PERTH (miningweekly.com) – The Queensland government on Thursday unveiled a new strategy to facilitate the development of coal projects in the Galilee basin.

Speaking at the Major Projects Conference, Premier Campbell Newman said the Galilee Basin Development Strategy could deliver up to 28 000 new jobs, would grow the resources sector as one of the four pillars of the Queensland economy, and untangle the "planning mess" left behind by the Labor government. 

“My government is unashamedly all about growing the business of Queensland and we will do all we can to facilitate the projects proposed for the Galilee basin,” he stated.

“But the six different railway proposals the Labor government had allowed to progress to get the coal to port were unacceptable and would have resulted in more impact on landholders and the environment.

“My government promised to deliver better infrastructure and better planning and this is precisely what we’ll do through the Galilee Basin Development Strategy.” 

The strategy details government initiatives aimed at the early development of the southern and central Galilee basin. These initiatives target both private-sector mining companies and infrastructure providers and are designed to help lower start-up costs and fast-track development.

The strategy highlights initiatives across a number of themes, including lowering start-up costs by reducing initial royalty payments; streamlining land acquisition; planning, approvals and red tape reduction; positioning Abbot Point as the Galilee’s gateway to the world; supporting infrastructure development and corridors; and supporting regional communities.

First movers wanting to develop key infrastructure will be given top priority through these initiatives.

Deputy Premier and State Development, Infrastructure and Planning Minister Jeff Seeney said the proposed projects had a total forecast investment of A$28.4-billion and would provide over 15 000 jobs during construction and over 13 000 operational jobs.

“Companies that are currently investigating opening mines in the Galilee basin are contemplating many billions of dollars of investments,” he added.

“My government is mindful of the financial magnitude of these investments and the long lead times between financial commitment and shipping the first coal to its offshore destination, which is why we are offering incentives.”

Seeney noted that the strategy was designed to encourage first movers – those proponents whom the government considers will play a vital role in opening up the basin for their own projects, as well as for other miners.

“The Newman government is offering a ramp-up-to-royalty initiative whereby the government will consider offering reduced royalties for an initial period of time. We are also offering access to the T2 site at Abbot Point port – the key potential coal stockpiling and handling site within the priority port development area.

“These incentives, along with the strategy’s streamlined solutions for planning, land acquisition [and] water, power and rail access, will ensure projects have the best chance of going ahead in the Galilee basin.”

Queensland Resources Council CEO Michael Roche has welcomed the publication of the strategy.

“Anything you can do to make a whole new coal province like the Galilee basin more attractive to investors, has to be good news.”

Roche noted that the royalty relief indicated by the strategy also meant that some of the billion-dollar projects slated for development, could get over the line quicker.

“The government has sent a powerful signal to potential investors that the state is open for business.”

Roche added, though, that the royalty relief should be further extended across the rest of Queensland, to cover not only the Galilee basin and the coal sector, but greenfield project developments of all types.