Making tracks

ONE of the key factors to any mine succeeding in the Galilee Basin near Alpha, is the ability to transport the coal from the region to port.

Earlier this month the potential of mining in the area was given a huge boost when the Coordinator-General approved the proposed 495km Hancock Coal rail corridor to port at Abbot Point.

Should it go ahead, the building of the railway - deemed to be an Infrastructure Facility of Significance (IFS) - could create up to 1600 jobs.

Premier Anna Bligh said the approval could only be sought by projects which would have the potential to contribute to the State through economic growth or new jobs.

"It's an important milestone towards a project that could help open up the Galilee Basin for the first time," Ms Bligh said.

The approval by the Coordinator-General of the $2 billion project was not given lightly, as it gives the office the power to acquire land to build the link.

Infrastructure and Planning Minister Stirling Hinchcliffe said compulsory acquisition would only be used as a last resort.

"The declaration of the IFS means Hancock now has a defined corridor within which they can continue to study the feasibility of their plans," Mr Hinchcliffe said.

The approval of the corridor as an IFS does not in any way constitute approval, or endorsement, of the project's separate Environmental Impact Statement.

The miners

RAY Shaw considers his company's project to be the "baby" of the Galilee Basin coal projects.

Having said this, the South Galilee Project being investigated by Bandanna Energy, of which Mr Shaw is the managing director, and AMCI, has the potential to pump out between 15-20 million tonnes/year of coal for the next 40-50 years.

"If it were in existence today, it would be the largest coalmine in Australia," Mr Shaw said.

But he is right - it is the baby.

It is half the size in terms of projected yearly output of the Waratah Coal mine, which is anticipated to have a production of up to 40 million t/year, and far smaller than Hancock's Alpha Coal and Kevin's Corner projects which are each expected to be around the 30 million t/year mark.

"It's an area where potentially we have an enormous abundance of coal," Mr Shaw said.

"We are unapologetically the smaller of the three proponents but the Minister for Infrastructure and Planning Hinchcliffe has made it clear that the Government is looking at a whole-of-basin approach.

"They want to see a rational development of infrastructure."

Hancock Coal's two prospective projects are projected to provide up to 5000 jobs in construction and 3600 ongoing positions, Waratah Coal's mine 6000 during construction and 760 ongoing and Bandanna Energy/AMCI 750 during construction and up to 400 permanent.

"The township of Alpha could grow to a population of 1500. There are issues of hospitals, airports, education - the whole bit," Mr Shaw said.

Given the size of the projects Mr Shaw believes it will not be until at least 2014 before coal is starting to be mined, should the sites get approval.

"They are such large projects so the ramp-up time will be somewhere in the order of a decade," he said.

"Because these mines are going to be around for 40-50 years time, the lead-in time is, on a proportional basis, quite large."

Mr Shaw sympathised with the Taylors and the lack of clarity as to what their future might hold, but said that was the nature of mining.

"We have this situation where the current landholders are basically in that position of uncertainty," he said.

Mr Shaw emphasised that while the potential for mining was there, no decisions had yet been made and his company's potential mine, in particular, was still in the early stages.

The town

BELYANDO Livestock and Property owner Ed Wood is openly excited about the prospect of Alpha becoming a mining town.

He sees mining as Alpha's ticket to prosperity.

"At this stage we don't see anything really happening. We see a bit of activity and blokes walking around in coloured shirts," Mr Wood said.

"We notice a bit more equipment and heavy vehicles and we seem to be getting a lot more through traffic.

"We came here, ironically because there wasn't any coal. Ironically at that stage Alpha was one town on the Central Highlands that didn't have coal."

He said the mining activity, even though still in the initial phases, had already caused housing prices to explode.

"You could buy a house for $25,000-$40,000 five years ago. Now for the same property you would pay anywhere from $220,000-$300,000."

"There are only 140 homes in Alpha with just 60 vacant lots on the current town plan.

"Two or three years ago there were a heap of people who were sceptical but we've now evolved into optimistic, confident.

Barcaldine Regional Council chief executive officer Des Howard said the council was not opposed to the mines and was in constant discussions with the State Government and the miners about future development of Alpha, should the mines go ahead.

Where it's all at

BEFORE any of the companies can start mining, they must pass a series of rigorous approval processes and ultimately obtain a Mining Lease.

All of the prospective mining applications must undergo a number of thorough assessments, including environmental and community impacts, native title, technical and commercial viability and safety and health issues.

A Mines and Energy spokesman for the Department of Employment, Economic Development and Innovation said the community would be invited to provide comment or objections prior to any decision by the State Government whether to reject or grant an application.

Hancock, Waratah and Bandanna Energy/AMCI all hold granted Exploration Permit Coal (EPCs) and Hancock also has a granted Mining Development Lease, the spokesman said.

All an EPC gives the companies the right to do is explore the designated area on the permit for coal deposits that they may in future apply for a Mining Lease to dig it up.

Each of the companies will need to develop EISs for the projects, before any approval to mine is granted.

Queensland Country Life's calls to Hancock Coal were not returned before deadline and the appropriate people to comment on Waratah Coal's project are out of the country.