that the the Qld government are broke( hence the fire sale of our rail and port asserts ) and despite paying out millions of dollars doing a small mine at Kunioon to reach the coal and do a test burn, buying a lot of prime farming area they have given all indications that the development of Kunioon Mine located at Goodyer area is not going ahead. Farmers in the area that were still in negotiations with the Gov. to buy their land have had all negotiations cease.
While this was happening along came CXY who have established this drilling programme on land owned and leased to CXY by the Qld Gov. which if successful would be the long term supplement for additional power that the SE Qld corner require. In my opinion the Qld Gov will want this project to succeed badly and are just appeasing to the noisy majority until this unfortunate bungling by DERM dies down. It may also have something to do with the Federal election,maybe not, just a guess on my part.
Tarong Coal are running out of good low ash coal that can be mined easily and at a profit. ( they burn coal at approx 27% ash at Tarong Power Stn.)Thiess, who are currently running the mining operations for Ergon Energy on a cost plus basis are mining the coal in areas where Rio Tinto, previous owners of Tarong Mine, had previously walked away from. This was due to the high ash content of the coal and/or high overburden or multi interburden seams within the coal seam itself which makes it difficult to mine easily. Believe me, this is costing heaps of money to keep this operation going. Another reason the citizens of Qld are paying through the nose for electricity.
I truly believe that CXY will survive this setback and go on to develop power to put into the power grid.
The Qld gov are hoping the will succeed too!!!!!!!!
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