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{{#badges: CoalSwarm|Navbar-Australiacoal}}'''Abbot Point Coal Terminal''' is an export coal terminal in Queensland, Australia with a capacity of 50 million tonnes a year. The terminal, which is ultimately owned by the Ports Corporation of Queensland, a Queensland government-owned business<ref>North Queensland Bulk Ports Corporation Limited, [http://www.nqbp.com.au/index.cfm?contentID=5 "NQBP Ports"], North Queensland Bulk Ports Corporation Limited website, accessed November 2010.</ref>, was operated by Abbot Point Bulk Coal Pty Ltd, a subsidiary of [[Xstrata Coal Queensland]]<ref name="APT">[http://www.nqbp.com.au/index.cfm?contentID=15 "Abbot Point"], North Queensland Bulk Ports Corporation website, accessed November 2010.</ref> until May 2011, when the Queensland government announced that the terminal had been leased to a subsidiary of the [[Adani Group]] for 99 years.<ref name="MR">Anna Bligh (Premier and Minister for Reconstruction) and Rachel Nolan (Minister for Finance and Arts), [http://www.cabinet.qld.gov.au/MMS/StatementDisplaySingle.aspx?id=74576 "Premium price for Abbot Point Coal Terminal boosts disaster recovery"], Media Release, May 3, 2011.</ref>
{{#badges: CoalSwarm|Navbar-Australiacoal}}'''Abbot Point Coal Terminal''' is an export coal terminal in Queensland, Australia with a capacity of 50 million tonnes a year. The terminal, which is ultimately owned by the Ports Corporation of Queensland, a Queensland government-owned business<ref>North Queensland Bulk Ports Corporation Limited, [http://www.nqbp.com.au/index.cfm?contentID=5 "NQBP Ports"], North Queensland Bulk Ports Corporation Limited website, accessed November 2010.</ref>, was operated by Abbot Point Bulk Coal Pty Ltd, a subsidiary of [[Xstrata Coal Queensland]]<ref name="APT">[http://www.nqbp.com.au/index.cfm?contentID=15 "Abbot Point"], North Queensland Bulk Ports Corporation website, accessed November 2010.</ref> until May 2011, when the Queensland government announced that the terminal had been leased to a subsidiary of the [[Adani Group]] for 99 years.<ref name="MR">Anna Bligh (Premier and Minister for Reconstruction) and Rachel Nolan (Minister for Finance and Arts), [http://www.cabinet.qld.gov.au/MMS/StatementDisplaySingle.aspx?id=74576 "Premium price for Abbot Point Coal Terminal boosts disaster recovery"], Media Release, May 3, 2011.</ref>
−
Ambitious expansion plans that would have added several new coal export terminals at Abbot Point and increased the port's annual export capacity to as much as 230 million tonnes have suffered significant setbacks due to weakness in the global coal market and opposition to the terminal's expansion on environmental grounds. In recent years, several companies that had
expressed interest in
the port
's expansion
- including [[Rio Tinto]], [[BHP Billiton]] and [[Anglo American]] - have withdrawn from the project, and a number of major banks have also declined to provide financing for the expansion. As of January 2015, the only companies actively seeking to continue with port expansion plans are GVK Hancock (a joint venture between the Indian company [[GVK]] and Australia-based [[Hancock Prospecting]]) and the India-based [[Adani Group]].
+
Ambitious expansion plans that would have added several new coal export terminals at Abbot Point and increased the port's annual export capacity to as much as 230 million tonnes have suffered significant setbacks due to weakness in the global coal market and opposition to the terminal's expansion on environmental grounds. In recent years, several companies that had
sought to establish terminals at
the port - including [[Rio Tinto]], [[BHP Billiton]] and [[Anglo American]] - have withdrawn from the project, and a number of major banks have also declined to provide financing for the expansion. As of January 2015, the only companies actively seeking to continue with port expansion plans are GVK Hancock (a joint venture between the Indian company [[GVK]] and Australia-based [[Hancock Prospecting]]) and the India-based [[Adani Group]].
{{#display_map:-19.892232,148.078351|width=600|height=400|type=satellite|zoom=14}}
{{#display_map:-19.892232,148.078351|width=600|height=400|type=satellite|zoom=14}}
+
+
==Project Details==
+
Operator: Ports Corporation of Queensland, Adani Group
+
Capacity (tons): 50 million
+
Status: Expanding
==Background==
==Background==
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As of May 2011, the North Queensland Bulk Ports Corporation website stated that in addition to the X50 expansion, six additional coal export terminals were being considered, each with an approximate capacity of 30 million tonnes per annum. In late 2009 the ports corporation sought expressions of interest for the development of Terminals 2 and 3 (T2 and T3, previously referred to as the X80 and X110 projects). The corporation stated that "the Preferred Developers, [[Hancock Coal]] Limited and [[BHP Billiton]] Limited are currently working with NQBP to enter into a Framework Agreement to progress the project and are finalising preliminary design and environmental studies."<ref name="T7"/>
As of May 2011, the North Queensland Bulk Ports Corporation website stated that in addition to the X50 expansion, six additional coal export terminals were being considered, each with an approximate capacity of 30 million tonnes per annum. In late 2009 the ports corporation sought expressions of interest for the development of Terminals 2 and 3 (T2 and T3, previously referred to as the X80 and X110 projects). The corporation stated that "the Preferred Developers, [[Hancock Coal]] Limited and [[BHP Billiton]] Limited are currently working with NQBP to enter into a Framework Agreement to progress the project and are finalising preliminary design and environmental studies."<ref name="T7"/>
−
The corporation also stated that "NQBP has developed plans to facilitate the development of four additional separate tranches, each nominally 30mtpa, of coal terminal capacity." These projects were referred to as T4, T5, T6 and T7.
"
To assess preliminary demand for additional terminals at T4-7, in December 2010 NQBP held a customer forum to outline the proposed development and invited non-binding indicative expression of interest for terminal capacity from users. Given the high level of indicative demand, the next step proposed by NQBP was to run a formal EOI process.<ref name="T7"/>
+
The corporation also stated that "NQBP has developed plans to facilitate the development of four additional separate tranches, each nominally 30mtpa, of coal terminal capacity." These projects were referred to as T4, T5, T6 and T7. To assess preliminary demand for additional terminals at T4-7, in December 2010 NQBP held a customer forum to outline the proposed development and invited non-binding indicative expression of interest for terminal capacity from users. Given the high level of indicative demand, the next step proposed by NQBP was to run a formal EOI process.<ref name="T7"/>
−
==Financing expansion==
+
In May 2011 NQBP deputy chief executive officer Jeff Stewart-Harris said that he was hoping that the federal government would allocate $500 million from Infrastructure Australia in the budget towards the cost of establishing a "multi-cargo facility" which would include additional coal handling capacity. The facility would cater for BHP-Billiton and Hancock Coal's terminals 2 and 3 and cater for terminals 4 to 7 in the longer term. The establishment of the multi-cargo terminal would, he said, cost about $2.3billion and require the dredging of 20 million cubic metres of material and the construction of eight kilometres of rock wall. The facility would cater for 12 capesize shipping berths. The first stage of the facility, he said, would cost approximately $1 billion.<ref>Melissa Grant, [http://www.dailymercury.com.au/story/2011/05/10/coal-port-vision-sweats-on-500m-budget-boost/ "Aust's biggest coal terminal plans"], ''Daily Mercury'', May 11, 2011.</ref>
−
In May
2011
NQBP deputy chief executive officer Jeff Stewart-Harris said that he was hoping that
the
federal government would allocate $500 million from Infrastructure Australia in
the
budget towards
the
cost of establishing a
"
multi-cargo facility
"
which includes additional coal handling capacity. The facility would cater for BHP-Billiton and Hancock Coal's terminals 2 and 3 and cater
for terminals 4
to 7 in the longer term. The establishment
of
the multi-cargo terminal would
,
he said
,
cost about $2.3billion
and
require the dredging of 20 million cubic metres of material and the construction of eight kilometres of rock wall. The facility would cater for 12 capesize shipping berths. The first stage of the facility
,
he said
,
would cost approximately $1 billion
.<ref>
Melissa Grant,
[http://www.
dailymercury
.com
.au
/
story
/
2011
/
05/10/coal
-
port
-
vision
-
sweats
-
on
-
500m
-
budget
-
boost/
"
Aust's biggest coal terminal plans
"], ''
Daily Mercury
'',
May 11
, 2011.</ref>
+
By the end of
2011
,
the
number of terminals planned for
the
port had increased to nine, and
the
Queensland government had identified six
"
preferred respondents
" for terminals 4
through 9: Anglo American Metallurgical Coal, Macmines Austasia, North Queensland Coal Terminal (a consortium
of
Macarthur Coal
,
Peabody Energy
,
New Hope Corporation, Middlemount Coal
and
Carabella Resources)
,
Rio Tinto Coal
,
Vale and Waratah Coal
.<ref>[http://www.
coalage
.com/
news
/
latest
/
1531
-
australias
-
abbott
-
point
-
plans
-
for
-
future
-
expansion.html#.VMlpycZcNpk
"
Australia’s Abbott Point Plans for Future Expansion
"], ''
Coal Age
'',
December 1
, 2011.</ref>
==Newman government pulls back on expansion plans==
==Newman government pulls back on expansion plans==
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==January 2015 Update==
==January 2015 Update==
−
As of January 2015, future expansion plans for the port remain in limbo. Between 2012 and 2014,
four
companies originally slated to participate in the port expansion withdrew their support for the project. After Rio Tinto announced its plans to pull out of Abbot Point in April 2012<ref>[http://www.platts.com/latest-news/metals/melbourne/rio-tinto-pulls-out-of-australias-abbot-point-7522818 "Rio Tinto pulls out of Australia's Abbot Point coal expansion project"], Platts, April 24, 2012.</ref>, BHP Billiton followed suit in November 2013<ref>[http://www.theguardian.com/environment/2013/nov/03/bhp-scraps-coal-port-abbot "BHP Billiton scraps plans for new coal port at Abbot Point in Queensland"], ''The Guardian'', November 3, 2013.</ref>, followed by the construction firm Lend Lease in February 2014
+
+
As of January 2015, future expansion plans for the port remain in limbo. Between 2012 and 2014,
several
companies originally slated to participate in the port expansion withdrew their support for the project. After Rio Tinto announced its plans to pull out of Abbot Point in April 2012<ref>[http://www.platts.com/latest-news/metals/melbourne/rio-tinto-pulls-out-of-australias-abbot-point-7522818 "Rio Tinto pulls out of Australia's Abbot Point coal expansion project"], Platts, April 24, 2012.</ref>, BHP Billiton followed suit in November 2013<ref>[http://www.theguardian.com/environment/2013/nov/03/bhp-scraps-coal-port-abbot "BHP Billiton scraps plans for new coal port at Abbot Point in Queensland"], ''The Guardian'', November 3, 2013.</ref>, followed by the construction firm Lend Lease in February 2014
<ref>[http://www.abc.net.au/news/2014-02-27/green-group-applauds-lend-lease-abbot-point-pullout/5288260 "Green group applauds Lend Lease Abbot Point pullout"], ABC, February 26, 2014.</ref> and multinational mining company Anglo American in March 2014
<ref>[http://www.abc.net.au/news/2014-02-27/green-group-applauds-lend-lease-abbot-point-pullout/5288260 "Green group applauds Lend Lease Abbot Point pullout"], ABC, February 26, 2014.</ref> and multinational mining company Anglo American in March 2014
<ref>[http://www.theaustralian.com.au/business/mining-energy/anglo-says-no-to-abbot-point/story-e6frg9df-1226848503868 "Anglo says no to Abbot Point"], ''The Australian Business Review'', March 8, 2014.</ref>. In addition, the project has run up against strong opposition from environmentalists and reluctance on the part of major banks to provide financing.
<ref>[http://www.theaustralian.com.au/business/mining-energy/anglo-says-no-to-abbot-point/story-e6frg9df-1226848503868 "Anglo says no to Abbot Point"], ''The Australian Business Review'', March 8, 2014.</ref>. In addition, the project has run up against strong opposition from environmentalists and reluctance on the part of major banks to provide financing.
−
Adani Mining continues to forge ahead with its plans to develop the Abbot Point terminal and an associated railway linking the port to its Galilee Basin mines. As of January 2015, the Adani Mining website states that "The Galilee Basin is potentially the last undeveloped coal resource within Queensland and has the potential to become the largest coal producing region in the State. Adani is proposing to develop the North Galilee Basin Rail Project (NGBR Project) to transport coal from the Galilee Basin to the Port of Abbot Point via a multi-user, greenfield, standard gauge rail line."<ref>[http://www.adanimining.com/australia-rail-prj "North Galilee Basin Rail Project"], Adani website, accessed January 2015.</ref> The 310km NGBR railway won approval from the Australian government in October 2014; however, environmentalists have expressed strong opposition to Galilee Basin coal mining and development of a major coal port so close to the Great Barrier Reef and have launched petitions and legal proceedings to block Adani's plans.<ref>[http://www.miningaustralia.com.au/news/environmental-group-takes-adani-s-carmichael-mine "Environmental group takes Adani’s Carmichael mine to court"], Mining Australia, October 9, 2014.</ref><ref>[http://www.forbes.com/sites/kenrapoza/2014/12/02/activists-gun-for-indian-billionaires-great-barrier-reef-project/ "Activists Gun For Indian Billionaire's Great Barrier Reef Project"], Forbes, December 2, 2014.</ref> In October 2014, Adani reiterated its commitment to the Abbot Point terminal project, despite the decision of major banks including Goldman Sachs, Citigroup and JPMorgan Chase not to finance the project due to environmental concerns.<ref>[http://www.abc.net.au/radionational/programs/bushtelegraph/environmental-pressure-grows-around-adani-abbot-point-project/5856738 "Abbot Point coal development progresses, but banks back away from the project amid environmental concerns"], ABC Bush Telegraph, October 31, 2014.</ref> In November 2014, responding to falling coal prices and diminishing interest among other potential developers, Queensland's state government offered to contribute an unspecified amount ("hundreds of millions, but not billions" of dollars) in incentives towards construction of
the
proposed $2.2 billion rail line between Galilee and Abbot Point.<ref>[https://www.thesaturdaypaper.com.au/news/politics/2014/11/22/newman-government-courts-adani-galilee-basin-coal-deal/14165748001280#.VLQMOydcNpl "Newman government courts Adani on Galilee Basin coal deal"], The Saturday Paper, November 22, 2014.</ref> Meanwhile, Adani signed a memorandum of understanding with the State Bank of India for a loan of up to $1 billion to help finance the project.<ref>[http://in.reuters.com/article/2014/11/17/adani-ent-australia-coal-idINKCN0J105020141117 "Adani lines up $1 billion SBI loan for Australian coal venture"], Reuters, November 17, 2014.</ref> In January 2015, Australia Mining reported that Adani had awarded a $2 billion contract to the Australian engineering company Downer EDI for development of Adani's Galilee Basin mines, with mine construction slated to start in 2015 and coal production expected to begin in 2017.<ref>[http://www.miningaustralia.com.au/news/adani-awards-downer-edi-2-billion-coal-contract "Adani awards Downer EDI $2 billion coal contract"], Mining Australia, January 5, 2015.</ref>
+
Adani Mining continues to forge ahead with its plans to develop the Abbot Point terminal and an associated railway linking the port to its Galilee Basin mines. As of January 2015, the Adani Mining website states that "The Galilee Basin is potentially the last undeveloped coal resource within Queensland and has the potential to become the largest coal producing region in the State. Adani is proposing to develop the North Galilee Basin Rail Project (NGBR Project) to transport coal from the Galilee Basin to the Port of Abbot Point via a multi-user, greenfield, standard gauge rail line."<ref>[http://www.adanimining.com/australia-rail-prj "North Galilee Basin Rail Project"], Adani website, accessed January
2015.</ref> Adani has partnered with the Korean construction group Posco to build the 308km rail link, aided by a reported $450 million in state government subsidies.<ref name=Guardian>[http://www.theguardian.com/environment/2015/jan/12/abbot-point-onshore-dump-would-favour-adani-say-coal-miners "Abbot Point: onshore dump would favour Adani, say coal miners"], ''The Guardian'', January 12,
2015.</ref> The 310km NGBR railway won approval from the Australian government in October 2014; however, environmentalists have expressed strong opposition to Galilee Basin coal mining and development of a major coal port so close to the Great Barrier Reef and have launched petitions and legal proceedings to block Adani's plans.<ref>[http://www.miningaustralia.com.au/news/environmental-group-takes-adani-s-carmichael-mine "Environmental group takes Adani’s Carmichael mine to court"], Mining Australia, October 9, 2014.</ref><ref>[http://www.forbes.com/sites/kenrapoza/2014/12/02/activists-gun-for-indian-billionaires-great-barrier-reef-project/ "Activists Gun For Indian Billionaire's Great Barrier Reef Project"], Forbes, December 2, 2014.</ref> In October 2014, Adani reiterated its commitment to the Abbot Point terminal project, despite the decision of major banks including Goldman Sachs, Citigroup and JPMorgan Chase not to finance the project due to environmental concerns.<ref>[http://www.abc.net.au/radionational/programs/bushtelegraph/environmental-pressure-grows-around-adani-abbot-point-project/5856738 "Abbot Point coal development progresses, but banks back away from the project amid environmental concerns"],
''
ABC Bush Telegraph
''
, October 31, 2014.</ref> In November 2014, responding to falling coal prices and diminishing interest among other potential developers, Queensland's state government offered to contribute an unspecified amount ("hundreds of millions, but not billions" of dollars) in incentives towards construction of
Adani's
proposed $2.2 billion rail line between Galilee and Abbot Point.<ref>[https://www.thesaturdaypaper.com.au/news/politics/2014/11/22/newman-government-courts-adani-galilee-basin-coal-deal/14165748001280#.VLQMOydcNpl "Newman government courts Adani on Galilee Basin coal deal"],
''
The Saturday Paper
''
, November 22, 2014.</ref> Meanwhile, Adani signed a memorandum of understanding with the State Bank of India for a loan of up to $1 billion to help finance the project.<ref>[http://in.reuters.com/article/2014/11/17/adani-ent-australia-coal-idINKCN0J105020141117 "Adani lines up $1 billion SBI loan for Australian coal venture"], Reuters, November 17, 2014.</ref> In January 2015, Australia Mining reported that Adani had awarded a $2 billion contract to the Australian engineering company Downer EDI for development of Adani's Galilee Basin mines, with mine construction slated to start in 2015 and coal production expected to begin in 2017.<ref>[http://www.miningaustralia.com.au/news/adani-awards-downer-edi-2-billion-coal-contract "Adani awards Downer EDI $2 billion coal contract"],
''
Mining Australia
''
, January 5
, 2015.</ref>
+
+
In January 2015, GVK Hancock, the other company still actively planning to export coal from Abbot Point, expressed concern that the Queensland government was unfairly favoring the Adani Group by fast-tracking plans to build an onshore dump for dredge spoil from Abbot Point. The government's move, which is intended to expedite Adani's port expansion plans, is seen by GVK Hancock as potentially detrimental to its own infrastructure projects. The dredging plan also prompted concern from Aurizon, the Queensland government’s privatized rail freight company, which has joined forces with GVK Hancock to build a 300km rail link from GVK Hancock's mines to Abbot Point. Aurizon questioned a proposal from the Queensland government's Department for Infrastructure and Planning that called for material from the dredging operation to be used in the construction of rail embankments, maintaining that not enough was known about the dredge material that will be gathered at the project.<ref name=Guardian></ref><ref>[http://www.abc.net.au/news/2015-01-19/aurizon-questions-dredge-spoil-for-rail-works-at-abbot-point/6025314 "Aurizon raises questions over government plan to use dredge spoil for rail works at Abbot Point"], ABC, January 19
, 2015.</ref>
==Articles and resources==
==Articles and resources==