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WELCOME
suratbasin.com.au Thursday, November 24, 2016
SNAP OF THE MONTH
◗ HARVEST MOON: November’s Supermoon rising over Chances Plain.
Plenty to crow about after historic trade mission
Contents
IN THE NEWS
Carbon storage plan riles up Wandoan..................................... 5 AccessChina 16 ..........................................................................6-7 Roma Saleyards back-flip ............................................................8 UQ CSG forum .........................................................................17-18
OPINION From the editor HELLO and welcome to the November edition of the Surat Basin News. In this month’s edition you will find several stories on the recent AccessChina ‘16 flight and the massive potential for future growth in cargo flights. China has long been known as a country where access to quality produce is difficult mainly because of the circumstances in which it is grown and farmed. For the Chinese middle class, with their ever-growing disposable incomes, Australian-branded products are representative of a level of quality far beyond
‘‘
The TSBE trip came at the right time, and by all accounts was an incredible opportunity for producers right across the basin. that which is produced at home. The TSBE trip came at the right time, and by all accounts was an incredible opportunity for producers right across the basin. In other news this month, we take a look at Carbon Capture and Storage Company’s proposal to inject liquefied CO2 into the Precipice Sandstone Aquifer of the Great Artesian Basin. Locals are dead against the idea, but it remains to be seen whether that will have any impact on the project. You can find the story on Page 5.
PHOTO: MATTHEW NEWTON
DOWN TO BUSINESS
Geothermal heating up................................................................24
PLACES AND FACES
November Enterprise Evening ..............................................22-23
.......................................................................................................19-21
The newspaper The Surat Basin News publishes every month and will be delivered via the four dominant newspapers of the region: the Chinchilla News, Western Star, Dalby Herald and The Chronicle. It will reach the homes and offices of almost 50,000 people living, working and playing in the Surat Basin, connecting the business and mining communities thought the booming region. Surat Basin News is a necessity. It was born out of a passion for Australia’s fastest growing communities – a passion for a region of unbridled potential and a future of vast economic growth and opportunities. The newspaper, professionally designed and regionally topical, will be a must read for anyone associated with the exciting Surat Basin. ONLINE: Surat Basin News has gone online to ensure our readers in every corner of the country has the latest news sent directly to them. Go to: www.suratbasin.com.au. PURCHASE FROM: Newsagents in Chinchilla, Roma, Dalby, Gladstone, Moura, Toowoomba, Calliope. VISION: Surat Basin News will allow local businesses to network and communicate with everyone in the 1200 sq km basin, providing unprecedented access to new clients and markets. It will give a revealing insight into major industry while lifting the veil on current and proposed developments. It will be there for each and every announcement shaping the region’s future while profiling the colourful characters.
The team GENERAL MANAGER Erika Brayshaw, Chinchilla Phone 4672 9921, email manager@suratbasin.com.au ADVERTISING TEAM Bobbie Gorring, Chinchilla Phone 4672 9930, email advertise@suratbasin.com.au Greg Latta, Roma Phone 4672 9927, email Greg.latta@romawesternstarnews.com Nicole Boyd-Taylor, Dalby Phone 04672 5500, email nicole.boyd-taylor@dalbyherald.com.au EDITORIAL
Matthew Newton, Chinchilla
Phone 4672 9926, email matthew.newton@chinchillanews.com.au
SURAT BASIN NEWS 12 Mayne Street, Chinchilla Q 4413 PO Box 138, Chinchilla Q 4413 The Surat Basin News is published by Chinchilla Newspapers Pty Ltd, 12 Mayne Street, Chinchilla Q 4413 The Surat Basin News is printed by APN Print Warwick
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IN THE NEWS A community meeting in Wandoan has voted to oppose CTSCo’s carbon capture and storage plan. To find out more details on the project, head to the company’s website at http://ctsco.com.au.
CTSCo community meeting
Planned carbon sink opposed in Wandoan IT WAS toward the end of a marathon community meeting in Wandoan late last month when Adam Clark raised his hand. “Can I make a point Mr Chairman,” the 83-year-old Taroom resident and representative of the Upper Dawson branch of the Wildlife Preservation Society of Queensland asked quietly. Carbon Capture and Storage Company representatives had been answering a steady stream of questions from concerned locals for nearly 90 minutes on their proposed plan to capture and store liquid CO2 in the Precipice Sandstone Aquifer of the Great Artesian Basin. Up until this point, Mr Clark, dressed in his bright blue work overalls, had been bowed over, scribbling notes. Handed the microphone, Mr Clark began to speak about the Wandoan region’s experience with the Coal Seam Gas industry. “The point is we’ve copped it in the neck with the CSG, we were the first cab off the rank and a lot of people in this room feel like they weren't treated very well,” he explained. “So all in all I would say the people in this room don’t have much trust in either the industry or the government who directed it, so we feel as though we were guinea pigs. “Go somewhere else for god’s sake, because as Dale Stiller said (earlier), we just haven’t got the goodwill, I don’t think, to back you in this show.” The “non-profit” wholly-owned subsidiary of Glencore, Carbon Transport and Storage Company spent two hours in late October informing the community of their proposed plan to drill 1300m underground into the aquifer and inject CO2 in the form of a “supercritical liquid”, with half the density of water. The project is still in its infancy, with another six years of modelling and technical studies to get through before a trial injection can even be contemplated in 2022. If the trial does go ahead in 2022, 60,000 tonnes of liquid CO2 would be injected into the aquifer from a Glencore-owned property 15km west of town for three years to determine the feasibility of a larger-scale project. The liquid CO2 would dissolve into the aquifer’s water, acidifying it to a pH of 5. Water has a pH of 7. The acidified water would form a plume. CTSCo is hoping studies and modelling will show the plume will remain within the confines of the property boundary. If studies find the plume will escape the property boundaries, the project will not go ahead. The project is funded by Australian Coal Association Low Emissions Technologies to the tune of $12.24 million and has also received $8.775 million from the Federal Government. Bill Blackley, president of the Wandoan Liaison Group, said
◗ NOT HAPPY: Property Rights Australia chairman and local landholder Dale Stiller asks a question of the CTSCo representatives while Adam Clark takes notes at an information session in Wandoan in mid-October. PHOTO: MATTHEW NEWTON
the Precipice Sandstone Aquifer and Great Artesian Basin was “iconic” and that it should be classed as “the eighth wonder of the world”. “Luckily, we’re still in the early stages of this project. The concerns, I believe that people have here expressed, are enough to warrant this project being canned,” he said. Wandoan landowner Ian Staines was incredulous that the government was even countenancing such a project. Pointing to Origin’s water re-injection projects at Reedy Creek and Spring Gully, Mr Staines said there were stringent conditions that had to be adhered to before the water could be pumped into the basin. “There’s extensive tests and you have to bring the water to the same PH as the aquifer you’re going to inject in - they’re under really rigorous conditions,” he said. “And yet here we’re seriously countenancing putting something in that we know is of a different acidity. “The criteria the gas guys have to go through is that any change in acidity can mobilise chemical structures and formations underground... it just isn’t even countenanced for those guys and yet government is looking at this with a completely different standard... it just doesn’t make sense.” A CTSCo spokesperson said the company had held a number of follow-up meetings the day after the October 25 consultation and that they understood “there are a number of legacy issues within the community in relation to Coal Seam Gas projects”. “CTSCo is not a CSG project and we are keen to explain how it differs,” the spokesperson said. “We’ve held a number of follow-up meetings today and have received much positive feedback and requests from members of the community to be kept involved as the project develops.” The project is currently at a very early stage and, over the next 18 months, will involve a number of technical studies and environmental baseline monitoring. The spokesperson said the project project needs to meet
strict local, State and Federal government regulations and criteria at every step to ensure that all activity is conducted in a safe and environmentally sound manner. “We are committed to engaging with the local community in an open and transparent manner throughout the project.” While CTSCo representatives were happy to answer all questions at the meeting, it didn’t stop Mr Blackley from moving a motion opposing the project, which was wholly supported by the 50-strong room. Six people abstained from voting.
NEWS ON THE GO The latest breaking local news is available all the time online. Catch up with what’s happening in your community on desktop, laptop, tablet or smart phone...one local to another
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IN THE NEWS
suratbasin.com.au Thursday, November 24, 2016
AccessChina ‘16
Exports a step closer for those in Surat Basin DIRECT exports to more global markets are within reach for Darling Downs producers if they can shore-up supplies and tap into the opportunities. Toowoomba and Surat Basin Enterprise and Food Leaders Australia CEO Dr Ben Lyons says the 115-tonne Cathay Pacific freight flight could triple its services in the region as soon as April should businesses assure international markets of supply levels. As AccessChina’16 project leader, Dr Lyons said ongoing co-ordination between exporting Darling Downs businesses and international markets – primarily China – was critical to reaching that milestone. The first Cathay Pacific flight on November 22 is nearing capacity and will fly direct to Hong Kong from Toowoomba after loading cargo from Sydney and Melbourne. “We want to make sure we get as much interest in the co-ordination so Cathay Pacific can action the second or third weekly international freight flights as quickly as possible,” Dr Lyons said. “There is potential for an increase in those freight flights to begin from as soon as April next year. “The success of the first weekly freight flights give the producers from AccessChina’16 the potential to come aboard on
◗ MAJOR MILESTONE: Signing a formal Memorandum of Understanding which will explore stronger trading relations is (from left) Hangzhou Chamber of Commerce in Shanghai general secretary Xiao Min and Toowoomba and Surat Basin Enterprise executive chairman Shane Charles on AccessChina'16 delegation at the Hyatt on the Bund in Shanghai. PHOTO: TARA MIKO
additional services.” Access protocols remain a major barrier under the China Australia Free Trade Agreement, with FLA and TSBE continuing its lobbying and co-ordination with both country’s governments. How it plans to do that remains unclear as pressure mounts on the Australian Government to ease access issues including specific produce markets such as stone fruits, avocados, eggs and chilled beef. A KPMG export report, released last month, found the biggest obstacle to tapping into trade deals was confusion about how they work, and the lack of awareness of the benefits. The same report found Australian businesses missed upwards of $14 billion in trade revenue due to the apparent failure to create trade deals with south-east Asian markets in Japan, South Korea and China. At least 15 businesses from the $1.5 million AccessChina’16 – the largest, privately organised trade mission to leave Australia – are preparing to export direct into China. TSBE has begun investigating future delegations, particularly
to countries with existing FTAs - Hong Kong, Singapore, Japan and the Middle East. AccessChina’16’s success was in creating greater exposure for Darling Downs agriculture as well as its resources and energy sectors. “Flow-on effects for our region in the resources and energy sector centre around greater awareness of our region internationally and the significant links made with the signing of two MoUs on the trip,” he said. TSBE executive chairman Shane Charles inked a Strategic Cooperation Memorandum of Understanding with Hangzhou Chamber of Commerce general secretary Xio Min during the delegation designed to boost trade partnerships and shore up supply chains. Following months of talks, Toowoomba Mayor Paul Antonio and Jin Xiaoming, director of the (People’s Government) Yeucheng District in Shaoxing City signed the MoU duringAccessChina’16, encouraging the parties to collaborate on across various industries including science and technology, culture, tourism and education.
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IN THE NEWS
Thursday, November 24, 2016 suratbasin.com.au
A burgeoning middle class WEN Liu (pictured below) represents the market Australia is best suited to enter in China. Highly educated and well-travelled, the business development manager is the legacy of China’s restrictive one child policy and therefore a member of the rapidly growing middle class. It is her generation that is driving the insatiable appetite for clean and green produce, and it’s towards Australia she’s looking to buy. Based in Shanghai for Toowoomba and Surat Basin Enterprise, Ms Liu says the Australian story is the most believed and sought after in the world’s second largest, but fastest growing economy. “You’re not making a story, it’s a true story and you’re branding it as the best quality,” she said. “We want good quality food and my generation, they are so good at English they can’t be fooled.” As a key liaison officer during AccessChina’16, Ms Liu said markets existed for Australian producers but they needed to be savvy, and cautious, about expanding. “The Chinese now desperately want perishable quality food, and Australia is definitely the best match,” she said.
◗ G-Shop CEO Zhen Sun explains the QR code traceability on all products sold through the company's retail outlets. PHOTO: TARA MIKO
AcessChina ‘16
Grandshop, known better as G-Shop globally, labels every product sold through its online and retail stores with QR codes which allow customers to trace everyitem, from farm gate to dinner plate. “All the importer, what we call the supply chain network, it is recorded in this QR code,” CEO Zhen Sun said. “If you scan the code, you can have all (the information),” G-Shop CEO Zhen Sun said. He said consumer demand for Australian product outstripped supply which drove up prices for premium products including beef, milk, baby food and baby formula. “We know Australia is a beautiful country, like the beef and seafood and also the milk,” he said. “There are more than 300 million people in China who like to use, to buy, imported products.” G-Shop sells the same milk as retails in Coles.
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THE Darling Downs is poised to triple its direct exports to China which will help it meet the insatiable demand for a product that can’t be produced locally. Decades of rapid growth has left China struggling to overcome widespread environmental issues - from smog blankets to contaminated groundwater - leaving it unable to produce clean and fresh produce which is in increasing demand. Australia, and the Darling Downs in particular, has the ability to meet that demand with its growing export markets without risking itsdomestic supplies. The challenge now looms in matching Australian producers with Chinese retailers and e-commerce platforms such as Zhejiang Dayuan Supply Chain Management. Billing itself as the pioneer of cross-border supplies,the company and its e-commerce platforms have tapped into the boutique fresh food market focusing on four main products.
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IN THE NEWS
suratbasin.com.au Thursday, November 24, 2016
Council back-flip over extra charge
The rise and fall of the saleyards buyer’s fee ◗ TOUGH DECISIONS: Councillor Peter Flynn at the Roma saleyards.
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IT WAS perhaps Maranoa Regional Council’s most controversial decision of the year. In July, buyers who purchased cattle at the Roma saleyards were stunned to find an additional fee tacked onto their invoices. Without informing buyers or agents, Council had introduced a “post-sale handling fee”. The fee meant buyers were expected to pay an additional $1.40 plus GST per head of cattle on top of their purchase price. Naturally, buyers were unimpressed. Cattle buyer Murray Douglas said council needed to be more transparent with their handling of the fee. “There was no consultation before this fee was brought in. “We just got a bill in the mail and didn’t know what it was for,” Mr Douglas said. At a community consultation at the saleyards in November, Councillor Peter Flynn, Chairman of the Saleyards Advisory Committee, admitted there were concerns with the implementation of the fee. “We have become aware since the introduction of a post-sale handling fee that there has been some backlash from agents and buyers,” Cr Flynn said. “It was pretty obvious that we needed to
come to the saleyards to consult with some of those representatives and take back to council at one of our budget reviews as to the validity of the particular fee.” Following the consultation as well as ongoing discussions with key stakeholders, council announced a special public meeting to discuss removing the fee from the 2016/17 schedule. Deputy Mayor Jan Chambers brought the proposal before council and it was unanimously voted the fee be removed. Council also agreed all buyers who had paid the fee since July would be fully refunded. “I know that we are custodians over a facility that is incredibly important to the region and the broader industry, but at the same time sometimes difficult decisions need to be made to ensure that it continues to be sustainable,” Cr Chambers said. Cr Chambers said, in future, council would provide key information about major changes with a longer lead time, as well as undertake a full review of costs, fees and charges. “The additional steps will provide valuable input into future budget deliberations, and assist in providing further information on key areas of interest to our community,” she said.
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IN THE NEWS
Thursday, November 24, 2016 suratbasin.com.au
Chinchilla research forum
Academic research into CSG unveiled NEW research conducted by the University of Queensland into the impact of coal seam gas development on agriculture and communities in the Western Downs has been unveiled at a forum in Chinchilla. In a study which examined agriculture and CSG interactions by interviewing 47 landholders and then trialling a package of monitoring tools on three properties over 10 months, the overwhelming findings showed landholders were impacted in three ways - time, water and property. "23 landholders raised time as a significant impact for them… The time a landholder took to negotiate with companies, to look for weeds, to deal with lawyers - it basically increased the time involved in managing a property with a coal seam gas well," presenter and project leader, Jim Cavaye said. "Water is the number one issue to deal with in agriculture…that’s what everybody is concerned about… (and) the long-term value or condition of the property. "People raised the issue that the value of their property has probably decreased due to coal seam gas which meant they had less equity to borrow money." Yet there had not been enough property sales in the Western Downs region to enable data for the project to draw a
◗ COMMUNITY FORUM: The University of Queensland and AgForce unveiled research results from the impact of coal seam gas development in the Western Downs at a very-well attended forum in Chinchilla on Thursday, November 17. PHOTO: ALANA CALVERT
conclusion from. The research outlined coexistence between farmers and miners as a crucial issue that impacted other matters in turn, according to Mr Cavaye. "Landholders overwhelmingly said... (coexistence wasn’t about) making an extra 30 bucks per hectare… They said it’s about trust, communication, evidence-based information, being taking seriously, being respected," he said. "In an ideal world (coexistence) is a dynamic management of resources that maintains the welfare of those, socially, economically and environmentally, involved." "Agriculture properties are...not just businesses, they’re also a home, where people raise their children, where they live. And
they’re about heritage and stewardship. Properties are in families for generations. You’re not just talking about a shop on the corner, you’re talking about something much, much more fundamental than that." The forum’s audience of around 80 people which included local farmers, academia and CSG company representatives heard the findings from the different projects and also gave attendees the opportunity to speak. A number of Western Downs farmers voiced frustration with the state of CSG operations in the region and on their own properties, highlighting emotional stress as a result from gas company dealings.
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IN THE NEWS
suratbasin.com.au Thursday, November 24, 2016
◗ HISTORY REPEATING: Dr. Kathy Witt from the University of Queensland's Centre for Social Responsibility in Mining presents the findings from the research into the social and economic impact from CSG development. PHOTO: ALANA CALVERT
After the boom: doom and gloom? IF THOSE unacquainted with history are doomed to repeat it, then communities unacquainted to oil or gas booms are inevitably doomed to similar fates. Hoping to save towns from being swept up in the frenzy which accompanies sudden booms, researchers from the University of Queensland’s Centre for Social Responsibility in Mining (CSRM) have been analysing statistical evidence and interviews from "boom towns" to try and assist communities to plan ahead and get locals "on the same page". Dr Kathy Witt, who presented the results to the Chinchilla CSG
forum, explained ordinarily occurring patterns were "sped up" in boom-times, such as the sudden, dramatic, spike in the Chinchilla housing market prompting a lot of people to sell at the same time. "You can argue that one day Chinchilla may have got a KFC or Woolworths anyway, it just got sped up. So we can say it acted as a catalyst for change.. that’s brought on diversity that wasn’t there before. But there is a new normal, so it certainly has changed some of the (town’s) core characteristics,” she said. "The idea is the changes have ripple effects. The CSG
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development acted as a catalyst for change.” Local grazier, Joe Hill said the trend which had been apparent in the Chinchilla housing market was reflected outside town on the properties too, but while houses had been filling up again in more recent months, farm houses remained empty. "Around where I am, within a 50km radius, there’s roughly 12 homes that are not being lived in,” Mr Hill said. “Families have moved out after the gas companies have bought them out and the local community is just disintegrating.”
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OPINIONS
Thursday, November 24, 2016 suratbasin.com.au
Another boom cycle?
Agricultural changes this month
PAT WEIR
ANN LEAHY
Member for Condamine
Member for Warrego
New Agricultural Minister
Bill Byrne is now the Minister for Agriculture and Fisheries. As Police Minister Mr Byrne labelled farmers as cowboys who should not have handguns, despite these often being essential tools of trade for many landowners and safer than a long arm. I urge the Minister to now properly represent the concerns of farmers and landholders which he sought to ignore whilst in his previous portfolio.
EPOLA
State Parliament has also passed the Environmental Protection (Underground Water Management) and Other Legislation Amendment Bill 2016 (EPOLA). The Bill seeks to make the following key changes to make good provisions for water bores. However there has been no full and frank review of the make good provisions. What I find interesting is that the Palaszczuk Labor Government have instigated more than 130 reviews in 21 months of Government however they have not undertaken a proper review of the Make Good provisions. Why not do a proper independent review of the Make Good provisions so both landholders and resource companies have a real opportunity to
have their say on the current provisions and if they are working? The Bill makes the following requirements – ■ Requires resource companies to pay the landholder’s reasonable costs in engaging a hydrogeologist for the purposes of negotiating a make good agreement. ■ Requires the resource companies to bear costs of any alternative dispute resolution in the make good agreement negotiation process. ■ Inserts a cooling off period for make good agreements – five businesses days. ■ Ensures that impacts on water bores as a result of free gas from coal seam gas extraction attract make good obligations. ■ The Bill also seeks to address issues in the make good agreement negotiation process relating to uncertainty in the cause of bore impairment. – Effectively lowering the burden of proof for causation of an impacted bore. This will be interesting to see how some of these legislative changes will work in practice as there are some areas where water bores that have been described as gassie bores by landholders well before coal seam gas extraction entered the same area. I am working with some landholders presently with make good arrangements and will continue to keep a watching brief on this matter. There is one week of Parliamentary Sittings until the Christmas and New Year break. I look forward to continuing to work with my constituents and communities during this time.
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whilst building the farm. The number of full time operational staff be three. The final solar farm proposed in Condamine is to be located at Yarranlea near Pittsworth managed by a company trading as Yarranlea Solar. During the construction phase it will employ one hundred and twenty construction workers, with full time operational staff once again numbering three. As you can see all of these projects upon completion will provide a total of ten full time positions in the seat of Condamine. I would suggest this is not exactly the picture being painted by the government to Queenslanders and investors. If the AGL proposed wind farm goes ahead at Coopers Gap it would be the largest wind farm in Queensland with three hundred and fifty jobs at the peak of construction, however there would be only twenty-five full time maintenance jobs. While I hope that our local construction firms win the tenders for these projects and employ local labour this at best is a short term employment boost. The residents of Condamine have witnessed this boom and bust cycle before with the CSG construction phase. There was the promise of thousands of jobs however once construction ceased the jobs disappeared the local community and business sector were left to pick up the pieces.
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WELCOME to the November Edition of the Surat Basin News. With two weeks of State Parliament now behind us there have been some changes to portfolios and legislation.
THE seat of Condamine and the neighbouring district have proposals for three solar farms and one windfarm. Recently in parliament the Premier, whilst extolling the virtues and benefits of solar projects across Queensland, stated that she would like to hear what the Member for Condamine had to say about the job’s bonanza that is coming our way. So here is what I have to say. Both the Premier and Minister Bailey have been quoted as saying there will be thousands of jobs created across Queensland as a result of the 50% renewable energy target by 2030. This information may be accurate in the construction phase, however the number of full time positions that will remain after the construction phase is completed is a significantly smaller number. In the seat of Condamine there are two solar farm projects which have gained approval and one currently going through the approval process. Dalby is the site of Origin Energy’s solar farm. This project will employ ninety workers during the construction stage. The number will dramatically reduce to four full time positions once the farm is up and running. The Oakey Canadian solar farm sited near Oakey will be built in stages over the next thirty five years, during this lengthy period of construction one hundred and twenty construction workers will be employed as needed
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OPINIONS
suratbasin.com.au Thursday, November 24, 2016
Resources key to state’s future MICHAEL ROCHE
Queensland Resources Council CEO
This is an extract from Michael Roche’s final speech as CEO of the Queensland Resources Council, given at the organisation’s annual lunch on November 16.
As you have just seen, since our annual lunch last November, it has also been a ‘big year’ that has seen many changes for our sector. One of those changes is that I will indeed be signing off today. Including today, I will have been on this stage for twelve successive annual lunches. Before I talk about many of the positives about our sector’s performance, I do want to acknowledge at the outset our huge disappointment at learning that an occupational disease that we thought was confined to the past has been re-identified amongst some members of the coal workforce, current and retired. I am of course referring to Coal Workers Pneumoconiosis or CWP. I can report though that industry has not shirked its responsibility to support our workers, current and retired, and to be very much part of the solution. This includes calling on government to move quickly to fix some apparent gaps in workers compensation support for CWP victims. No industry sector is more fundamental to the future of Queensland than resources. It is no secret however that we have moved onto a new chapter. Our sector is moving out of a record period of capital expenditure. We are now settling into a more normal phase where operational expenditure dominates. While moving from CAPEX to OPEX doesn’t sound that exciting it does mean our sector is delivering new record production volumes. I’ll remind you of some of the massive achievements from our sector over the past twelve months. Queensland is now exporting gas from all three of the Curtis Island LNG plants and from all six trains. Coal exports from Queensland reached a new record level in 2015-16. We have seen the restart of the Isaac Plains coking coal mine – could their timing have been any better? Soon we will see the re-opening of the Collinsville and Blair Athol coal mines.
Ironically - lots of people "Didn’t Know". Our research showed that people just don’t get the basics. But our research also showed that once we educated them – their support of our sector skyrocketed. Therefore, in what was I believe a first for any resources sector anywhere in the world, our board approved an innovative, educational campaign to engage the community. The QRC’s Resourcing Innovation campaign, which we launched at the end of August and has been featured on the big screens behind me, highlights a couple of fundamental truths. That we would not enjoy the luxuries we have today were it not for the fruits of our sector. It also shows that we couldn’t have innovation without our sector – an idea would remain just that without our products to bring them to life. The campaign shows that we cannot have key renewable energy infrastructure such as wind turbines, solar panels or electric cars without resources. There is no big switch that you flick that turns off fossil fuels and turns on renewables. While most of the population aspires for a lower-emission future, the fact is, resources are an integral part of that future. If, one day, energy in Queensland is supplied by 100 percent renewables, you will still need our sector to build them. At the QRC we say that it’s not a case of fossil fuels or renewables – it’s a case of fossil fuels AND renewables. Much to our surprise, our green activist opponents have remained unusually quiet about our campaign. But I guess it’s hard to argue with facts. But rest assured that green activists will continue to wage a well-funded campaign against our sector. And courtesy of Wikileaks we have confirmation that the activists’ campaigns in Australia receive generous funding from a wide range of rich-listers in the USA. Perhaps the new Trump administration will take a close look at the role played by US-based foundations – with strong Democrat connections - in bank-rolling the disruption of the Australian coal industry. For many people in the south-east of our State, minerals and energy production is something that happens somewhere else and appears on face value to be of no benefit to them or their families. Nothing could be further from the truth. Every Queenslander – regardless of where they call home – has a vested interest in seeing our minerals and energy industries succeed and grow.
New opportunities await the Surat
NEW opportunities await the Surat and Bowen Basins with the recent release of two petroleum and gas exploration areas by the Queensland Government. The areas include 86km2 of land, 65km north of Injune and 365km2 of land, 40km south-east of Surat. The region is no stranger to exploration and its ultimate, though never inevitable goal, production. In April 1961, 140 years after the first well drilled for producing natural gas was completed in Fredonia, New York, natural gas supply to the Roma Powerhouse commenced. This was the first time in Australia that natural gas had been
used to fuel electricity generation. Shortly after that, Australia started a major investment in bringing gas to city homes and industry with Brisbane becoming the first capital city to use natural gas piped from Roma in 1969. The Roma-Brisbane natural gas pipeline was officially opened that year by Premier Joh Bjelke-Petersen and was rightly recognised as a significant achievement for Queensland. Commercial discoveries of unconventional sources of natural gas, such as coal seam gas, have since become an economic game changer for regional communities and Queensland. The existing gas fields of the Surat and Bowen basins continue to play a vital role in pioneering CSG to liquefied natural gas
(LNG) projects. Both basins provide the bulk of commercial CSG produced in Australia. Both basins are also serviced by processing facilities, pipelines connecting gas fields to the state’s export LNG hub in Gladstone, a modern telecommunications network, transport and energy infrastructure. Places like Chinchilla have been the beneficiary of the biggest upgrade to public infrastructure since World War II as the gas industry and communities have worked hard to overcome hurdles and build good will. Tapping into new gas reserves will sustain and potentially build on that success, creating more jobs and more investment in local communities.
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New copper producer CuDeco has commenced exports of copper concentrate from its mine in North West Queensland. And of course ladies and gentlemen – while I’m not Nostradamus and can’t predict how long it will last – how good are some of those commodity prices? Zinc on the rise and a recent comeback by copper. And who would have thought thermal coal would be over $110/tonne and coking coal over $300/tonne. This time last year I was being asked earnestly what I think lies ahead for Queensland’s resource sector. Did the sector have a long term future? My response always included the reassurance that there is no viable substitute for coking coal in the production of blast furnace steel. There is no ‘Uber’ process waiting in the wings and steel use per capita is one of the hallmarks of an advanced economy. Our Premier gets that point, which is why this week she is visiting JFE Steel in Japan. I also acknowledge that we all would like to think that cleaner energy sources can supply our global energy needs in quick time. However, according to the International Energy Agency, the world will continue to use coal, gas and uranium to produce electricity for decades to come. Looking out to 2040, Asian demand for gas will grow by 160 per cent, India will be the world’s largest importer of coal, China’s use of coal will be three times that in the year 2000, new coal-fired power plants will overwhelmingly use high efficiency technology, and Australia will supply two-thirds of the seaborne trade in coking coal. In short, Asia wants what Queensland’s resources sector has to sell. So yes, our high energy coal has a strong future in supplying affordable electricity and in producing steel. Our gas will be much sought after for power, heating and manufacturing processes, both here in Australia and in Asia. In fact all of our commodities – our alumina and bauxite, copper, gold, lead, mineral sands, silver and zinc, will remain in demand while ever people want to enjoy the many facets of their everyday lives. Take a look around this room. Can I remind you - everything in this room that is not grown comes from resources. This year the QRC board decided we should build on an educational campaign we launched last year comprising a series a graphics that illustrated everyday products such as smartphones and fridges and the resources they contain. We called it the ‘Did You Know’ campaign.
Surat Basin ‘in the thick of it’ again
Spotlight on the Western Downs
DAVID LITTLEPROUD Member for Maranoa
I was left stunned by Telstra CEO Andrew Penn’s recent comments at the Local Government Association of Queensland’s Annual Conference, in which the Telstra CEO branded the ACCC’s national mobile roaming inquiry as a “competitive threat”. In Mr Penn’s address he praised competition, stating it ‘drives investment, investment grows the network, and the result is Australians are able to use their phones to do more things, in more places, than ever before’ but, bizarrely when it comes to increasing competition through national mobile roaming, Telstra’s all doom and gloom. In Mr Penn’s own words Telstra’s investment is “heavily skewed towards regional and remote Australia” and it is this investment that increases Telstra’s competitive advantage, making it even more unlikely the telco giant will allow other mobile network carriers to access its infrastructure on commercial terms to offer choice to consumers. However I was further incensed by the Telstra chief’s comments that its investment is “heavily skewed” towards regional Australia, given Mr Penn has also said 15% of Telstra’s mobile investment is injected into servicing 2% of the population during the past 10 years. Using Mr Penn’s figures, in this year alone, regional Australia ought to have seen an investment of $195 million, or between 195 and 390 towers from Telstra’s $1.3 billion investment in its mobile network. Between 2006 and 2013, Telstra spent $5.5 billion on its mobile network, $1.1 billion in 2014, and $1.3 billion in 2016. Based on Mr Penn’s statement, over the past 10 years, regional Australia has been the beneficiary of a $1.185 billion investment, or between 1185 and 3792 towers. For Mr Penn to boast that a hefty chunk of Telstra’s stated annual capital expenditure of $4 billion goes towards regional Australia, is either disingenuous or Mr Penn just can’t add up because I can’t see it on the ground here in Maranoa.
REMEMBER back 10 years. Hasn’t our region seen some change in that time. Some good, some bad, and a lot that could be handled differently with the benefit of hindsight. We have seen the heady construction days of the onshore gas sector, and we are now settling into the operations phase. Due to timing, and low gas prices, even the operational expenditure has been a little slow over the past 12 months. However, from speaking with many contractors in the region, the past few months have seen a step up in activity so let’s hope 2017 is a bit stronger than 2016. Because of our coal and gas assets a number of power stations have been built in the region. Because we have such a strong energy grid, we are now seeing the emergence of renewable energy. The reason for this we are told is due to relatively cheap connectivity costs to that grid. There have already been a number of projects approved throughout the region. The Western Downs Regional Council area really is the hub for these renewable projects. There are rumours of billions of dollars worth of projects in the pipeline. The reality is that to meet the targets set by the federal government on climate change, we really need to invest significantly in renewables and the Surat Basin, once again is in the thick of it. Pleasingly, because we have such a strong and sophisticated supply chain as a result of the gas sector, there will now be opportunities for capable local contractors in a new field. TSBE hosted an event in Dalby recently focussed solely on renewables and the clear message from the night is that these first few projects are just the beginning.
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Numbers not adding up in the Maranoa
Shane Charles TSBE executive chairman
Cr Paul McVeigh, Mayor, Western Downs Regional Council
THE Western Downs is on the up-and-up as our region continues to ride high on its third wave of energy development proudly holding claim to being the Energy Capital of Queensland with three large-scale solar projects approved by Council in the last 12 months and more development opportunities waiting in the wings. Our regions' wide open spaces, plenty of Queensland sunshine, and our connectivity to existing power infrastructure thanks to the $60 billion investment by the CSG sector during its boom period, places the Western Downs in the prime position to welcome and facilitate the growing thirst for renewable energy. This extensive electricity infrastructure network in place today is the positive legacy of the gas industry now enabling solar farms to connect and send power generated from the Western Downs to areas along the east coast of Australia. I'm especially proud that our region is a part of and leading the renewable energy solution. We're not letting up with our Live Local campaign and will continue to meet regularly with CSG Industry leaders as we work towards establishing and achieving meaningful live local targets that benefit existing FIFO workers and our local communities. A small step for our mining communities was the recent introduction into State Parliament of proposed laws to ban 100 percent FIFO operations in new large resource projects in regional communities. However, we not only want to see our locals employed in these infrastructure projects, but we want to see FIFO workers enjoy the benefits of living locally in our towns and contributing to our social, cultural, and economic vibrancy. On that note, the year ahead will see some exciting local events come to life across our region with the Chinchilla Melon Fest kicking off what will be a great year of major festivals across the Western Downs. Make sure you save Thursday 16 to Sunday 19 February 2017 into your calendars for an unforgettable weekend.
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suratbasin.com.au Thursday, November 24, 2016
Surat Basin News Published by Chinchilla Newspapers Pty Ltd 12 Mayne Street, Chinchilla, Q 4413 Printed by APN Print Warwick General manager: Erika Brayshaw
Toowoomba company secures contract
Geothermal heads south TOOWOOMBA’S Geothermal Industries has secured a $500,000 tender for work on the extension of Parliament House in Melbourne. Geothermal Industries Managing Director Nigel de Veth said the tender was a success story for the renewable energy industry and the Toowoomba region’s workforce. “We will drill 55 by 100 metre geothermal bore holes which will provide the heating and cooling for the extension of Melbourne’s Parliament House. They are doing a major addition to the existing building and underneath that building we’ll drill in the sub-basement floor,” Mr de Veth said. “That’s where the heating and cooling of the building will happen, the energy cost savings will be around 70% compared to conventional heating and cooling systems.” Two trucks with specialised purpose built geothermal drilling equipment will leave Toowoomba site bound for Melbourne in the coming week where it is expected drilling will start on November 28. Geothermal Industries is expected to finish their part of the build by Christmas with other companies then installing the heat exchanger units, piping between bore holes and ducting. “This is a landmark, government project in a state that really wants to progress their energy efficiencies We’d love to see Queensland and Toowoomba join that vision,” Mr de Veth said. “We’ve picked up other jobs from Sydney, Melbourne and Adelaide all looking to use geothermal ground source heating and cooling as a way to capitalise on ever increasing energy costs About 60 people work for Geothermal Industries and associated companies Deveth Drilling and Roc-Drill. “This tender proves the capacity we have here in the Toowoomba region and we would love to boost our region with geothermal solutions.” “The first project we did was here in Toowoomba at our own facility this year.” Mr de Veth said his main work consisted of drilling blast holes in mines. Instability in this sector has changed his focus to geothermal. “We see geothermal becoming a big part of our future, more
◗ HEATING UP: Geothermal Industries Managing Director Nigel de Veth (left) with TSBE Projects Officer - Surat Basin Supply Chain Lance MacManus. PHOTO: CONTRIBUTED
so than mining,” he said. Mr de Veth said he would like to hire men and women out of the mining industry to work for his companies if tenders picked up in the Toowoomba region, or continued in other states. “We’re going to be pushing hard that those people from mines looking for work to join our company and use their skills.” Mr de Veth said he hoped major project contracts in the Toowoomba region would look to geothermal heating and cooling solutions. The option to retrofit business is also available.
“The payoff for installation is often just a few short years with the huge energy cost savings,” he said. TSBE executive chairman Shane Charles said Geothermal Industries was well established as a leader in their field in the region. “We’ve assisted Geothermal Industries from inception over the past two years and hope this government tender leads to further opportunity in our region,” Mr Charles said. “The significance of this government building project highlights their capacity that should be utilised here.”
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