Biloela Regional Economic Development by Powers Financial Group

Gladstone Biloela region

Ken Oâ&#x20AC;&#x2122;Dowd MP Federal Member for Flynn

Dear Investor This publication has been prepared by Powers Financial Group and highlights the immense volume of investment that is underway or planned for the Gladstone-Biloela region, with a total of approximately $230 billion of projects in the pipeline of economic activity. As a former business owner and life long resident in the region, I am proud to spend my time serving the Central Queensland community in the Flynn Electorate and am grateful for the opportunity to play a role in the expansion of Central Queenslandâ&#x20AC;&#x2122;s widely diverse industries. I am excited about the potential growth that these emerging projects will bring and the prosperity they will deliver to our community. Gladstone and the surrounding region showcases that economic prosperity is continuing in Australia despite the impact of ongoing global financial crises on national economies. The Biloela area is no exception to this, having significant major investments planned and underway in a range of industries. With cornerstone industries of primary production, mining, energy and meat processing, Biloela is benefiting from the current economic expansion taking place within Central Queensland. With developing projects in minerals, petroleum and coal seam gas, and the required sustainable infrastructure being built to support them, the CQ region is set to thrive as an exporter of resources to the world. I have been a personal client of the Powers Financial Group for over 25 years and I encourage you to contact Powers Financial Group for further information on investment opportunities in the region.

Ken Oâ&#x20AC;&#x2122;Dowd MP Federal Member for Flynn

Gladstone Biloela region

1. B iloela, a Growth Region

• Economic growth projects

• Minerals

• Coal

• Petroleum & Coal Seam Gas (CSG)

• Major Infrastructure

2. G ladstone Region’s Growth is Skyrocketing

• Gladstone City: Home to Major Industry

• Gladstone Region Summary

• LNG Industry Developments Under Construction/Development • Minerals Projects under Construction/Development

• Major Energy Projects - Gladstone

• Other Major Projects Proposed or Starting

• Infrastructure for the Port of Gladstone

• Other Projects Under Construction

• Major Future Opportunities – Gladstone

3. Australian Mining Industry

• Industry Importance

• Industry Revenue Growth

• Demand Factors

• Industry Outlook

4. A ustralian Minerals and Energy Projects

• Industry Highlights 2011

• Advanced Projects

• Less Advanced Projects 5

Table of Figures • Figure 1: Gross Regional Product by Industry

in the Gladstone Region, 2010.

• Figure 2: Australian Industry Key Statistics

Snapshot (IBISWorld, 2012).

• Figure 3: Distribution of Mining Revenues by

State (percentage of total) showing the dominance of WA and QLD (IBISWorld, 2012). 39

• Figure 4: Key Players in the Australian

Mining Industry, Percentage Share, 2012. 39

• Figure 5: Australian Mining Industry

Products and services segmentation (2011-12; IBISWorld); Percentage of Industry Total Revenue of AUD $ 205 billion. 40

• Figure 6: Completed Minerals and Energy

Projects to April 2011, and Average Capital Costs (2010-11 AUD $). 41

Complex relative to Biloela and Gladstone. 10 • Illustration 3: Map showing Bowen Basin

Projects for Cockatoo Coal. Note the central location of Biloela. 11

• Illustration 4: New MLA areas for Xstrata

Coal 11

• Illustration 5: The Surat Basin Rail Line

will connect with the Moura Line on to Gladstone. 12

• Illustration 6: Maps showing the Coal Seam

Gas activities of Molopo Australia near Biloela. 12

• Illustration 7: Map of the Westside CSG

operations near Moura & Biloela. 13

• Illustration 8: Map showing the GLNG

Pipeline Route past Biloela to Gladstone. 14

• Illustration 9: QCLNG Project - The

Queensland Curtis LNG Project

• Illustration 10: Map showing the final few

List of Tables • Table 1: Advanced Projects in Australia as

at April 2011 - 28% of the total are in QLD by value but the value is way ahead of most states combined except for WA. 42

• Table 2: Less Advanced Minerals and

Energy Projects by State - April 2011. 44

hundred km of the Arrow-Surat Pipeline to Gladstone. 16

• Illustration 11: Location of the Nathan Dam

Project relative to Biloela. 17

• Illustration 12: Gladstone has $US 16 Billion

of Foreign Direct Investment - more than any other city in the world (2010). 20

• Illustration 13: Images from of Gladstone

and its major projects.

• Illustration 14: QGC Limited Queensland

List of Illustrations/ Photographs • Illustration 1: The Gladstone – Biloela

Region and the Coal Seam Gas Locations in Queensland. Note Biloela and Gladstone are central to the CSG Fields. 10

• Illustration 2: Location of the Dawson Mine

Curtis Island LNG Project 24

• Illustration 15: Image of the GLNG Curtis

Island Facility as Proposed. 24

• Illustration 16: The Arrow LNG Project

proposed layout from the Arrow Energy EIS. 25

• Illustration 17: Artists impression of the

view from Auckland Point, Gladstone, of the

various LNG Projects.

• Illustration 18: The Australia Pacific LNG

project LNG facility on Curtis Island in Gladstone, the first two trains of which will have a processing capacity of up to 9 million tonnes per annum. 26

• Illustration 19: LNG Limited Gladstone

Project “Fisherman’s Landing” Proposed Design & Layout 27

• Illustration 20: LNG Limited schematic

illustrating its proposed Spur Line and the infrastructure of the other LNG Plants 28

• Illustration 21: Rio Tinto Alcan Bauxite

& Alumina Yarwun 2 plant layout: note; Yarwun expansion shown in yellow 29

• Illustration 22: Boyne Smelters Aluminium

production process. 29

• Illustration 23: Wiggins Island Coal Export

Terminal Construction Site 30

• Illustration 24: The Moura Link – Aldoga Rail

Project as proposed.

• Illustration 25: Boulder Steel Plant Location

and Infrastructure Location and Layout. 33

Contact us BILOELA 54 Callide Street (PO Box 98) Biloela Queensland 4715 P 07 4995 6677 F 07 4992 1787 8.30am — 5.00pm BRISBANE L7, 269 Wickham Street (PO Box 310) Brisbane Queensland 4006 P 07 3251 4444 F 07 3251 4422 8.30am — 5.00pm MONTO 3 Newton Street (PO Box 69) Monto Queensland 4630 P 07 4166 1366 F 07 4166 1343 9.00am — 3.00pm

• Illustration 26: Map showing the Port Alma

locality north of Gladstone. 34

• Illustration 27: Map showing the plans for

the dredging and upgrade of the Gladstone Port Western Basin. 36

• Illustration 28: Gladstone’s Large Scale

Industry – Established and Proposed 37

• Illustration 29: Growth in Value of Advanced

mail@powers.net.au www.powers.net.au REPORT COMPOSED BY EARL STEVENS estevens@powers.net.au

Minerals and Energy Projects in Australia 2010-11 AUD $ billions. 42

• Illustration 30: Advanced Minerals and

Energy Projects April 2011 showing the importance of QLD & WA. 43 7

Biloela is a Growth Region

Biloela is located approximately 600 km North-West of Brisbane and 100 km inland from Gladstone. It is the administrative centre of the Banana Shire. Biloela is a modern town characterised by very broad streets and a well-established business and service centre. Two power stations, a meatworks, the nearby mines and a healthy agricultural base, drive Biloelaâ&#x20AC;&#x2122;s economy. The Anglo-American Callide Mine is a major Queensland coal mining operation with a production capacity of around 10 million tonnes each year. Biloela is also the centre of a very successful beef producing area. 9

The following list of projects have, or will have, a positive economic effect on Biloela.

Minerals • First pass drilling by Australian Bauxite Ltd on the Binjour Plateau. • Aussie Q Resources Ltd at Whitewash South and Gordon’s molybdenum-copper-silver prospects near Monto. • Planet Metals Ltd has drilled two deep, partially cored holes (totalling 893 m) to test for downdip extensions of existing resource base at the Mount Cannindah copper-gold project near Monto. • Solomon Gold Plc. has reported additional drilling results at the Crunchie gold deposit within the Rannes gold project northwest of Biloela.

Coal Projects in the Biloela Region • Anglo American Metallurgical Coal Ltd recommencing open cut mining at the Dawson North mine. Dawson mine is an open-cut coal

operation with more than 280 million tonnes of existing coal reserves. The mine combines three adjacent coal mining areas, stretching almost 60 kilometres with the lease area almost twice that length. Dawson North Mine is Location near Moura, about 40 km from Biloela and 140 km southwest of Gladstone. • Aquila Resources Ltd and Vale Australia Ltd – Isaac Plains Coal Mine. Isaac Plains is located approx. 180 km South West of Mackay, Queensland, in Central Queensland’s Bowen Basin Coal province. Isaac Plains has proven Reserves of over 22 Mt and Measured and Indicated Resources of a further 30 Mt. • Bandanna Energy Ltd has upgraded total coal resources at the Arcturus deposit near Rolleston by 33%. This sees the Arcturus Project resource increase to 206.3 million tonne. The Arcturus Project is strategically located with respect to existing infrastructure, with the Springsure rail corridor (servicing the Minerva Mine) to the west and the Rolleston rail corridor

Illustration 2: Location of the Dawson Mine Complex relative to Biloela and Gladstone.

Illustration 1: The Gladstone – Biloela Region and the Coal Seam Gas Locations in Queensland. Note Biloela and Gladstone are central to the CSG Fields. 10

Illustration 3: Map showing Bowen Basin Projects for Cockatoo Coal. Note the central location of Biloela.

Illustration 4: New MLA areas for Xstrata Coal

(servicing Xstrata’s Rolleston Mine) to the east. • Bowen Energy Ltd has completed five boreholes totalling 2610 m in the southern area of the Katrina near Rolleston. A preliminary review of analytical results from core samples, received to date suggests the coal seams may contain soft coking coal and thermal coal potential. • Cockatoo Coal Ltd announced maiden Coal Reserve Baralaba mine Baralaba North Wonbindi. Marketable Reserves totalling 33.6 million tonnes defined in the Baralaba Mine. • Xstrata Coal – Wandoan. Xstrata Coal’s Wandoan Coal Project received conditional environmental approval from the Federal Government in March 2011. • The Wandoan Coal Project is a proposed open-cut thermal coalmine immediately west of the Wandoan Township. The mining lease application area covers approximately 32,000 hectares. The proposed mine would include an open-cut coal mine, a coal handling and

preparation plant, and support facilities. With an expected life of more than 30 years, the proposed mine would produce thermal coal that would be exported around the world or sold to the domestic market. It is anticipated that around 30 million run-of-mine tonnes of coal would be mined at Wandoan annually. • Xstrata Coal is participating in a joint venture with QR National and ATEC to investigate the construction of a new rail connection known as the Surat Basin Rail, between Wandoan and the existing Moura-Gladstone line at Banana. Xstrata Coal is also working closely with QR Network regarding upgrades to its existing connections from Moura to Gladstone, and potential new port developments at Wiggins Island and Balaclava Island. Together these developments comprise the Surat Basin Coal Value Chain, which would provide critical mass to open up the Surat Basin in Queensland for major investment and regional development.

Illustration 6: Maps showing the Coal Seam Gas activities of Molopo Australia near Biloela.

Illustration 5: The Surat Basin Rail Line will connect with the Moura Line on to Gladstone. Often referred to as the ‘Southern Missing Link’, Surat Basin Rail is a transport solution for the region that will connect to the future Wiggins Island Coal Export Terminal. The 214-kilometre railway will be a new and iconic connection that will significantly enhance the existing coal rail network in Queensland, and unlock approximately 6.3 billion tonnes of coal reserves in the Surat Basin. The Surat Basin is a 27,000 square kilometre region that stretches from Queensland to northern New South Wales. The region has a strong agricultural industry and a burgeoning resources industry based on its vast reserves of thermal coal. The railway will support 22-24 diesel powered train movements per day and provision has been made for electrification in the future. In order to accommodate the rail, a corridor of approximately 60 metres wide (wider in sections) will be acquired from affected landowners and fenced along its entire length. By supporting transport to and from the Port of Gladstone, Surat Basin Rail also has advantages for general freight and could 12

enhance export options for regional producers. Surat Basin Rail offers a range of opportunities that will enhance the economic development of regional Queensland. It supports the continued growth of the coal industry, which is Australia’s largest export industry. The project aims to deliver environmentallyfriendly transport of coal by mitigating social, environmental and economic impacts. The railway will have the capacity to transport up to 42 million tonnes of coal per year on trains up to 2.5 kilometres in length. • The Range – Wandoan. Targeting a five million tonne per annum open cut thermal coal mine, the Range Project is located 24 kilometres south east of the Wandoan township, within the Surat Basin. It is well located relative to existing key infrastructure and the planned Surat Basin Rail line, which will provide a rail link to the coal ports at Gladstone. The project remains on track for first coal in 2015 subject to statutory approvals being attained and completion of third party infrastructure.

Illustration 7: Map of the Westside CSG operations near Moura & Biloela.

Petroleum and Coal Seam Gas (CSG) in the Biloela Region • Molopo Australia Ltd continued dewatering and gas production testing near Moura. Molopo is the majority owner and operator for ATP’s covering c. 1,370 km2 over 5 project areas in Bowen Basin, west of Gladstone • Molopo Australia Ltd proposed Gas power Station Moura. Know as the Mungi Power Generation Project, the project is aimed at enhancing value of Mungi Gas through vertical integration and exposure to post carbon taxed electricity market. The low emissions gas-fired generation provides relative advantage over coal-fired generation in post CPRS market. The plan is for 2 x 30 MW stages involving $65 million investment

• WestSide Corporation Ltd and Mitsui E&P Australia Ltd at the Meridian and at Paranui. WestSide operates the Meridian SeamGas CSG gasfields 160 km west of Gladstone in Queensland’s Bowen Basin in joint venture with Mitsui E&P Australia. Renamed Meridian SeamGas, the gasfields commenced operations in the late 1990’s as Australia’s first CSG producer and comprise a range of assets including a petroleum lease, gas rights in mining leases and gas compression and pipeline infrastructure connected to Queensland’s commercial gas network. WestSide completed the transition from explorer to producer in July 2010 after joining with Mitsui E&P Australia Pty Ltd (Mitsui) to acquire the Dawson CSG fields near Moura in Queensland’s Bowen Basin from existing owners Anglo American (Anglo) and Mitsui Moura Investment Pty Ltd (MMI). The field is currently producing approximately 10 Terajoules (TJ) of gas per day under contract. A production drilling and well workover program now underway aims to increase gas output toward 25 TJ a day by late 2012. While Meridian SeamGas has contracts to take up to 25 TJ a day the pipeline infrastructure has total capacity of 60 TJ a day while the existing compression equipment has total capacity of 30 TJ a day. This excess capacity provides the joint venture with an opportunity to increase production at relatively low cost.

Illustration 8: Map showing the GLNG Pipeline Route past Biloela to Gladstone.

Santos Pipeline (GLNG). Santos Limited (Santos) and its partner PETRONAS are developing their Queensland coal seam gas (CSG) resources in the Bowen and Surat Basins as feed gas for a liquefied natural gas (LNG) liquefaction and export facility on Curtis Island, near Gladstone.

will produce coal seam gas for commercial markets both locally and overseas and already supplies gas to power stations in Queensland, major industrial customers and homes and businesses in south east Queensland. The Australia Pacific LNG project consists of:

The GLNG project has three components:

• The further development of Australia

• Exploration and production of CSG in the Surat and Bowen Basin gas fields.

Pacific LNG’s gas fields in the Surat and Bowen basins in south western and central Queensland

• Construction and operation of a 435-kilometre gas pipeline from the gas fields to Gladstone.

• A gas pipeline from the gas fields to an LNG

• Construction and operation of a gas liquefaction and export facility on Curtis Island and associated infrastructure.

• An LNG facility on Curtis Island in

Origin Pipeline (APLNG). The Australia Pacific LNG Project draws on the extensive experience of Australia’s largest integrated energy company, Origin, and Houston-based company ConocoPhillips, who has assets and operations around the world. The Project 14

facility in Gladstone in Queensland.

Gladstone, the first two trains of which will have a processing capacity of up to 9 million tonnes per annum.

• From the LNG facility, Australia Pacific

LNG’s cargoes will be shipped to the energy markets of Asia. Australia Pacific LNG’s first cargo is expected to be exported in 2015.

Illustration 9: QCLNG Project The Queensland Curtis LNG Project

British Gas (QGCLNG). QGC is developing coal seam gas in the Surat Basin of southern Queensland for domestic and export markets through its Queensland Curtis LNG (QCLNG) Project. The project draws on QGC’s extensive coal seam gas expertise and BG Group’s international experience in liquefied natural gas (LNG). Plans for this major, integrated project, involve: • Expanding QGC’s existing coal seam gas production in the Surat Basin of southern Queensland

• Building a 540 km buried natural gas pipeline network linking the gas fields to Gladstone • Constructing a natural gas liquefaction plant on Curtis Island, near Gladstone, where the gas will be converted to LNG for export • The project’s first stage is two processing units, known as LNG trains, at the Curtis Island plant. These trains, which have a design life of at least 20 years, will produce a combined 8.5 million tonnes of LNG a year. The site can accommodate an expansion to 12 million tonnes of LNG a year, subject to demand. The first LNG delivery expected in 2014. 15

Illustration 10: Map showing the final few hundred km of the Arrow-Surat Pipeline to Gladstone.

• Arrow Energy LNG Project. Formerly known as the Shell Australia LNG Project, the proposed Arrow LNG Plant Project on Curtis Island will be supplied with coal seam gas from Arrow’s reserves located in the Surat Basin in south east Queensland and the Bowen Basin in central Queensland. The Arrow LNG Plant Project has been declared a ‘significant project’ by the Queensland Government; this reflects the complexity of Queensland and Commonwealth approvals required, the project’s potential impacts, and the importance of the Gladstone region to national, state and local economies.

• The ASP (formerly the Surat-Gladstone Pipeline) forms part of the Arrow LNG Project, which involves the planning, construction and commissioning of a buried 660 mm diameter, high-pressure steel gas transmission pipeline. It is anticipated that construction of the pipeline will start in 2015/16, with first gas supplied two to three years after that. The Project will make a significant contribution to the local, regional, state and national economies, both in the construction phase and through its operational life. It will also provide employment, business and industry opportunities benefiting the wider economy.

Illustration 11: Location of the Nathan Dam Project relative to Biloela.

Major Infrastructure Project in the Biloela Region The Nathan Dam and Pipelines Project is a major initiative aimed at providing long-term, reliable water supplies to mining, power, urban and existing agricultural customers in the Surat Coal Basin and the Dawson-Callide sub-region of Central Queensland.

capacity of up to 888,000 megalitres. The capital cost of the Project is $1,400 million (at preliminary design accuracy). The aim is to commission the Project in June 2016. Pending approvals, the construction period is programmed for between July 2013 and June 2016.

The proposed Nathan Dam site is located just upstream of Nathan Gorge on the Dawson River, approximately 70 kilometres downstream of Taroom and 315 kilometres upstream of where the Dawson and Fitzroy rivers meet. Depending on the final dam design, it is expected to have a

This will include a six month early works program in the latter half of 2013 when the required road upgrades will be undertaken and site facilities established prior to the commencement of dam and pipeline construction activities in January 2014.

Gladstone Region’s Growth is Skyrocketing The Gladstone Region The Gladstone Region begins approximately 450 kilometres north of Brisbane and extends up the Central Queensland coast some 200 kilometres. The region is home to a thriving 21st Century industrial base served by one of Australia’s busiest ports, the Port of Gladstone. A deep water harbour and excellent transport links close to the massive coal reserves of the Bowen Basin has made the city a strategic industrial hub of central Queensland, and arguably the state’s economic engine room. The Gladstone regional council is the local authority who presides over the total estimated population of 62,660. A major industrial cluster, where economic competitiveness is balanced with steadily improving environmental performance, Gladstone’s development potential is underpinned by the 22,000 hectare Gladstone State Development Area, which offers a range of development-ready sites, established infrastructure and growing possibilities for economic development to drive the region’s sustainable growth. The Gladstone State Development Area (GSDA) was established in 1993. The purpose was to

secure and protect a large area of suitable land with ready access to deep-water port for largescale industrial development over a 30 – 50 year time frame. The result of this development area is a thriving 21st Century Industrial base served by one of Australia’s busiest ports, the port of Gladstone. A major industrial cluster where economic competitiveness is underpinned by the 22,000-hectare State development area, which offers a range of development ready sites, established infrastructure and growing possibilities for economic development to drive the regions sustainable growth. With recent and continuing investment in the LNG & Coal industries Gladstone’s strong industrial growth looks set to continue. The Gladstone Region is also gaining momentum as a tourism destination being the only gateway to the entire Southern Great Barrier Reef. Heron Island lies 72 km north east off the coast of Gladstone, where you can enjoy some of the world’s best reef diving. Snorkelling, fishing, reef walking and nature walks. Appealing to young singles and couples, Gladstone is expected to experience enormous growth over the next five years. The popularity and its large rental population have encouraged property investors to buy into the area.

Illustration 12: Gladstone has $US 16 Billion of Foreign Direct Investment - more than any other city in the world (2010).

Gladstone City: Home to Major Industry Gladstone is a well-established industrial city with a number of companies choosing Gladstone to locate their large-scale resource processing businesses and associated industries. Gladstone’s industrial giants operate around the clock, employing thousands of workers. The region’s major industries include: • Queensland Alumina Ltd (QAL) - One of the world’s largest alumina refineries; • Rio Tinto Aluminium Yarwun Alumina Refinery The world’s first Greenfield alumina refinery to be constructed since 1985; • Boyne Smelters Ltd (BSL) - Australia’s largest aluminium smelter; • Cement Australia - Australia’s largest cement kiln; • Gladstone Power Station (NRG) - The largest power station in Queensland; • Orica - The world’s largest industrial grade ammonium nitrate plant, a world scale sodium cyanide plant and a chloralkali plant.

Gladstone Liquid Natural Gas (LNG) Australia is poised to become the world’s largest producer and exporter of liquefied natural gas by 2020, earning 36 billion annually by then (source: The Australian 07/06/11). Liquid Natural Gas (LNG) projects are further transforming the growing mining industry in Queensland. The below LNG plants have started civil construction works. The core of the work force is expected to start entering the Gladstone market in

first and second quarters 2012. • Queensland Curtis LNG – AUD $ 15 billion development creating 5,000 construction jobs and 1,000 operational jobs; • Gladstone Liquefied Natural Gas Project (GLNG) – AUD $ 16 billion development creating 5,000 construction jobs and 1,000 operational jobs; • Australian Pacific LNG - $14 billion development, creating 3,300 construction jobs and 175 operational jobs; In addition to these plants Arrow Energy is planning an LNG plant which will require a peak workforce of 3,500 people during the construction phase. Arrow Energy is anticipating starting construction on the LNG plant in 2013. The newly announced multibillion-dollar Liquefied Natural Gas (LNG) projects are based on processing coal seam gas (CSG) from the Surat and Bowen basins. The proposals include piping CSG to Gladstone or Curtis Island, liquefaction of the CSG to produce LNG and export of LNG to international markets. Potentially, the LNG industry could involve a private sector investment of more than $60 billion, the export of over 50 million tonnes of LNG per annum, which would provide significant economic benefit to Queensland including an increased Gross State Product of over $3 billion and the creation of over 18,000 jobs. These announcements along with the many other factors affecting and influencing growth has flowed through to both the residential, retail and commercial sectors of the community putting huge demands on services spread across all sectors of the market.

Illustration 13: Images from of Gladstone and its major projects.

Gladstone: World Class Coal Port Gladstone has recently reached a major milestone on the way to becoming a world-class coal port. In addition to Gladstone’s existing coal loading facility the first stage of Gladstone’s Wiggins Island Coal Export Terminal has signed up the finance for the first stage of the development, which will handle 27 million tonnes a year. This employee intensive project involves the funding and construction of a new coal export facility, which will be situated just west of the existing RG Tanna Coal Terminal in Gladstone Harbour. The Terminal will be located at Golding Point on land leased from the Gladstone Ports Corporation within Gladstone State Development Area. There are a number of coal producers from the Surat and Bowen Basins that will use the Terminal to export their coal. These coalfields are situated to the west and south west of Gladstone.

Gladstone Region Gross Regional Product The 2010 (financial year) estimated gross regional product (GRP) of the Gladstone Region was around AUD $2.5 billion (industry output alone is $2.0 billion). Industry contribution to

the Gladstone Region’s GRP is dominated by the manufacturing, construction, property & business services and mining sectors. Large scale projects in the Gladstone Region such as metal processing refineries and smelters account for the bulk of the region’s value of manufacturing sector output. The manufacturing sector is the largest contributor to Gladstone’s GRP with output close to 21% of the region’s total industry output. The manufacturing, construction (11%), property and business services (10%) and mining (9%) industries combined represent around 41% of the Gladstone Region’s Industry share of GRP. And with recent and continuing investment in the LNG industry, which is expected to play an increasingly important role in global energy markets over coming years, the Gladstone Region’s strong industrial growth looks set to continue. Major industry in Gladstone is supported by the region’s thriving and world-class engineering, construction and manufacturing sectors while the region’s traditional agricultural base in cattle farming and horticultural production, continues to underpin the Gladstone Region’s economic base.

Figure 1: Gross Regional Product by Industry in the Gladstone Region, 2010.

Gladstone Region Summary During 2010 Gladstone Region Attracted US $16 billion of Foreign Direct Investment (FDI), more than any other city in Australia and comprising a staggering 44% of total FDI into Australia of $US 36.68 billion; • 2011 there is a further $50 billion committed to projects which have now commenced construction; • Matusik reports that there is currently AUD $88 billion in projects that are either under construction, have Environmental Impact Study (EIS) approval or are proposed/pending. See the enclosed summary of these infrastructure projects. • Such major infrastructure developments are important employment generators that promote demand for residential property. For example in 2003, the Queensland branch of the Urban Development Institute of Australia commissioned a study which found that for every $1 million spent on new infrastructure, nine full time jobs were created (five of which are directly in the development industry and four generated from flow on effects) across the region in which these new projects were being housed. • It is estimated that there are up to 18,000 22

construction jobs being created in Gladstone from the projects that have started construction this year. In addition to this further jobs will be created as a result of social infrastructure expansion such as hospitals, police, schools, recreation facilities, child care, aged care etc. • It is estimated that there will be circa 5,500 operational jobs created once the infrastructure work has been completed. • Gladstone makes a significant contribution to the Queensland and Australian economy. In 2009 – 2010 30% of Queensland’s exports by tonnage carried by sea were traded through Gladstone. • Gladstone region has a high resident income profile compared to Queensland with around 26% of individuals in the Gladstone region having a weekly income in excess of $1,000 compared to only 18.5% for Queensland. • The majority of Gladstone households (47%) earn over $1,200 per week compared to 39% of all Queensland households. • The median house price across the Gladstone region has averaged 10% growth per annum over the last 10 years & 11% growth per annum over the last 5 years.

LNG Industry Developments Under Construction/ Development • Queensland Curtis LNG (BG Group / QGC) Capital AUD $15 billion. • Gladstone LNG (Santos/ Petronas/Total/Kogas) - Capital AUD $16 billion. • Arrow Energy LNG Plant – Capital Cost of AUD $15 billion and annual operating costs of AUD $750 million. • Australia Pacific LNG (Origin/ConocoPhillips) – FID pending - Capital AUD $13 billion • LNG Limited - Capital AUD $1 billion

Queensland Curtis LNG • British Gas (QGCLNG) US $15 billion (development program, including a 540 km pipeline network to deliver gas to Gladstone and construction of world scale LNG plant). The QCLNG Project will consist of project infrastructure to be developed by QGC comprising the following major components (Project Components):

• A significant CSG field development and supporting infrastructure in the Surat Basin of southern Queensland (Gas Field Component) including management of associated water produced • A network of underground pipelines, including gas and water collection pipelines in the Gas Field Component and a 380 km underground gas transmission pipeline (Export Pipeline) from the Gas Field to a LNG Facility (Pipeline Component) • A gas liquefaction facility on Curtis Island, adjacent to Gladstone, initially comprising two processing units, or “trains”, to be followed by a third train. This component also includes an export jetty and other supporting infrastructure (LNG Component)

• LNG shipping operations to load the LNG and ship cargos to global export markets (Shipping Operations).

• An additional component, a new shipping channel from the existing channels in the Port of Gladstone and a swing basin at the export jetty, will need to be developed to provide access for the shipping operations. The dredging works required for this Component may be part of a larger shipping channel development program being proposed by Gladstone Ports Corporation (GPC).

Gladstone LNG (Santos/ Petronas/Total/Kogas) - Capital AUD $16 billion GLNG is a joint venture between Santos, Australia’s largest domestic gas producer, PETRONAS, Malaysia’s national oil and gas company and the world’s second largest LNG exporter, French energy major, Total, the world’s fifth largest publicly traded integrated international oil and gas company, and KOGAS, the world’s largest buyer of LNG. The ownership structure of GLNG is: Santos 30%; PETRONAS 27.5%; Total 27.5%; and KOGAS 15%. GLNG Operations is the joint venture entity accountable for sourcing the gas, constructing the 420 km pipeline and LNG plant on Curtis Island, and facilitating the production and off-take of LNG, on behalf of the joint venture partners. The facility will be located at the Hamilton Point West site adjacent to China Bay on Curtis Island. The proposed site was selected based on a number of criteria including shipping access, geotechnical suitability, environmental suitability and proximity to infrastructure.

Illustration 14: QGC Limited Queensland Curtis Island LNG Project

The LNG facility will consist of the following key elements: • A liquefaction facility that includes on-shore gas liquefaction and storage facilities. • Marine facilities which include a product loading facility (PLF) for loading LNG into ships for export, and a materials offloading facility (MOF) and haul road for the delivery of equipment, plant and materials to the LNG facility site.

• A swing basin and an access channel from the existing Targinie Channel in Port Curtis. >> A dredged material placement facility. • A maximum 2,000-person capacity accommodation facility on Curtis Island for construction workers.

Illustration 15: Image of the GLNG Curtis Island Facility as Proposed.

Illustration 16: The Arrow LNG Project proposed layout from the Arrow Energy EIS.

Arrow LNG Plant Project on Curtis Island (formerly known as the Shell Australia LNG Project) will be supplied with coal seam gas from Arrow’s reserves located in the Surat Basin in southeast Queensland and the Bowen Basin in central Queensland. The key features of the project are: • LNG facility on Curtis Island - a staged development producing up to 18 million tonnes per annum of LNG • An approximately 9 km long feed gas pipeline from near the Gladstone City Gate traversing Port Curtis in a tunnel • Marine logistics facilities on Curtis Island and the mainland • Construction of jetties, offloading facilities and LNG Carrier Terminal on Curtis Island in the

vicinity of North China Bay, Hamilton Point and behind Boatshed Point • Dredging of the seabed in Port Curtis and the riverbed at the mouth of the Calliope River to provide access to marine facilities on Curtis Island and the mainland The project is also supported by a dredging program off Port Curtis being managed by the Gladstone Ports Corporation to extend shipping lanes to berth pockets and develop swings basins for LNG carriers to load and manoeuvre. The Western Basin Dredging Project by the Port is subject to a separate EIS approval. The liquefaction facility will produce up to 18 million tonnes per annum (Mtpa) of LNG, and includes the phased construction of up to four trains or processing plants on its Curtis Island site. Stage 1 includes the construction of two trains of around 4 Mtpa of LNG each on the Arrow site behind Boatshed Point.

Illustration 17: Artists impression of the view from Auckland Point, Gladstone, of the various LNG Projects. 25

Illustration 18 : The Australia Pacific LNG project LNG facility on Curtis Island in Gladstone, the first two trains of which will have a processing capacity of up to 9 million tonnes per annum.

Australia Pacific LNG (Origin/ ConocoPhillips) Australia Pacific LNG is the leading producer of coal seam gas (CSG) in Australia and holds the country’s largest CSG reserves position. Australia Pacific LNG is proposing to develop a multi-billion dollar, world-class CSG to LNG export project in Queensland. Origin and ConocoPhillips are 50:50 joint venture partners in Australia Pacific LNG. Sinopec has agreed to subscribe for a 15% equity interest in Australia Pacific LNG. On completion of the transaction, Origin and ConocoPhillips’ ownership interest will be reduced to 42.5% respectively. The Australia Pacific LNG project consists of: • The further development of Australia Pacific LNG’s gas fields in the Surat and Bowen basins in south western and central Queensland • A gas pipeline from the gas fields to an LNG facility in Gladstone in Queensland • An LNG facility on Curtis Island in Gladstone, the

first two trains of which will have a processing capacity of up to 9 million tonnes per annum. Based on Australia’s largest 2P CSG reserves, the Australia Pacific LNG project will become a supplier of low emissions fuel to growing international energy markets as well as continuing to contribute cleaner energy through its domestic production, equivalent to more than 40 per cent of Queensland’s current gas requirements. Total capital expenditure for a two-train project is estimated to be US $20 billion, including approximately US $2.5 billion contingency, and covers the period from FID until the commencement of gas deliveries from Train 2 expected in early 2016. First LNG exports are planned to commence in 2015, underpinned by an agreement with Sinopec for the purchase of 4.3 million tonnes per annum of LNG for 20 years. Australia Pacific LNG is in advanced discussions with potential customers regarding further off-take arrangements for the second LNG train.

Illustration 19: LNG Limited Gladstone Project “Fisherman’s Landing” Proposed Design & Layout

LNG Limited - Capital AUD $1 billion LNG Limited’s Gladstone LNG Project at Fisherman’s Landing, Port of Gladstone. Major Shareholders: • China National Petroleum Corporation (CNPC) own HQCEC (19.90%). CNPC are China’s largest oil (54% share) and gas (82% share) producer and supplier • Copulos Group (10.18%) • Dart Energy Limited (6.01%) • P W Bridgwood (4.99%) • F M Brand (4.80%) LNG Limited so far has completed the following milestones: • Site area can potentially accommodate 4 LNG trains at guaranteed 6 Mtpa.

• Stage 1 dredging and disposal approval received • FEED completed by LNGL/SKEC/LOR and detail design commenced. • Most efficient LNG process by 30% (~6.5% of feedgas used for fuel). • Lowest capital cost LNG project in Gladstone (~US $300/tpa for 2 LNG trains). • Fastest project schedule of ~30 months (usually 40+ months). • Construction started (AUD $50 million spent; 5 months of EPC program completed). • Potential LNG end buyer (with terminals) and financing capabilities. • Gas spur pipeline approval application lodged.

• Environment approval (2 x 1.5 Mtpa LNG trains: OSMR® and membrane tank).

Illustration 20: LNG Limited schematic illustrating its proposed Spur Line and the infrastructure of the other LNG Plants

LNG Limited is now securing its gas supply: • 18,000 PJ* risked forecast 2P reserves uncommitted in Queensland

• Gas supply plan now focused on six suppliers, including Metgasco

Leighton Contractors has been awarded a contract by Bechtel to construct the $84 million Australian Pacific LNG 2600-bed temporary workers accommodation village on Curtis Island, at Gladstone.

• Gladstone LNG project a potential option for ramp-up gas supply from the planned larger scale LNG projects on Curtis Island, Port of Gladstone

• The Curtis Island village and site facilities project will provide much-needed infrastructure to house project teams during the construction of liquefied natural gas (LNG) infrastructure.

• Gas supply plan is supported by strategic partner CNPC HQCEC

• Leighton Contractors’ project team has commenced mobilisation to start construction on the greenfield site which will house a fullyequipped accommodation village as well as landscaping and leisure facilities. Leighton Contractors will also construct roads, services and other infrastructure to support the facility.

• Key focus on coal seam gas companies for gas supply of ~4,500 PJ for 3 Mtpa

• Gas supply inlet point for all LNG projects ~ 21 km from Fisherman’s Landing. Illustration 20: LNG Limited schematic illustrating its proposed Spur Line and the infrastructure of the other LNG Plants

Curtis Island Village and Site Facilities

• The project is due for completion in 2013.

Illustration 21: Rio Tinto Alcan Bauxite & Alumina Yarwun 2 plant layout: note; Yarwun expansion shown in yellow

Minerals Projects under Construction/ Development Rio Tinto Alcan — Yarwun Alumina Refinery • Stage 2 of Alumina Production Facility at GSDA Yarwun Precinct with the inclusion of a gasfire cogeneration facility worth AUD $2.1 billion. Yarwun 2 key features include: • Yarwun alumina refinery expansion will add 2.0 Mtpa of capacity to the existing refinery • Total capacity will increase to 3.4 Mtpa • Gas-fired cogeneration facility guarantees low cost “green” energy • Technology used is a replication of Yarwun 1 with additional design improvements leveraging operational experience.

Illustration 22: Boyne Smelters Aluminium production process.

Boyne Smelters Ltd • Construction of a new baking furnace (CBF4) and upgrade of Reduction Lines crane runway, which includes replacement of overhead cranes AUD $685 million. Rio Tinto Alcan (RTA) is the largest shareholder in the Boyne Smelters Limited (BSL) joint venture. • BSL has been in operation since 1982 and over time has undergone extensive expansion. The smelter underwent a AUD $1 billion expansion in 1997 introducing a third reduction line which increased aluminium production from 260,000 to more than 558,000 tonnes per annum. • The company is undergoing significant modernisation with the re-building of Carbon Baking Furnace 3 and the construction of a new Carbon Baking Furnace 4 to upgrade technology. The new furnace will be more energy efficient and reduce onsite greenhouse gas emissions. A further project includes overhead crane replacement, a crane runway upgrade and an improved alumina transport system to the cells. These projects will modernise and extend the life of Boyne Smelters Limited and at investment of AUD $ 685 million.

Illustration 23: Wiggins Island Coal Export Terminal Construction Site

Major Energy Projects Gladstone Powerlink • Infrastructure upgrades and new large network assets proposal which includes:

• Calvale to Stanwell 275 kV transmission line – construction of a transmission line between Powerlink’s existing Calvale and Stanwell substations. This line will reinforce electricity supply in the Central and North Queensland regions, including Gladstone, and cater for growth in resource, industrial and residential electricity use.

• Calliope River Substation – replacement of the existing Gladstone Substation with a new substation located on Black Harry Island.

• QR Raglan Substation – construction of a new 275/50 kV substation at Raglan to help increase the capacity of the electrified CoalRail network between Blackwater and Gladstone.

• QR Wycarbah, Duaringa and Bluff – construction of three new 132 kV transmission lines in the localities of Wycarbah, Duaringa and Bluff which will facilitate an increase in the haulage capacity on the CoalRail network. Timing of work is expected to be around 2011 to 2013 depending on other development in Gladstone area

Other Major Projects Proposed or Starting Wiggins Island Coal Export Terminal (WICET) - Capital AUD $2.5 billion. Wiggins Island Coal Export Terminal Pty Ltd (WICET) is owned and being developed by existing and potential coal exporters located in Queensland to provide increased long term export coal capacity. The Terminal will be located at Golding Point, to the west of the existing RG Tanna and Barney

Point Terminals. Once fully commissioned, the multi-billion dollar industry-owned and privately funded Terminal will provide over 80 million tonnes per annum (Mtpa) in additional export coal capacity through the Port of Gladstone. • The first stage of Gladstone’s Wiggins Island Coal Export Terminal will handle 27 million tonnes a year. • Stage 1 of new coal terminal to receive thermal and coking coals from mines in the Bowen Basin and Surat Basin. The WICET consortium includes eight Stage One owners:

• Aquila Resources

• Bandanna Energy

• Caledon Resources

• Cockatoo Coal

• Northern Energy Corporation

• Wesfarmers Curragh

• Yancoal

• Xstrata Coal

Currently under construction, WICET has the combined support of the Queensland Government, Gladstone Ports Corporation and other infrastructure providers to deliver the Project using an industry-owned and privately funded structure. The first coal shipments through the initial development of the new Terminal are planned from 2014.

Illustration 24: The Moura Link – Aldoga Rail Project as proposed.

Moura Link - Aldoga Rail Project - Project Capital AUD $500 million The proposed Moura Link-Aldoga Rail Project includes the construction and operation of track and facilities to support electrified and nonelectrified haul trains. It is intended that the haul trains will access the proposed new terminal at Wiggins Island both from the north and from the west, on a rail network shared also by trains accessing the Gladstone State Development Area (GSDA) and other facilities in the vicinity of the Port of Gladstone. QR aims to upgrade the Moura and Blackwater systems to accommodate the growth from coal and general freight to suit industry demand. The ultimate capacity will be refined during the Preliminary Engineering and Environmental Impact Statement (EIS) phase. The proposal is to construct: • A new rail line to carry Moura/Surat traffic arriving via the Moura Short Line (MSL) in the

south to the North Coast Line (NCL) southeast of Mount Larcom, and quadruplication of the NCL from the new yard to just east of the township of Yarwun; and • A rolling stock maintenance yard and provisioning facilities at Aldoga in the north of the GSDA. The new corridor passes through rural areas to the west of the Bruce Highway, outside the GSDA. East of the Bruce Highway most of the rail works are contained within the GSDA. From the northern end of this new link, Moura/Surat traffic will follow the same path as Blackwater traffic along an enlarged NCL corridor to the WICT loop, thus avoiding the greater Gladstone urban area. This effective bypass of the Gladstone urban area is a key strategic benefit of the proposal. It is a direct response to the community’s clearlystated preference (as expressed in submissions to the WICT EIS) that the city not be exposed to further increases in rail haulage of coal through Gladstone.

Illustration 25: Boulder Steel Plant Location and Infrastructure Location and Layout.

Gladstone Steel Plant Project (GSPP, Boulder Steel) - Capital AUD $2.7 billion

• Major plant components:

Boulder is proposing to construct and operate an integrated steel plant at a site in the Aldoga Precinct of the Gladstone State Development Area, which will be a modern, state-of-the-art facility for the production of high quality semi finished steel slabs and billets.

• Blast furnace

The eventual production capacity of the plant will be 5 million tonnes per annum (Mtpa) of semifinished products, with an initial stage of 2.5 Mtpa to supply the export markets in Asia and the Middle East.

• Non-recovery coke ovens • Sinter plant • Basic oxygen furnace • Slab and billet caster The GSPP includes ancillary infrastructure required to transport raw material to the plant and products from the plant to the export facility (Fisherman’s Landing) • Private haul road (PHR) – 17 km from GSPP site to Fisherman’s Landing:

• Located in the Aldoga Precinct of the Gladstone State Development Area (GSDA)

• IMPORT: iron ore (Western Australia), anthracite (New Zealand / Vietnam) and container goods (national and international)

To be developed in 2 stages:

• EXPORT: product (Asia) and waste (largely slag to cement and construction industries)

• Stage 1 – 2.5 Mtpa • Stage 2 – 5 Mtpa (Stage 1 operations commence) Blast furnace technology • Product: high quality semi-finished steel products (slabs and billets) • Predominately for export to Asian markets

• Rail loop and conveyor – coal to be transported from Bowen / Surat Basin via the North Coast Line (NCL), where it will be transferred via overland conveyors to stockyards on the GSPP site. Limestone will be transported on completion of the Moura Link line. • Three shipping berths and product / raw material stockyard at Fisherman’s Landing (northern reclamation area) – Berths 6, 7 and 8 33

Illustration 26: Map showing the Port Alma locality north of Gladstone.

Balaclava Island Coal Terminal (Port Alma) - Capital AUD $1.5 billion Xstrata Coal Queensland (XCQ) proposes to establish a new coal terminal at Balaclava Island, near Port Alma, approximately 40 kilometres north of Gladstone including: • a new rail line and conveyor transport system

components:

• Construction of a rail spur from the existing North Coast Line near Raglan to a new stockpile area

• Construction of a 10 kilometre overland conveyor from the stockpile to the proposed jetty

• Construction of a new coal export terminal to be located on Balaclava Island

• Development of infrastructure associated with the new port, including water, sewerage, power and telecommunications.

• stockyard area • support infrastructure • ship loading system. The project would allow access for vessels up to 90,000 tonnes and enable up to an additional 30 million tonnes of coal per annum to be exported to Asian markets. Development of Port Alma as a coal terminal would also alleviate demand on existing coal terminals located at Gladstone, Dalrymple and Abbot Point. • 35 million tonnes per annum of coal to be exported to global markets from the Surat and Bowen Basins. The proposed project consists of four main

• Planned construction period between 2012 and 2014, approximately 800 jobs are anticipated to be created. • Significant dredging is likely to be involved, for both the Xstrata and any projects that build on the new infrastructure. • New Port Developments are then likely to follow at both Port Alma and Balaclava Island.

Illustration 27: Map showing the plans for the dredging and upgrade of the Gladstone Port Western Basin.

Infrastructure for the Port of Gladstone Western Basin Dredging and Disposal Project - Capital Cost AUD $1.3 billion. The Queensland Department of Infrastructure and Planning (DIP) and the Coordinator General (CG) have prepared the Draft Port of Gladstone Western Basin Master Plan (Master Plan) (Coordinator General, 2009). The Master Plan sets the direction for the Port of Gladstone, in particular the development of its Western Basin, for the next 30 years. The Master Plan aims to provide certainty to industry that the area will be developed, and this development will be in a coordinated manner for

mutual benefit and a net reduction in potential cumulative environmental impacts. There are currently two key projects being developed by GPC to assist in meeting the Master Plan’s strategic objective of developing the inner harbour: • Fisherman’s Landing Northern Expansion Project (undergoing a separate EIS); and • Port of Gladstone Western Basin Dredging and Disposal Project (this Project). The Port of Gladstone Western Basin Dredging and Disposal Project (the Project) is planned to accommodate the progressive development of the Port. • Capital and Maintenance dredging associated with deepening and widening of existing channels and swing basins and creation of new channels, swing basins and berth pockets. In particular to service the emerging LNG industry.

Illustration 28: Gladstone’s Large Scale Industry – Established and Proposed

Other Projects Under Construction

second engineering scale-up step in QER’s plans for a commercial-scale, oil shale processing industry.

Queensland Energy Resources Limited (QER)

This will build on the company’s five years of experience gained while operating a smaller scale pilot plant in Colorado.

Summary of the Project: • Project Outline: Oil shale technology development facility • Estimated CAPEX: AUD $100 million Technology Demonstration Plant • Estimated Production: 35-40 Barrels of synthetic crude oil a day.

QER is continuing background evaluations of its other oil shale resources to ascertain the development feasibility of these resources.

Major Future Opportunities – Gladstone • Coal Seam Gas, Natural Gas and Shale Oil

• Current Status: Construction complete operations commencing.

• Gladstone as a Gas, Petroleum and Energy Hub

QER has an oil shale mine, and associated facilities at its New Fuels Development Centre, located at Yarwun, approximately 15 km north of Gladstone. QER acquired these assets in 2004 and later decommissioned the ATP processing plant that was operating at the site. The plant has now been demolished and QER is constructing a small-scale demonstration plant at the site to demonstrate the Paraho IITM vertical kiln technology for processing oil shale.

• Liquefied Natural Gas – predominately export

The plant is a key component of QER’s strategic development of its resource assets and is the

• Clean Fuels of the Future • Energy Generation – 1500 MW gas fired power station • Industrial Processing – methanol, ammonia, hydrogen • Feedstock – fertilisers, biofuels and other processes • Transportation – gas, hydrogen and electric powered vehicles • Innovation and Research Centre for Gas, Oil and Petroleum

Australian Mining Industry Industry Importance The Australian Mining Industry occupies an important place in the Australian economy. Mining in Australia is expected to generate revenue of about $205 billion in 2011-12, up from $138.8 billion in 2006-07, yielding annualised growth of 8.1%. Revenue is expected to grow by 7.2% in 2011-12, having already expanded by 20.7% in the previous year as the division rebounded from the global financial crisis. Mining is expected to generate about 8.0% of Australiaâ&#x20AC;&#x2122;s GDP in 2011-12. Its 1,320 firms employ 243,152 people, paying about $32.9 billion in wages in 2011-12. The industryâ&#x20AC;&#x2122;s net profit is expected to be $59.03 billion in the current year. Mining is heavily export oriented, with about $153.1 billion (or 74.7% by value) of industry output exported with only minimal processing.

Industry Revenue Growth Rising production volumes worldwide for a range of mineral commodities are expected to cause price growth to slow over the next few years, although the overall trend will remain upward. Higher prices, combined with strongly rising output from Australia, is expected to support annualised growth in mining revenue of about 9.1% over the five years through to 2016-17. By that time, industry revenue is expected to be $317.5 billion. Industry profit is expected to grow a little more strongly than revenue, as firms reap productivity gains from growing economies of scale.

Figure 2: Australian Industry Key Statistics Snapshot (IBISWorld, 2012).

Figure 3: Distribution of Mining Revenues by State (percentage of total) - showing the dominance of WA and QLD (IBISWorld, 2012).

Figure 4: Key Players in the Australian Mining Industry, Percentage Share, 2012.

Figure 5: Australian Mining Industry Products and services segmentation (2011-12; IBISWorld); Percentage of Industry Total Revenue of AUD $205 billion.

Demand Factors

Industry Outlook

A range of factors influence the demand for Australia’s minerals. The pace of industrialisation and growth in Australia’s major trading partners, especially the countries of the Asia Pacific region, plays a key role in driving the demand for minerals. The rising energy intensity of rapidly growing economies such as China is increasing the demand for Australia’s energy resources. This not only relates to coal and gas, but also to metal products (such as alumina and aluminium) that have a high-energy component.

The major factor affecting the performance of the Mining industry will continue to be the pace of world economic growth, the competitiveness of Australian producers and the value of the Australian dollar. The demand for a range of metal and energy products is heavily dependent on trends in world economic growth. Slower growth ultimately reduces the rate at which the demand for minerals expands and holds down mineral prices.

Proximity to markets is also important. Australia is a low cost producer of most minerals and is geographically well positioned to export into Asia. Demand is also influenced by price. In the very short run, demand for many minerals in not price sensitive, due to contractual arrangements (with both mineral producers and downstream users of refined mineral products) and fixed production processes. Over a longer period, these influences on demand are less rigid; contracts are renegotiated and mineral processing plants are updated. Typically, demand eases as prices increase. Movements in exchange rates have a direct effect on the revenue gained by Australian mineral producers for their exports, since the prices of most mineral commodities are set in US dollars. Rapid, ongoing industrialisation in China has helped to underpin strong growth in demand for a range of Australia’s mineral exports, most notably iron ore. However, this source of demand growth is being hit hard by the global financial crisis and the resulting weakened demand for Chinese exports from the rest of the world. 40

Most of the minerals that Australian producers export to markets in the Asia-Pacific region find their way into manufactured goods (metals and a range of other products) destined for other markets, including the developed economies of the European Union, Japan and the United States. As a result, performance is not only sensitive to economic growth in local markets, but also to world economic growth. In markets such as we see currently, the most efficient producers reap the greatest gains during periods of high prices and high demand, and are best placed to weather periods of low prices and weak demand. The supply of most minerals is relatively price elastic, which means that relatively small rises in price tend to result in proportionally larger increases in supply. Most Australian mining companies operate low down on the cost curve, indicating that they are both globally competitive and well placed to prosper in such a market.

Australian Minerals and Energy Projects

Figure 6: Completed Minerals and Energy Projects to April 2011, and Average Capital Costs (2010-11 AUD $).

The Australian mining industry and its

minerals and energy sector is estimated to be $5.9 billion, broadly similar to expenditure in 2009–10. Investment in mineral exploration remains strong, with Australia expected to record its third highest annual mineral exploration expenditure in 2010–11. New capital expenditure in the mining industry is estimated to be $55.5 billion in 2010–11, 53 per cent higher than in 2009–10.

associated energy projects are the key drivers of the fortunes of the Biloela – Gladstone Regions growth prospects.

Industry Highlights 2011 At the end of April 2011, there were 94 projects at an advanced stage of development, with a record capital expenditure of $173.5 billion. The record value of advanced minerals and energy projects reflects, in part, the decision to proceed with the development of the Gladstone LNG project and BHP Billiton, Fortescue Metals and Rio Tinto’s commitment to several coal and iron ore developments over the next three years. In 2010–11, exploration expenditure in Australia’s

Based on industry intentions from the December quarter 2010, Australian Bureau of Statistics (ABS) survey data indicate capital expenditure in the mining sector in 2011–12 may be around $73.7 billion. The significant increase in capital expenditure reflects the start of construction of several large projects, including in the petroleum, iron ore and coal sectors. In the six months to April 2011, 10 projects with a combined capital cost of $2.8 billion were completed in Australia. 41

Table 1: Advanced Projects in Australia as at April 2011 - 28% of the total are in QLD by value but the value is way ahead of most states combined except for WA.

Illustration 29: Growth in Value of Advanced Minerals and Energy Projects in Australia 2010-11 AUD $ billions.

Advanced Projects Projects in this category are either ‘committed’ or ‘under construction’. Of the 94 projects, 33 are either newly committed or entered the list at an advanced stage during the previous six months. The total capital expenditure of the 94 advanced projects at the end of April 2011 is a record $173.5 billion, an increase of 31 per cent from October 2010. The significant increase largely reflects the final investment decision on the Gladstone LNG project (Santos, Petronas, Total and Kogas), which has a capital cost of US $16 billion. 42

In addition, there were a number of projects advanced by BHP Billiton, Fortescue Metals Group and Rio Tinto, including metallurgical coal mining and infrastructure projects in Queensland, thermal coal projects in New South Wales and iron ore mining and infrastructure projects in Western Australia, with a total capital expenditure of US $21.7 billion.

For a full listing of Projects – see Appendix One.

Illustration 30: Advanced Minerals and Energy Projects April 2011 showing the importance of QLD & WA.

less Advanced Projects Projects considered to be less advanced are either undergoing feasibility (in some cases, prefeasibility) study, or have not yet been subject to a final investment decision since the completion of a feasibility study. Some projects may face changes in economic or regulatory conditions, or may be targeting the same emerging market opportunities, necessitating rescheduling. In addition, securing finance for project development, even for highquality projects with a high probability of success, is not guaranteed. Despite the inherent uncertainty in projects at these earlier stages of consideration, the

significant number of large-scale projects at less advanced planning stages under consideration for development is expected to provide a firm platform for future growth in Australian minerals and energy production over the medium term and beyond. Of the 399 projects on the April 2011 ABARES list, 76 per cent (305 projects) remain uncommitted. Table 4 contains a summary of the numbers and commodity distribution of the 305 uncommitted projects, together with their potential capital expenditure.

Table 2: Less Advanced Minerals and Energy Projects by State - April 2011.

Appendix One: • ABARES’ list of major minerals and energy projects (April 2011) - Queensland

• b Principal operating companies. • c Type of project and stage of development – categories of the former include: ‘new project’ and ‘expansion’; categories of the latter include: ‘feasibility study under way’, ‘feasibility study completed’, ‘committed’ and ‘under construction’.

Note: Projects that are under construction or committed are shown in the blue shaded areas. Less advanced projects are shown in the yellow shaded areas.

• Annual incremental capacity expected in terms of contained metal or product; for example, zinc content in zinc concentrates production or salable coal in coal produced. For oil and condensate kbd (‘000 barrels a day) and gas (terajoules a day) and liquid petroleum gas LPG (Mt).

Source: http://adl.brs.gov.au/data/warehouse/pe_ abares99010544/MEprojectsApril2011_LISTING. xls

• e Total capital expenditure as reported by the company in current dollars. Includes cost of development, plant and equipment.

• a Includes projects expected to commence production over the medium term and for which capital expenditure is expected to exceed $40 million (except for gold projects, for which the expenditure threshold is $15 million).

• f Reported employment. Where possible, project employment has been shown at both the construction phase (shown as ‘C’ against the employment numbers below) and in the operational phase (shown as ‘O’). na Not available.

NOTE:

Company b

BHP Billiton Mitsubishi Alliance (BMA)

Peabody Energy

Wesfarmers

BHP Billiton Mitsubishi Alliance (BMA)

Ensham Resources

Aquila Resources / Vale

Rio Tinto

Jellinbah Resources

Macarthur Coal / Gloucester Coal

Xstrata

Hancock Coal

Cockatoo Coal

1. Broadmeadow (mine life extension)

2. Burton

3. Curragh Mine

4. Daunia

5. Ensham bord and pillar underground mine

6. Integrated Isaac Plains Project

7. Kestrel

8. Lake Vermont

9. Middlemount (stage 1)

10. Newlands Northern Underground

11. Oaky Creek (phase 1)

12. Alpha Coal Project (Tad’s Corner)

13. Baralaba expansion

Black coal ― mining projects ― Qld

Project

150 km W of Gladstone

120 km SW of Clermont

90 km NE of Emerald

130 km W of Mackay

6 km SW of Middlemount

60 Km SE of Moranbah

51 km NE of Emerald

180 km SW of Mackay

40 km NE of Emerald

25 km SE of Moranbah

200 km W of Rockhampton

150 km SW of Mackay

30 km N of Moranbah

Location

Expansion, prefeasibility study under way

New project, EIS under way

Expansion, under construction

New project, under construction

Expansion, under construction

New project, committed

Expansion, under construction

Expansion, committed

Status c

2014

late 2011

2011

2012

2013

2012-13

mid 2011

2012

2013

2011

2012

2013

Expected Start-up

3 Mt of PCI and thermal

30 Mt thermal

1 Mt coking

3 Mt

1.8 Mt coking (ROM)

4 Mt

1.7 Mt coking

1.6 Mt coking and thermal

1.5-2.5 Mt thermal

4.5 Mt coking

increase to 8.5 Mt

2-3 Mt hard coking

0.4 Mt coking

New Capacity

$350 m

$7.5b (inc. mine, port and rail)

US$90m (A$93m)

US$150m (A$155m)

$500m (includes stage 1 and 2)

$200m

US$1.1b (A$1.13b)

$86m

$166m

US$1.6b (A$1.65b) excl. pre FID funding

$286m

US$900m (A$928m)

Capital Expend. e

Company b

Aquila Resources / Vale

Q Coal / JFE Steel Corporation

Adani

BHP Billiton Mitsubishi Alliance (BMA)

Waratah Coal

Macarthur Coal / CITIC

Xstrata

Northern Energy

Wesfarmers

Anglo Coal Australia / Mitsui

Peabody Energy

Drake Coal

Aquila Resources / Vale

14. Belvedere underground

15. Byerwen Coal Project

16. Carmichael Coal Project

17. Caval Ridge (Peak Downs expansion)

18. China First Coal project (Waratah Galilee)

19. Codrilla

20. Collinsville open cut

21. Colton

22. Curragh

23. Dawson South (stage 2)

24. Denham

25. Drake Coal project

26. Eagle Downs (Peak Downs East underground)

Black coal ― mining projects ― Qld

Project

20 km SE of Moranbah

17 km S of Collinsville

160 km W of Mackay

15 km NW of Theodore

200 km W of Rockhampton

Maryborough

77 km S of Collinsville

62 km SE of Moranbah

450 km W of Rockhampton

20 km SW of Moranbah

160 km NW of Clermont

100 km S of Collinsville

160 km W of Gladstone

Location

New project, EIS under way

New project, feasibility study under way

Expansion, EIS under way

Expansion, feasibility study under way

New project, feasibility study under way

Expansion, prefeasibility study under way

New project, EIS under way

New project, awaiting govt approval

Expansion, govt approval under way

New project, EIS under way

New project, feasibility study under way

New project, prefeasibility study completed

Status c

2014

2012

2014

2012

2013

2014

2013

2014

2012

2016

Expected Start-up

4.6 Mt coking

6 Mt

5-6 Mt coking

5–7 Mt thermal ROM

2 Mt coking

0.5 Mt coking

6 Mt

3.2 Mt PCI

up to 40 Mt thermal

5.5 Mt coking

up to 60 Mt of thermal

10 Mt coking

7 Mt hard coking

New Capacity

$988m

$84m

$7.5b

$4b

$6.8b

$2.8b

Capital Expend. e

Company b

Northern Energy

Nebo Central Coal / Vale

Ensham Resources

Anglo Coal Australia

Bandanna Energy

BHP Billiton Mitsubishi Alliance (BMA)

Anglo Coal Australia

Rio Tinto

Jellinbah Resources

Hancock Coal

Macarthur Coal / Gloucester Coal

Peabody Energy

Caledon Resources

27. Elimatta

28. Ellensfield coal mine project

29. Ensham Central longwall underground

30. Foxleigh Plains Project

31. Golden Triangle Complex

32. Goonyella Riverside Expansion

33. Grosvenor underground

t34. Hail Creek expansion

35. Jellinbah East

36. Kevin’s Corner

37. Middlemount (stage 2)

38. Millennium expansion

39. Minyango

Black coal ― mining projects ― Qld

Project

15 km N of Cook

22 km E of Moranbah

6 km SW of Middlemount

Galilee Basin

90 km E of Emerald

120 km SW of Mackay

8 km N of Moranbah

30 km N of Moranbah

150 km NW of Moura

12 km SE of Middlemount

40 km NE of Emerald

175 km W of Mackay

30 km W of Wandoan

Location

New project, feasibility study under way

Expansion, EIS under way

New project, feasibility study under way

Expansion, prefeasibility study under way

New project, feasibility study under way

Expansion, prefeasibility study under way

New project, EIS under way

Expansion, EIS under way

New project, EIS under way

New project, feasibility study under way

Status c

2014

2013

2014

2013

2014

2014-15

Expected Start-up

4.5 Mt thermal and coking

2-3 Mt

3.6 Mt coking ROM

30 Mt thermal

1-2 Mt coking

2.5 Mt hard coking

4.3 Mt hard coking

up to 9 Mt hard coking

4 Mt initially (20 Mt ultimately)

1.4 Mt PCI ROM

8 Mt thermal

4.5 Mt thermal and coking

5 Mt thermal

New Capacity

$750m

$500m (includes stage 1 and 2)

$50-100m

US$1.3 b

$1.0b

$580m

Capital Expend. e

Company b

4 km S of Moranbah

Macarthur Coal / Noble

Anglo Coal Australia / Exxaro

New Hope Coal

Xstrata

Macarthur Coal / CITIC / Sojitz / Marubeni

Endocoal

Aquila Resources

Xstrata

Bandanna Energy

Macarthur Coal / CITIC

Xstrata / Itochu / Sumisho Coal

41. Monto coal mine (stage 2)

42. Moranbah South project

43. New Acland stage 3

44. Oaky Creek (phase 2)

45. Olive Downs North

46. Orion Downs

47. Red Hill underground

48. Rolleston open cut

49. Sarum

50. South Galilee Coal Project

51. Vermont East/Wilunga

52. Wandoan opencut (phase 1)

60 km N of Miles

75 km NE of Clermont

150 km NE of Blackall

20 km S of Collinsville

275 W of Gladstone

45 km N of Moranbah

60 km SE of Emerald

30 km S of Coppabella

90 km NE of Emerald

150 km W of Brisbane

120 km S of Gladstone

Macarthur Coal / Noble

120 km S of Gladstone

Location

40. Monto coal mine (stage 1)

Black coal â&#x20AC;&#x2022; mining projects â&#x20AC;&#x2022; Qld

Project

New project, govt approval received

New project, prefeasibility study completed

New project, EIS under way

Expansion, feasibility study under way

New project, prefeasibility study under way

New project, feasibility study under way

Expansion, prefeasibility study under way

Expansion, EIS completed

New project, prefeasibility study under way

Expansion, prefeasibility study completed

New project, feasibility study completed

Status c

2015

2014

2015

2014

2015

2011

2014

Expected Start-up

22 Mt thermal

4 Mt ROM

14 Mt

4 Mt

6 Mt thermal

2 Mt PCI and thermal

2.5 Mt thermal

1 Mt coking

3 Mt

5.2 Mt thermal coal

6.5 Mt coking

10 Mt

1.2 Mt thermal

New Capacity

$65m

US$1b (A$1.03b)

$35m

Capital Expend. e

Company b

Peabody Energy

Rio Tinto

Cockatoo Coal

Company b

54. Wilkie Creek

55. Winchester South

56. Wonbindi

57. Woori

Project

North Queensland Bulk Ports

QR National

Wiggins Island Coal Export Terminal

1.Abbot Point Coal Terminal X50 expansion

2.Abbot Point Coal Terminal yard refurbishment

3.Blackwater System Power upgrade

4.Goonyella to Abbot Pt (rail) (X50)

5. Wiggins Island Coal Terminal (stage 3)

Black coal ― infrastructure projects ― Qld

Aquila Resources

53. Washpool coal project

Black coal ― mining projects ― Qld

Project

Gladstone

North Goonyella to Newlands (70 km)

Blackwater

Bowen

Location

19 km S of Wandoan

180 km W of Gladstone

40 km S of Moranbah

40 km W of Dalby

260 km W of Rockhampton

Location

New project, EIS under way

Expansion, under construction

Refurbishment, under construction

Expansion, under construction

Status c

New project, feasibility study under way

New project, prefeasibility study under way

Expansion, EIS under way

New project, feasibility study completed

Status c

2020

early 2012

2012

2011

Expected Start-up

2013

Expected Start-up

Terminal capacity increase from 50 Mtpa to 70 Mtpa

50 Mtpa

9 Mtpa

Terminal capacity increase from 25 Mtpa to 50 Mtpa

New Capacity

3-4 Mt thermal coal

3 Mt PCI and thermal

4 Mt of coking and thermal

7.7 Mt thermal

2.6 Mt coking

New Capacity

$1b

$1.1b

$140m

$68m

$818m

Capital Expend. e

$396m

Capital Expend. e

Company b

Bow Energy

AGL

Metgasco

AGL

Eastern Star Gas / Santos

Arrow Energy

Santos / Petronas / Total / Kogas

BG Group

Shell / Petro China

APLNG (Origin / ConocoPhillips)

LNG Ltd

6. Blackwater/Norwich Park CSG project

7. Camden Gas Project stage 2 (coal seam gas)

8. Camden Gas Project stage 3 (coal seam gas)

9. Casino project

10. Gloucester Coal Seam gas project

11. Narrabri coal seam gas project

12. Surat Gas Project

13. Gladstone LNG project

14. Queensland Curtis LNG project

15. Arrow Energy LNG

16. Australia Pacific LNG

17. Fisherman’s Landing LNG project (train 1)

18. Fisherman’s Landing LNG project (train 2)

Black coal ― infrastructure projects ― Qld

Project

Gladstone, Qld

Surat/Bowen basins/Gladstone, Qld

Gladstone, Qld

Surat Basin, Qld

Narrabri, NSW

Hunter Valley, NSW

Casino, NSW

Camden, NSW

Bowen Basin, Qld

Location

Expansion, environmental approval received

New project, environmental approval received

New project, awaiting FID

New project, FEED studies under way

New project, under construction

New project, committed

New project, EIS under way

New project, feasibility study under way

Expansion, planning approval under way

Expansion, planning approval received

New project, EIS under way

Status c

2013-14

2015

2017

2014

2015

2016-18

2014-15

2016

2015

Expected Start-up

$200m

$100m

$35m

Capital Expend. e

1.5 Mt LNG

9 Mt LNG (initially) 18 Mt (ultimately)

8 Mt of LNG

8.5 Mt LNG (12 Mt ultimately)

7.8 Mt LNG

180-360 PJ pa

US$300m ($309m)

US$805m ($830m)

$35b (based on 18 Mt LNG), includes production wells, 4 LNG trains and 400 km pipeline

US$15b (A$15.5b) (BG Group’s Share)

US$16b (A$16.5b) (includes production wells and 435 km pipeline)

20 PJ pa (initially) $1.3b (150 PJ pa ultimately)

15-25 PJ pa

18 PJ pa

12 PJ pa

New Capacity

Company b

Australian Pipeline Group

Epic Energy

Arrow Energy / AGL

Metgasco

Australian Pipeline Group

Hunter Gas Pipeline

Arrow Energy

1. Roma to Brisbane pipeline

2. South West Queensland pipeline (stage 2 and 3)

3. Central Queensland gas pipeline

4. Lions Way pipeline

5. Newstead to Bulla Park pipeline

6. Queensland–Hunter gas pipeline

7. Surat Basin to Gladstone pipeline

Petroleum ― gas pipeline projects

Project

Surat Basin to Gladstone (450 km), Qld

Wallumbilla (Qld) to Newcastle (NSW) (830 km)

Newstead (Qld) to Bulla park (NSW)

Casino to Ipswich (145 km)

Moranbah to Gladstone (440 km), Qld

Wallumbilla to Ballera (755 km), Qld

Roma to Brisbane (450 km), Qld

Location

New project, awaiting govt approval

New project, govt approval received

New project, feasibility study under way

New project, EIS under way

New project, govt approval received

Expansion, under construction

Status c

2016-17

2013

2012

Expected Start-up

180-360 PJ pa

85 PJ pa

27 PJ pa

20–50 PJ pa

77 PJ pa

10 PJ pa

New Capacity

$600m

$900m

$500m

$120m

$475m

$858m

$50m

Capital Expend. e

Company b

Location

Status c

Expected Start-up

Summit Resources / Paladin Resources

CHALCO

Cape Alumina

Rio Tinto Alcan

Xstrata

Exco Resources

Copper Strike

CuDeco

Altona Mining

Renison Consolidated Mines

Citigold

1. Valhalla (Uranium)

2. Aurukun bauxite mine (Bauxite)

3. Bauxite Hills (Bauxite)

4. Pisolite Hills (Bauxite)

5. South of Embley project (Bauxite)

6. Ernest Henry underground (Copper)

7. Cloncurry Copper project

8. Einasleigh Copper project

9. Rocklands Copper project

10. Roseby Copper project (phase 1)

11. Roseby Copper project (phase 2)

12. Agate Creek (Gold)

13. Charters Towers (Gold)

Charters Towers, Qld

80 km S of Georgetown, Qld

60 km NW of Cloncurry, Qld

NW of Cloncurry, Qld

65 km SE of Georgetown, Qld

near Cloncurry, Qld

45 km SW of Weipa, Qld

45 km N of Weipa, Qld

95 km N of Weipa, Qld

Aurukun Cape York, Qld

25 km N of Mt Isa, Qld

Expansion, on hold

New project, feasibility study under way

Expansion, on hold

New project, feasibility study under way

New project, awaiting govt approval

New project, EIS under way

New project, feasibility study / EIS under way

Expansion, under construction

Expansion, EIS under way

New project, on hold

New project, prefeasibility study completed

New project, on hold

2013

2012

2013

2014

Uranium / Bauxite / Copper / Gold / Lead / Zinc / Silver / Nickel / Tin / Ammonium / Other Commodities

Project

280 000oz

100 000 oz

9-14 kt Cu

26 kt Cu, 7 500 oz Ag

3 Mt ore throughput

15 kt Cu, 3 500 oz Au, 500 000 oz Ag

25 kt Cu, 19 000 oz Au

50 kt Cu, 70 koz Au

22.5 Mt bauxite

7 Mt bauxite

2 Mt intially, 10 Mt ultimately

6.5 Mt bauxite (feed for proposed CHALCO alumina refinery)

2.7 kt U3O8 initially; 4.1 kt U3O8 ultimately

New Capacity

$95m

$60m

$100m

$213m

$200-250m

$108m

$200m

$589m

US$1b (A$1.03b) (includes US$400m port upgrade)

$400-500m

$200-250m (initally)

$400m

Capital Expend. e

Company b

Location

Status c

Expected Start-up

Mungana Gold Mines

Norton Gold Fields

Conquest Mining

Resolute Mining

Xstrata

Minerals and Metals Group

Xstrata

Gladstone Pacific Nickel

Metallica Minerals / Metals Finance

Gladstone Pacific Nickel

Metallica Minerals

Consolidated Tin Mines

14. Chillagoe (Mungana / Red Dome)

15. Mount Morgan tailings project (Gold)

16. Mt Carlton (Silver Hill) (Gold)

17. Ravenswood (Sarsfield open pit) (Gold)

18. Black Star Open Cut Deeps (Lead–zinc–silver)

18. Dugald River (Lead–zinc– silver)

20. Lady Loretta (Lead–zinc– silver)

21. Gladstone Nickel project (stage 1)

22. Gladstone Nickel project (stage 2)

23. Lucky Break (Nickel)

24. Marborough Heap Leach project (Nickel)

25. Nornico - stage 1 (Greenvale deposit) (Nickel)

26. Mt Garnet (Tin)

near Mt Garnet, Qld

250 km NW of Townsville, Qld

20 km S of Marborough, Qld

140 km W of Townsville, Qld

Gladstone, Qld

Mine 20 km S of Marborough; Refinery: Gladstone, Qld

140 km N of Mt Isa, Qld

87 km NE of Mt Isa, Qld

Mt Isa, Qld

65km E of Charters Towers, Qld

45 Km NW of Collinsville, Qld

38 km SW of Rockhampton, Qld

16 km NW of Chillagoe, Qld

New project, scoping study completed

New project, prefeasibility study under way

New project, feasibility study completed

Expansion, on hold

New project, environmental approval received, on hold

New project, feasibility study under way

New project, EIS under way

Expansion, under construction

Expansion, feasibility study under way

New project, feasibility study complete

New project, feasibility study completed, seeking finance

New project, feasibility study underway

2012

2013

2012

2018

2015

2014

late 2011

2012

2013

Uranium / Bauxite / Copper / Gold / Lead / Zinc / Silver / Nickel / Tin / Ammonium / Other Commodities

Project

20 kt

1.7

5 kt Sn

2.7 kt Ni, 0.16 kt Co

24 kt Ni, 1.5 Co

0.66 kt Ni

57 kt Ni, 5.8 kt Co

63 kt Ni, 6.2 kt Co

140 kt Pb/Zn/Ag

200 kt Zn, 25 kt Pb, 1 Moz Ag

120 kt Pb/Zn

68 000 oz Au, Moz Ag, 2.4 kt Cu

35 000 oz Au, 1 kt Cu, 200 kt S

120 000 oz Au, Cu, 1.5 Moz Ag

New Capacity

$124m

$12.4m

US$4.6b (A$4.7b)

$460m

US$850-950m (A$876m$980m)

$130m

$72m

$127m

$30-60m

Capital Expend. e

Company b

Location

Status c

Expected Start-up

Icon Resources

Legend International Holdings

Vital Metals

Company b

30. Mount Carbine

31. Paradise Phosphate project

32. Watershed Tungsten project

Project

1. Micro LNG plant

BOC

Energy processing facilities

52 km S of Osborne, Qld

Ivanhoe Australia

29. Merlin MolybdenumRhenium deposit (Cloncurry Project)

Condamine, Qld

Location

150 km NW of Cairns, Qld

5 km S of Mt Isa, Qld

120 km NW of Cairns, Qld

150 km W of Brisbane, Qld

Archer Resources

28. Anduramba Molybdenum

Moranbah, Qld

Incitec Pivot

27. Moranbah Ammonium Nitrate Project

New project, awaiting govt approval

Status c

New project, prefeasibility study under way

New project, feasibility study completed

New project, prefeasibility study under way

New project, on hold

New project, under construction

2011

Expected Start-up

Stage 1: 2013; Stage 2: 2017

2013

2012

Uranium / Bauxite / Copper / Gold / Lead / Zinc / Silver / Nickel / Tin / Ammonium / Other Commodities

Project

20 kt LNG

New Capacity

195 000 mtu of WO3 concentrates

600 -1200 kt ammonium phosphate, 15 kt AIF3

2.4 kt tungsten concentrate

5.3kt Mo, 7.5t Re

950 t Mo, 0.14 kt Cu

330 kt ammonium nitrate

New Capacity

$100m

Capital Expend. e

US$1.8b (A$1.83b)

$50m

$86m

$935m

Capital Expend. e

Company b

Rio Tinto Alcan

CHALCO

Rio Tinto Alcan / Rusal

Rio Tinto Alcan

Boulder Steel

1. Yarwun alumina refinery expansion (Alumina)

2. CHALCO alumina refinery (linked to Aurukun bauxite mine)

3. QAL refinery expansion (Alumina)

4. Boyne Island Smelters Major Sustaining Projects (Aluminium)

5. Gladstone Steel Plant Project (stage 1) Crude Iron & Steel)

Minerals processing facilities

Project

Gladstone, Qld

25 km S of Gladstone, Qld

Gladstone, Qld

Bowen, Qld

Gladstone, Qld

Location

New project, EIS under way

Upgrade, under construction

Expansion, prefeasibility study completed

New project, on hold

Expansion, under construction

Status c

2014

2012

Expected Start-up

5 Mt billets

nil (Reduction Lines 1&2 Optimisation and erection of carbon bake furnace 4)

1000 kt

2300 kt

2000 kt

New Capacity

$1.4b

$685m

US$1.9b (A$1.96b)

Capital Expend. e

Appendix Two â&#x20AC;˘ Mineral Projects Map QLD

Appendix Three â&#x20AC;˘ Mineral Projects Map Gladstone - Biloela

Gladstone Biloela region

mail@powers.net.au www.powers.net.au REPORT COMPOSED BY EARL STEVENS estevens@powers.net.au 59