The Minister for Resources and Energy, Martin Ferguson AM MP, officially opened the Hancock Coal test pit today. The test pit is part of a larger project that will create more than four thousand jobs in Queensland.
Hancock Coal’s Alpha Project, plus the transport infrastructure to go with it, is worth $7.5 billion to the Australian economy. It is one of two major coal projects the company is developing.
Together, the Alpha and Kevin's Corner projects will add an extra 20 per cent or 60 million tonnes (Mt) a year to Australia’s coal exports (292.3 Mt in 2009/10).
The projects will require substantial infrastructure including a new 495 kilometre standard gauge rail link to a new coal terminal at Abbot Point.
The test pit operation will enable coal to be trialled in power generation in Japan and Korea to determine suitability for overseas customers. The test pit operation is expected to finish by mid-2011. First exports from the Alpha project are scheduled from early 2014.
Minister Ferguson said the test pit was testament to the pioneering legacy of Lang Hancock and the continuing work by Lang’s daughter, Gina Rinehart.
“These projects are trailblazers in the opening of the Galilee Basin as a major new coal province. They have the potential to rival the Hunter Valley in New South Wales and the Bowen Basin in Queensland,” Minister Ferguson said.
“The Alpha project alone is expected to provide total employment for 2,500 people during construction as well as 1,600 permanent positions during the operational stage.
“In recognition of the significance of the Alpha and Kevin's Corner projects, the Australian Government has granted Major Project Facilitation Status to both projects.
“This means the Government will facilitate approval processes and identify relevant assistance programs.
“I welcome the milestone that Hancock Coal has reached today in two projects that are great for jobs and great for our economy.
“It is further evidence of the strength of our investment pipeline and of the potential for even further growth over time of our resources sector.”
Both the Alpha and Kevin projects have a mine life in excess of 30 years.