Failure to approve the New Acland Stage 3 project would cost the Australian economy about $7 billion in economic activity, most in Queensland, according to a report released today.
The financial impacts report prepared by global consulting firm Ernst and Young (EY) outlines more than $8.1 billion in payments that New Acland Coal (NAC) will make to stakeholders over the 12 year life of the expanded mine.
This compares to $1.3 billion in economic activity if the project is not approved and the mine is forced to close in 2020.
New Hope Group managing director Shane Stephan said the figures reflected the fact that the New Acland operation contributed close to $500 million per annum in economic activity.
“We always said the expansion at NAC would bring great benefit to the local and broader community and this independently verified report shows that in stark reality,” Mr Stephan said.
“It also shows just how much money will go missing from the economy if the Queensland State Government rejects stage three.
“But it’s not just about the money. Across our operations we employ a large number of people, at the mine site, at our corporate headquarters in Ipswich and at the Port of Brisbane.
“If the expansion of NAC doesn’t go ahead 535 existing full time jobs will be lost and a further 405 jobs in construction and ongoing operations will not be created. These jobs are critical to the Darling Downs region with many people likely to have to leave the region if they lose their jobs.”
Mr Stephan said suppliers would take the largest financial hit, missing out on more than $2.5 billion in potential revenue over the next decade.
“The overwhelming majority of these suppliers are local south-east Queensland businesses who rely on NAC for a large percentage of their income,” he said.
“Another area that will take a massive hit is local government with a $112 million reduction in payments to the Toowoomba Regional Council if Stage 3 doesn’t proceed.”
The report is available on the Stage 3 Project website at: http://www.aclandproject.com.au/content/reporting