Labor raises concern over proposed New Acland overturn, Fifo ban

23rd January 2015 By: Esmarie Iannucci - Creamer Media Senior Deputy Editor: Australasia

PERTH (miningweekly.com) – The Queensland Resources Council (QRC) on Friday added to the growing concern around what a win for the Labor party in the Queensland elections would mean for the resources sector.

The QRC was responding to news that the Labor government, if voted into power, would look to overturn approvals for the amended life extension plan of the New Acland coal mine, being developed by New Hope Coal.

The New Acland project is the proposed third stage of the New Acland coal mine, and would result in a A$12-billion boost to the local economies. The revised plan would extend the life of the current operations to around 2029, and would take the number of full-time operational jobs to 435, and would create another 260 jobs during construction.

The Queensland Coordinator-General approved the Stage 3 development in December last year.

“Comments on ABC Radio today by spokesperson Dr Anthony Lynham have made it crystal clear that Labor values second preference votes more highly than local jobs and communities,” said QRC CEO Michael Roche.

Roche noted in joining the opposition to the New Acland Stage 3, Labor was condemning the mine to close as early as 2017, taking with it over 2 700 jobs.

“If Labor and the Member for Stafford had taken the trouble to accept a briefing from the QRC, they would have learned that without this project winning approval, the mine runs out of coal by 2017 and all those jobs are lost.

“We are talking here about 300 employees living locally, 160 contractors and 2 300 indirect jobs generated by New Acland as the major economic contributor to the region.”

Roche added that the latest comment was another “sad example”of a poorly informed Australian Labour Party” making policy on the run, giving up on mining and giving up on jobs in order to appeal to minority interests.

The QRC’s outrage comes shortly on the heels of the Association of Mining and Exploration Companies (Amec) raising concern around Queensland Labor’s plan to legislate against 100% fly-in, fly-out (Fifo) projects.

Earlier this week, Queensland Labor leader Annastacia Palaszczuk launched the party’s jobs plan, which included plans to legislate against projects only making use of a Fifo workforce.

Palaszczuk said, at the time, that the move would create more jobs for Queenslanders in regional communities.

However, Amec CEO Simon Bennison noted that a blanket approach to Fifo workforce arrangements was not feasible as many operations wdere in remote locations and dependent on a Fifo or drive-in, drive-out workforce.

“Labor’s plan to review all existing 100% Fifo arrangements also creates significant uncertainty for mining and exploration companies operating, or planning to operate, in Queensland.

“The exorbitant cost of housing and rental accommodation, as well as a lack of government infrastructure and services, can be major setbacks to a workforce based in a local community on a permanent basis.”

Bennison noted that the cyclical nature of mining also made it difficult to strategically forecast permanent workforce requirements.

“Fifo provides workers with a choice. In many cases, Fifo rosters enable workers to set themselves up financially and provide the opportunity to spend quality time with family and friends when they are not on roster.

“At a time when companies are scaling back and cutting costs and jobs, it is essential that additional burdens are not placed on companies and workers. Ongoing investment in the resources sector in Queensland is crucial to securing jobs and government revenue streams,” said Bennison.