Speaking in Tokyo to some of the world's leading steel producers, premier Peter Beattie detailed his support for Macarthur Coal and Stanwell Corporation building a $1 billion coke and energy project at Stanwell.

 

Since late-2003, Australian-listed Macarthur Coal has been keen to establish a plant next to Stanwell Power Station to produce 3.2 million tonnes of metallurgical coke for export. Macarthur intends locating the putative plant near Stanwell Corporation so that heat generated by the coke ovens could be put onto the power grid as electricity.

 

The plant would probably operate on a toll agreement whereby steel manufacturers would supply the raw material on contract, providing the primary revenue stream along with that from the power plant offtake. Additional plant capacity could be used by the owners to make additional coke as demand dictated.

 

"Many of the world's leading steel producers have had a long relationship with Queensland for the supply of coking coal,” Beattie said. “I invite those companies to now consider Queensland also as a future supplier of coke to meet the world's rapidly increasing demand for steel.”

 

The project would generate about 1200 jobs during the two-year construction phase, peaking with the direct employment of 1900 people.

 

Macarthur Coal holds 73.3% of the Coppabella and Moorvale mines and is an important supplier of low volatility coal to major steel mills in Asia, Europe and South America.

 

In December 2004, the Queensland coordinator general declared the proposed plant a “significant project” for which an Environmental Impact Statement (EIS) was required. Draft Terms of Reference for the EIS have been released for public comment. The Federal Government does not require an impact assessment.

 

"This project would mean a significant boost to the state's economy through adding to export revenue, value-adding to the state's coal resources, additional mine royalties and other fees,” Beattie said.