The next boom town ? ( Alpha, Qld 4724 )

Deputy Premier, Minister for State Development, Infrastructure and Planning

The Honourable Jeff Seeney

Tuesday, May 29, 2012

Alpha Coal Project given go-ahead

The Newman Government has given the green light to what will be one of Australia’s biggest mines, the $6.4 billion Alpha Coal Project in Queensland’s Galilee Basin.

Queensland’s Coordinator-General has provided conditional approval for the mine – the first in the untapped coal rich Galilee Basin.

Minister for State Development, Infrastructure and Planning Jeff Seeney welcomed the decision and said the project would produce significant economic benefits for the state and nation.

“There’ll be an estimated $11 billion boost to the economy during the mine’s three year construction phase. 80 per cent of that will be retained in Queensland,” Mr Seeney said.

“Once operational, Queensland’s economy should see an economic boost of $1 billion per year from this mine alone.

“Australia can expect an $80 billion dollar rise in exports over the life of the mine.”

Mr Seeney said the Coordinator-General had approved the mine with strict conditions and the move was a major step towards opening up the Galilee Basin’s coal deposits.

“The proposal is for a 30 million tonnes per year open-cut coal mine and a 495km railway line from the mine to the Port of Abbot Point near Bowen,” he said.

The project is expected to generate up to 3600 construction jobs and 990 operational jobs.

The mine site is 130km south-west of Clermont and about 360km south-west of Mackay. The expected life of the mine is 30 years, with sufficient resources to potentially extend the project life beyond that time.

Despite the Coordinator-General completing Queensland’s assessment, the Federal Minister for Environment is yet to complete his assessment under Commonwealth environmental legislation.

“The Coordinator-General has thoroughly assessed Hancock Coal’s Environmental Impact Statement and associated materials, including 60 public submissions, and its Supplementary Environmental Impact Statement (SEIS),” Mr Seeney said.

Coordinator-General Barry Broe said his 393 page report contains 128 conditions.

“Conditions and recommendations in my report will ensure that impacts are well mitigated and managed through environmental management plans, environmental licences, development permits and a social impact management plan,” Mr Broe said.

The mine plan comprises six separate open-cut pits, with a total strike length of 24 km in a north-south direction.

Hancock Coal anticipates the construction period to occur between 2013 and 2016, subject to relevant approvals being granted for the project.

The Coordinator-General’s Report can be viewed at www.projects.industry.qld.gov.au

[ENDS] 29 May 2012

Media Contacts: John Wiseman – 0409 791 281
Kate Haddan – 0418 373 516

http://statements.qld.gov.au/Statement/Id/79367
 
Dubstep said:
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GVK's Kevin's Corner Project Gains Federal Government Approval

.

http://gvkhancockcoal.com/images/Do...ment clearance for Kevin's Corner Project.pdf

.
Click to expand...

The significance of this development is without a doubt simply massive. Many don't understand the true significance the role of global energy security is going to play in the future...particularly for developing countries.

The industry has trimmed costs and increased productivity and as a result is better off for it. IMHO this development is also well timed given the position in the commodity cycle. Assuming we are somewhere near the bottom, and production coming on line after 3 years of construction, margins should be healthy and viable.
 
So what are peoples views on this?

FIFO?
Mine based camps?
Daily commute from Alpha?
Workers in the camps for their 2 weeks, then into Emerald for their days off?
 
MRCCON said:
So what are peoples views on this?

FIFO?
Mine based camps?
Daily commute from Alpha?
Workers in the camps for their 2 weeks, then into Emerald for their days off?
Click to expand...

I'd suggest FIFO, Mining camps and perhaps 10% or so into Emerald and surrounds. There is no doubt IMHO that Emerald will become the major regional hub for many of these Mega Mines that are going to be developed in the Galilee Basin. Emerald is already a substantial regional hub to many of the mines in the southern parts of the Bowen Basin but now... it is guaranteed growth.

The issue for Emerald, and the great factor for investors, is the scarcity of land as the land is low lying and prone to flooding.

Emerald will have to cope with a large influx of businesses targeted towards the servicing requirements of the mines. There will be a multitude of requirements including industrial, mechanical, catering, the list goes on.

I do know the Central Highlands Regional Council is proactively looking at implementing more family orientated living developments to attract miners and their families to Emerald. They have even given thought to a development down further towards Lake Maraboon.

The scale and size of these mines is absolutely massive and the amount of people required to operate them is going to be huge in number.
 
There are many limitations which will stop alpha from growing, in particular water supply.

I would think it will be 100% FIFO with some contractors / suppliers based in Alpha.
 
JT7 said:
I'd suggest FIFO, Mining camps and perhaps 10% or so into Emerald and surrounds. There is no doubt IMHO that Emerald will become the major regional hub for many of these Mega Mines that are going to be developed in the Galilee Basin. Emerald is already a substantial regional hub to many of the mines in the southern parts of the Bowen Basin but now... it is guaranteed growth.

The issue for Emerald, and the great factor for investors, is the scarcity of land as the land is low lying and prone to flooding.

Emerald will have to cope with a large influx of businesses targeted towards the servicing requirements of the mines. There will be a multitude of requirements including industrial, mechanical, catering, the list goes on.

I do know the Central Highlands Regional Council is proactively looking at implementing more family orientated living developments to attract miners and their families to Emerald. They have even given thought to a development down further towards Lake Maraboon.

The scale and size of these mines is absolutely massive and the amount of people required to operate them is going to be huge in number.
Click to expand...

Emerald has a large number of lots and developments on the southern side of town (Mayfair, Maranda Heights, Riverview etc.) that are high and dry, and the town has plenty of land to the south to grow. The number of new lots coming onto the market is staggering given the current state of the market.

To get the market back within a bulls roar of mid-2012, Emerald is going to need either another flood event and reconstruction effort on par with the last one (let's hope not) or quite a few construction projects like the Kestrel Mine Expansion, which relied on a significant local workforce.

I'd be delighted to be wrong (My PPoR is in Emerald), but I don't think the Alpha project will be a major driver of rents/prices in Emerald. I think aside from a few local contractors, most of the money will be in FIFO's, and workers camps will keep them out of the rental market.
 
Hi Arnoldus,

Central Queensland and it's markets like Emerald, as you know, will to some extent always be influenced by the commodity cycle which is at times volatile. It can be a roller coaster ride which has also been reflected in the subsequent industry as a whole and companies associated with the industry and their values on the ASX. Many of which are great companies selling for absolute bargain prices atm.

When market cycles are at their lowest whether it be on the share market or property, the investment community becomes despondent and usually oversells creating opportune times for the smart money to take advantage and buy at a discount.

Having your PPoR in a market like Emerald, is a different variable of course but it is still exposed to these same factors in such a market. Be under no illusion that global energy security is of vital importance and something that all nations including the Chinese and Indians are disparately trying to obtain for the future.

Emerald last sustained boom was 2003-07, which you may have benefitted from already being in the Emerald market. It had a run up in 2012 and then pulled back. Will it run up again....? In the words of the late great Jim Rohn, 'Of Course.'

Linc Energy have just purchased Blair Athol and where hoping to pick up Gregory as well. This is a compelling indication for the industry, and bodes well for the region. Is coal in a slump at the moment..... 'Of Course.' Will in turn around..... 'Of Course.' After winter comes spring....After recession comes expansion it isn't going to change....
 
JT7 said:
Hi Arnoldus,

Central Queensland and it's markets like Emerald, as you know, will to some extent always be influenced by the commodity cycle which is at times volatile. It can be a roller coaster ride which has also been reflected in the subsequent industry as a whole and companies associated with the industry and their values on the ASX. Many of which are great companies selling for absolute bargain prices atm.

When market cycles are at their lowest whether it be on the share market or property, the investment community becomes despondent and usually oversells creating opportune times for the smart money to take advantage and buy at a discount.

Having your PPoR in a market like Emerald, is a different variable of course but it is still exposed to these same factors in such a market. Be under no illusion that global energy security is of vital importance and something that all nations including the Chinese and Indians are disparately trying to obtain for the future.

Emerald last sustained boom was 2003-07, which you may have benefitted from already being in the Emerald market. It had a run up in 2012 and then pulled back. Will it run up again....? In the words of the late great Jim Rohn, 'Of Course.'

Linc Energy have just purchased Blair Athol and where hoping to pick up Gregory as well. This is a compelling indication for the industry, and bodes well for the region. Is coal in a slump at the moment..... 'Of Course.' Will in turn around..... 'Of Course.' After winter comes spring....After recession comes expansion it isn't going to change....
Click to expand...

It depends if the downturn in Emerald housing is cyclical or structural. If the changes to the mining industry with FIFO and workers camps becoming the norm, we might not see large localised workforces like we did in the last boom.

If it is cyclical and people start moving back to Emerald, it's going to need to be a *MASSIVE* influx to take up the large amount of land and housing supply coming through now and expected in the next couple of years. The only other way I can see prices heading north is if supply is squeezed through another large flood and the subsequent influx of reconstruction workers.

Trying to get back on topic... I think Alpha will fare a similar fate to Rolleston when Xstrata opened up just down the road.

If you do ever go to Alpha, I can thoroughly recommend the meat pies from the baker... best I've ever had.
 
Arnoldus said:
It depends if the downturn in Emerald housing is cyclical or structural. If the changes to the mining industry with FIFO and workers camps becoming the norm, we might not see large localised workforces like we did in the last boom.

If it is cyclical and people start moving back to Emerald, it's going to need to be a *MASSIVE* influx to take up the large amount of land and housing supply coming through now and expected in the next couple of years. The only other way I can see prices heading north is if supply is squeezed through another large flood and the subsequent influx of reconstruction workers.

Trying to get back on topic... I think Alpha will fare a similar fate to Rolleston when Xstrata opened up just down the road.

If you do ever go to Alpha, I can thoroughly recommend the meat pies from the baker... best I've ever had.
Click to expand...

Might have to agree to disagree in parts there.... but that's life and interesting to have the discussion....

Hopefully I'll get a chance to get stuck into one...or three of those pies one day :p
 
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