mnm's mc , page-5

http://www.latrobevalleyexpress.com.au/news/local/news/general/delays-cost-jobs-and-money/1553565.aspx
29 Jun, 2009 10:49 AM

A BILLION dollar project and thousands of local jobs could be lost if the State Government continues to delay or refuses the release of Latrobe Valley coal.

More than $1 billion of investment has been committed to a project to produce and export 12 million tonnes of clean coal each year from the Valley.

Brown coal would be dried and squeezed in the region to produce cleaner coal as part of the project headed by Australian company Exergen, who invented the coal cleaning process.

Exergen's `clean coal' processing plant is expected to create up to 1000 jobs in the Valley during its construction and 350 permanent jobs.

The Exergen project would have a 40-year lifespan and the Federal Government claims it would create a ``brand new industry'' for Victoria.

Japan's ITOCHU corporation, India's largest private power utility Tata Power, Australia's Theiss and engineering services company Sedgman have all signed up for the project.

However, State Resources Minister Peter Batchelor has refused to give the green light for the project after nine months of negotiation with Exergen.

India's Tata is set to double its coal imports as it builds two power stations and has signed an offtake agreement with Exergen from 2014 onward.

However, it is believed Tata is making contingency plans in case Exergen is unable to supply the coal.

Tata has signed up to import more than 75 per cent of the clean coal generated by the Exergen project.

Exergen CEO Jack Hamilton said if it lost Tata's approval, it would not build the plant in the Latrobe Valley.

``The State Government have processes available that allow them to work in these time frames, they need to choose to exercise them,'' Mr Hamilton said.

``We are working hard with the government and we are starting to make progress, but the window remains tight for the coming development scheme.''

Mr Hamilton said there was currently two billion tonnes of unallocated coal in the Latrobe Valley which the State Government was responsible for.