The Queensland government last Friday granted significant project status for QR National’s proposed Central Queensland Integrated Rail Project, which would link multiple mines in the Galilee and Bowen basins to coastal ports.
China First alleges QR National, which is more than 34% part-owned by the Queensland government, breached a confidentiality agreement with China First.
China First’s proposed $8 billion coal mine and infrastructure project in the Galilee Basin had also been granted significant project status by the Queensland coordinator-general.
The China First coal project includes a large scale thermal coal mine near Alpha, west of Emerald. The proposed mine will be linked to the new T4-T9 coal terminal at Abbot Point near Bowen by a new 471km standard gauge, heavy haul railway line.
“Our China First project will create 6000 jobs during construction and will generate an estimated $4.6 billion per annum in export revenues once operational,” China First spokeswoman Baljeet Singh said.
“Now we have QR National in conjunction with the Queensland government claiming it can build the rail link and create hundreds of jobs in what looks like a bid to score some political mileage in the government’s bid for re-election.
“This is an outrage as we had already been in commercial discussions and exchanges with QR National for cooperation in the joint development of rail and port facilities supporting the Galilee Basin.
“We have advised the coordinator-general of the improper use for which the subject significant project declaration regarding QR National has been made and reserve our rights against him and the Queensland government.
“We intend seeking damages of $8 billion and will also seek injunctions against QR National and other relevant parties seeking to restrain them from dealing with QR National in respect of the Galilee Basin and its corridor and associated port facilities.”
“QR National strongly rejects these baseless assertions," a QRN National spokesperson told ILN.
"We do not intend to comment further on these matters."
Last week QR National said it was in discussions with a range of companies planning to export coal from both the Galilee and Bowen basins.
The other major developers in the Galilee Basin are Gina Rinehart’s Hancock Coal and the Indian Adani Group.
The Central Queensland Integrated Rail Project would be a multi-user rail network servicing the needs of the emerging Galilee coal basin by providing access to ports in central Queensland, in particular Abbot Point.
The project is expected to require a capital investment of at least $2 billion and would take up to ten years to construct.
QR National strategy & business development executive vice president Ken Lewsey said last week the state government’s acknowledgement of the project was a big step forward.
“[The] decision takes our proposal to the next stage where we can actively engage in discussions with the community as well as key stakeholders in the coal supply chain,” Lewsey said.
“This is a proposal that will optimise existing rail infrastructure and minimise construction of greenfield railway with its inherent cost and community impacts.”
As well as servicing major coal deposits in the Galilee Basin, the railway could also cater for coal mine expansions in the existing Bowen Basin.
