INTERNATIONAL COAL NEWS

BBI cleared for $530m Dalrymple Bay expansion

THE Queensland Competition Authority has approved a $530 million capacity expansion at Queensland...

James Bowen

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The Phase 1 expansion is being undertaken by Babcock and Brown Infrastructure as part of the larger Project 7X expansion.

The new expansion was approved after BBI convinced the regulator the expansion satisfied the 60-60 requirement – that it was supported by at least 60% of infrastructure new users and not opposed by 60% of existing users.

The works had to be consistent with a terminal master plan that was developed in 2005 and amended in February this year.

The QCA also approved BBI’s tender and contract management process for the project.

Phase 1 is already underway and is expected to increase terminal capacity at Dalrymple Bay by eight million tonnes per annum, to 68Mtpa, when completed sometime in 2007.

Included in the works is a new in-loading system, new stockyard machines and increased out-loading capacity.

BBI chief executive Steve Boulton said BBI had been working closely with each of the key stakeholders in the terminal’s supply chain to deliver improved throughput to the coal industry.

BBI expects to have spent more than $270 million on Phase 1 by the end of this year and construction work on Phases 2 and 3 are expected to begin shortly.

The company will need to submit a similar capacity expansion application to the QCA for the subsequent phases.

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