Campbell Newman to invest taxpayer money in Galilee Basin coal mines

In Government/Policy, Infrastructure & Operations, Latest News

Campbell NewmanPremier Campbell Newman announced on the weekend that the Queensland Government would invest in key infrastructure in the Galilee Basin to ensure coal mine projects go ahead in the remote part of the state.

The first Infrastructure Enabling Agreement will be signed with Indian company Adani to build the rail line needed to link the $16.5 billion Carmichael coal project to the Port of Abbot Point, near Bowen

“The role of the government, given the financial situation we face these days, the role would be to make targeted investments to help get something going and then within a few years time exit those investments so the private sector can then get on with it, but I stress, open to all comers – we just want a new coal resource basin to be opened up.” Campbell Newman told the media on Sunday.

Newman said that the State Government would work with resource companies to make strategic investments that could create up to 28,000 new Queensland jobs.

“To build on our Galilee Basin Development Strategy, we are now prepared to sign agreements with Galilee Basin proponents who can demonstrate they will meet the majority of the cost of providing this common-user infrastructure.”

“The Carmichael project could create almost 6,500 jobs and this agreement will see the Queensland Government invest in the rail line needed to carry coal to port,”  Newman said.

“The mine and rail project has received both State and Commonwealth environmental approval and will be subject to 226 environmental conditions.”

Deputy Premier Jeff Seeney said the Carmichael project was expected to inject $500 million into Queensland’s economy during construction and $3 billion at full export capacity.

“This is the revenue that will build the schools, hospitals and roads our State needs in the future.

“Our decision to help build the rail link for this project will get it happening more quickly and ensure its benefits start to flow to the people of Queensland.

“Today we have signed the first of these agreements with Adani, but the State is open to negotiating similar agreements with all proposed Galilee Basin miners.”

Adani Australia CEO, Jeyakumar Janakaraj said this agreement reflects the Queensland Government’s clear focus on ensuring the state is a leading energy exporter and job creator for Australia into the future.

“Adani is well-established in building its long term future with Queensland, with several billion dollars in investments already made across the company’s integrated mine, rail and port project,” Mr Janakaraj said.

“The Queensland Government’s announcement that it will pursue an infrastructure enabling investment strategy is a welcome one.

“It gives confidence to investors who considering their long term plans in the basin that the state is committed to the best possible infrastructure being in place to support the further development of the Galilee, and the jobs and exports that will provide.”

It’s estimated the proposed standard-gauge rail line subject to today’s agreement will take approximately two years to build, be able to transport 100 million tonnes of coal a year and pump up to $790 million into regional Queensland’s economy and over $900 million into the state economy during its construction phase.

 

 

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