Property and Finance Brief 12 April 2013
Abbott point expansion
China deal offers commercial gains
Julia Gillard trip to China has resulted in two significant commercial deals Hydro Tasmania and China's Shenhua Group signed a strategic cooperation agreement to develop a further 700 megawatts of wind farms, valued at $1.6 billion. Shenhua Group already owns a 75 per cent stake in Hydro Tasmania's Woolnorth wind farm and Mussleroe wind farm.
China's Minmetals Corporation, the China Development Bank and the Australian based Minerals and Metals Group - a wholly owned subsidiary of Minmetals - signed a mining finance facility and minerals development contract worth $1.5 billion for the development of the Dugald River zinc, lead and silver mine near Cloncurry in Queensland.
Santos ramps up CSG
Santos GLNG, has applied for a huge CSG expansion in central and southern Queensland, with options to sink 6,100 new coal seam gas wells, on top of the project's 2,000 existing wells. The project would need new gas and water pipelines, water and gas treatment plants, roads, sewerage, pits and quarries, with a workforce of 1,700 during construction and about 200 in operation. The project area encompasses the Maranoa, Western Downs, Central Highlands and Banana regional council areas, including towns such as Roma, Miles, Surat, Taroom, Wandoan, Injune and Rolleston.
Townsville Coal Mine
About 1.6 billion tonnes of coal deposits in north-west Queensland are one step closer to being opened up to mining. Miner Guildford Coal is applying for a mining licence to allow it to mine several projects it has between Townsville and Hughenden. The company expects up to 10 million tonnes of coal to be exported annually from its North Queensland deposits when they become operational, possibly passing through the Port of Townsville.
The $750 million Guildford Coal project west of Townsville will drive $2 billion in economic output, boosting jobs and driving demand for housing, its proponents say. The construction phase impact is listed as $2.2 billion in output, $787 million is gross value added and $228 million in wages and salaries. The project will support about 300 jobs in construction and operation.