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Nov 09, 2020

State takes a stake in key CQ coal terminal

State takes a stake in key CQ coal terminal

The Queensland Government is taking a stake of almost 10 per cent in the Dalrymple Bay Coal Terminal amid plans for a $1.2 billion expansion.

A spokesman for Treasurer Cameron Dick said the Queensland Investment Corporation  (QIC) had signed a commitment for a 9.99 per cent stake in the Brookfield-owned facility.

That stake is understood to be worth about $150 million.

Brookfield has flagged intentions to lift capacity at the major coal export facility, near Mackay, from 85Mtpa to 100Mtpa.

Mr Dick’s spokesman said this would provide terminal capacity to support another six Bowen Basin mines, including the Olive Downs operation which received final approvals in September.

The expansion works are expected to create about 500 construction jobs.

Mackay-based Resource Industry Network general manager Dean Kirkwood welcomed the QIC investment as confirmation of the State Government’s commitment to the resource sector.

“It shows that the government sees that coal mining is an important part of the economy and something that is going to be around long term,” he said.

Mr Kirkwood said also the expected 15Mtpa lift in capacity at Dalrymple Bay would help encourage development of new mines or mine expansions in the region.

He believed it was important the government remain a minority shareholder in the operation rather than it becoming a fully state-owned asset.

Queensland Resources Council chief executive Ian Macfarlane said Mr Dick had flagged the proposed investment in DBCT prior to the State election.

“The QIC’s decision to invest in the DBCT is a clear vote of confidence by the State Government in the role of resources in Queensland’s COVID-19 recovery and economic growth for decades to come,” Mr Macfarlane said.  

Mr Macfarlane said the QRC had previously sought and received a commitment from the Government to provide regulatory certainty for DBCT and the Central Queensland Coal Network, with the independent Queensland Competition Authority to have oversight of both assets as regulated monopolies until 2030 and 2040 respectively.

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