Eidos Institute Ltd, National Conference

Sustainable Development in Resource-Intensive Regions

Gladstone, 28 June 2011

Dr Ken King, Chief Executive Officer

Gladstone Economic and Industry Development Board

Gladstone – Planning for Sustainable Economic Development

A Short DVD Overview of Existing and Proposed Industry in the Gladstone Region

WELCOME!

LARGEST GLOBAL FOREIGN DIRECT INVESTMENT IN 2010

Gladstone Observer25 June 2011

$US 16 billion!• Singapore - $US 12.98 billion

• Rio de Janeiro - $US 7.27 billion

• Cienfuegos (Cuba) - $US 5.8 billion

• Australia - $US36.38 billion

Source – Business Review Weekly

Why Gladstone?

Gladstone Economic and Industry Development Board (GEIDB)

• Project Board established in 1999 under the State Development and Public Works Organisation Act 1971

• Key role of the Board - investment attraction

- project facilitation- infrastructure and industry development- capacity building- coordination, communication and community engagement

• Key focus for the Board- Large scale world class sustainable industry development- Gladstone State Development Area (GSDA) – 28,000 ha- Gladstone as Australia’s Model 21st Century Industrial Location

GEIDB Board Membership

Local MembersCEO, Gladstone Ports Corporation (Mr Leo Zussino) Mayor, Gladstone Regional Council (Cr Gail Sellers)CEO, Gladstone Regional Council (Mr Graeme Kanofski)CEO, Gladstone Area Water Board (Mr Jim Grayson) Chairman, GAPDL (Mr Peter Corones AM)Ms Judith Reynolds, Sothertons Chartered Accountants

Queensland Government MembersDeputy Coordinator-General, DEEDI (Mr Phil Dash)Deputy Director-General, DEEDI (Mr Mark Birmingham)

Gladstone’s Strategic ApproachAustralia’s 21st Century Industrial City

A Well Planned Approach to Sustainable Development

Industrial Precinct

Gladstone

Calliope

Future Residential

Western Basin

Gladstone’s Strategic ApproachBuilding on Three Decades of Detailed

and Strategic Planning

Port of Gladstone 50 Year Strategic PlanPort of Gladstone 50 Year Strategic Plan

Port Curtis Environmental Scan 1991Port Curtis Environmental Scan 1991

Gladstone State Development AreaGladstone State Development Area

Curtis Coast Regional Coastal Management PlanCurtis Coast Regional Coastal Management Plan

Gladstone Integrated Regional Transportation PlanGladstone Integrated Regional Transportation Plan

Gladstone Interactive Air Shed ModelGladstone Interactive Air Shed Model

Gladstone Area Water Board Strategic PlanGladstone Area Water Board Strategic Plan

Gladstone Regional Council Town PlanGladstone Regional Council Town Plan

Western Basin Master Plan Intermodal StudyWestern Basin Master Plan Intermodal Study

Port of Gladstone Western Basin Master PlanPort of Gladstone Western Basin Master Plan

Queensland Rail Master PlanQueensland Rail Master Plan

Port of Gladstone Shipping Capacity ModelPort of Gladstone Shipping Capacity Model

Gladstone Clean and Healthy Air StudyGladstone Clean and Healthy Air Study

Gladstone Region Social Infrastructure Strategic PlanGladstone Region Social Infrastructure Strategic Plan

Gladstone’s Large Scale Industry – Established and Proposed

Established World Class Major Industries

• Queensland Alumina Limited

• Boyne Smelters Limited

• Rio Tinto Alcan Yarwun

• NRG Gladstone Power Station

• Cement Australia (Qld) Pty Ltd

• Orica Australia Pty Ltd

• Gladstone Ports Corporation Limited

• QR National

• Transpacific Industries

Further Proposed Large Scale Industrial Development

Wiggins Island Coal Export Terminal (WICET) – Capital A$2-5 billionEmployment (peak) 800 on site and 120 operationalFID 2011 – operational 2014

Moura Link - Aldoga Rail Project – Project Capital A$500 millionEmployment (peak) 350 and operational 550 (peaking to 700 by 2019)

Gladstone Steel Pant Project (Boulder Steel) – Capital A$2.5 billionEmployment (peak) 2000. Operational 1020.Construction Stage 1 targeted to commence 2012

Balaclava Island Coal Terminal (Port Alma) – Capital A$1.5 billionEmployment construction 800 and operational 100.Capacity of 35 Mtpa with vessels up to 110,000 tonne capacity

Advanced Minerals and Energy Projects 2011

Courtesy of Energy Skills Qld

Source: Gas Today Australia(Export LNG in Queensland)

LNG Industry Developments Under Construction

Queensland Curtis LNG (BG Group / QGC)Capital A$15B / Production 8.5 -12 MtpaEmployment : 5,000 construction / 1,000 operational various locationsCommenced construction Curtis Island early 2011 - first LNG late 2014

Gladstone LNG (Santos/ Petronas/Total/Kogas)Capital A$16B / Production 6-10 Mtpa Employment : 5,000 peak construction / 1000 OperationalCommenced construction Curtis Island March 2011 - first LNG 2015

Australia Pacific LNG (Origin/ConocoPhillips) – FID pendingCapital A$13B+ / Production 9 - 18 Mtpa Employment: 3,300 construction / TBA OperationalFirst production proposed by 2014 (2 trains) on Curtis Island site Stage 2 (a further 2 trains) TBA

LNG Industry Developments - Pending

LNG LimitedCapital $500M / Production 1.5 - 3 MtpaEmployment : 120 Construction / Operational 32Early site works suspended whilst alternate gas supply partner soughtPossible 12-18 month delay on original plan of first LNG Q4 2012

Arrow LNG (Shell and Petrochina)Production 16 Mtpa / Capital TBAIAS submitted and significant project status granted 12 June 2009EIS currently being prepared - first export targeted for 2016Proposed phased construction of 4 trains

Sojitz and Impel sites were identified

GSDA-CURTIS ISLAND

RECLAMATION AREAS

LNG Industry Projects

Gladstone’s Strategic Approach

LNG Industry Development Growth and Prosperity for the Gladstone Region Community

Major LNG Industry Locations – Curtis Island

ArrowGLNG

APLNG

QCLNG

Building Key Infrastructure for the Port of Gladstone

Western Basin Dredging and Disposal Project(Capital Cost A$1.3 billion)

Associated Activity

Port of Gladstone – 50 Year Strategic PlanPort of Gladstone – 50 Year Strategic PlanPort of Gladstone – 50 Year Strategic PlanPort of Gladstone – 50 Year Strategic Plan

Facilitating Queensland’s Export Growth (2010 – 2025)Facilitating Queensland’s Export Growth (2010 – 2025)

Indicative picture – Next five years

Courtesy of Construction Skills Queensland

Growth, Planning and Development

Six Decades of Industrial Growth

A Long Term Planning and Development Horizon

Key Challenges

• Developing Large Scale Industry– Multiple Project Delivery – 6-7000 peak construction employment

– Workforce Development – recruitment/training/skilling

– Housing and Accommodation - affordability

– Traffic and Transport – land and marine

• Protecting Natural Resources in a World Heritage Area– Management of environmental impacts – land, water, air, flora and fauna

• Maximising community and businesses benefits– Business and supply chain outcomes

– Economic infrastructure development outcomes

– Community communication and social focus outcomes

Gladstone Foundation

In 2009-10 in partnership with Gladstone Regional Council and the Queensland Government the Gladstone Economic and Industry Development Board coordinated the most comprehensive study of Community and Social Infrastructure needs ever undertaken in the Gladstone region.

A dynamic model for social infrastructure planning and delivery for future industrial developments in the region has been delivered with the Gladstone Region Social Infrastructure – Voluntary Industry Contributions Framework.

A structured approach, including the pooling of funds, is considered fundamental to addressing priority social infrastructure needs in the region and achieving the best return from any future investment in social infrastructure.

The Gladstone Foundation has been established and a Board of Advice comprising local business, Gladstone Regional Council, State Government representatives and community members will make recommendations for the investment and distribution of funds.

The Chairman of the Gladstone Board of Advice is Mr Jim Petrich AM

Recent Local Media– More funds needed not plans!

– Rents and homelessness on the rise

– Town on cusp of crisis curve – housing, health, traffic and transport

– Integrated Housing Strategy cops criticism from Council, plan “too little too late”

Gladstone’s Strategic ApproachThe Powerhouse of the Eastern Seaboard

GladstoneRegion

GladstoneRegion

GLADSTONE ECONOMIC AND INDUSTRY DEVELOPMENT BOARD

www.gladstoneindustry.org.au

E: info@gladstoneindustry.org.au

T: +617 4971 2318 F: +617 4971 2316