Port of Alma coal export program to go ahead

A fourth major coal terminal in Queensland would be viable and would help ease the state's congestion at other busy ports, premier Anna Bligh said yesterday.

She said in Parliament that the Gladstone Ports Corporation had given the rubber stamp to Xstrata's $1.5bn Port Alma coal export program.

Late last year Ms Bligh said Xstrata had secured the right to develop the port, south of Rockhampton, until July 1.

Ms Bligh estimated the port would cater for 30m tonnes of Xstrata's coal when operational.

The three major ports already servicing the Bowen Basin include Gladstone, Dalrymple Bay Coal Terminal (DBCT) and Abbot Point, but despite rapid expansion projects, all have had problems keeping up with global demand.

To be a viable port, Port Alma would require an extensive dredging program and would also suffer through not having a direct rail link to the coalfields, The Australian said.

But in sharp contrast to other ports, the terminal would be built and operated privately by Xstrata, which already operates three coal mines in the Bowen Basin, and other investors.

BHP Billiton and Mitsubishi also privately operate Hay Point, next door to DBCT, near Mackay.

DBCT, built by the Queensland Government, was privatised in 2002 and is now owned by Babcock and Brown Infrastructure.

"Should Xstrata Coal not intend to proceed with further investigations of the terminal, Gladstone Ports Corporation would seek expressions of interest from other potential coal customers for development of this terminal," Ms Bligh told Parliament.

"The location is ideal for coal tonnage increases from mines in the Surat Basin associated with the Southern Missing Link and the Blackwater Rail System.

"Additional export capacity at Port Alma would put Queensland in a better position to meet the growing global demand for coal.

"At present, Port Alma can only handle vessels up to 35,000 tonnes, but with dredging, vessels of up to 90,000 tonnes could be considered.”