BHP support revives Hunter coal export plan

By Sam Collyer

The plan appeared to have collapsed less than three weeks ago when the mining giant made a last minute decision not to sign the agreement by the August 31st deadline set by the Australian Competition and Consumer Commission (ACCC).
That prompted the ACCC to withdraw its support for interim coal export arrangements which had been in place to keep the coal chain operating smoothly until the long-term agreement comes into effect on January 1st.
The coal industry now expects that the ACCC will re-approve interim capacity arrangements once the key document is signed by the three leading parties.
Terminal operator Port Waratah Coal Services (PWCS) and the Newcastle Port Corporation signed the original agreement by the deadline but emerging terminal operator Newcastle Coal Infrastructure Group, as a result of BHP's last minute withdrawal, did not sign.
BHP Billiton said that it was pleased to now sign the agreement but would not clarify if the parties had resolved the issues which caused the miner not to sign by the original deadline.
“BHP Billiton has always maintained that an industry-supported solution was possible and could be achieved,” the company said in a statement.
PWCS said the resolution of the discussions was “extremely welcome” and gave coal producers “urgently needed certainty” about their future coal export volumes.
The agreement gives PWCS the go-ahead to build the port's fourth coal terminal, adding to its existing Kooragang and Carrington terminals and the new NCIG terminal now under construction.
New South Wales Premier Nathan Rees weighed into the issue, welcoming the expected growth in jobs and construction activity which will stem from the industry's expansion.
The agreement should see annual port capacity grow to more than 180 million tonnes by 2015, up from about 93 million tonnes this year.

Source: Lloyd’s List Daily Commercial News – www.lloydslistdcn.com.au