Bligh said a concept study announced in December 2007 indicated the proposed terminal would be capable of handling 25–30Mtpa. The project, which is estimated to cost $1–1.5 billion, would involve dredging the port to allow for vessels up to 90,000t.

The premier said the coal would be transported to the port using a proposed rail link coming off the main north line near Bajool, which would unload to a conveyor belt that would shift the coal 20km over the salt flats to the terminal.

An exclusive right of refusal for the coal terminal has been offered to Xstrata Coal, which has until July 1 this year to review the concept study and make a decision about the project. If Xstrata turns down the project, the Gladstone Ports Corporation would seek expressions of interest in the terminal from other potential coal customers.

“The location is ideal for coal tonnage increases from mines in the Surat Basin associated with the Southern Missing Link and the Blackwater rail system," Bligh said.

“The terminal may help facilitate the development and export of Xstrata Coal's Wandoan deposits in the Surat Basin.

“Additional export capacity at Port Alma will put Queensland in a better position to meet the growing global demand for our coal."

She said power stations in Asia would be the most likely targets for coal exported through the terminal, located north of Gladstone.

Port Alma is currently used to import around 200,000tpa of explosives and general cargo.