Photo by: Bloomberg
PERTH (miningweekly.com) – The New Acland Stage 3 expansion project could deliver about A$7-billion in additional economic activity, a new report by advisory firm Ernst & Young (EY) has found.
The proposed New Acland Stage 3 project will expand the mine’s yearly output from 4.8-million tonnes to 7.5-million tonnes and will extend the operation’s life beyond the current end-date of 2017/18.
The expanded operation will see a further 260 people employed at the mine, and could inject some A$12-billion in local, state and federal revenues over the life of the project.
ASX-listed New Hope told shareholders that the EY report outlined more than A$8.1-billion in payments that the New Acland coal project would make to stakeholders over the 12-year life of the expanded mine, compared with the A$1.3-billion in economic activity if the project is not approved, and the mine is forced to close in 2020.
MD Shane Stephan said on Thursday said that the figures in the EY report reflected the fact that the New Acland operation contributed close to A$500-million a year in economic activity.
“We always said the expansion at New Acland would bring great benefit to the local and broader community and this independently verified report shows that in stark reality,” Stephan said.
“It also shows just how much money will go missing from the economy if the Queensland state government rejects Stage 3.”
New Hope in June this year called for a judicial review of the Queensland Land Court’s decision not to support the grant of a mining lease and environmental authority for the Stage 3 expansion, after the Land Court in May of this year raised concerns about the impact of the proposed expansion on groundwater in the region, recommending that the mining lease and environmental authority not be granted.
Stephan warned on Thursday that if the Stage 3 expansion was not approved, 535 existing full time jobs would be lost at the mine, while a further 405 jobs in construction and ongoing operations would not be created.
“These jobs are critical to the Darling Downs region with many people likely to have to leave the region if they lose their jobs.
Suppliers were also expected to miss out on more than A$2.5-billion in potential revenue over the next decade, Stephan said.
“Another area that will take a massive hit is local government, with A$112-million reduction in payments to the Toowoomba Regional Council if Stage 3 doesn’t proceed.”
However, should the expansion be approved, yearly payments to stakeholders will peak at around A$800-million in 2020, as the construction of the expansion is completed, with the mine’s contribution to the local economy expected to remain steady at around A$575-million a year for a decade, to 2031.