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By Rob Taylor and Fayen Wong
CANBERRA, July 15 Australia's Queensland state
is considering new coal mines and the country's first new
export terminal in 25 years, investments that could increase
shipments from the world's largest exporter of the commodity by
But the announcement has drawn fire on the eve of a report
on emissions trading as Australia, the world's largest
greenhouse gas emitter per person, looks to lead Asia on carbon
Australia has benefitted hugely from a near-trebling of
prices in just a year caused by surging Asian demand but also
shipping bottlenecks at home, with supply tightness not seen
easing for at least four years.
The Premier of Queensland state, Anna Bligh, said on
Tuesday she was looking at a "trifecta" of options for new coal
developments in the tropical state, including three new coal
projects that could boost output by 75 million tonnes a year
and a coal port with a capacity of up to 100 million tonnes.
"These projects could see this state fully harness the
opportunities the resources boom can offer by delivering a 40
percent increase in our coal exporting capacity," Bligh said in
But the state's coal expansion plans, which come on the eve
of the federal government's release of a green paper on
emissions trading, has drawn criticism from environmental
groups, which said the proposal was at odds with government
efforts to curb coal-fired emissions to fight climate warming.
Coal prices have rocketed in the past year as key exporting
nations, faced with infrastructure constraints, struggle to
keep up with global demand.
Analysts have forecast coal prices to stay high until at
least 2012, when new port capacities in Australia, South
Africa, and Russia come online.
Bligh said her state was considering a A$5.3 billion
proposal by Canada-listed Waratah Coal WCI.V for a new mine
near Alpha, in the Galilee basin, producing 25 million tonnes
of thermal coal a year for export, mainly to Japan and South
Korea by 2012. The project also has the potential to expand its
output to 50 million tones per year.
The Galilee basin is Australia's largest undeveloped coal
reserve with potential to yield up to 20 billion tonnes.
The proposed 100 million-tonnes-per-year coal port, which
would be Australia's first new coal port in 25 years, would be
built near Shoalwater Bay, between Rockhampton and Mackay, on
the central Queensland coast, Bligh said.
A second Bowen Basin Growth project by BHP Billiton
(BHP.AX) (BLT.L)-Mitsubishi Alliance would open two new mines,
helping boost exports by 20 million tonnes. A third proposal
was for a 30 million tonne-a-year open-cut mine near Wandoan by
Xstrata XTA.L, Bligh said.
CARBON TRADING SCHEME
Australia, the world's biggest per-head greenhouse gas
polluter, will on Wednesday unveil an options paper for how a
carbon-emissions trading scheme could reshape the A$1 trillion
($972 billion) economy to make it less reliant on coal-fired
electricity for energy.
Federal Climate Change Minister Penny Wong is expected to
include fuel on Wednesday to make the national emissions scheme
as broad as possible on start-up in 2010, even as unions warned
of thousands of job losses the scheme would bring.
Her paper will not have any short or medium-term emissions
targets, with the government wary of angering voters already
spooked by inflation at 16-year highs and rising home loan
repayment costs in a nation obsessed by house ownership.
Instead, Wong will provide direction for a trading regime
to be among the world's most comprehensive, with the government
to offer payments to motorists and households compensating for
the inevitable price rises the emissions system will bring.
Wong at the weekend said the scheme would target 1,000 of
Australia's biggest polluters, with 450 required to complete
emissions audit reports in the first year.
That would capture some of the country's biggest corporate
names, including BHP Billiton, Xstrata XTA.L and Rio Tinto
Ltd/Plc (RIO.L), power companies AGL Energy AGK.AX and Origin
Energy (ORG.AX), and transport company Toll Holdings TOL.AX.
(Editing by Michael Urquhart)