Ms Rinehart get nod for coal railway project in central Queensland

Saturday, 12 Nov 2011

Mining billionaire Ms Gina Rinehart has retained the right to build a controversial coal rail corridor in central Queensland, after the state government successfully quashed a Supreme Court challenge led by QCoal.

Rinehart’s Hancock Coal won approval from the Bligh government late last year to build a AUD 2.2 billion railway from its Alpha Coal Mine in the Galilee Basin, about 360 kilometres southwest of Mackay, to the Abbot Point coal port near Bowen.

The state government declared the Alpha Coal Rail Corridor Project as an infrastructure facility of significance because it would increase the state’s overall coal production by 35% and provide employment and business opportunities.

The state also stands to gain an additional AUD 430 million in royalties each year through the project, with Australia’s annual export revenue set to receive a AUD 1 billion boost.

The declaration meant land necessary for the project could be compulsorily acquired by the state, and then leased back to Hancock Coal on a long-term basis.

However, the corridor traverses land owned by around 40 different interest holders, including at least five other mining companies.

Five companies that hold tenements or mining leases in the area challenged the legality of the government’s approval in an application to the Supreme Court lead by QCoal against Queensland Infrastructure Minister Stirling Hinchliffe, who, with the state’s Coordinator General, was responsible for the significant project declaration.

They argued in court before Justice Martin Daubney in March that the proposed railway could not possibly be deemed significant because it terminated about 20 kilometres west of the port facility at Abbot Point.

The project hit a major hurdle in September last year, when the Supreme Court repealed the state government’s significant declaration on the grounds it was mishandled.

As a result, Hancock Coal was forced to realign the rail corridor completely outside the Bowen Basin in order to gain approval again, although this raised the opportunity for other coal companies to object.

(sourced Brisbanetimes)

Newland Resources delivers maiden 150 million tonnes JORC Resource at Comet Ridge coal project

Friday, 21 Oct 2011

Newland Resources has reached its first major milestone for the Comet Ridge Project area in the Bowen Basin of Queensland with the release of a maiden JORC Resource of 150 million tonnes of coal.

Independent geologists, McElroy Bryan Geological Services prepared the JORC Resource Statement. The Resource has coking coal potential of 50 million tonnes of coal at depths less than 50 metres and subsequent drilling is expected to increase the Resource.
The Resource at the Comet Ridge Project is contained in the Fair Hill Seam and has a cumulative thickness of between 2.5 and 4.0 metres.

Mr Gavin May Newland Resources' managing director said while 150 million tonnes is a significant tonnage, the 50 million tonnes of resource with coking coal potential at depths less than 50 metres is what excites me.

He said that "NRL has a clear focus on delineating economic coal, so future exploration will concentrate on conversion of these resources into mineable reserves.”

The JORC Resource Statement covers an area of about 30 square kilometres which is less than 15% of the total EPC 1230 area. Drilling to the west and North West of the defined JORC Resource since 8 October has continued to delineate the Fair Hill Seam at shallow depths and NRL expects this resource to increase in the near future.

Ongoing coal handling and quality testing will determine the economics of the Comet Ridge Project with results expected before year end.

The company has a 100% interest in six coal leases covering more than 1,900 square kilometres in Queensland Bowen Basin with the area well serviced by infrastructure including railways and power.

(sourced proactiveinvestors)

QR National struggles to recover coal network

Saturday, 22 Jan 2011

As floodwaters gradually recede, the impact on Queensland's coal network customers and tonnages including the cost of recovery is yet to be fully assessed.
While Freight Rail provider QR National said that there is progress on the recovery efforts across the company’s operations, total coal tonnages across the QR National coal network, which is used by both QR National and Pacific National trains, is expected to continue to be impacted over coming weeks.
QR National said that the Moura coal line was opened to traffic last week and the Blackwater network is now targeted to re open late this week, following a detailed track inspection.
The company said that “The Newlands line to Abbot Point Coal terminal near Bowen continues to operate. This system has remained open throughout and while it operated at reduced railings in December it has recovered well in January.”
QR National said that “The Goonyella network into the ports of Dalrymple Bay and Hay Point, south of Mackay, is also still operating, despite being closed from 24 to 30 December following the derailment of a Pacific National train near Yukan. The network is currently working at around 70 percent capacity due to reduced coal availability.”
QR National said that “The Blackwater network that feeds into the port of Gladstone is expected to re open this week, following a detailed inspection and assessment of flood damaged track.”
It said that “The system has been closed since December 27. QR National has mobilized resources, both people and equipment, to ensure repairs are completed efficiently. On current estimates, services are expected to resume on the line as early as Thursday (20 Jan), pending no significant rain and recovery operations proceeding as planned. It is planned that services would be available from Burngrove (near Blackwater) east from that time, and then progressively to mines located on the (northern) Gregory branch from the weekend (22/23 January).”
QR National said that “Precise dates for resumption of services for the Minerva and Rolleston mines are yet to be determined."
In southern Queensland, QR National said that it is unable to operate services west of Brisbane because of flooding and damage to the rail line on the Toowoomba Range following a landslide on 10 January.
Mr Lance Hockridge MD of QR National said that “QR National is awaiting further advice from the network owner, Queensland Rail, on the extent of the damage to infrastructure and likely timeframe for restoration of the track.” He added that “We are unable to provide services to coal customers, west of Brisbane and to grain and general freight customers in south-west Queensland.”
QR National's general freight services along the North Coast Line to locations beyond Gladstone to Cairns are not able to operate because the line remains cut by floodwaters at Rockhampton. This is expected to continue through this next week.
(Sourced from www.supplychainreview.com.au)