Speaking at the 2006 Major Projects Conference in Brisbane, Premier Peter Beattie announced the Government had significantly advanced discussions for the $A1 billion rail development in southern Central Queensland.
“This infrastructure commitment offers a transport link to global coal markets through the port of Gladstone. Northern Energy will advance the Elimatta project in response to this announcement,” said managing director Keith Barker.
“We intend to work with the rail consortium in its planning and design phases. Our overall objective is to work towards development of an opencut mine in conjunction with the rail and associated port developments.”
Northern Energy said it was further encouraged by the comments of the Queensland Government regarding the potential extension of the Wandoan rail link to the inland rail project ultimately linking Gladstone with Melbourne.
In February this year Northern Energy announced an inferred resource of 130 million tonnes of low-sulfur thermal coal at Elimatta and an additional exploration target of 70-100Mt was also identified.
Elimatta coal is low-sulfur, high-volatile coal similar to other Surat Basin coals currently being exported to the Asian power utility market. Barker said the coals are highly suitable for use in integrated gasification combined cycle (IGCC) systems, environmentally friendly coal-fired power generation technology that allows increased thermal efficiency and the potential for carbon capture.
Northern Energy said it would continue to consult with the federal government-funded north-south rail corridor study group, which is currently evaluating alternative rail options.
