THE QUEENSLAND Resources Council (QRC) has welcomed the Premier’s re-commitment to construction of the Goonyella-Abbot Point (GAP) coal rail project in north Queensland ahead of export demand.
QRC Chief Executive Michael Roche says the argument for an independent review to ensure reasonable and sustainable commercial outcomes has never been stronger. He also noted the Premier’s nomination of a January 2012 completion date.
Roche says the commercial negotiations surrounding the GAP project are complex by their nature as it proposes to service a large number of Bowen Basin coal mines with varying needs and cost structures. He says it’s instructive that since formal negotiations began in February 2008, two coal mines have been signed up.
Roche claims that should be signaling to the government and QR that the commercial model being pursued outside the normal regulatory process has not been a success and needs to be reviewed urgently before locking it in as the template for other key rail track projects.
The QRC Chief Executive says in particular, the review needs to ensure that the QR commercial framework avoids the gouging of monopoly rents rather the pursuit of commercial returns benchmarked against similar investments.
The QRC believes the GAP project represents a significant opportunity for Queensland to capitalise fully on the next surge in minerals and energy demand and that’s what we’re hoping the Premier’s comments will inspire.
In 2008-09, Queensland exported more than 159 million tonnes of coal with total production valued at more than $38 billion.
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