PERTH (miningweekly.com) – The North Queensland Bulk Port Corporation (NQBP) on Wednesday awarded BHP Billiton and Hancock Coal the preferred developer status for two new coal terminals at the Abbot Point port.

NQBP chairperson Leonie Taylor said that the new terminals would be single-user terminals providing BHP and Hancock with the capacity to export 30-million tons a year each.

“Both BHP Billiton and Hancock Coal have expressed interest in working with NQBP in optimising the area to increase capacity from 30-million tons a year to 50-million tons a year for BHP Billiton and from 30-million tons a year to 60-million tons a year for Hancock Coal. This of course, would be subject to investigations and approvals,” said Taylor.

The government would offer a 99-year lease over the existing Abbot Point coal terminal with the sale process to commence in late 2010.

She said that NQBP would now negotiate detailed framework agreements, which would underpin the planning and development of the terminals.

“These two projects have the potential to deliver a massive economic injection to central and northern Queensland,” said Taylor.

BHP Billiton metallurgical coal president Hubie van Dalsen said that the miner anticipated strong export growth from its metallurgical coal resources in the Bowen basin.

"The new Abbot Point coal terminal is a key element in our growth plans," Van Dalsen said.

The proposed BHP coal terminal would be fed by Queensland Rail’s Newlands coal rail system, Taylor said.

Hancock Coal is proposing a mine-to-port development, which includes a purpose-built rail line from the Galillee coal basin to its coal terminal at Abbot Point.

Abbot Point is Australia's most northerly coal port, and comprises a rail in-loading facility, coal handling and stockpile areas, and a single trestle jetty and conveyor connected to a berth and shiploader, located 2,75 km off-shore.

Coal is supplied to Abbot Point by rail from the Newlands, Collinsville and Sonoma mines. Further, small quantities of coal may be brought north on the coastal rail line from the Goonyella system for export.

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