You have to hand it to Campbell Newman he's determined to see the development of the Galilee Basin.....
THE Queensland premier is about to announce discounted royalty rates for mining companies that proceed with multi-billion projects in the Galilee Basin.
The new incentive is part of a Galilee Basin development strategy, which includes using state powers to speed up planning and land acquisition processes.
It will also involve the reservation of land at the Abbot Point coal terminal for first movers, Fairfax Media reports.
Dwindling coal prices have fuelled speculation that long-awaited projects in the Galilee Basin, in central west Queensland, will not proceed.
But Premier Campbell Newman is confident the strategy will ramp up mining in the basin.
"I know it will be of great interest to potential project operators that we are also willing to consider new ways to lower their start-up costs," he told the Australian Financial Review.
"Specifically, we're going to look at proposals for a ramp-up royalty period for the first mover as a key incentive."
Mining companies and the Queensland government will negotiate the size of the discounted royalty rate.
The announcement of the strategy comes less than a week after federal Environment Minister Greg Hunt approved GVK's Kevin's Corner project in the Galilee Basin, set to be the country's largest coal project.
The Alpha Coal project - a joint venture between GVK and Gina Rinehart's Hancock Coal - was approved in August last year and is expected to be up and running in 2016.
Clive Palmer's Waratah Coal and Indian energy company Adani also have projects planned in the Galilee Basin.
Mr Newman will formally announce the Galilee Basin development strategy at the 2013 Major Projects Conference in Brisbane on Thursday.
http://www.news.com.au/national/bre...or-galilee-mines/story-e6frfku9-1226754755193
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