The collapse in the thermal coal price and the high Australian dollar could see important coal chain infrastructure projects shelved and major new coal mining projects delayed, Macquarie Private Wealth warned in a report last week.
The report found the huge investment needed to get coal to port from the new Queensland coal mining areas around the Galilee and Surat basins could dry up if the Australian dollar continued to rise above parity with the US dollar.
Deputy Premier Jeff Seeney said the federal government had committed $1.66 million for the north Queensland resources supply chain and $1.5 million for the central Queensland resources supply chain.
"The state government put forward these planning initiatives as part of Queensland's regional infrastructure fund to support development and investment in resource regions and ensure communities benefit from the development of the resource industry," Seeney said.
"The state's resource supply chains depend on major infrastructure to move resources to national and international markets and these projects will help make it happen.
"We welcome the federal minister for infrastructure and transport's support of these projects and look forward to working with his department to ensure we deliver for the regions."
Seeney said funding for the north Queensland resources supply chain would go towards developing comprehensive models to help prioritise projects and investment in north Queensland.
"The government will use the central Queensland resources supply chain funding to develop plans to manage regional growth in central Queensland, including the Galilee and Bowen basins," he said.
"The funding will also provide certainty to the coal and agricultural industries, as well as local communities, in terms of the Queensland government's priority infrastructure projects and outcomes.
"This funding will ensure we deliver for the resource regions and we will work with local communities, business, industry and other levels of government to plan for future growth."
NSW Treasurer Mike Baird reportedly told the region’s business leaders that the state government would top up the $350 million HIIF.
Baird spoke to members of the Hunter Business Chamber and the Property Council of Australia at Warners Bay and said more infrastructure money was on its way to the Hunter, according to the Newcastle Herald.
Planning Minister Brad Hazzard said the NSW government was now calling for infrastructure projects to be considered for funding through the HIIF, which still had $120 million that had not been allocated.
“Organisations that can deliver projects on the ground are urged to make their suggestions to the HIIF for allocation of funds,” Hazzard said.
“The call will be open to private sector organisations partnering with state agencies and individual councils, ensuring that infrastructure projects important to local communities are put forward.
“All projects must be Hunter-based.
“Projects that enhance productivity could be public roads, railways, port, energy, water, public schools or TAFE, public hospitals and health care facilities, emergency services, recreational, sporting, as well as major cultural and entertainment venues.
“All projects will be assessed against the eligibility criteria and essential criteria to produce a shortlist compiled by the HIIF Advisory Board.
“The criteria document clearly outlines what is required for projects to be successful in obtaining funding from a limited pool.”
