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Hutchinson Builders to build new QGC Chinchilla headquarters

By Stacey.Kent | May 1st, 2012 | Posted in News

 

QGC Pty Limited has awarded a A$15.5 million contract to Queensland company J Hutchinson Pty Limited, trading as Hutchinson Builders, for a two-storey operations and production support centre in Chinchilla.
The new building will be on the corner of the Warrego Highway and Carmichael Street, near QGC’s temporary offices in Taylor Street.
It will accommodate up to 128 people in 2800 square metres of floor space. Construction is scheduled to be completed by early 2013. The project will employ up to 70 people, creating up to 50 new jobs across a range of trades, administration and health and safety.
QGC Managing Director Derek Fisher said QGC’s investment in the new building demonstrated the company’s long-term commitment to the area.
“Our operations will last decades and Chinchilla will be an important hub for our gas field operations,” Mr Fisher said.

Hutchinson Builders recently completed a A$7 million supply warehouse for QGC near Miles and in 2011 the company won a A$57 million contract through WorleyParsons to supply modular accommodation and facilities for QGC gas field developments.

New CSG Commission chairman calls for balance

Santos slams CSG red tape, wants 4100 new wells

By JordanWilliams | April 26th, 2012 | Posted in News

SANTOS has hit out at the increasing number of regulatory hurdles facing Queensland’s gas export industry, warning that Australia could lose out to other nations such as the US, where moves to export gas amid decade-low prices are growing rapidly.

Comments made by the company’s Gladstone LNG president Mark Macfarlane come as Santos applies for government approval to drill a further 4100 onshore coal seam gas wells in Queensland to supply its $16 billion Gladstone LNG project.

Source: http://www.theaustralian.com.au/business/mining-energy/santos-slams-csg-red-tape-wants-4100-new-wells/story-e6frg9df-1226333789814

Fodder crops being investigated with CSG production

By JordanWilliams | | Posted in News

Coal seam gas drilling on Tayglen Station.

Coal seam gas drilling on Tayglen Station. (Kim Honan)

Fodder crops being investigated with CSG production

Amy Phillips

Could irrigation be a reality in central west Queensland, an area where very little is done?

Coal seam gas company’s exploring in the area say they could grow fodder crops with water that comes up as a by product to gas production.

Water needs to be pumped out of underground aquifers for gas to be released and it can either be pumped back underground or treated and used.

Its mostly salty and can be high in bicarbonate but the likes of Santos have already proven it can be treated and used for irrigation.

Over 10 companies are drilling in the Galilee basin and say the underground water being extracted with the gas is of not bad quality and could be useful for irrigation.

Tor McCaul from Comet Ridge, a company exploring for gas north of Aramac, says they’re looking into growing the likes of saltbush with treated water in the central west.

“Water from the Betts Creek beds underground could be treated and used, the water is not particularly saline and it’s something we’d look at processing.”

Mr McCaul says the only problem is over time less water is extracted as part of the gas production process so it will be a finite resource.

“Some of the work we are doing indicates saltbush is something we should be thinking about.

“It needs watering only to establish it and then will survive on its own and makes good fodder.”

But while the gas industry says they bring many opportunities to communities there is some concern about the environmental impacts it could bring.

Underground water scientist, Dr Gavin Mudd from Monash University says he believes more studies need to be done before the industry pinholes the land.

“The disappointing thing with the way CSG has been developed so far is that there hasn’t been as much transparency about the existing coal seam gas operations, what their impacts have been to date, so that we can actually get a better understanding of what are the likely impacts of a much bigger scale industry in the future.

Source: http://www.abc.net.au/rural/content/2012/s3487872.htm?site=westqld

Authority outlines endangered snails plan for $1.4b dam

By JordanWilliams | | Posted in News

SunWater says it will move a colony of endangered snails from the site of the proposed Nathan Dam in southern inland Queensland.

The bulk water retailer has released an environmental impact statement (EIS) for the project that has been on the drawing board for 80 years.

SunWater wants to build a $1.4 billion dam on the Dawson River, north of Wandoan, north-west of Toowoomba.

The Nathan Dam project has been proposed for decades but in 2006 the then-Beattie Labor government committed $120 million to fast-tracking the design and preliminary work.

SunWater wants to build an 888 gigalitre storage about 35 kilometres north-east of Taroom, and a pipeline to Dalby to supply mining operations in the Surat Basin.

However in its EIS, SunWater says it has found more than 30,000 critically endangered Boggamoss snails in the project area.

SunWater says the water storage area will affect a colony of about 350 snails but they will be moved to a new location.

It also plans to build a turtleway into the dam wall to help the white-throated snapping turtle flourish.

Sunwater says if the project is approved, construction would start next year and the dam would be commissioned in 2016.

Submissions on the EIS close in June.

Source: http://www.abc.net.au/news/2012-04-24/authority-outlines-endangered-snail-plan-for-14b-dam/3968622?section=qld

Small business upbeat for CSG

By JordanWilliams | April 24th, 2012 | Posted in News

IT IS becoming harder to know how small businesses feel about the state of play in Gladstone and other resources-boom towns.

Australian Petroleum Production & Exploration Association (APPEA) has conducted a small survey of small businesses areas in Gladstone, Toowoomba and the Surat Basin.

Their survey finds small businesses in those areas are more optimistic about the future than previously.

APPEA chief operating officer Eastern Region, Rick Wilkinson said: “At a time of economic uncertainty it’s pleasing to see that small businesses in and around Queensland’s gas fields remain optimistic about their local economy and presence of the gas industry.”

“Figures released by APPEA last month show the industry now employs more than 12,000 people and is committing capital investment at a rate of more than $30,000 a minute,” Mr Wilkinson said.

Source: http://m.gladstoneobserver.com.au/story/2012/04/24/small-business-upbeat-for-csg-survey-claims/

Draft terms of reference released for central Queensland coal projects

By Stacey.Kent | April 21st, 2012 | Posted in News

 

Deputy Premier, Minister for State Development, Infrastructure and Planning
The Honourable Jeff Seeney


Draft terms of reference released for central Queensland coal projects


Central Queenslanders are invited to have their say on the draft terms of reference for two proposed thermal coal mines in Banana Shire and Western Downs.

Cockatoo Coal Ltd is seeking approval to establish the Taroom coal project three kilometres south-east of the town of Taroom, and the Collingwood coal project 12 kilometres north-east of Wandoan.

Deputy Premier and Minister for State Development, Infrastructure and Planning Jeff Seeney said the Coordinator-General would accept public submissions on each draft terms of reference for an EIS until Monday 28 May 2012.

“These projects have the potential to operate for up to 20 years and could export 13 million tonnes of thermal coal a year,” Mr Seeney said.

“If approved, they would be important coal exporters through the Wiggins Island Coal Export Terminal in the Port of Gladstone.

“Taken together, these projects are expected to attract capital investment of approximately $1.8 billion, generate up to 1000 construction jobs and employ 950 operational workers, with further regional jobs from flow-on economic development.”

Mr Seeney said that, if given approval, Cockatoo proposed to jointly progress construction, workforce and ongoing management of social and other programs for the Taroom and Collingwood mines.

The Taroom coal project covers 6500 hectares and in addition to mining infrastructure, Cockatoo Coal is seeking evaluation of a creek diversion, a rail line to the proposed Surat Basin Railway, diversion of 9 kilometres of the Leichardt Highway and a 52-kilometre electricity transmission line.

The Collingwood coal project covers over 6000 hectares near the proposed Surat Basin Railway. It includes plans for a seven-kilometre railway line to the proposed Surat Basin Railway and a 16-kilometre electricity transmission line.

Coordinator-General Barry Broe said the draft terms of reference would provide the framework for each project’s EIS.

“This means that community feedback on the draft documents is very important and I would encourage all interested parties to have their say,” Mr Broe said.

The draft terms of reference for each project are available from 28 April 2012 from www.deedi.qld.gov.au/cg/coordinator-general-projects.html

Source: http://www.cabinet.qld.gov.au/MMS/StatementDisplaySingle.aspx?id=79017

We’ll stand up to LNP govt: CSG watchdog

By Stacey.Kent | | Posted in News

 

The head of Queensland’s new coal seam gas (CSG) industry watchdog says he won’t be a puppet of the “pro-mining” Liberal National Party (LNP) government.

John Cotter, the former boss of agricultural lobby group AgForce, says he will be “fearless and free from influence” in the role overseeing the government’s Gasfields Land and Water Commission.

Mr Cotter says the Toowoomba-based body will balance the interests of landholders, environmentalists and industry.

It will be independent and have its own powers to ensure a level playing field, he says.

“I’ll have a voice as I’ve had all my life in this game, fearless and free from influence, and the deputy premier (Jeff Seeney) expects me to be in that position,” Mr Cotter told AAP.

“He knows that I won’t be sidelined or not be open or transparent.”

After Mr Cotter’s appointment on Thursday, anti-CSG group Lock the Gate Alliance president Drew Hutton told AAP the commission would be a “toothless tiger” under Mr Cotter after he’d failed to stand up to the government while at AgForce.

The anti-CSG protester reinforced his comments on Friday, saying Mr Seeney had appointed Mr Cotter to ensure the commission toed the government line.

“How much is this commission going to be politicised by a pro-mining government?” he said.

“This appointment is a signal to the coal seam gas industry that this government has no intention of keeping them under strict control.”

But Mr Cotter accused environmentalists like Mr Hutton of driving farmers out of business by pushing for strict regulations on them.

“I’ve spent … three-quarters of my life dealing with issues that have been driven by the Drew Huttons of the world, trying to put farmers out of business,” he said.

“The audacity of him to stand up there and say he’s now a friend of the farmers.

“He would put farmers out of business tomorrow if it suited him, and I don’t cop that at all.”

Mr Cotter said the commission’s powers and responsibilities had not yet been established but would be determined with the help of public feedback over the next month.

He said main areas of concern so far were fracking – the controversial process used to extract gas from coal seams – and the large amount of regulation imposed on the CSG industry.

The commission would review whether the regulations were necessary but would not hesitate to refer any company that broke the rules to be prosecuted, he said.

Applications are being sought for six other commissioners to help run the new body.

SOURCE: http://news.ninemsn.com.au/smartphone/article.aspx?id=8454515

PTT in the Mix for Peabody Mine as Bid Deadline Looms

By JordanWilliams | April 16th, 2012 | Posted in News

The race for Peabody Energy’s Wilkie Creek thermal coal mine is set to hot up on April 23 when non-binding bids are due, and early indications suggest a fiercely fought contest for an asset already exporting to Asia.

While attention may be focused on the usual suspects from Japan and China, Thai companies are also in the mix for their biggest acquisition in Australia since Banpu bought Centennial Coal for around 2 billion Australian dollars (US$2.1 billion) in late 2010.

Two people familiar with the matter say Thailand’s state-owned PTT is mulling an initial offer for Wilkie Creek, which has an annual output capacity of 2 million tons of thermal coal and could be worth between A$500 million and A$750 million based on past transactions in Australia’s coal sector.

Potential bidders received the information memorandum on Wilkie Creek, located in the Surat Basin of southeast Queensland state, late last month. Peabody hired UBS earlier this year to advise on the sale.

PTT dipped a toe into overseas coal exploration when completing the acquisition of Straits Resources’s coal business–focused around assets in Indonesia, Brunei and Madagascar–for 16 billion Thai baht (US$520 million) last year. That deal forms part of PTT’s target of increasing coal output to 30 million tons over five years, from 3 million tons in 2010.

While strong in oil and gas production and processing, PTT sees expansion in coal as a key plank of its plans to become a fully integrated energy company.

Rapid industrialization in Asia, especially China and India, is driving heavy investment in coal-fired power generation. This is supporting thermal coal prices in the Asia-Pacific region and boosting valuations of producing mines in countries like Australia and Indonesia, which account for much of the world’s seaborne coal trade.

Australia is the world’s largest coal exporter by volume, with vast reserves of thermal coal burnt to generate electricity and coking coal used to make steel. These reserves have made Australia a favored destination for foreign investment, despite political risk concerns as the federal government taxes profits from coal mining more heavily and puts a price on carbon.

Thermal coal from Wilkie Creek is railed to port in Queensland’s state capital Brisbane and then exported to Asia for use in power generation. The mine also has a resource of over 500 million tons of coal, meaning it has a production life extending for years at current rates.

But the mine’s location in the Surat Basin means it lies outside Peabody’s core operations in the Bowen Basin, which now include producing mines acquired in the A$4.9 billion dollar takeover of Macarthur Coal.

Wilkie Creek is located close to the Acland mine owned by ASX-listed New Hope and the Cameby Downs mine owned by China’s Yancoal. It isn’t known whether either of the pair are considering bidding for the mine, given the advantage they would likely have other competitors in extracting savings and their ability to pay a higher premium.

Source: http://blogs.wsj.com/dealjournalaustralia/2012/04/13/ptt-in-the-mix-for-peabody-mine-as-bid-deadline-looms/

Mining companies forced to report efforts to use Australian products

By JordanWilliams | April 13th, 2012 | Posted in News

Companies performing large mining, construction and infrastructure projects will now have to report to the government every six months what plans they have put in place to use Australian products.

Industry minister Greg Combet announced yesterday that private companies that refuse to comply with the new federal government initiative will forfeit access to tariff reductions for using imported products.

A Working Group first floated the idea at last October’s Jobs Forum, following urging from Australia’s industry unions AMWU and AWU, which claimed local manufacturing content was being overlooked in favour of cheaper overseas products for use in big mining projects especially.

Australian Workers Union secretary Paul Howes said in October that the Federal Government should force miners to announce the levels of materials they source from Australian companies.

“Frankly, it is unacceptable that these mining companies won’t open up their books,” he said.

“It is a case of naming and shaming them.

“I think companies like Rio Tinto and BHP Billiton are sensitive about their public profiles, and if it was clear and there was an agreed statement of fact on how much was being used, we would have more ability to be able to pressure these companies to do right thing.”

New transparency measures will now apply from 1 July this year, in which any mining company that receives government funding of $20 million or more will have to comply with increased Australian Industry Participation requirements.

In addition, those performing projects in the private sector that are valued at $2 billion or more and seek tariff concessions from the Enhanced Project By?law Scheme (EPBS) will have to comply with the six-monthly reporting requirements.

“This will improve the opportunities for Australian manufacturers, construction firms and service providers to win work on some of the biggest projects in the country,” said Combet.

“It shows the Gillard Government’s commitment to supporting jobs and ensuring the benefits of the mining boom are spread to the wider Australian economy.”

Formal guidance material for grant agreements and grantees, procurement officers, tenderers and EPBS applicants will be available from the Australian Industry Participation website from 1 July 2012, says Combet. EPBS applicants will reportedly have a further three month transition period.

Source: http://www.manmonthly.com.au/news/mining-companies-forced-to-report-efforts-to-use-a?utm_source=SilverpopMailing&utm_medium=email&utm_campaign=Manufacturers%20Monthly%20Newsletter%20-%20send%20-%3E%2012/04/2012%201:41:35%20PM&utm_content

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