INTERNATIONAL COAL NEWS

Greens court case may stymie Wandoan port allocation

XSTRATA's $3 billion Wandoan thermal coal project in Queensland could miss out on access to Wiggi...

Lou Caruana

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Xstrata’s $1 billion so-called “southern missing link” rail line between the 30 million tonne per annum Wandoan project and Banana as well as state government approval for the mine also hang in the balance as the company waits for the judgement of the court, which is due in December.

Conservationists argued in the Land Court in Brisbane in August that Wandoan should not go ahead because it could contribute to climate change.

In a statement at the time Xstrata said: “Objections have been received on issues including: the impacts of mining, greenhouse gas emissions associated with the mining and subsequent burning of the coal, road access to landholder properties, effects on cattle, and groundwater impacts.

“Xstrata Coal has followed a rigorous environmental assessment and review process throughout each stage of the mining lease application process in accordance with all legislative requirements.”

WICET project director Mark West told The Australian Financial Review that part of the allocation process involved doing due diligence on the mines and rail providers.

"In the access regime that has been agreed with the state and industry, the Wandoan project has some rights for capacity of about 22 million tonnes as long as it exercises those rights within a certain timeframe," he said.

The first expansion stage of WICET – which lies in the port of Gladstone – will increase capacity by 27Mtpa from its present 75Mtpa, while the stage two development would add another 57Mtpa to allocated annual capacity.

Other mining companies in south and central Queensland are also clamouring to secure their WICET allocations.

Stanmore Coal is confident of being able to export first coal from its Queensland projects in 2015 after it progressed towards securing port capacity at the WICET during the September quarter.

The company said it had acquired 7Mtpa of priority capacity rights at the WICET, increasing the likelihood of the company securing its requested port allocation in WICET stage 2.

Stanmore said it was a significant milestone because the port capacity would allow the company to export its planned 7Mtpa of coal from 2015 from the Range and Mackenzie projects.

Aquila Resources said its Washpool project had also applied for an additional 1Mtpa of capacity with stage 2 of WICET.

Washpool, located northwest of Blackwater in the Bowen Basin, is targeting 2.6Mtpa of coal production over a 16-year mine life.

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