Queensland Resources Council chief executive Michael Roche said today BMA, Anglo Coal, Foxleigh, Rio Tinto, Peabody, Xstrata and Macarthur would underwrite the estimated $A27 million early works costs undertaken by the State Government-owned QR Network Access (QRNA).
In a speech to the Australian Rail Summit in Sydney, Roche said the costs will be recouped by the State Government through QRNA via independently determined rail price arrangements, regardless of whether the project proceeds.
“Final go-ahead will depend on execution of port and rail contracts by the companies, which will in turn depend on the economic findings of this early stage engineering and design,” Roche told the conference.
“Despite the project's potential to consolidate future growth, there is no hiding the fact that industry’s interest in the Northern Missing Link and expansion of the Abbott Point coal terminal is a direct response to the difficulties being experienced along the Goonyella corridor.”
In June, the State Government reached an agreement with property owners to acquire the land needed for the 69km link.
Completing the rail link, in conjunction with a potential expansion of the Abbot Point coal terminal to 50 million tonnes per annum capacity, would allow an additional 35Mtpa to be exported.
“This means Queensland could export at least 70 percent more coal through the Abbot Point terminal in the Bowen Basin, worth up to $4 billion a year," Premier Peter Beattie said in June.
