encouraging words re galilee basins future

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Economy ideal for Galilee Basin

14 hours 24 minutes agohits: 8


It is reported that the mining firm behind the largest coal mine in Queensland history says the economic climate is ideal for its USD 6.4 billion Galilee Basin project.

After four years of jumping through hoops to meet federal environmental approvals, the Alpha coal project majority owned by multi-national Indian firm GVK was approved on Thursday.

Mr Tony Burke Environment Minister announced the huge Alpha coal project had been given the green light, albeit with strict environmental conditions.

Mr Paul Mulder GVK group managing director of coal and infrastructure said the Alpha project remained viable, citing low capital costs, strong global investor support, robust, low operating costs and favourable geology.

He said the company already was in advanced discussions with potential commercial banking investors in the mine, rail and port areas of the huge Central Queensland project, with capital expected to come on board as construction began in mid-2013.

On Wednesday, BHP shelved its USD 60 billion expansion of the South Australian Olympic Dam uranium project. This move prompted Federal Resources Minister Mr Martin Ferguson on Thursday to declare the end of the mining boom.

Prime Minister Ms Julia Gillard and Finance Minister Mr Penny Wong later attempted to clarify the statement, indicating it was as a sign of falling commodity prices rather than the end of the boom.

Opposition Leader Mr Tony Abbott seized on the BHP announcement on Wednesday as proof the mining and carbon taxes were putting at risk future mining investment a claim at odds with Mr Mulder's comments.

While market prices for coal and iron ore have come off unprecedented highs, Mr Mulder comments revealed there was still confidence in the future of coal operations in Australia.

The recent falls in coal prices have contributed to the closure of BMA Coal's Norwich Park mine and job losses at Ensham mine as well as Rio Tinto's return to plans to close Clermont Blair Athol mine.

Data released in the Bureau of Resource and Energy Economics June quarter market update showed that despite the loss of value in coal and iron ore, forecasts remained positive.

The bureau forecast YoY increases for export earnings in 2012-13 in thermal coal and iron ore of 7% each uranium of 9%, LNG of 29%, alumina of 30% while metallurgical coal was expected to fall 2%.

Source – Daily Mercury

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