Queensland Says 30 Companies Interested in Developing Biggest Coal Harbor

By Elisabeth Behrmann - Jul 5, 2011

Australia’s Queensland state said 30 coal companies globally are interested in a A$6.2 billion ($6.6 billion) expansion of Abbot Point that would make the port the world’s biggest coal-export terminal.

Craig Wallace, the ports minister of the northeastern state, joined company representatives touring the port as part of an expression of interest to expand its shipment capacity sixfold to 300 million metric tons annually, the government said today on its website.

Coal demand is rising as China and India, the world’s fastest growing major economies, produce more electricity and steel. Supply disruptions in Australia, the world’s biggest coal exporter, because of record rainfall and rail and port bottlenecks have pushed up prices to a record this year.

“The world’s top coal companies are showing huge interest being part of the development,” Wallace said in the statement. “Global demand for Queensland’s coal is increasing and judging by the fantastic interest shown here today by industry, we’ll have customers and investors on hand to deliver this major project.”

Adani Enterprises Ltd. (ADE), India’s biggest coal importer, in May agreed to pay A$1.8 billion for a 99-year lease to operate the port.

The expanded Abbot Point may start shipments as early as 2017, the statement said. Vale SA (VALE), the world’s biggest iron ore producer which owns a number of coal assets in Australia, last month said it was interested in developing one of the terminals. (sourced Thomson Reuters)