pages 1 through 80 redacted for the following reasons: sch...

Pages 1 through 80 redacted for the following reasons:- - - - - - - - - - - - - - - - - - - - - - - - - - - -Sch. 3(3)(1)(b)Sch. 3(7)

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From: David Stolz Sent: Wednesday, 24 March 2010 4:33 PM To: Cc:

Geoff Dickie; Ed Ebert; Noel Thorne; Phil Dash; Calm 0 1Byrne; Colin Bunker; Rod Beausang; Connie Seeto; Kim Mahoney Vanessa Cornell

Subject: Update on Hancock IFS application and assessment

All,

This email is just to give a very brief update on progress. As you would be aware, the public consultation period on Hancock's IFS application closed on 22 March 2010. Twenty-three submissions have been received. Due to the recent whether events however, we have also granted four requests for extensions of time for the receipt of submissions -through until 29 March 2010.

Steps following receipt of all submissions:

• Copies of all submissions (on CD) will be provided to Hancock Coal. Hancock Coal will be requested to respond to and address issues raised in the submissions.

Regards

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Sch. 3(7)

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David Stolz Director Coal Infrastructure Taskforce Regional Development Department of Infrastructure and Planning Queensland Government

tel +61 7 3404 3474 ext 43474 mpost PO Box 15009 City East Qld 4002 visit Level 3 Executive Building 1 00 George Street Brisbane [email protected]

www.dip.qld.qov.au

#,Please consider the environment before printing this email

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Sch.4(4)(6) Personal Information

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delete this email and any copies of this from your computer system network.

If not an intended recipient of this email, you must not copy, distribute or take any action(s) that relies on it; any form of disclosure, modification, distribution and/or publication of this email is also prohibited.

Unless stated otherwise, this email represents only the views of the sender and not the views of the Queensland Government. Unless stated otherwise, this email, together with any attachments, is intended for the named recipient(s) only and may contain privileged and confidential information. If received in error, you are asked to inform the sender as quickly as possible and delete this email and any copies of this from your computer system network.

If not an intended recipient of this email, you must not copy, distribute or take any action(s) that relies on it; any form of disclosure, modification, distribution and/or publication of this email is also prohibited.

Unless stated otherwise, this email represents only the views of the sender and not the views of the Queensland Government.

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I ~

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RTI Document No.95

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O'Keefe, Meagan

From: O'Keefe, Meagan Sent: Tuesday, 31 January 2012 2:31 PM

Stolz, David To: Cc: Thorne, Noel; Gannon, Bob Subject: RE: Minister Lucas to meet with GVK tomorrow- COMMERCIAL IN CONFIDENCE

Attachments: Min Lucas Meeting with GVK- Notes. doc

Min Lucas ing with GVK

David,

Thank you for this.

I have put this into a word document and made some comments. Can you please review this and provide the additional information?

Kind regards, Meagan

From: Stolz, David Sent: Tuesday, 31 January 2012 1:59PM To: O'Keefe, Meagan; Thorne, Noel; Gannon, Bob Cc: Davies, Keith; Rees, Paul; Walker, Damien; Dash, Phil; Thorne, Noel Subject: RE: Minister Lucas to meet with GVK tomorrow - COMMERCIAL IN CONFIDENCE

Meagan,

Are these the sort of points you need?

Regards

DS

Sch.4(4)(7) Disclosing trade secrets, business affairs or research

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• Specific concerns have been raised directly with the Treasurer and the Coordinator-General by a number of landholders with pastoral and other non-mining interests in the areas between the proposed Galilee Basin mines and the Port of Abbot Point, about the impact of developing multiple unaligned railways.

• These concerns relate to the hydrological impact of rail embankment structures on farm operations ( e.g. worsening flooding outcomes , extended inundation, erosion, altered water flows); the separation of farm units as a result of the development of rail infrastructure (and particularly multiple unaligned railways) and the complications this creates for good farm management; and the environmental impacts on people and farm animals arising from the generation of dust, noise, vibration and contamination from large numbers of coal train movements.

RTI Document No.97


Sch.4(4)(4)Disclosing deliberative process

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Regards

David Stolz

(Tel: 3404 3474 or ext 43474)

From: Sent: To:

O'Keefe, Meagan Tuesday, 31 January 2012 11:16 AM Stolz, David; Thorne, Noel; Gannon, Bob

Cc: Davies, Keith; Rees, Paul; Walker, Damien; Dash, Phil Subject: Importance:

Minister Lucas to meet with GVK tomorrow - COMMERCIAL IN CONFIDENCE High

Noel, David and Bob

Minister Lucas is meeting with representatives from GVK tomorrow.

The DP's office has requested dot points from Keith to prepare Minister Lucas for this meeting.

Can you please send this through to me as an email by 3pm today?

Kind regards, Meagan

Meagan O'Keefe Director, Coordinator-General's Directorate Office of the Coordinator-General Department of Employment, Economic Development and Innovation Level 5 Executive Building 100 George Street Brisbane Ph: 3235 4630 or

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O'Keefe, Meagan

From: Sent: To: Cc: Subject:

O'Keefe, Meagan Tuesday, 12 June 2012 8:09AM Fletcher, Shelley McGill, Elaine RE: DEPBN12/274: Waratah Coal proposed Palmer's Wharf infrastructure facility of significance (IFS) application and fee payment (Letter to

Ladies, I printed this and put it in to Barry.

M

From: Fletcher, Shelley Sent: Friday, 8 June 2012 5:51 PM To: 0 1 Keefe, Meagan Cc: McGill, Elaine Subject: DEPBN12/274 : Waratah Coal proposed Palmer's Wharf infrastructure facility of significance (IFS) application and fee payment (Letter to

Hi Meagan,

As discussed, here is the brief & letter for Waratah Coal re returning the cheque to them.

Many thanks,

Shelley Business Support Officer Office of the Deputy Coordinator-General Project Assessment and Attraction Group office of the Coordinator-General Ext: 44978

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Sch. 4(4)(6) - Personal information


Speak, Siobhan

Subject: Location:

Start: End: Show Time As:

Recurrence:

Meeting Status:

12PM DIP BRIEFING RE: HANCOCK COAL IFS Minister's Office, Level 12 Executive Building

Tue 21/09/2010 12:00 PM Tue 21/09/2010 12:15 PM Tentative

(none)

Not yet responded /,_/ ____ --/

Ed Ebert, Noel Thorne & David Stolz ~~~"- ~r) {C.~'D-G

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. Application for Declaration of Infrastructure Facility of Significance

g3J ~ I HANCOCK COAL PTY LTD

RTI Document No.154

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APPLICATION FOR DECLARATION OF INFRASTRUCTURE FACILITY OF SIGNIFICANCE JtS:le::>' I HANCOCK COAL PTY LTD

This page intentionally blank

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APPLICATION FOR DECLARATION OF INFRASTRUCTURE FACILITY OF SIGNIFICANCE J;j3J 8"' I HANCOCK COAL PTY LTD

Table of Contents

1.

2.

3.

Introduction

Summary

Background

5

6

7

3.1 The Proponent 7

3.2 Description of the Projects 8

4. Details of the Infrastructure Facility including Land On Which The 12 Facility Is To Be Located

4.1

4.2

4.2.1

4.3

4.4

4.5

4.6

Overview

Railway Description and Alignment

Track Parameters

Rollingstock and Operations

Railway Marshalling Yards and Maintenance Facilities

Landholders

Native Title and Aboriginal Cultural Heritage

12

14

17

18

19

19

20

5. Demand Projections for the Services Associated with the 21 Infrastructure Facility

5.1

5.2

5.3

6.

7.

7.1

7.2

7.3

Coal Characteristics

Coal Demand

Coal Rail Demand

21

21

23

How the Proposed Facility would Satisfy Identified Needs 24

Direct and Indirect Benefits Associated with the Infrastructure 25 Facility

Local/Regional Benefits

State Benefits

National benefits

26

28

29

8. Details of the proponents Financial and Technical Capability to 30 Implement the Project

8.1 Technical Capabilities 30

8.2 Financial Capabilities 32

9. Proposed Timing of the Infrastructure Facility or Service Delivery 32

10. Advice as to any Special Requirements from Government 33

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APPLICATION FOR DECLARATION OF INFRASTRUCTURE FACILITY OF SIGNIFICANCE @I 87' I HANCOCK COAL PTY LTD

11. Possible Environmental Impacts, the steps taken to indentify those 33 impacts and to develop strategies to manage them

Attachment A - Letters of Support from Barcaldine and Isaac Regional Councils

Attachment B - Press Release- Thiess Pty Ltd Oct 2008

Attachment C- Federal Government Letters

Attachment D- Detailed Maps of Rail Corridor

Attachment E- Alpha Coal Project Terms of Reference

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APPLICATION FOR DECLARATION OF INFRASTRUCTURE FACILITY OF SIGNIFICANCE liP 87' I HANCOCK COAL PTY LTD

1. Introduction

Hancock Coal Ply Ltd (ACN 130 249 973), a fully owned subsidiary of Hancock Prospecting Ply Ltd, is applying for designation of an infrastructure facility of significance with respect to the proposed rail corridor and track from the Galilee Basin {Alpha Coal Project) to the port of Abbot Point in North Queensland. This application is made pursuant to Section 125 (1) (f) of the State Development and Public Works Organisation Act 1971 (Qid) (SDPWO Act) for an infrastructure facility that is:

(i) of significance, particularly economically or socially, to Australia, Queensland or the region in which the facility is to be constructed; and

(ii) approved by the Governor in Council, by gazette notice, as having that significance.

Section 125 (16) of the SDPWO Act defines "infrastructure facility" to include any of the following:

(a) a road, railway, bridge or other transport facility; (b) a jetty or port; (c) an airport, landing strip or spaceport; (d) an electricity generation, transmission or distribution facility; (e) a storage, distribution or gathering or other transmission facility for-

(i) oil or gas; or (ii) derivatives of oil or gas;

(f) a storage or transportation facility for coal, any other mineral or any mineral concentrate;

(g) a dam, water storage facility, pipeline, channel or other water management, distribution or reticulation facility;

(h) a cable, antenna, tower or other communication facility; (i) infrastructure for health or educational services.

The Hancock railway falls within the SDPWO Act definition of "infrastructure facility." An infrastructure facility of significance is infrastructure categorised under section 125( 1) (f) of the SDPWO Act as being an infrastructure facility that is of significance, particularly economically or socially, to Australia, Queensland or the region in which the facility is to be constructed and which is approved by the Governor in Council by Gazette notice as having that significance.

This Statement will demonstrate that the proposed rail corridor both economic and social significance at a national, state and local level.

While Hancock Coal is committed to negotiating voluntary arrangements with both indigenous and non-indigenous parties that may be affected by the proposed infrastructure facility of significance it may need to seek the Coordinator General's assistance to exercise powers for the compulsory acquisition of interests in land under Part 6, Division 6 of the State Development and Public Works Act 1971. Under section 125 (1), a pre-requisite for the exercise of that power is that the acquisition be for a purpose prescribed by that section.

The proponent for the project is Hancock Coal Pty Ltd, a fully owned subsidiary of Hancock Prospecting Pty Ltd {through Hancock Energy Pty Ltd). Hancock Coal was

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RTI Document No.158

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APPLICATION FOR DECLARATION OF INFRASTRUCTURE FACILITY OF SIGNIFICANCE \!P er- I HANCOCK COAL PTY LTD

created to develop the thermal coal tenements held in the Galilee Basin.

2. Summary

Hancock Prospecting is a successful Australian company founded over 50 years ago in Western Australia. It is a privately owned company with experience in prospecting, development, operations and marketing of bulk commodities, in particular iron ore. Further details on the proponent can be found at Section 2.1.

The proposed infrastructure facility, the subject of this application, is a standard gauge, standalone railway line designed to transport significant quantities of bulk coal from mine to port. Subject to relevant approvals, construction of the railway will commence in 2011 with the first coal to be exported from Abbot Point in the second half of 2013. A corridor of between 60 to 100 metres wide will be required for the track, drainage, access roads and other infrastructure to support the railway. This will be the "as constructed" width. The footprint for the purpose of this application is 500 metres - 250 metres each side of the nominal centre line.

The railway will be managed and operated in accordance with the Transport Infrastructure Act 1994 (Qid) (TI Act).

An environmental impact assessment is being undertaken pursuant to the Terms of Reference issued by the Coordinator General under the SDPWO Act for the Alpha Coal Project on 1 June 2009. 1

Section 125 (1) empowers the Coordinator-General to take land for an infrastructure facility for the purpose of conferring rights or interests on a person other than the State or a local body. Land and any interests in land also covers any native title rights and interests.

The proposed rail corridor route will traverse properties owned by approximately 40 landholders. The parcels are held under either freehold or leasehold title. Hancock Coal is seeking to negotiate the consent of all native title parties under Indigenous Land Use Agreements (ILUAs). Sections 4.5 and 4.6 provide further information.

Hancock Coal is planning to successfully negotiate outcomes with all landholders, including native title interest holders. However, should all reasonable efforts not result in successful acquisition and if all relevant guidelines under section 174 of the SDPWO Act have been met, Hancock Coal will request the compulsory acquisition of the land by the Coordinator-General to enable construction and operation of the railway line. Hancock is seeking primarily to acquire interests in freehold for the corridor, however it is important to stress that each landholder will be treated with respect and on an individual basis (as no two properties or people are the same) with a view to minimizing any potentially negative impacts.

1 The Commonwealth Government has determined that the project constitutes a controlled action pursuant to the Environment Protection and Biodiversity ConseNation Act 1999 (EPBC Act). The Environmental Impact Statement (EIS) process is to be administered in parallel by the Department of Infrastructure and Planning for the Coordinator·General under the SDPWOA on behalf of the Queensland Government and by the Commonwealth Department of the Environment, Water, Heritage and the Arts under the EPBC Act, on behalf of the Australian Government.

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APPLICATION FOR DECLARATION OF INFRASTRUCTURE FACILITY OF SIGNIFICANCE lj3J 8"' I HANCOCK COAL PTY LTD

The rail corridor is an essential part of opening up the Galilee Basin for thermal coal and other products for the benefit of the region, the State and the nation. This will not be possible without at least one railway line to a suitable port. Hancock is undertaking a process which ensures that the railway and associated mines and infrastructure make a viable case for Hancock Coal, whilst providing a railway which is designed to enable expansion and third party access for other miners in the Galilee Basin area.

The Infrastructure Facility to be created by Hancock Coal covers three regional council areas formed after the 2008 restructure and reform of Queensland local governments. Both Hancock Coal's Alpha Coal and Kevin's Corner mining assets and part of the rail corridor are within the Barcaldine Regional Council local government area. Barcaldine Regional Council is supportive of the two mining projects as evidenced by correspondence at Attachment A.

Isaac Regional Council and the Whitsunday Regional Council are also impacted by the railway line as it traverses through across their Regions and will benefit from further mine development.

The State of Queensland will receive increased royalty payments (over $430 million per annum at full production of the proposed Hancock Coal projects) and also from other projects opened up in the Basin by the proposed rail corridor. Direct ongoing employment from the projects is estimated at 3,000 jobs. Hancock's two projects, Alpha Coal and Kevin's Corner will between them increase Australia's export revenues by approximately $5-$6 billion each year.

3. Background

3.1 The Proponent

Hancock Prospecting Pty Ltd is a leading privately owned, Australian mining company with interests in iron ore, coal, manganese, uranium, diamonds and copper/gold. The company was established by Lang Hancock who discovered and drove the initial development of the Pilbara region of West Australia into the world's premier iron ore mining region. Hancock Prospecting, which is chaired by Mrs. Gina Rinehart, has significant interests in a number of operating iron ore mines and a manganese mine. The company is currently reviewing development options for the Roy Hill iron ore mine and the Alpha and Kevin's Corner coal projects.

On 14 January 2010, the major Korean steel company, POSCO executed a binding Cooperation Agreement with Roy Hill Holdings (RHH), a wholly owned subsidiary of the Hancock Prospecting Group. Roy Hill Iron Ore Pty Ltd, a wholly owned subsidiary of RHH, owns the Roy Hill 1 tenements which contain over 2.4 billion tonnes of iron ore resources in the Pilbara region of Western Australia, and plans to produce and ship 55 million tonnes per year of iron ore utilizing a dedicated rail and port infrastructure system.

Environmental review documents released recently in Western Australia show that Rio Tinto and Hancock Prospecting plan to mine up to 30 million tonnes a year of high grade, Brockman iron ore for 25 to 30 years from Hope Downs 4, potentially doubling production from their current 50/50 joint venture at Hope Downs 1. Hope Downs 1 is served by the Lang Hancock Railway - a 58 km new railway which was fully

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APPLICATION FOR DECLARATION OF INFRASTRUCTURE FACILITY OF SIGNIFICANCE \:l3J 8"' I HANCOCK COAL PTY LTD

commissioned and operational by March 2008. The new mine is located 45 km east of the existing Hope Downs 1 mine, and would be served by an expansion of the railway and port facilities.

In Queensland, Hancock Prospecting, through its wholly owned subsidiary companies, Hancock Coal Ply Ltd and Hancock Galilee Ply Ltd own the Alpha Coal Project and the Kevin's Corner Coal Project respectively.

Hancock Coal is seeking to become one of the largest independent thermal coal producers in the world that is focused on the delivery of low cost, export quality thermal coal primarily to Asian markets.

The mines will be supported by privately owned and operated rail and port infrastructure facilities. As it has in Western Australia, Hancock intends to become a major participant in the Queensland mining industry.

As part of its corporate socially responsible approach, Hancock Coal has developed the Hancock Community Support Program based at Alpha. The essence of this program is to assist those communities in which Hancock Coal operates towards the achievement of independent growth and long term sustainability. A priority for Hancock Coal is developing partnerships which promote the future economic and social development of these communities.

3.2 Description of the Projects

In order to appreciate the social and economic value of the proposed rail corridor, it is necessary that this vital component of infrastructure be considered within the overall context of the projects proposed by Hancock Coal.

These projects are located in the Galilee Basin, Central Queensland approximately 50 kilometres (km) north of the township of Alpha, 130 km south-west of the township of Clermont and approximately 360 km south-west of Mackay in Central Queensland.

Upon final development in 2018, the Alpha Coal Project will produce 30 million !annes per annum (mtpa) of export quality thermal coal over a 30+ year mine life. The coal will be transported approximately 495km to the currently preferred port location at Abbot Point in North Queensland. In October 2008, Thiess Ply Ltd entered into an agreement with Hancock as the preferred supplier of construction and mining services for the Alpha Coal Project. (Refer Attachment B).

The Kevin's Corner Coal Project, which is also expected to produce 30mtpa of export quality thermal coal over a 30+ year mine life, will also utilize the rail corridor currently being assessed as part of the Alpha Coal Project's Environmental Impact Statement which is

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APPLICATION FOR DECLARATION OF INFRASTRUCTURE FACILITY OF SIGNIFICANCE 'tiP er- I HANCOCK COAL PTY LTD

underway. GHD are the primary consultants contracted by Hancock Coal to assist in delivery of the Environmental Impact Statement (EIS) as it relates to the rail corridor.

Apart from the rail infrastructure, other key infrastructure proposed for the Projects include:

• a mine industrial area including main workshop, warehouse, administration buildings, training and emergency services building, lyre bay, light vehicle workshop and bucket repair shop;

• rail loops; • coal handling and preparation plant and associated infrastructure; • airport (shared with Kevin's Corner Project); • construction camp (shared with Kevin's Corner Project); • main accommodation camp (shared with Kevin's Corner Project); • mine access and other internal roads; • fuel and oil, explosives storage facilities; • power supply options for the stated power requirements; and • on site borefield and regional long term water supply options.

A map identifying the Hancock MLA areas is provided below at Figure 1. 1.

"""""'L.l . !r-~~~==--~~--~--,

·--... '

Note: This application spur line.

only to the Coal Railway and not the Kevin's Corner

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RTI Document No.162

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APPLICATION FOR DECLARATION OF INFRASTRUCTURE FACILITY OF SIGNIFICANCE gp e?' I HANCOCK COAL PTY LTD

Hancock Prospecting has held tenements in the Galilee Basin since 1978, initially through MDL 333 (Kevin's Corner). It then acquired MDL 285 (Alpha) in 1993 which it has held since this time and then applied for, and was granted EPC1210 in 2009. In December 2009, the tenements were accepted as MLA 70426 {Alpha) and MLA 70425 (Kevin's Corner).

The decision to develop the Alpha Coal Project occurred in 2007 as thermal coal prices increased significantly and infrastructure servicing Queensland's coal fields migrated west. The decision culminated in preparation of the Pre-Feasibility Study, Peer Review, Value Engineering, detailed Bridging Studies, commencement of the EIS and the preparation for commencement of the Bankable Feasibility Study for both the Alpha Coal and Kevin's Corner Projects {the latter brought forward to meet additional demand from Asia). A final decision to develop the Projects is expected in 2010 after the completion of the Bankable Feasibility Study, and subject to meeting all necessary Government approvals.

The Projects will be among the largest thermal coal mines in the world. The large scale, low cost and independent nature of the Projects and the superior quality coal make it well suited to the key export markets of Japan, Korea, Taiwan, India, China, Vietnam, Thailand and Malaysia.

Both the Alpha and the adjacent Kevin's Corner Projects have been provided with the Commonwealth Government's "Major Project Facilitation Status" and have also been declared as Significant Projects by the Queensland Government under the SDPWO Act for which an Environmental Impact Statement is required.2

Resources Summary

The Alpha Coal Project's resources have been estimated in accordance with the Joint Ore Resources Committee (JORC)3 Code and are listed in the table below.

Alpha - 2008/09 Resources Summary

Lease Number All seams (million tonnes)

Measured Indicated Inferred Total

MLA70426 (Alpha) 848 1,197 569 2,614

JORC compliant resources for Alpha are estimated at 2.6 billion tonnes with 848 million tonnes in the measured category. Additional exploration drilling has been undertaken at Alpha which, as outlined below, is expected to define a total resource of 3.6 billion

2 On 23 October 2008, the Coordinator General declared the Alpha Coal Project a Significant Project for which an ElS is

required. On 1 June 2009, the Coordinator General provided Final Terms of Reference for the Alpha Coal Project. On 9 September 2009, the Coordinator General also declared that the Kevin's Corner Coal Project is a Significant Project for which an EIS is required. Relevant letters from the Federal Government are provided at Attachment C.

3 The Joint Ore Reserves Committee (JORC) Code is a Code of practice which sets minimum standards for public reporting in Australia and New Zealand of Exploration Results, Mineral Resources and Ore Reserves. It provides a mandatory system for classification of tonnage/grade estimates according to geological confidence and technical/economic considerations in reports prepared for the purposes of informing investors, potential investors and their advisors. Further information is available at www.jorc.org

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APPLICATION FOR DECLARATION OF INFRASTRUCTURE FACILITY OF SIGNIFICANCE iJP 8""' I HANCOCK COAL PTY LTD

tonnes. The Project ranks as one of the largest thermal coal resources in the world. Refer to the table below

Alpha- 2010 Target Coal Resources (JORC Report currently being finalized}


Measured Indicated Inferred ; "'

MLA70426 (Alpha} 848 1,197 1,555 3,600

Coal resources within the Kevin's Corner project area of MLA 70425 have been estimated in accordance with the JORC Code and are listed in the tables below:

Kevin's Corner- 2008/09 Resources Summary

Lease Number

MLA 70425 (Kevin's Corner}

All seams (million tonnes)

Measured Indicated

475

·Inferred

977

Total

1,452

JORC compliant resources for Kevin's Corner are estimated at 1.45 billion tonnes with 475 million in the indicated category. Additional exploration drilling has been undertaken at Kevin's Corner which, as outlined below, is expected to define a total resource of 2.5 billion tonnes.

Kevin's Corner -2010 Target Coal Resources (JORC Report currently being finalized}


Measured Indicated Inferred Total

MLA 70425 (Kevin's Corner) 225 925 1,350 2,500

Resource estimates, which are independently reviewed, were based on approximately 1 ,500 drill holes which makes the Hancock tenements the most delineated resource in the Galilee Basin.

The Projects' coal is a superior quality thermal coal with low ash content and low sulphur. The coal has attractive Hardgrove Grindability Index (HGI) properties, is low in trace elements, and is an extremely large resource capable of providing coal of a consistent quality.

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APPLICATION FOR DECLARATION OF INFRASTRUCTURE FACILITY OF SIGNIFICANCE \B> er- I HANCOCK COAL PTY LTD

Coal Specifications

Ash

Gross calorific value

Total sulphur

HGI

8.5-9.5%

6,010- 6,080 (kcal/kg)

0.45%

50-55

Both Projects enjoy favourable geology, consisting of four principal seams that dip gently from east to west and vary in thickness from 5m to 8m, which is very suitable for highproduction open cut and underground longwall coal mining. Kevin's Corner will utilize the railway as constructed for the Alpha Coal Project.

The expected capital expenditure for the Alpha Coal Project is now estimated at $7.2 billion. The Kevin's Corner Project cost is estimated at $7.5 billion, which includes capital for the construction of the mine and the relevant portion of rail and port capital. The estimated cost for the rail track is in the order of $2 billion (and is part of the $7.2 billion total Alpha Coal Project cost).

During construction, the Alpha Coal mine workforce is estimated at 2500 employees and during operation, a permanent work force of 1500 people is anticipated. For Kevin's Corner mine construction, approximately 2500 workers will be required, whilst it is anticipated that 2000 people would be employed on an ongoing basis. Due to the location of the Projects and distance from an available and qualified workforce, both during construction and operation, employees would be accommodated in a village constructed on the Project site. The workforce would be based on a fly-in/fly-out operation utilising the Alpha Coal Project's proposed aerodrome that is presently being assessed in the Alpha Coal project ElS. The decision to house employees at the mine site has also been taken to ensure that the highest standards of workplace health and safety (and particularly fatigue issues) can be adopted, and that any potential adverse impacts from such a relatively large increase in personnel in the area are minimized.

Additionally, approximately 160-200 people would be employed at the port whilst the railway would require between 150-200 predominantly operational staff. Railway construction between 2011 and 2013 is planned around four work camps along the route (and possibly one at each end of the corridor), each consisting of approximately 250-300 workers.

4. Details Of The Infrastructure Facility Including Land On Which The Facility Is To Be Located

4.1 Overview

The rail corridor (outlined at Figure 2 below and detailed in maps at Attachment D) and track have been designed to accommodate between 60 and 80 Mtpa of coal throughput coming out of the Galilee Basin. With the additional of more passing loops to the single line track and selective partial duplication, the tonnages could be increased further. The

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APPLICATION FOR DECLARATION OF INFRASTRUCTURE FACILITY OF SIGNIFICANCE iJ3:> ~ I HANCOCK COAL PTY LTD

track is capable of providing enough capacity for other potential miners from the Galilee Basin to the port. Hancock Coal has undertaken to make the track available to third party users under a Voluntary Undertaking pursuant to the Trade Practices Act 197 4.

The Alpha Coal Railway includes a loadout loop at the Alpha Coal Minesite, a spur and loadout loop to the Kevin's Corner Minesite, the mainline from the mine to the port at Abbot Point including passing loops and maintenance tracks, the maintenance and marshalling yards, and the port unload loops. It is noted that this Application covers the declaration of the mainline including passing loops and marshalling yards from the Alpha Minesite, to the entry to the State Development Area at Abbot Point.

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APPLICATION FOR DECLARATION OF INFRASTRUCTURE FACILITY OF SIGNIFICANCE Jt8:I 8"" I HANCOCK COAL PTY LTD

Hancock Coal have commissioned studies to ensure that the railway has sufficient capacity for the proposed projects and would be easily expandable allowing availability for other projects. Modeling to date indicates that a single line with five passing loops would be sufficient for 30 Mtpa, and that increasing to eight passing loops along the length of the mainline will allow capacity of 60 Mtpa. The single line railway is expandable via additional rollingstock and passing loops to at least 80 Mtpa, and can be further expanded through selective partial duplication should that be required.

The overall cost of the railway to carry 30Mtpa is estimated at $2.2 billion. The additional cost associated with increasing capacity to 60Mtpa is three additional passing loops, each approximately five kilometres long, costing approximately $60,000,000 in total. The improvement in net present value terms for the project is sufficient at 60Mtpa to make the project financially viable for Hancock Coal. Importantly, the Alpha Coal Project, when combined with the Kevin's Corner Coal Project has sufficient financial robustness to underwrite the economic and sustainable development of the railway. Capacity expansion over 60mtpa on behalf of other potential third party users in the Galilee Basin further improves the net present value for the rail project. The rail corridor will be subject to a Voluntary Undertaking and consequently open to third party access. The port, via a new terminal to be built at the port of Abbot Point, will also be open to third party access. Hancock Coal is in discussions on the sharing of infrastructure with companies known to be interested in carrying coal on the proposed rail line from the Galilee Basin to Abbot Point.

4.2 Railway Description and Alignment

Cost estimates for the railway are based upon an engineering assessment that has included Pre-feasibility studies, Value Engineering, and detailed Bridging Studies that have covered the following areas:

• the refinement/improvement of possible routes and the testing of other potential options. This was done by undertaking horizontal and vertical alignments using 120 modeling and 1:250,000 scale digital mapping. In addition, Quantm's super computer was used to undertake the initial evaluation of the rail alignment, with over 200 potential alignments assessed;

• environmental, land tenure and cultural heritage issues affecting route design and selection;

• technology and recommendations for signaling and communications issues; • civil engineering works; • structural engineering, including bridges and culverts; • interactions with roads and access points; • rail maintenance and provisioning facilities; • rollingstock selection for the preferred alignment; • temporary construction facilities; • a geotechnical desktop study and investigation of local construction materials; • a desktop study of available hydrology data for water supply and flooding issues;

and • power supply and utilities options.

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The objectives of the rail alignment assessment were to:

• determine the lowest cost, lowest risk option to deliver the specified coal transport task;

• ensure operational scenarios and the potential alignment are viable and sustainable; and

• ensure the selected route is feasible from engineering, environmental and social perspectives.

It was evident that an additional heavy haul railway in the vicinity of the town of Collinsville would cause concerns for residents of the town, primarily due to noise. The railway in the vicinity of Collinsville is at the bottom of the climb to Briaba, and there would be significant locomotive noise associated with this climb. The current QR railway has a relatively narrow corridor through the Sonoma State Forest which limits the ability to add another track in that corridor. This led to changes to the proposed alignment to move further west to avoid sensitive areas. The rail alignment having moved to the west of Collinsville, then enters the Abbot Point precinct from the west, crossing the Bruce Highway and North Coast Rail Line as it enters the State Development Area.

From the mine site, further development was undertaken on the rail alignment. This resulted in part of the alignment to Blair Athol being selected.

In undertaking this work, Quantm were contracted to assist Hancock Coal through use of their supercomputer facilities. The Quantm Alignment Planning Solution is able to simultaneously manage many of the issues involved in planning a new rail project. It substantially reduces the estimated planning time and alignment construction cost. Using the service, a project planner can investigate literally millions of alternative alignments for any given set of constraints. The system enables a holistic approach that integrates all elements and delivers a range of alignment alternatives that best meet the relevant environmental, cultural, social, engineering and cost constraints. The resulting options can be analyzed quickly to address stakeholder concerns and maintain the momentum of the rail project.

This work resulted in approximately 200 proposals being assessed through the Quantm facility. The work indicated that rail alignments were available from the mine through to a point near Eaglefield, which is close to the QR Goonyella - Abbot Point expansion (Northern Missing Link) project and the Newlands Mine. This alignment is a development of the Option 1 D alignment which was discussed in the initial Alpha Coal Project Terms of Reference.

In the vicinity of the QR project, the alignments are limited by the Suttor River, higher ground to the west, and mining leases to the east. Multiple Quantm runs were undertaken through this area; however, the options are limited by these physical constraints.

From Eaglefield through to Abbot Point, a revised alignment was proposed which avoided the town of Collinsville, the Suttor State Forest and the Clarke Range completely. The alignment as currently presented avoids all Reserves, National Parks and State Forests. This alignment is significantly longer than the previous alignment;

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however, the changes to the operating parameters and the reduction in amount of climbing for the loaded train, results in a superior operational performance.

The results of the geotechnical desktop study for the railway project show that the proposed railway alignment traverses mainly sandy, silty and gravelly surficial soils between Alpha chainage 0 km and chainage 335 km. Minor volcanics, sandstones and other sedimentary rocks are also encountered. The basalt outcrops along the alignment are potential sources for rail ballast, while the gravels and sandstone should be suitable as general embankment fill. Between chainage 335 km and 495 km (Abbot Point) the predominant rocks consist of granite, diorite, sandstones, siltstones and basalt. These materials may be suitable as sources of rail ballast and general fill.

LiDAR surveys have also been undertaken for the entire rail route. Hancock Coal has aligned where possible with the Queensland Rail "Coal Connect" Northern Missing Link in one area, to minimize multiple impacts on landholders. The final corridor will generally be no wider than 100 metres, and 60 to 80 metres more generally. About 85% of the corridor is firm, with flexibility being sought in some areas, to ensure potentially adverse impacts continue to be practically minimized where possible. LiDAR is a laser based technology that efficiently produces high definition, high accuracy terrain, elevation and canopy models. LiDAR data is classified to define above ground features such as powerlines and building heights, as well as to deliver tree canopy models. It also provides high accuracy surveys for detailed design of roads and railways.

The key areas that are still subject to flexibility requirements include:

• Major river and creek crossings and their approaches. To minimise environmental disturbance and construction costs, it is preferable to undertake such crossings at right angles and at a naturally narrow point in the watercourse.

• Two landholders have requested significant variations to the proposed corridor. Hancock Coal will undertake significant re-engineering in order that feasible alternatives can be reviewed with these landholders.

• With respect to one property (in which the Northern Missing Link is also located), a range of options have been investigated in order to limit the impacts of the proposed Hancock Coal railway. On other properties it has been possible to align the Hancock Coal railway adjacent to the Northern Missing Link.

• The railway parallels the Bowen River Valley and it is necessary to ensure that the environmental, landholder and operational parameters in that location are optimised.

• The proposed rail route traverses areas in the Bowen and Galilee basins which are covered extensively by exploration and mining tenures. The corridor has been designed to avoid traversing Mining Leases and Mineral Development Licences. However, it is not possible to avoid traversing Exploration Permits, nor is this required in law. Nonetheless, Hancock Coal is giving consideration to modification of the corridor where it traverses identified significant resources within extant exploration permits.

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• The siting of the marshalling yard and maintenance facility. Preliminary studies have been undertaken and suitable sites located, however these are subject to in-field assessment.

The preferred rail corridor alignment is subject to changes that may arise as further studies are undertaken (eg. the gathering of detailed on site topographic information.). To date, no major flaws have been identified, with investigations and consultation continuing.

4.2.1 Track Parameters

The table below outlines the details of the track structure parameters that will be applied to the alignment option.

The table below details the track alignment parameters that will be applied to the appropriate alignment.

Description

Design speed

Maximum grade

Minimum main line track horizontal radius

Limits

80 km/h (coal)

1 in 320 (loaded)

1 in 1 00 (empty)

1 in 200 (passing loops)

R1000 m

Further refinements to track parameters may be considered at the detailed design stage when exact train type and track geometry is assessed in detail at specific locations. It is proposed that train control will be effected via computer (software) with the real time disposition of the rollingstock fleet displayed. 'Safe working' (signaling) will be communicated via radio and/or fibre optic cable to/from field equipment to the driver in the locomotive. A continuous voice/data radio communication will be established between the controller and the driver with processor-based interlocking (PBI), preferably adjacent to the control centre. This 'in-cab' system is not currently in use in Queensland and will likely prove to be very efficient and economical.

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The 'in-cab' system can also undertake speed control and driver assistance, thus eliminating the need for wayside signals which is consistent with an ERTMS (European Rail Traffic Management System) level 2 or equivalent. This will also allow for growth without the expense of more signaling infrastructure. Over-speed and roll-back protection can be incorporated into such a management system, providing increased safety and additional protection for the track and rollingstock. This may set the platform also for the consideration of automatic train operations.

4.3 Rollingstock and operations

Current design calls for 32 tonne axle loads for rollingstock, consistent with other heavy haul coal railways around the world. This provides for increased efficiency over Queensland Rail's existing 26.5 tonne axle loads in the Goonyella system -the heaviest narrow gauge system. Western Australian iron ore systems have moved further through to 37.5 tonne axle loads, and to 40 tonne axle loads, noting that coal is lower density compared to iron ore (approximately 850kg/m3 compared with iron ore at 2300kg/m3).

The ruling grade selected for the Hancock Coal railway is based on current practice from Pilbara heavy haul railways. The selected grade of 1 in 320 or .31% is significantly different to the 1 in 100 or 1% used in the Goonyella system which is currently the best arrangement in Queensland. The 1 in 320 grade allows for 24,000 tonne payloads to be hauled by 3 locomotives with a total of 13,500 hp. This compares favorably with the Goonyella system, where 1 O,OOOt payloads are hauled by 17,600 hp. Whilst the final configuration depends on a balance between earthworks cost, ongoing operations cost and transit time across the route, Hancock Coal has set key targets for these items to ensure ongoing low running costs of the railway, whilst maintaining the construction costs at benchmark levels.

The empty grade of 1 in 100 is also significant for the loaded train travelling downhill where dynamic brake capability, as well as train brake capability, is extremely important. The sustained downgrade performance of the train is critical from both a safety of operation target, as well as for the ongoing operating costs due to brake wear and overall train energy flows.

The railway is being designed to ensure that a loaded train has priority of movement to balance the energy flows in the train, minimize braking, and minimize fuel usage. The increased train size also ensures that there are a minimum number of crossing points between the empty and loaded trains. This is balanced by the time taken to load and unload the trains. Hancock Coal has selected high loading and unloading rates to ensure the operational performance of the system. It is expected that the 24,000 tonne trains will load and unload in no more than 4 hours.

The lower grade also provides for a smaller fleet of locomotives, reducing both capital and operating costs for the fleet. Operational and environmental efficiency is also enhanced by moving to significantly larger trains. For the transportation of 30mtpa of coal, four trains per day will be required on average.

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Utilisation of proven diesel locomotives similar to those in use in the Pilbara system and wagons in use elsewhere in Australia and overseas will further reduce above rail operational costs. Diesel consists have proven to be highly effective, with consideration of electric rollingstock not warranted.

In order to limit the environmental impact of the project it is planned to utilize a coal rail wagon which is a development of the standard gauge wagon currently in use in the NSW Hunter Valley service. These wagons will have lip seals on the bottom dump doors to prevent coal loss through the doors, angled sills to prevent coal from remaining on the sills after loading and subsequently dislodging en-route, and a high body design which shrouds the coal payload resulting in reduced dust emissions.

4.4 Railway Marshalling Yards and Maintenance Facilities

A rail yard including provisioning, stabling and maintenance facilities will be required and is at this time planned to be near the port on land that has been identified by Hancock Coal as suitable for this facility. The maintenance and provisioning yard will provide sufficient length to accommodate the maximum length train consist intended to supply the final port destination.

The yard/maintenance facility will occupy an area up to 6.0 km long by 500 m wide and includes approximately 25 km of track and will include facilities to undertake:

• fuelling and servicing of trains as part of their cycling; • holding trains for their next planned path; • minor maintenance on operating trains; • conducting roll-by inspections of active trains; • replacing wagons and locomotives on trains for planned maintenance or for

repair; and • servicing and maintenance of rollingstock.

The servicing and maintenance facilities include:

• Locomotive servicing and maintenance workshops; • Coal wagon servicing and maintenance workshops; • Underfloor wheel lathe; • Locomotive washing facilities; • Water and wastewater treatment plants; • Fuel and lube storage; • Warehouse components and consumables; • Staff facilities; and • Administration offices.

4.5 Landholders

There are currently 40 landholders along the rail route. Hancock Coal has sought, and in many cases, been provided with access agreements from landholders to undertake on

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ground ecological testing and other relevant studies as required for the EIS. Hancock Coal has not entered into land acquisition discussions at this time, and recognises that this generally should only occur after finalization of an EIS and relevant approvals which are anticipated in 2010. Hancock Coal seeks to treat all landholders with respect and in a professional manner. As noted previously, Hancock Coal wishes to acquire all interests in land necessary and desirable for the construction and operation of the Facility by agreement with the relevant Landholders and Native Title Parties. If the Proponent is not able to obtain the relevant interests in land by agreement (following a period of good faith consultation and negotiation), it will request the State to compulsorily acquire those interests in land and grant the Proponent an appropriate tenure. The Proponent intends that land access consultations and negotiations are conducted in accordance with the Guidelines and that if any compulsory acquisition should become necessary, it is done under the provisions of s125(1)(f) of the SDPWO Act and the Acquisition of Land Act 1967 (Qid).

4.6 Native Title and Aboriginal Cultural Heritage

The Alpha Coal Project intersects three registered native title claims, the Wangan and Jagalingou Peoples (QUD 85/04), the Jangga People (QUD6230/98) and the Birri People (QUD6244/98). Significant consultation has occurred and is ongoing with native title groups affected by the Alpha Coal Project.

The Alpha mine is wholly situated within the Wangan and Jagalingou native title claim (QUD 85/04). By letter dated 18 January 2010, the Queensland Government approved the Cultural Heritage Management Plan (CHMP) for the Alpha Coal and Kevin's Corner Project (mine and rail) developed with the Wangan and Jagalingou Peoples.

No native title holders are affected by the rail corridor. However, there are three registered native title claim groups that intersect the proposed route. These are the Wangan and Jagalingou People (QUD 85/04 ), the Jangga People (QUD6230/98) and the Birri People (QUD6244/98). CHMP Part 7 notices have been issued to the Jangga and Birri People, with discussions planned to commence in the first quarter of 2010. The final 60 km of the rail corridor does not have a registered native title claim group. Hancock Coal will be working with Queensland South Native Title Services (QSNTS) to identify the appropriate indigenous party for the purposes of the development of a CHMP and an ILUA.

No registered indigenous party has a native title claim over the Abbot Point port area. Hancock Coal will be working with QSNTS to identify the appropriate Aboriginal Party for the purposes of the development of a CHMP and an ILUA (if required).

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5. Demand projections for the services associated with the infrastructure facility

5.1 Coal Characteristics

The coal deposits of the Galilee Basin comprise large volumes of high volatile, low rank thermal coals4

. The coal deposits exhibit considerable variation in thickness, composition and physical characteristics from north to south along the strike length of the Basin.

In general, the coals in the Alpha area can be described as high volatile low sulphur coal with low to medium ash content (generally around or below 1 0%). Based on the current state of knowledge of the Galilee coals, the coals of the Alpha and Kevin's Corner area are broadly considered to represent the best quality in the Basin.

5.2 Coal Demand

The growth in the global seaborne export market for thermal coals has been evident for some years, with consumption growing by greater than 35% for the period 2001-2008. This contrasts with the growth in Queensland's production of export thermal coal which has increased from 36.2 mpta to around 39.7 mpta5 over the same period, representing an increase of about 10% during the period. It could be inferred that for a number of reasons, Queensland has not had or captured as many opportunities for further expansion of its share of the global export market for thermal coal during this period.

In this regard, the lack of transport and export infrastructure has been a major contributing factor. The Alpha Coal and Kevin's Corner Projects will provide integrated mining and transport operations which can take timely advantage of the growth in global demand for thermal coal, and provide the base infrastructure to assist other operations in taking advantage of coal demand.

In the 2008-09 financial year, preliminary figures indicate that Queensland's exports of thermal coal rose by almost 10 million tonnes, mostly to China and Taiwan, in response to increased consumption, reduced prices and placement of some weaker coking coals into the thermal coal market. Whether this represents a new benchmark for thermal coal exports for Queensland in the past year remains to be proven but it appears consistent with future global forecasts.

Thermal coal consumption is forecast to increase by 34% from 2009 to 2020. Both forecasts reflect the significant growth in coal-fired power generation. The growth in electricity consumption which is forecast to increase by 77% between 2006 and 2030 is expected to result in coal fired generation increasing its global share of electricity generation from 41% percent to 43%.s The resulting growth in demand for thermal coal

4 Queensland Government, Natural Resources and Mines (2003) 5 Queensland Mines and Energy -Information provided 6 U.S. Energy Information Administration, Independent Statistics and Analysis, 2009

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is already being observed in the key markets of China and India, where collectively over 200GW of capacity is under construction and in need of an additional 700 Mtpa of thermal coal by 2013.7

This projected increase in demand for coal in Asian countries cannot be met by their domestic supplies and will result in increased imports of thermal coal. Whilst there will be competition to supply this coal (particularly from overseas markets), Hancock Coal believes it has the right strategy and will provide the appropriate supporting infrastructure to achieve rapid market acceptance. For Queensland, this will facilitate a significantly increased share of an expanding global market for thermal coal.

Hancock Coal has developed detailed market penetration plans that allocate forecast production to key target market countries. Within these countries this tonnage is further allocated to key end user power generators. The basis of potential sales is also addressed in terms of percentage long-term, short to medium term contracts and spot sales.

A detailed analysis of each country and potential end users' commercial reputation regarding purchasing thermal coal from Australia has been assessed. Additionally, Hancock Coal and other potential stakeholders have visited Asian power utilities on a number of occasions to examine the appetite for the Project's coal quality, timing of tonnage requirements, and the desire of power generators to enter into long term offtake agreements and possible joint venture arrangements.

As a result of Hancock Coal's marketing activities, it has been approached by a number of parties expressing interest in both off-take and equity in the mine. This has provided Hancock Coal with sufficient confidence that its forward order sale book for 2013 and beyond could accommodate the Project's saleable coal production forecasts.

The global trade in thermal coal is estimated to be 5,750 million tonnes with the seaborne export market estimated to be 700 million tonnes or -12% of the total market. This reflects the fact that the vast majority of thermal coal is consumed directly in the producing country mainly for coal fired electricity generation (90%) with a small residual amount consumed in the cement and chemical industries.

Demand growth in the export thermal coal market has exceeded 35% since 2001, driven largely by increasing coal import demand from Asia. Japan, Korea and Taiwan remain the largest importers of coal. However, it is the expected growth in demand from China and India that will be the key driver of growth in the seaborne market. 8

In terms of the export seaborne market, Australia, Indonesia, Colombia and South Africa are the largest exporters. China is now a net importer of coal and as its imports grow the market is expected to become increasingly tight. This will provide opportunities for new thermal coal projects, particularly those with guaranteed access to adequate rail and port capacity. It is also expected that the market will become increasingly reliant on greenfield developments in both OECD and non-OECD countries, provided prices justify such developments.

7 U.S. Energy Information Administration, Independent Statistics and Analysis, 2009 8 U.S. Energy Information Administration, Independent Statistics and Analysis, 2009

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A summary of current seaborne demand and supply appears in the table below.

Seaborne Thermal Coal Market Summary(% change from 2009 to 2010)9

2008 2009 2010F

714.5 700.8 '722,6

Imports -China Mt 34.0 36.0 40.0 11.1

-Chinese Taipei Mt 60.3 59.0 62.0 5.1

-India Mt 34.0 40.0 47.0 17.5

-Japan Mt 133.0 115.0 115.0 0.0

-Korea, Rep. of Mt 73.5 75.0 79.0 5.3

-Malaysia Mt 16.5 15.0 16.9 12.7

-other Asia Mt 36.5 34.9 35.2 0.9

Europe Mt 233.5 226.9 225.1 -0.8

-EU27 Mt 193.4 187.0 185.2 -1.0

- other Europe Mt 40.1 39.9 39.9 0.0

Other Mt 93.2 99.0 102.4 3.4

Exports

Australia Mt 126.4 122.0 130.0 6.6

China Mt 41.8 39.5 39.0 -1.3

Colombia Mt 68.7 69.0 74.0 7.2

Indonesia Mt 198 203.0 212.0 4.4

Russian Federation Mt 80.0 75.0 75.5 0.7

South Africa Mt 67 68.0 70.0 2.9

United States Mt 34.9 25.0 23.8 -4.8

Other Mt 97.7 99.3 98.4 -0.9

A mine mouth power station was investigated in the Pre Feasibility Study, and will be further considered during the Bankable Feasibility Study in line with carbon capture and other government sustainability initiatives.

5.3 Coal Rail Demand

The Galilee Basin covers an area of approximately 247,000 km2 and there are over 14 billion tonnes of JORC compliant coal already identified by proponents of projects within the Galilee Basin.

Public documentation notes that Line Energy's coal tenements as at November 2009 include 7.8 billion tonnes of resource. Waratah Coal's China First project cites 3.93 billion tonnes as at November 2009. East Energy's Blackall Coal Tenement cites 1.2 billion tonnes of JORC inferred resource, whilst AMCI Bandanna cites JORC complaint resource of 982 million tonnes. Along with potential tonnages from Vale, and the 6 billion tonnes that Hancock Coal has identified, there is ample supply of good quality thermal coal available in the Galilee Basin. Coupled with the significant demand for thermal coal as outlined above, Galilee Basin coal will require transportation by rail to the port of Abbot Point, which has been nominated as the State Government's preferred location for further coal handling and export infrastructure. "Hancock's plan, and its opening up the line to other miners, is a lifeline for companies such a East Energy Resources, which

9 U.S. Energy Information Administration, Independent Statistics and Analysis, 2009

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has a project at Blackall, southwest of Alpha. East Energy managing director Mark Basso believes the Hancock line will be a feasible way for his company to move the projected 20 million tonnes a year of coal to the port." 10

In terms of port and rail operations, Hancock Coal issued a request for proposal (RFP) on 4 December 2009 to various companies to act as Preferred Operator in relation to the above rail, below rail and port assets. Five submissions (from consortia) were received. In summary, it is expected that the Preferred Operator (or Operators) with respect to rail will assist Hancock review the rail engineering, procurement plan, forecast operating costs and capital expenditure, proposed below rail tariffs and timetable to build and ramp up the rail line. The Preferred Operator will work towards optimizing the operations of the rail network.

The standard gauge rail line offers significant operational benefits to users, over and above any other rail systems in Queensland and on a par with the best West Australian bulk haul systems. Payloads in the order of 24,000 tonnes per trainload create secondary efficiency improvements and benefits such as:

• Lower congestion and therefore lower risk for mines and shipping outcomes; • Improved efficiency at the dump stations; • Increased !annes per locomotive horsepower, resulting in lower costs; • Increased relative track capacity; and • Reduced ongoing maintenance costs, resulting from longer radius curves, lower

grades and proven standard gauge componentry.

The quantum of coal that is being considered for export from potential Galilee Basin coal producers is in the order of at least 100 mtpa. The existing rail network, even with the construction of the Northern Missing Link, could not accommodate this coal. The Northern Missing Link, which will join the existing Newlands and Goonyella QR networks is primarily servicing the existing Bowen Basin users and growth in that area. It has not been planned to accommodate Galilee Basin producers. Further expansion of a heavily utilized existing network would incur significant costs to existing users (in terms of disruption during construction alone), and from Hancock estimates, it is more economical in the long term to build a separate standard gauge track that can take advantage of the latest technology, significantly increased tonnages and not impact adversely on the existing network.

Hancock Coal has anticipated the demands of coal miners in the Galilee Basin by designing a suitable heavy haul coal railway which offers expansion paths to cater for additional capacity, high levels of efficiency, and which will be extremely cost effective.

6. How The Proposed Infrastructure Facility Would Satisfy Identified Needs

The proposed rail corridor consists of a standard gauge, stand alone rail track over 495km from Alpha Mine site to the port of Abbot Point. Hancock Coal lodged mining

10 The Australian 14 November 2009 Copyright 2009, News Ltd.

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lease applications on 18 December 2009. They are referred to as MLA 70426 and MLA 70425.

The land which will be traversed by the Hancock Rail Infrastructure Facility is held in a combination of leasehold and freehold land. The total land area is approximately 50 km2

,

being in the Barcaldine, Isaac and Whitsunday Regional Council areas. It is 495km in length. The final corridor, as mentioned will be between 60 and 100 metres wide, and that includes all related infrastructure such as access roads.

The capacity of the initial rail track will be in the order of 60 - 80 mtpa. This could easily be increased (with further passing loops) to provide additional tonnages. Longer term expansion options through selective partial duplication are also available to meet higher (over 100mtpa) demand levels in accordance with Section 5 demand projections, and third party access should these arise. The Infrastructure Facility will provide for the transportation of all the coal for the Alpha Coal and Kevin's Corner Projects, and for other potential miners interested in utilising the Infrastructure Facility under third party arrangements.

7. Direct and Indirect Benefits Associated with the Infrastructure Facility

There are significant benefits associated with the establishment of mine, rail and port infrastructure on the scale of Hancock Coal's Alpha Coal and Kevin's Corner Projects. At National and State level significance, the proposed rail corridor will open up a new coal resource basin for export, for Hancock Coal and other potential project proponents in the Galilee Basin. This will be the first time for many years that a new resource province has been opened, facilitating access to an already identified 14 billion tonnes of coal resources. The opening of this basin will enhance Queensland's international reputation as a long term supplier of quality coals.

The railway through opening up a new previously undeveloped basin will underpin in this project:

• 3000 long term sustainable direct jobs; • 5000 jobs during construction; • $5 billion per annum in export revenue; • $600 million per annum in wages and salaries to be expended primarily in

Queensland; • $430 million per annum in royalties to the State of Queensland; • Enhanced local infrastructure such as power, water, roads and communications; • Increased training and development opportunities; and • Enhanced technology transfer into the regions.

A State Government report11 (2007) states that 50,000 people were already then directly employed in the Queensland mining and minerals processing industry and an estimated further 216,000 people were indirectly employed. Coal exports also generated $55

11 "Queensland Mining Industries- the economic significance of mining and mineral processing to Queensland." Queensland Department of Mines and Energy, 2007

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billion in export revenues during 2008-09. In addition to Federal Government taxation income derived from coal, Queensland and New South Wales state coal royalties and taxes exceeded $4 billion during the same period. It has been estimated that in 2008 household disposable income grew by nearly 7% in Queensland and 6% in NSW as a result of coal mining. The 7% increase in income was as a result of a total of about 160 million tonnes of coal being extracted in Queensland. The two Hancock Projects (without further Galilee coal) will increase coal extraction in Queensland by over 35% and thus the associated revenue and household income benefits will also increase.

7.1 Local/Regional Benefits

A University of Queensland study12 into the cumulative impacts of mining on regional communities found that mining contributed significantly to the economic development of regional communities, particularly in providing employment and creating opportunities for locally-based businesses. The study found that there was also significant community benefit derived from investments by mining companies in local community programs and organisations.

Despite construction not starting until 2011, the Alpha Coal Project is already making a significant contribution to the region through an established community program, strategic partnerships and strong early participation in major community events, employment and research programs. Rolfe, Lockie and Franettovich 13 in a review of the economic impacts of coal mining on small country towns provide examples of how income that results from mining in Central Queensland flows to other areas of the economy. These examples include purchase of high technology equipment and technical services by mining companies, machinery and equipment for maintenance purposes purchased from local and interstate suppliers, investors in mining firms using dividend payments to purchase goods and services, and mining employees and their families spending income on goods, services, housing, clothing, health services and recreation. This report further cites a 2002 ACIL Consulting Report which suggests "that for every dollar of salary in the mining industry, about 56 cents is spent in the regional community.

In formally supporting these developments, the Mayor of Barcaldine Regional Council, which incorporates the mine sites, flagged to the State Government that "the successful delivery of these projects will bring thousands of jobs, significant economic benefit and major infrastructure development to the region". Mayor Rob Chandler also stated that the projects would "positively transform our region for the long-term, as well as contribute significantly to the Queensland economy".

~ Employment {direct/indirect)- providing wealth and a better lifestyle

As noted previously, the Alpha Coal Project alone is expected to employ thousands of people during its 30-plus years of operation, including 2,500 direct jobs at peak construction and about 1,500 direct sustainable, long term jobs. In addition, there will be indirect jobs created in the region across support industries and services. Historically,

12 "Assessing the Cumulative Impacts of Mining on Regional Communities: An Exploratory Study of Coal Mining in the Muswellbrook Area of NSW" Centre for Social Responsibility in Mining, University of Queensland, February 2008 13 "Economic impacts of coal mining on small country towns- A Case study of Nebo" by John Rolfe, Stewart Lockie, and Maree Franettovich, Central Queensland University, February 2004

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multipliers of 1 :4 have been used to estimate the number of indirect employees generated by the mining industry. Based on these figures, 5,000 indirect jobs will be generated in the local region and across the state by the Alpha project alone. Regional towns such as Alpha, Barcaldine, Emerald, Clermont and surrounding communities will directly benefit from increased employment opportunities, and the establishment of vital support service industries and training development. There will also be increased employment opportunities in the Alpha area, and along the coast from Gladstone to Bowen. The Alpha Coal Project's adjacent project, Kevin's Corner will include employment on a sustainable basis of 1 ,500 staff also, and will comprise a slightly higher number of direct jobs during construction. Overall, nearly $600 million pa in employee salaries will be pumped into the Queensland economy as a result of the two Hancock Coal projects. In addition, direct Payroll Tax of an estimated Net Present Value of $152 million (discounted at 10%) over a thirty year life of the project will be paid to the State Government.

The mining technology and services industry in Queensland is estimated to be worth around $1 billion, with over 300 firms- most of these being small to medium enterprises - located in the Brisbane area. Hancock Coal will also implement policies and practices that encourage recruitment of local residents through apprenticeships, traineeships and skills training during construction and over the life of the mine.

oinnili"'"'' contributions to community well-being and regional development through ongoing monetary and in-kind support to surrounding townships. This includes local investment in Alpha-based community groups and organisations through the Hancock Community Support Program established in 2008. Hancock Coal has established a strategic partnership with Enterprise Whitsundays, which will focus on promoting development and opportunities in the area surrounding the port.

Links have been formed with development organisations in the region to leverage off local knowledge and networks, and deliver positive cumulative gains for the area. Hancock Coal is also establishing strong links with locally-based business groups and organisations focused on improving quality of life and future security for their towns. Business associations and development groups based along the rail corridor will be the focus in terms of promoting regional growth.

~ Regional development- from Alpha to Whitsunday coast and surrounds

The development of the Hancock railway from the Alpha and Kevin's Corner Projects to Abbot Point near Bowen is an integral requirement for the development of the mines. In establishing the $15 billion Alpha Coal and Kevin's Corner Projects and the associated railway and port infrastructure, Hancock Coal is making a long-term commitment to regional development in Central Queensland. This includes the immediate regions surrounding the mine sites, as well as communities along the rail route and near the port development site. In the immediate area, the development of major new infrastructureincluding power, water, communications, airstrip and roads - will positively impact the regional economy throughout the 30 year plus life of the mine.

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In addition to delivering the flow-on effects of improved infrastructure, benefits will be derived from the establishment of support service industries for communities near the mine, rail link and port development. This growth and development is a positive 'byproduct' of the project's establishment.

In general, the positive transformation of the regional economy will be facilitated by initiatives driven by Hancock Coal, including for example:

• roads- upgrades of major and minor access roads; • water- availability of alternate water source and supplies; • power- improved reliability and supply; and • communications- increased speed and reliability of communication systems.

Apart from the benefits provided by the mines, and the associated support which they will require, the railway is expected to be staffed by 150 to 200 people, mostly in operations and maintenance roles. Most of these roles will be based at or near Bowen in the Whitsunday shire, and it is expected that there will be significant support business associated with the running of the railway which will be attracted to this region. Previous experience of these types of projects indicates that there is indirect employment of approximately four to one direct employee in the local area.

The railway once built will allow for the opening up of the Galilee basin coal province, and it is expected that over the next 30 or more years, that there will be significant growth in coal export from this area. This will cause the railway and the port to continue on a path of expansion and growth, providing both construction as well as ongoing employment to the region.

Within the Isaac Regional Council area, there is already significant support infrastructure for the Bowen Basin mines as well as railways and roads. The presence of additional mines of significant size opening in the Galilee Basin, together with railway infrastructure is expected to further increase this support base as these business will be the nearest to this area.

There are over 14 billion !annes of JORC compliant coal already identified by proponents in the Galilee Basin area. The completion of a 495km rail link from the central west to the coast will also deliver a new transport solution for moving 60 to 80 million !annes per annum of coal from the Galilee Basin to export markets. This stand alone railway system will have sufficient potential capacity to allow third party access and essentially open up the Galilee Basin to future development. This signals a significant contribution to regional development in Queensland.

7.2 State Benefits

The expected capital expenditure for the Alpha Coal and Kevin's Corner Projects is $15 billion including the rail and port infrastructure, representing a major long-term investment in the state and a strong ongoing commitment to regional development in Queensland.

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:» Royalties/taxes

ljj:I ""'"' I HANCOCK COAL PTY LTD

At full production, the Alpha Coal and Kevin's Corner Projects will deliver over $430 million in royalties paid directly to the state each year. These royalties will be payable for the 30 plus years life of the mine. These payments provide revenue to government that translates directly into income for services such as hospitals, schools, police, roads and welfare support.

:» Opening up a new basin with coal, coal seam gas and other prospects for the long term

These projects follow in the pioneering spirit of Lang Hancock by establishing a 'new coal frontier' in opening up the previously undeveloped Galilee Basin in Central Queensland. By establishing significant infrastructure in a new resource basin, Hancock Coal is opening the door to other proponents with interests in the basin to establish major developments such as coal seam gas projects. The Galilee Basin is a resource basin rich, with substantial quantities of a 'cleaner' variety of thermal coal available for export. Galilee Basin coal is comparatively low in gas, ash and sulphur.

Development of these projects will boost the already significant socio-economic potential of the sector in Queensland, which in 2008-09 directly and indirectly contributed $14 billion in wages and salaries (14 percent of Queensland total); more than 20 percent of Queensland's Gross State Product; $6.5 billion in capital expenditure (30 percent Queensland's total); and 65 percent of Queensland's total commodity exports. Hancock's coal projects alone will contribute nearly $600 million in wages and salaries each year, and will contribute 18% additional capital expenditure within the State each year during the four years of construction.

7.3 National Benefits

:» Export earnings

Earnings from resource exports currently make up almost half of Australia's total export earnings. Opening a new resource basin as the country's new 'coal frontier' will significantly increase overall export earnings well above that from the individual projects proposed here. As well as directing millions into the Queensland economy, the Hancock Projects will earn over $5 billion per annum of export revenue for Australia's largest export industry.

:» Trade development

The port and rail infrastructure associated with the Hancock projects will directly benefit the future planned grow1h of the coal industry in Queensland, ensuring the state continues as a major export player in coal supply and delivery. The projects will significantly improve the current supply chain bottlenecks in neighbouring resource basins by providing alternative rail and port opportunities for current and future users. By acting as the 'engine room for development' in this region, the Hancock Coal projects will facilitate extensive trade development for Queensland. The export of Galilee Basin coal into many countries in Asia also reinforces trade development in new and growing global markets for Australia.

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~ Community Impacts

lj3:J er- I HANCOCK COAL PTY LTD

Employment and the secondary impacts of higher employment have been discussed above. The significant increases in domestic income will lead to greater consumption by direct employees and also through indirect service provision. There will also be an increase in the availability of goods and services and consequently, the range and availability of goods and services in regional Queensland.

As discussed previously, apart from the direct mine site jobs, corridor and rollingstock yards and rail maintenance facilities will be required at the northern end of the railway. This will create additional jobs and associated training opportunities within the growing Whitsunday region.

The increases in domestic income will also lead to an enhanced demand for recreational, cultural, educational and training facilities generally. This will improve the quality of life for regional Queenslanders as choice in these leisure and learning areas also increases.

In addition, the opening up of the Galilee Basin, and in particular, the work by Hancock Coal will likely lead to improved access to reliable water and power supplies in the region.

Additional traffic generated during exploration is acknowledged by Hancock Coal, which has provided funding to the Barcaldine Regional Council for local improvements to roads being impacted by Hancock Coal and other developers. A Road Use Management Plan, a Road Impact Assessment and an Environmental Management Plan have been submitted for the bulk sample operation planned for April/May 2010. All necessary approvals will be sought and all statutory requirements met for all facets of the Projects.

The establishment of a bulk haul railway reduces significantly the transport impacts of the Projects. It is logistically unlikely, given the quantum of trucks that would be required, that the Galilee Basin could be opened up without the railway. In any event, rail for freight haulage has significant benefits over road transportation. The Australasian Railway Association's Submission to the National Greenhouse and Energy Reporting System Discussion Paper in 2007 noted that in general, heavy trucks pay marginal cost for use of roads, while freight rail pays average cost plus a profit margin. Heavy vehicle (road) charges do not recover costs and result in economically inefficient transport systems. In particular, this means other users are paying for truck use, or otherwise government revenue is reduced; and there is more road freight transport; relatively higher greenhouse gas emissions, congestion and health impacts; and greater demand for road construction and maintenance.

8. Details Of The Proponent's Financial And Technical Capacity To Implement The Proposed Facility

8.1 Technical Capabilities

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Hancock Coal has a dedicated Queensland-based team which completed the PreFeasibility Study and which will be expanded with the necessary professional experience to conduct the Bankable Feasibility Study.

The Project is run by Mr. Paul Mulder who has 16 years of mining, development and project management experience obtained at BHP Billiton and BIS Industries. The Project is supported by the Executive Management of Hancock Prospecting, which includes:

• Mrs. Gina Rinehart - the Executive Chairman of Hancock Prospecting and daughter of the late Lang Hancock. Mrs. Rinehart, who holds an Economics Degree, has been Executive Chairman of Hancock Prospecting since 1992 and was responsible for identifying and developing Hope Downs. Mrs Rinehart was awarded "Deal of the Year" at the 2006 Diggers and Dealers Forum for the 50:50 Joint Venture with Rio Tinto at Hope Downs, which is now a producing mine, and she is the 2009 Telstra Australian Business Woman of the Year.

• Mr. Tad Watroba - Executive Director of Hancock Prospecting and a mining engineer with 30 years of resources experience. Mr Watroba has worked in both open cut and underground mining; encompassing mining operations, mine planning, feasibility studies, business development, project commissioning, exploration management, audits and other related activities. He has experience in iron ore, manganese, gold, brown and black coal, oil shale, copper, zinc and lead mining and was employed by Bechtel and several small-to-medium sized gold companies prior to joining Hancock Prospecting in 1991. Mr Watroba has broad and significant experience with mining projects in Australia, Papua New Guinea (Ok Tedi), China and New Zealand.

• Mr. Jay Newby - the chief financial officer of Hancock Prospecting and a former chartered accountant with 20 years of resource financing and financial management experience.

• Mr. Tim Crossley is the head of iron ore and coal for Hancock Prospecting and former president of WA iron ore for BHP, where he oversaw 7 mines, a heavy haulage rail network (90 locomotive, -5,000 ore cars) and port operations (4 berth, 4 ship loaders). Prior to that, Mr Crossley ran the Groote Eylandt manganese operation and the South Walker Creek open cut coal mine in Queensland.

The Queensland based staff led by Mr Paul Mulder are the primary drivers of the project on a daily basis. Key staff are well qualified and experienced in coal mine development and all necessary associated requirements to ensure a successful outcome.

Hancock Coal has engaged GHD to undertake the Environmental Impact Assessment for the railway. GHD are a well known and respected consultant with an extensive track record in undertaking environmental studies for large scale rail and port developments.

Calibre Rail were engaged to undertake the Bridging Study (+/- 20%) and are currently the preferred supplier for the Bankable Feasibility Study for the railway. Calibre are Australia's only specialist railway engineering consultant group, and have successfully completed significant works in West Australia for major clients including Rio Tinto and BHP. Major works have included the full EPCM 14 delivery of the Lang Hancock Railway, delivery of major duplication works for Rio Tinto, and the delivery of the Oakajee Bankable Feasibility Study.

14 EPCM- Engineering, Procurement, Contract and Management

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As noted previously, Rail Operator capability is also planned for imminent appointment as Hancock recognizes the value of experienced partners in rail operations and maintenance.

8.2 Financial Capabilities

Hancock Prospecting is 100% owned by Mrs Gina Rinehart and her family. Hancock Coal Ply Ltd is a fully owned subsidiary.

Hancock Coal expects to commence earning profits from 2014 onwards- one year after construction of the mines has been completed. As ramp up to full production occurs from 2013 to 2018, earnings from Hancock Coal are expected to increase significantly.

Hancock Coal has estimated that the Project will deliver washed coal to customers on a Free On Board basis at rates which rank the Alpha Coal Project in the first quartile of the Australian cost curve and the second quartile of the global cost curve.

Hancock Prospecting holds a 50% interest in the A$1.3 billion Hope Downs iron ore joint venture with Rio Tinto. The mine completed construction in December 2007 and is now at full production of 30 mtpa.

Hancock Prospecting also maintains a number of royalty interests in mines it either discovered or helped develop in Western Australia.

The Bankable Feasibility Study is currently being funded by Hancock Prospecting.

8.3 Preliminary Financial Analysis - Project

A detailed financial analysis for the rail component (with above and below rail identified separately) has been provided on a "commercial in confidence" basis to the Department of Infrastructure and Planning. Including upstream and downstream components, and based on the cost curve locations and the proximity to Asian markets, the projects are estimated at this stage to provide robust returns.

9. Proposed Timing Of The Infrastructure Facility Or Service Delivery

The Alpha Coal Project remains committed to meeting a construction start in mid-2011 for export of first coal late in 2013. Other key dates include test pit (bulk sample) operation from May 2010 (application for which has been made to the State Government by request dated 19 January 201 0), completion of EIS, BFS and the international investor processes in 2010. The adjacent project, Kevin's Corner, has been brought forward to mesh in with the Alpha Coal Project timetable as far as possible.

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2008 2009 2010 2007 I Indicative timeline Q

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10. Advice As To Any Special Requirements From Government

Third party access has been requested by Government to major infrastructure associated with the Alpha Coal Project, and this has been agreed by Hancock Coal. Hancock Coal does not seek to identify any requests for special assistance from the Queensland Government other than the potential acquisition of land for the rail infrastructure under section 125(1 }{f) of the SDPWO Act.

As with other corridor projects, the State's assistance is envisaged with respect to road openings, closures and crossings, dealings with water crossings, access to land both within and outside of the corridor to carry out necessary and appropriate investigations, and any dealings with respect to State land generally.

In terms of information provision, Hancock Coal requests that the Government provide advance details of any technical, financial security, capability requirements and any other information and/or requirements that it will require in order to undertake a compulsory acquisition process (if and only if, all reasonable endeavours have not resulted in a successful process to acquire the land for the Infrastructure Facility).

11. Possible Environmental Impacts, The Steps Taken To Identify Those Impacts And To Development Strategies To Manage Them

An Environmental Impact Statement for the Project is required under the provisions of Section 26 (1) (a) of the SDPWO Act. The Commonwealth Government has determined

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that the project constitutes a controlled action pursuant to the Environment Protection and Biodiversity Conservation Act 1999 (Cth) (EPBC Act).15 The purpose of an Environmental Impact Statement is to assess the potential beneficial and adverse environmental, economic and social impacts of the projects; as well as management, monitoring, planning and other measures proposed to minimize any adverse environmental impacts of the project.

Hancock Prospecting Pty Ltd of which Hancock Coal Pty Ltd is a fully owned subsidiary, has established robust internal policies for address the health, safety, environmental, community and heritage impacts associated with its projects and has a successful track record of delivering large scale resources projects in Western Australia, in a manner that seeks to minimise any adverse impacts.

The Terms of Reference for the Alpha Coal Project, including mine, rail and port are included as Attachment E. AARC and GHD are the appointed consultants to assist the Proponent, Hancock Coal in undertaking the EIS. Liaison with the North Queensland Bulk Ports Corporation continues, given their interests also as the port authority at Abbot Point. GHD have also been engaged by North Queensland Bulk Ports Corporation Limited (NQBP) to assist in preparation of NQBP's own EIS for the proposed port expansion.

In June 2009, the State Government Budget papers noted that:

With regards to the Galilee Basin, Government is seeking to identify preferred options to deliver coal infrastructure to link the Basin to the Port of Abbot Point via a dedicated rail link. As such, the Government is keen to facilitate options involving private sector investment and development of this key infrastructure. This objective will be met through the provision of an integrated solution that provides equity of access to project proponents; ensures optimal supply chain solutions are facilitated from proponents singularly or collectively; and ensures any new export supply chain infrastructure provides open access to all Galilee Basin proponents. 16

The Alpha Coal Project EIS documentation notes that the rail and port facilities will be designed to transport, load and ship respectively greater capacity levels than Hancock's forecast production, to cater primarily for neighbouring Galilee Basin and Bowen Basin producers. Should additional coal production volumes be available in the Galilee Basin and Bowen Basin, Hancock shall endeavour to make additional capacity available. It is expected that additional coal volumes from neighbouring and down stream producers will require a total system capacity of potentially 80 million tonnes per annum.

The route has been refined based on consideration of environmental criteria, including the location of regional ecosystems. However it is not possible to align the corridor to avoid all areas of regional ecosystem. Where vegetation clearing cannot be avoided, environmental offsets will be provided to compensate for vegetation loss. Management measures will be employed during construction to minimise the impact of clearing, including but not limited to the following:

15 Alpha Coal Project Mine and Rail Development, Reference EPBC, 2008/4648, referring to matters of potential national environmental significance as defined in the EPBC Act 1999, Chapter 4. 16 Page 77, Budget Strategy and Outlook, 2009~2010, Queensland Treasury

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Impact on native vegetation has been minimised by selecting an alignment that avoids areas of high ecological value wherever possible. Where native vegetation clearance cannot be avoided, the following mitigation measures are recommended:

• Ensure that the extent of vegetation clearing is clearly identified on construction plans and in the field. The extent of clearing is to be restricted to the minimal amount necessary; and

• Any additional areas that may be required for construction lay down purposes will be located in pre-cleared sites, where possible.

Weed management will be required throughout the life of the construction phase. As a component of the Construction Environmental Management Plan (CEMP), a Weed Management Plan will be developed that outlines:

• Vehicle clean down procedures; • Monitoring and weed inspections; and • Weed control.

Where vegetation clearing cannot be avoided, environmental offsets will be provided to compensate for vegetation loss.

Since 2008, Hancock Coal has been negotiating with the (then) Ports Corporation of Queensland (now North Queensland Bulk Ports Corporation - NQBPC) for two x thirty million tonne !ranches of coal capacity at either Abbot Point (first preference) or Dudgeon Point. A Framework Agreement and associated Terms Sheets (for leases, development rights etc) was negotiated and considered by the North Queensland Bulk Ports Corporation Board over the period June to September 2009. This paperwork focuses on the port of Abbot Point and was forwarded to Shareholding Ministers from NQBPC in October 2009. The agreements include third party access provisions.

Potential environmental impacts will be addressed in accordance with a comprehensive CEMP which will be reflective of landholder and other stakeholder consultation, as well as Hancock Coal's commitment to environmentally responsible and sustainable development.

During construction the main air quality impacts are likely to be associated with dust generated during earthworks and movement of vehicles over exposed surfaces. Exhaust emissions from vehicles and plant quickly dissipate, and are likely to have a negligible impact on the local environment. Given the large distances to houses and other sensitive receptors, it is unlikely that dust or exhaust emissions will have a significant impact; however, this is being investigated in more detail in the EIS. The CEMP will contain measures to minimise the generation of dust during construction activities.

Noise and vibration impacts are not likely to be significant given the distances from nearby properties to the rail corridors. The potential increase in noise levels, both during construction and operation, is to be mitigated through a combination of environmental management strategies, appropriate infrastructure design criteria and suitable separation distances to sensitive receptors. A detailed noise and vibration assessment is being undertaken as part of the EIS process.

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A detailed visual amenity impact assessment is also being undertaken as part of the EIS process. Community consultation conducted as part of the project and the development of the rail corridors will seek to minimise impacts on visual amenity.

Rail construction activities, particularly clearing and earthworks, have the potential to cause erosion and dispersion of exposed subsurface soils. Detailed geotechnical investigations will be carried out as part of engineering analysis and the EIS to adequately assess the suitability of the stratigraphy for construction and operation of a railway. A soil survey will also be undertaken to identify any reactive cracking clay soils, dispersive, erosion prone soils and saline soils that will

need to be managed during construction. A Sediment, Drainage and Erosion Control Plan will be developed to mitigate and control sediment movement onsite, and to minimise the potential for sediment laden runoff during construction.

All rail corridors will cross a number of freshwater creeks and streams of varying size. The CEMP will detail procedures and measures to mitigate potential water quality impacts. The low-lying nature of some rail corridor sites may necessitate studies on surface water hydrology and water quality. This will be undertaken as part of the EIS Surface water hydrology studies and will include the review of any potential impact of flooding and storm surge on the rail options.

Effective implementation of the CEMP during construction will ensure environmental risks are appropriately managed in a way which satisfies relevant legislative requirements and stakeholder expectations.

Hazards and associated risks are presented by the construction and operation of the rail corridor project. Hazards need to be identified and the associated risks managed in order to reduce or eliminate the potential for harm to occur to people, property and the environment. Formal risk assessments will be utilised to identify and manage the risks associated with the construction and operation of the project. The formal risk assessment process follows the methodology outlined in AS4360: Risk Assessment.

Hancock Prospecting has established the Hancock Integrated Management system (HIMS) that addresses the health, safety, environment, community and heritage (HSECH) impacts associated with Hancock Prospecting's resource projects. The HIMS was developed using IS014001 Environmental Management Systems, IS09001 Quality Management Systems and AS4801 Occupational Health and Safety Management Systems standards. This system applies to all its investments, including Alpha Coal, Kevin's Corner, manganese and iron ore projects.

Hancock Prospecting has implemented the INX Software to assist with the day-to-day management of HSECH issues. INX uses a SQL Server database with a web (.net) user

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interface to collate, query and store information (i.e. records, policies, procedures, job hazard analysis, risk registers, incident reports) about:

• health and safety management, • environmental and heritage management, • incident reporting, • training, competency for specific roles, skills management, and • roster, travel and accommodation management.

Rehabilitation strategies for the rail corridor are being developed during the EIS process and will include revegetation of cleared areas with native species. During operation the potential for erosion and sedimentation resulting from the rail will be minimised through the ongoing maintenance of revegetated areas and development of suitable management procedures for maintenance activities.

It is not expected that the rail corridor and port will require decommissioning within the next 30 years. Nonetheless a decommissioning strategy and closure plan will be developed as part of the project for the rail corridor and port. The decommissioning strategy will be incorporated into the operational management system of the rail corridor and port.

The Proponent's investigations to date have not indicated any significant adverse impacts from the Project that are not capable of being managed within the SDPWO Act, EIS process. The rail corridor planning has been undertaken to avoid all State Forests, National Parks and reserves. It has also been planned to minimize encroachment on environmentally relevant areas and water courses. There will continue to be ongoing consultation to minimize disruption and any avoidable adverse impacts on landholders. Consultation has also commenced with relevant approval agencies and will continue throughout the EIS process.

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Attachments:

• Attachment A- Letters of support from Barcaldine and Isaac Regional Councils

• Attachment B- Press Release- Thiess Pty Ltd October 2008

• Attachment C- Federal Government letters

• Attachment D -Detailed Maps of Rail Corridor

• Attachment E -Alpha Coal Project Terms of Reference

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Attachment A

'iP"""' I HANCOCK COAL PTY LTD

Letters of Support from Barcaldine and Isaac Regional Councils

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Attachment B

Press Release: Thiess Pty Ltd

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Attachment C

Federal Government Letters

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Attachment D

Alpha Coal Railway Location Maps

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Attachment E

Alpha Coal Project Terms of Reference

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Pages 197 through 199 redacted for the following reasons:- - - - - - - - - - - - - - - - - - - - - - - - - - - -Sch.4(4)(4)Disclosing deliberative process

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FW: Galilee Basin Economic and Social Impact Study (GBESIS) update

Dickson, Kylie

From:

Sent:

To:

Subject:

Matthew Jeffries

Thursday, 18 March 2010 11:53 AM

Kylie Dickson

FW: Galilee Basin Economic and Social Impact Study (GBESIS) update

Page I of 5

Attachments: Hancock Submission MIF.pdf; SKMBT_C451 10021213370.pdf; Hancock IFS Assessment and Advice- Proposal

From: Goodwin, Thorn [mailto:[email protected]] Sent: Tuesday, 16 March 2010 11:47 AM To: Matthew Jeffries Subject: FW: Galilee Basin Economic and Social Impact Study (GBESIS) update

Thorn Goodwin, A/Principal Economic Analyst, Economic Research and Analysis Economic Policy and Planning Division Department of Employment, Economic Development and Innovation Level21, 111 George Street, Brisbane, Old, 4000 PO Box 15168, City East, Brisbane, Old 4002 Phone: 07 322 22978 Fax: 07 321 00739

Business Information Centre 13 25 23 www .deedi.gld.gov.au

From: Thomas, Mathew Sent: Tuesday, 16 February 2010 5:03 PM To: Goodwin, Thorn Subject: FW: Galilee Basin Economic and Social Impact Study (GBESIS) update

From: Ling, Latiffa Sent: Friday, 12 February 2010 3:00PM To: Antony, George; Thomas, Mathew Subject: FW: Galilee Basin Economic and Social Impact Study (GBESIS) update

George, Mathew,

Will know on Mon whetter to proceed with seeping and I will let Colm know then.

Latiffa

From: Ling, Latiffa Sent: Friday, 12 February 2010 2:22 PM To: Parker, Maree

I 3/08/20I2 RTI Document No.200

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FW: Galilee Basin Economic and Social Impact Study (GBESIS) update Page 2 of5

Subject: FW: Galilee Basin Economic and Social Impact Study (GBESIS) update

Maree,

Latiffa

Dr Latiffa Ling, Manager, Economic Research & Analysis Unit Employment, Industry Development and Innovation Department of Employment, Economic Development and Innovation Level 21, 111 George St Brisbane PO Box 15168 City East Brisbane Old 4002

T +61 7 340 56503 M F +61 7 3210 0739 E [email protected] www.dtrdi.qld.gov.au

From: Calm O'Byrne [mailto:[email protected]] Sent: Friday, 12 February 2010 1:56 PM To: Ling, Latiffa Cc: Antony, George; Thomas, Mathew; Noel Thorne; Connie Seeto Subject: RE: Galilee Basin Economic and Social Impact Study (GBESIS) update

Latiffa

Please note I am on leave now from 15/2 to 24/2 inclusive- back Thursday 25/2.

Contactable by mobile (I am assured global roaming works).

Thanks

Calm O'Byrne Executive Director, Commercial

13/08/2012 RTI Document No.201




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. FW: Galilee Basin Economic and Social Impact Study (GBESIS) update

Department of Infrastructure and Planning Ph: +61 7 3224 5431, Mob: + [email protected] www.dip.qld.gov.au

From: Ling, Latiffa [mailto:[email protected]] Sent: Thursday, 11 February 2010 4:47 PM To: Calm O'Byrne Cc: Antony, George; Thomas, Mathew Subject: FW: Galilee Basin Economic and Social Impact Study (GBESIS) update

Calm,

Below is the ToR for the Galilee Basin project.

Latiffa

Dr Latiffa Ling, Manager, Economic Research & Analysis Unit Employment, Industry Development and Innovation Department of Employment, Economic Development and Innovation Level 21, 111 George St Brisbane PO Box 15168 City East Brisbane Qld 4002

T +61 7 340 56503 M F +61 7 3210 0739 E [email protected] www.dtrdi.qld.gov.au .

From: Henry, Phll

Sent: Thursday, 11 February 2010 4:39 PM

To: ling, Latiffa

Cc: McCosker, Sue

Subject: FW: Galilee Basin Economic and Social Impact Study (GBESIS) update

Hi Latiffa

Page 3 of 5

Here are the ToR as discussed. The project will barely have commenced by 15 March so we can't help with any data. You might let Calm know that David Stolz is on the Steering Committee.

Sue - Bill H asked that we keep Amy in the loop, particularly as a good Central West contact (along with David Arnold of course) for the consultant.

Regards

Phil

From: McCosker, Sue




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FW: Galilee Basin Economic and Social Impact Study (GBESIS) update Page 4 of5

Sent: Thursday, 17 December 2009 3:25PM

To: David Amold; Des Howard; Higham, William; Rob Chandler; Sandra Hobbs

Cc: Peter Maguire; Henry, Phil; Damian Pearson

Subject: Galilee Basin Economic and Social Impact Study (GBESIS) update

·Good afternoon

Since my correspondence with you in October, approval and procurement processes for funding and appointment of a consultant have slowly been progressing within DEED I. On current timelines, we expect an appointment might be made and the project commenced by early February 2010.

Please find attached, the project's Terms of Reference which is being used to undertake this process. Until DEEDI's funding is approved, the timeframes towards the end of the document are indicative only.

«Galilee Basin Economic & Social Impact Study ToR FINAL. doc»

We have proposed a steering committee consisting of: a RAP AD representative, a CHDC representative and Rob Chandler or his proxy in addition to Phil, Bill Higham and myself. Could you please advise if this arrangement is acceptable and who would represent your organisation in the first instance. We envisage three meetings with the consultant would be held in Barcaldine (inception, presentation of draft report, presentation of final report). There may need to be an additional meeting dependant on the wishes of the steering committee in relation to consultant selection.

I look forward to working with you in the New Year and in the meantime, Season's Greetings.

Kind regards Sue

Sue McCosker Principal Regional Development Officer, Rockhampton Centre Employment, Industry Development and Innovation Department of Employment, Economic Development and Innovation Level 1 , 149 Bolsover Street Rockhampton Queensland 4 700 PO Box 947 Rockhampton Queensland 4700 T +61 7 49384 571 F +61 7 49384 986 ME [email protected] www.dtrdi.qld.gov.au

********************************DISCLAI~ER**************************** The information contained in the above e-mail message or messages (which includes any attachments) is confidential and may be legally privileged. It is intended only for the use of the person or entity to which it is addressed. If you are not the addressee any form of disclosure, copying, modification, distribution or any action taken or omitted in reliance on the information is unauthorised. Opinions contained in the message(s) do not necessarily reflect the opinions of the Queensland Government and its authorities. If you received this communication in error, please notify the sender immediately

. and delete it from your computer system network.



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FW: Galilee Basin Economic and Social Impact Study (GBESIS) update Page 5 of 5

********************************DISCLAI~ER****************************

The information contained in the above e-mail message or messages (which includes any attachments) is confidential and may be legally privileged. It is intended only for the use of the person or entity to which it is addressed. If you are not the addressee any form of disclosure, copying, modification, distribution or any action taken or omitted in reliance on the information is unauthorised. Opinions contained in the message(s) do not necessarily reflect the opinions of the Queensland Government and its authorities. If you received this communication in error, please notify the sender immediately and delete it from your computer system network.

13/08/2012 RTI Document No.204 Full

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Hancock IFS Assessment and Advice - Proposal

Dickson, Kylie

From: Calm O'Byme

Sent: Wednesday, 10 February 2010 2:00PM

To: Ling, Latiffa

Subject: Hancock IFS Assessment and Advice- Proposal

Latiffa

REQUIRED Lallffa. are you able to undertake (or organ1se) work set out above? Please call Thanks

Colm O'Byrne Executive Dtrector, Commercial and Economic Servtces Department of Infrastructure and Planning Ph. +61 7 3224 5431, Mob: [email protected] www.dto gld gov au

From• eom O'Byme

13/08/2012

Page I of2

RTI Document No.205



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Hancock IFS Assessment and Advice - Proposal Page 2 of2

Somt: Monday, 8 FebNatY 2010 6;28 PM

To: Kim Mu!vahil; Noel Thome; Rod Seau;ang; Vanessa Com..tl; David Stolz; CO!l!lfe Sl!eto; Geoff Odie; Phil Dash

C.:: tl~il Sneddon; Ed Ebert

Subjoct: RE: Hilf!COd( Meeting

All

Hancock - EconomtdSociattEmploymeni/Other Contributions

Calm O'Byrne Executive Dtrector, Commercial Department of Infrastructure and Planning Ph: +61 7 3224 5431, Mob.

calm obyrne@dip,qld.go,...au www dm gld.gov.au

ASSESSMENTS REQUIRED TO BE DONE BY THE CG • S125(1)-" of significance. particularly economtcally or socially, to Australia. Queensland or the reg ton m whtch the fac11tty 1s to be constructed"

S125(2)-" the potenttal of the faciltty to contribute to communtty wellbeing and economtc growth or employment levels MUST be taken mto account"

S125(3)-" the contnbution the Infrastructure facthty makes to agncultural, 1ndustnal, resource or technologtcal development in Australia. Queensland or the regton IS a relevant constderat1on"

From: Colm O'Byme

SDnt: Monday, 8 febr\l<lry 2010 4:34PM

To: xrn Hulvahll; lloel Theme; Rod Beausar.g; Vanessa Cornell; O<lvid Stotz; Connie Seeto ~= rlell Sneddon

Subject: RE: Hano:>ck M~tlog

<< Message• Hancock Infrastructure Applicallon >>

All

Please note I wtll be at1endtng Hancock's offices at 12pm on Tuesday to take up the offer to rev1ew the material

See at1ached

Calm O'Syrne Executtve Director, Commercial and Economic Services Department of Infrastructure and Planning Ph· +61 7 3224 5431, Mob:colm [email protected] www dto gld qov.au

From: Klm Hulvahll

Sunt: Hooday, B Fcbru<lry 2010 2:09PM

To: Noel Thome; Colm O'Byme; llod B&lusang; Vanessa Comell; Oavkl Stull; Connie Sooto; Kim Hulvahll

Subject: Hano:>ck Mee~r.g

WhM: Tuesday, 9 FebruillY 2010 10:00 A!HI:OOAH (GMT +10:00) Srl!bane.

Wl\111'11: Room U.3S, level II, 100 George StrEct

Vvhen: Tuesday, 9 February 2010 10-00AM-11.00 AM (GMT+10:00) Brisbane Vvhere· Room 11.38. Level11, 100 George Street

·-·-·-·-·-·-·-·-·-· Unless stated otherwise, this email. together with any attachments, is intended for the named recipient (s) only and may contain privile•

If not an intended recipient of this email, you must not copy, distribute or take any action(s) that relies on it; any form of disclosu


!3/08/2012 RTI Document No.206




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redacted for the following reason:- - - - - - - - - - - - - - - - - - - - -Sch.4(4)(4)Disclosing deliberative process

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Hancock Coal Pty Ltd

Dickson, Kylie

From:

Sent:

To:

Cc:

Subject:

Ling, Latiffa [[email protected]]

Tuesday, 23 March 2010 2:58 PM

Colm O'Byrne; Kylie Dickson

Goodwin, Thorn


Attachments: Hancock IFS Application DEED I input 080310.doc

Hi Colm, Kylie

Attached is a copy of report which we has now been signed off by ED.

«Hancock IFS Application DEED I input 080310.cloc»

Kylie, the contacts we had at QTC are

o Peter Brook, Team Leader, Financial Modelling, 38424886 o Graeme Garrett, General Manager, Major Projects, 3842 4710

Peter used to work with us for a short while. More recently he ran a couple of financial modelling training sessions for our staff here for free.

l also need to talk to you about planned work going forward.

Latiffa

Dr Latiffa Ling, Manager, Economic Policy & Planning Division Employment PoliC!j, Projects & Employment Department of Employment, Economic Development and Innovation Level 21, 111 George St Brisbane PO Box 15168 City East Brisbane Qld 4002

T +61 7 340 56503 M F +61 7 3210 0739 E [email protected] www.dtrdi.gld.gov.au

********************************DISCLAI~ER**************************** The information contained in the above e-mail message or messages (which includes any attachments) is confidential and may be legally privileged. It is intended only for the use of the person or entity to which it is addressed. If you are not the addressee any form of disclosure, copying, modification, distribution or any action taken or omitted in reliance on the information is unauthorised. Opinions contained in the message(s) do not necessarily reflect the opinions of the Queensland Government and its authorities. If you received this communication in error, please notify the sender immediately and delete it from your computer system network.

13/08/2012

Page I of I

RTI Document No.208


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Pages 209 through 222 redacted for the following reasons:- - - - - - - - - - - - - - - - - - - - - - - - - - - -Sch.4(4)(4)Disclosing deliberative processSch.4(4)(7) Disclosing trade secrets, business affairs or research

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Dickson, Kylie

From: Matthew Jeffries

Sent: Tuesday, 23 March 2010 4:52 PM

To: Kylie Dickson

Subject: RE: Hancock Coal Pty Ltd

Page I of2

Kind regards Matt

From: Kylie Dickson Sent: Tuesday, 23 March 2010 3:01 PM To: Matthew Jeffries Subject: FW: Hancock Coal Pty Ltd

Matt

Could you pis review and let us know if there are any significant changes to the earlier draft.

Also, could you please collect your thoughts for the proposed meeting tomorrow in order to provide our feedback on the report?

thanks very much

Kylie

From: Ling, Latiffa [mailto:[email protected]] Sent: Tuesday, 23 March 2010 2:58 PM To: Calm O'Byrne; Kylie Dickson Cc: Goodwin, Thorn Subject: Hancock Coal Pty Ltd

Hi Cohn, Kylie




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Hancock Coal Pty Ltd Page 2 of2

«Hancock IFS Application DEEDI input 080310.doc»


• Peter Brook, Team Leader, Financial Modelling, 38424886 • Graeme Garrett, General Manager, Major Projects, 3842 4710


I also need to talk to you about planned work going forward.

Latiffa

Dr Latiffa Ling, Manager, Economic Policy & Planning Division Employment PoliCIJ, Projects & Employment Department of Employment, Economic Development and Innovation Level21, 111 George St Brisbane PO Box 15168 City East Brisbane Qld 4002


********************************DISCLAI~ER****************************

The information contained in the above e-mail message or messages (which includes any attachments) is confidential and may be legally privileged. It is intended only for the use of the person or entity to which it is addressed. If you are not the addressee any form of disclosure, copying, modification, distribution or any action taken or omitted in reliance on the information is unauthorised. Opinions contained in the message(s) do not necessarily reflect the opinions of the Queensland Government and its authorities. If you received this communication in en-or, please notify the sender immediately and delete it from your computer system network.



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Hancock Coal Pty Ltd Page I of2

Ward, Denise

From: Calm O'Byrne


To: 'Ling, Latiffa'; Kylie Dickson; Matthew Jeffries

Cc: Goodwin, Thom; Vanessa Cornell

Subject: RE: Hancock Coal Pty Ltd

Latiffa

Thanks for document. I see you are coming over here at 11am Wednesday.

There will be some further work required. As you know, the closing date for public comments was 5pm this Monday. The CG received a number of comments, most notably from

The docs are too large to email and will be provided tomorrow.

Thanks

Calm O'Byrne Executive Director, Commercial Department of Infrastructure and Planning Ph: +61 7 3224 5431, Mob: [email protected] www.dip.qld.gov.au

From: Ling, Latiffa [mailto:[email protected]] Sent: Tuesday, 23 March 2010 2:58 PM To: Calm O'Byrne; Kylie Dickson Cc: Goodwin, Thom Subject: Hancock Coal pty Ltd

Hi Calm, Kylie


«Hancock IFS Application DEEDI input 080310.doc»


• Peter Brook, Team Leader, Financial Modelling, 38424886 • Graeme Garrett, General Manager, Major Projects, 3842 4710


I also need to talk to you about planned work going forward.

Latiffa





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Dr Latiffa Ling, Manager, Economic Policy & Planning Division Employment Polictj, Projects & Employment Department of Employment, Economic Development and Innovation Level21, 111 George St Brisbane PO Box 15168 City East Brisbane Qld 4002


Page 2 of2

********************************DISCLAI~ER****************************

The information contained in the above e-mail message or messages (which includes any attachments) is confidential and may be legally privileged. It is intended only for the use of the person or entity to which it is addressed. If you are not the addressee any form of disclosure, copying, modification, distribution or any action taken or omitted in reliance on the information is unauthorised. Opinions contained in the message(s) do not necessarily reflect the opinions of the Queensland Government and its authorities. If you received this communication in error, please notify the sender immediately and delete it from your computer system network.

I 0/08/2012 RTI Document No.226


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Dickson, Kylie

From: Calm O'Byrne Sent: Wednesday, 24 March 2010 5:33 PM To: Subject:

Kylie Dickson; Matthew Jeffries; 'Ling, Latiffa'; Goodwin, Thorn FW: Update on Hancock IFS application and assessment

FYI


Geoff Dickie; Ed Ebert; Noel Thorne; Phil Dash; Calm O'Byrne; Colin Bunker; Rod Beausang; Connie Seeto; Kim Mahoney Vanessa Cornell


All,

This email is just to give a very brief update on progress. As you would be aware, the public consultation period on Hancock's IFS application closed on 22 March 2010. Twenty-three submissions have been received. Due to the recent whether events however, we have also granted four requests for extensions of time for the receipt of submissionsthrough until 29 March 2010.



Regards


tel +61 7 3404 3474 ext 43474 mpost PO Box 15009 City East Old 4002 visit Level 3 Executive Building 1 00 George Street Brisbane [email protected]

www.dip.qld.gov.au

.,.!, Please consider the environment before printing this email

1

RTI Document No.227


Sch.4(4)(6) Personal Information RTI R

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.Blank Page I of3

Dickson, Kylie

From: Calm O'Byrne

Sent: Thursday, 25 March 2010 9:32AM

To: 'Ling, Latiffa'; 'Goodwin, Thorn'

Cc: Connie Seeto; Kylie Dickson

Subject: FW: Hancock Rail Corridor and impact on QCoal deposits of Moranbah coking coals

Latiffa, Thorn

Please connect with Mick O'Fiynn and others in DEEDI, and provide the QCoal material to them

Thanks


From: O'flynn Mick [mailto:[email protected]] Sent: Thursday, 25 March 2010 9:05AM To: Rees Marcus Cc: Calm O'Byrne Subject: FW: Hancock Rail Corridor and impact on QCoal deposits of Moran bah coking coals

Hi Marcus

Cheers Mick

From: O'flynn Mick Sent: Monday, 15 March 2010 3:02 PM To: Grundy Jim; Hunt Dan Cc: 'Geoff Dickie'; 'Phil Dash'; '[email protected]'; '[email protected]'; '[email protected]'; Green Peter; Smith Ray; Lamont Callum; Coffey David Subject: Hancock Rail Corridor and impact on QCoal deposits of Moran bah coking coals

Dan, Jim

Just to inform on an emerging issue that we have been working on.





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,Blank Page 2 of3

Cheers

Michael O'Fiynn

Manager, Case Management

Statewide Services

Department of Employment, Economic Development and Innovation

Phone 3898 0697

Mobile

Email: [email protected]




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,Blank Page 3 of3

***********************************************"*** .. ******************** The information in this email together with any attachments is intended only for the person or entity to which it is addressed and may contain confidential and/or privileged material.

Any form of review, disclosure, modification, distribution and/or publication of this email message is prohibited, unless as a necessary part of Departmental business.

If you have received this message in error, you are asked to inform the sender as quickly as possible and delete this message and any copies of this message from your computer and/or your computer system network. *********** .. **"*************************"****"**************************


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Dickson, Kylie

From: Connie Seeto Sent: To:

Wednesday, 24 March 2010 7:03 PM Colm O'Byrne

Cc: Vanessa Cornell; Kylie Dickson Subject: RE: Update on Hancock IFS application and assessment

Follow Up Flag: Follow up Red Flag Status:

Thanks Colm. Will review and come back to you.

regards

Connie Seeto Executive Director, Legal Services Department of Infrastructure and Planning [email protected] Tei:07 3224 6839

From: Sent: To: Cc:

Calm O'Byrne Wednesday, 24 March 2010 6:39PM Connie Seeto Vanessa Cornell; Kylie Dickson

Subject: RE: Update on Hancock IFS application and assessment

Connie

To avoid a last minute rush, would you please familiarise yourself and begin to consider the following three matters, in terms of advice to the CG for the decision:

RTI Document No.231

Sch. 3(7)

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Thanks





All,




Regards


tel +61 7 3404 3474 ext 43474 mpost PO Box 15009 City East Qld 4002 visit Level 3 Executive Building 100 George Street Brisbane [email protected]

www.dip.qld.gov.au

.!, Please consider the environment before printing this email

2

RTI Document No.232

Sch. 3(7)



Sch.4(4)(6) Personal Information RTI R

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B-lank

Ward, Denise

From: Kylie Dickson

Sent: Thursday, 25 March 2010 9:37AM

To: Matthew Jeffries

Subject: FW: Hancock Rail Corridor and impact on QCoal deposits of Moran bah coking coals

fyi

From: Colm O'Byrne Sent: Thursday, 25 March 2010 9:32AM To: 'Ling, Latiffa'; 'Goodwin, Them' Cc: Connie Seeto; Kylie Dickson Subject: FW: Hancock Rail Corridor and impact on QCoal deposits of Moran bah coking coals

Latiffa, Them

Page I of3

Please connect with Mick O'Fiynn and others in DEEDI, and provide the QCoal material to them

Thanks

Colm O'Byme Executive Director, Commercial Department of Infrastructure and Planning Ph: +61 7 3224 5431, Mob: [email protected] www.dip.qld.gov.au

From: O'flynn Mick [mailto:[email protected]] Sent: Thursday, 25 March 2010 9:05AM To: Rees Marcus Cc: Colm O'Byrne Subject: FW: Hancock Rail Corridor and impact on QCoal deposits of Moranbah coking coals

Hi Marcus

Cheers Mick

From: O'flynn Mick Sent: Monday, 15 March 2010 3:02PM To: Grundy Jim; Hunt Dan Cc: 'Geoff Dickie'; 'Phil Dash'; '[email protected]'; '[email protected]'; '[email protected]'; Green Peter; Smith Ray; Lamont Callum; Coffey David

I 0/08/2012 RTI Document No.234



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Blank Page 2 of3

Subject: Hancock Rail Corridor and impact on QCoal deposits of Moran bah coking coals

Dan, Jim

Just to inform on an emerging issue that we have been working on.

Cheers

Michael O'Fiynn

Manager, Case Management

Statewide Services

Department of Employment, Economic Development and Innovation



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El1ank Page 3 of3

Phone 3898 0697

Mobile

Email: [email protected]

****"*****-*******************"********""''"'****"******************"****** The information in this email together with any attachments is intended only for the person or entity to which it is addressed and may contain confidential and/or privileged material.

Any form of review, disclosure, modification, distribution and/or publication of this email message is prohibited, unless as a necessary part of Departmental business.

If you have received this message in error, you are asked to inform the sender as quickly as possible and delete this message and any copies of this message from your computer and/or your computer system network. *******************""*""""""*""'**""*"""'"*"'""*"'*"'*""'"*"*"'"**"'**"""""""""'"



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Ward, Denise

From: Sent: To:

Ed Ebert Friday, 26 March 2010 10:31 AM Calm O'Byrne

Subject: FW: SUPER URGENT - Concerning Alpha and Kevin's Corner Projects and regarding Chinese Consortium delegation visit - 6 April 2010

Attachments: Concerning Alpha and Kevin s Corner Projects and regarding Chinese Consortium delegation visit- 6 Aprii 2010.PDF; IFS Hancock Version 3.doc

Concerning Alpha IFS Hancock and Kevin s C... version 3.doc (44 ...

Regards Ed Ebert

' "'

Assistant Coordinator General, Economic Development Department of Infrastructure and Pl a nning Queensland Government tel +61 7 3224 5914 mobi le post PO Box 15009 City East Qld 4 002 visit Level 3, 63 George Street Brisbane [email protected] d.gov.au

www .dip.qld.gov .au P P l ease consider the environment before printing this email

--- - -Original Message- ---From : David Stolz Sent : Thursday, 25 March 2010 4:30 PM To: Noel Thorne; Ed Ebert; Connie Seeto; Rod Beausang; Phil Dash; Kim Mahoney; Kate Weir; Bob Gannon; Brett Harwood Cc: Vanessa Cornell Subject: FW: SUPER URGENT - Concerning Alpha and Kevin's Corner Projects and regarding Chinese Consortium delegation visit - 6 April 2010

All,

Please find the draft response to DPC on Hancock's l etter of March 23. A number of you have contributed to this during day. Please let me know if the r e are any concerns. As I will not be in the office tomorrow though, Vanessa, wil l fina l ise the draft prior to forwarding to Geoff. Turnaround on this is very short, by start o f tomorrow at the latest.

Thanks for all the ass i stance.

Regards

David Stolz

-----Original Message --- - From: Noel Thorne Sent : Wednesday, 24 March 2010 3:46 PM To: David Stolz Subject: FW: SUPER URGENT - Concerning Alpha and Kevin ' s Corner Projects and regarding Chinese Consort ium delegation visit - 6 April 2010

Dav id For your consideration. Can we please discuss tomorrow. Thanks, Noel

-----Original Message---- -From: Grah am Marsh a ll [mailto:[email protected]] Sent: Wednesday, 24 March 2010 3: 36 PM To: Noel Thorne Subject : FW: SUPER URGENT - Concerning Alpha a n d Kevin ' s Corner Projects and regarding Chinese Consortium delegation visit - 6 April 2010

1

RTI Document No.237


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-----Original Message----From: Graham Marshall Sent: Wednesday, 24 March 2010 3:34 PM To: 1 Susie Parker 1

Subject: SUPER URGENT - Concerning Alpha and Kevin 1 s Corner Projects and regarding Chinese Consortium delegation visit - 6 April 2010

Hi Susie

The attached letter was hand delivered to the Premier today and we need an urgent response drafted by 3pm Friday 29 March 2010. Sorry about the short timeframe but its outside of my control.

It would be appreciated if the draft response could be emailed to me. Please have the responsible officer contact me on ext 42433 if they want to discuss any issues.

Thanks

Graham

This email is intended only for the addressee. Its use is limited to that intended by the author at the time and it is not to be distributed without the author 1 s consent.

Unless otherwise stated, the State of Queensland accepts no liability for the contents of this email except where subsequently confirmed in writing. The opinions expressed in this email are those of the author and do not necessarily represent the views .of the State of Queensland. This email is confidential and may be subject to a claim of legal privilege.

If you have received this email in error, please notify the author and delete this message immediately.

2

RTI Document No.238full

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Dickson, Kylie

From: Sent: To:

Colm O'Byrne Friday, 26 March 2010 2:16PM Ed Ebert

Cc: Subject:

Noel Thorne; Connie Seeto; Vanessa Cornell; Rod Beausang; Kylie Dickson; David Stolz RE: SUPER URGENT- Concerning Alpha and Kevin's Corner Projects and regarding Chinese Consortium delegation visit- 6 April 2010

Ed

Re this letter. Some points.

Colm O*Byrne Executive Director, Commercial Department of Infrastructure and Planning Ph: +61 7 3224 5431, Mob: [email protected] www.dip.qld.gov.au

-----Original Message----From: Ed Ebert Sent: Friday, 26 March 2010 10:31 AM To: Calm O'Byrne Subject: FW: SUPER URGENT - Concerning Alpha and Kevin's Corner Projects and regarding

1

RTI Document No.239



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Chinese Consortium delegation visit - 6 April 2010

Regards Ed Ebert Assistant Coordinator General, Economic Development Department of Infrastructure and Planning Queensland Government tel +61 7 3224 5914 mobile post PO Box 15009 City East Qld 4002 visit Level 3, 63 George Street Brisbane ed.ebert®dip.qld.gov.au

www.dip.qld.gov.au P Please consider the environment before printing this email

-----Original Message----From: David Stolz Sent: Thursday, 25 March 2010 4:30PM To: Noel Thorne; Ed Ebert; Connie Seeto; Rod Beausang; Phil Dash; Kim Mahoney; Kate Weir; Bob Gannon; Brett Harwood Cc: Vanessa Cornell Subject: FW: SUPER URGENT- Concerning Alpha and Kevin's Corner Projects and regarding Chinese Consortium delegation visit - 6 April 2010

All,

Please find the draft response to DPC on Hancock's letter of March 23. A number of you have contributed to this during day. Please let me know if there are any concerns. As I will not be in the office tomorrow though, Vanessa, will finalise the draft prior to forwarding to Geoff. Turnaround on this is very short, by start of tomorrow at the latest.

Thanks for all the assistance.

Regards

David Stolz

-----Original Message----From: Noel Thorne Sent: Wednesday, 24 March 2010 3:46 PM To: David Stolz Subject: FW: SUPER URGENT - Concerning Alpha and Kevin's Corner Projects and regarding Chinese Consortium delegation visit - 6 April 2010

David For your consideration. Can we please discuss tomorrow. Thanks, Noel

-----original Message-----From: Graham Marshall [mailto:Graham.Marshall®premiers.qld.gov.au] Sent: Wednesday, 24 March 2010 3:36 PM To: Noel Thorne Subject: FW: SUPER URGENT - Concerning Alpha and Kevin's Corner Projects and regarding Chinese Consortium delegation visit - 6 April 20-10

-----original Message----From: Graham Marshall Sent: Wednesday, 24 March 2010 3:34 PM To: 'Susie Parker' Subject: SUPER URGENT - Concerning Alpha and Kevin's Corner Projects and regarding Chinese Consortium delegation visit - 6 April 2010

Hi Susie


2

RTI Document No.240


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Thanks

Graham

This email is intended only for the addressee. Its use is limited to that intended by the author at the time and it is not to be distributed without the author 1 s consent.

Unless otherwise stated, the State of Queensland accepts no liability for the contents of this email except where subsequently confirmed in writing. The opinions expressed in this email are those of the author and do not necessarily represent the views of the State of Queensland. This email is confidential and may be subject to a claim of legal privilege.


3

RTI Document No.241 full

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Dickson, Kylie

From: Colm O'Byrne Sent: To:

Friday, 26 March 2010 7:05 PM Connie Seeto

Cc: Vanessa Cornell; Kylie Dickson; David Stolz Subject: RE: Update on Hancock IFS application and assessment

Connie

Please consider.

Thanks

Calm O'Byrne Executive Director, Commercial Department of Infrastructure and Planning Ph: +61 7 3224 5431, Mob: [email protected] www.dip.gld.gov.au

From: Sent: To: Cc:

Calm O'Byrne Wednesday, 24 March 2010 6:39 PM Connie Seeto Vanessa Cornell; Kylie Dickson


Connie

To avoid a last minute rush, would you please familiarise yourself and begin to consider the fol\owing three matters, in

<< File: Doc2.doc >>

1

RTI Document No.242

Sch. 3(7)


Sch. 3(7)

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Thanks

Calm O'Byrne Executive Director, Commercial Department of Infrastructure and Planning Ph: +61 7 3224 5431, Mob: [email protected] www.dip.qld.qov.au




All,




Regards

2

RTI Document No.243

Sch. 3(7)



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www.dip.qld.qov.au

,}, Please consider the environment before printing this email

3

RTI Document No.244


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Pages 245 through 251 redacted for the following reasons:- - - - - - - - - - - - - - - - - - - - - - - - - - - -3(8) Breach of confidence, Sch.4(4)(7) Disclosing trade secrets, business affairs or researchSch.4(4)(7) Disclosing trade secrets, business affairs or research

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Ward, Denise

From: Kylie Dickson Sent: To:

Monday, 29 March 201 0 9: 14 AM Matthew Jeffries

Subject: FW: SUPER URGENT- Concerning Alpha and Kevin's Corner Projects and regarding Chinese Consortium delegation visit- 6 April 2010

fyi

-----Original Message----From: Calm O'Byrne Sent: Friday, 26 March 20l0 2:l6 PM To: Ed Ebert Cc: Noel Thorne; Connie Seeto; Vanessa Cornell; Rod Beausang; Kylie Dickson; David Stolz Subject: RE: SUPER URGENT- Concerning Alpha and Kevin 1 s Corner Projects and regarding Chinese Consortium delegation visit - 6 April 2010

Ed

Re this letter. Some points.

Calm O'Eyrne Executive Director, Commercial Department of Infrastructure and Planning

1

RTI Document No.252


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Ph: +61 7 3224 5431, Mob: + [email protected] www.dip.qld.gov.au

-----original Message----From: Ed Ebert Sent: Friday, 26 March 2010 10:31 AM To: Calm 0 1 Byrne Subject: FW: SUPER URGENT - Concerning Alpha and Kevin 1 s Corner Projects and regarding Chinese Consortium delegation visit - 6 April 2010

Regards Ed Ebert Assistant Coordinator General, Economic Development Department of Infrastructure and Planning Queensland Government tel +61 7 3224 5914 mobile post PO Box 15009 City East Qld 4002 visit Level 3, 63 George Street Brisbane [email protected]


-----Original Message----From: David Stolz Sent: Thursday, 25 March 2010 4:30 PM To: Noel Thorne; Ed Ebert; Connie Seeto; Rod Beausang; Phil Dash; Kim Mahoney; Kate Weir; Bob Gannon; Brett Harwood Cc: Vanessa Cornell Subject: FW: SUPER URGENT - Concerning Alpha and Kevin 1 s Corner Projects and regarding Chinese Consortium delegation visit - 6 April 2010

All,

Please find the draft response to DPC on Hancock 1 s letter of March 23. A number of you have contributed to this during day. Please let me know if there are any concerns. As I will not be in the office tomorrow though 1 Vanessa~ will finalise the draft prior to forwarding to Geoff. Turnaround on this is very short, by start of tomorrow at the latest.


Regards

David Stolz

-----Original Message----From: Noel Thorne Sent: Wednesday, 24 March 2010 3:46 PM To: David Stolz Subject: FW: SUPER URGENT - Concerning Alpha and Kevin 1 s Corner Projects and regarding Chinese Consortium delegation visit - 6 April 2010

David For your consideration. Can we please discuss tomorrow. Thanks, Noel

-----Original Message-----From: Graham Marshall [mailto:Graham.Marshall®premiers.qld.gov.au] Sent: Wednesday, 24 March 2010 3:36 PM To: Noel Thorne Subject: FW: SUPER URGENT - Concerning Alpha and Kevin 1 s Corner Projects and regarding Chinese Consortium delegation visit - 6 April 2010

-----original Message----From: Graham Marshall Sent: Wednesday, 24 March 2010 3:34 PM

2

RTI Document No.253



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To: 'Susie Parker' Subject: SUPER URGENT - Concerning Alpha and Kevin's Corner Projects and regarding Chinese Consortium delegation visit - 6 April 2010

Hi Susie



Thanks

Graham

This email is intended only for the addressee. Its use is limited to that intended by the author at the time and it is not to be distributed without the author's consent.



3


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Ward, Denise


Monday, 29 March 201 0 9: 15 AM Matthew Jeffries

Subject: FW: Update on Hancock IFS application and assessment

fyi

From: Sent: To: cc:

Colm O'Byrne Friday, 26 March 2010 7:05PM Connie Seeto Vanessa Cornell; Kylie Dickson; David Stolz


Connie

Please consider.

Thanks

Cairn O'Byrne Executive Director, Commercial Department of Infrastructure and Planning Ph: +61732245431,Mob: [email protected] www.dip.qld.gov.au

From: Sent: To: Cc:

Colm O'Byrne Wednesday, 24 March 2010 6:39PM Connie Seeto Vanessa Cornell; Kylie Dickson


Connie

RTI Document No.255

Sch. 3(7)

Sch. 3(7)

RTEL

EASE


Thanks

Calm O'Byrne Executive Director, Commercial Department of Infrastructure and Planning Ph: +61 7 3224 5431, Mob: [email protected] www.dio.gld.gov.au

From: David Stolz Sent: Wednesday, 24 March 2010 4:33PM To: Cc:



All,




2

RTI Document No.256

Sch. 3(7)



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Regards

David Stolz Director Coal infrastructure Taskforce Regional Development Department of Infrastructure and Planning Queensland Government


www.dip.gld.qov.au

.J, Please consider the environment before printing this email

3

RTI Document No.257



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Ward, Denise


Monday, 29 March 2010 11:58 AM Matthew Jeffries

Subject: FW: SUPER URGENT- Concerning Alpha and Kevin's Corner Projects and regarding Chinese Consortium delegation visit- 6 April 2010

Attachments: Concerning Alpha and Kevin s Corner Projects and regarding Chinese Consortium delegation visit- 6 April 2010.PDF; IFS Hancock Version 3.doc

Concerning Alpha and Kevin s C ...

IFS Hancock Version 3.doc

fyi

-----Original Message----From: Ed Ebert Sent: Friday, 26 March 2010 10:31 AM To: Calm O'Byrne Subject: FW: SUPER URGENT- Concerning Alpha and Kevin's Corner Projects and regarding Chinese Consortium delegation visit - 6 April 2010

Regards Ed Ebert Assistant Coordinator General, Economic Development Department of Infrastructure and Planning Queensland Government tel +61 7 3224 5914 mobile post PO Box 15009 City East Qld 4002 visit Level 3, 63 George Street Brisbane ed.ebert®dip.qld.gov.au


-----original Message----From: David Stolz Sent: Thursday, 25 March 2010 4:30 PM To: Noel Thorne; Ed Ebert; Connie Seeto; Rod Beausang; Phil Dash; Kim Mahoney; Kate Weir; Bob Gannon; Brett Harwood Cc: Vanessa Cornell Subject: FW: SUPER URGENT- Concerning Alpha and Kevin 1 s Corner Projects and regarding Chinese Consortium delegation visit - 6 April 2010

All,

Please find the draft response to DPC on Hancock 1 s letter of March 23. A number of you have contributed to this during day. Please let me know if there are any concerns. As I will not be in the office tomorrow though, Vanessa, will finalise the draft prior to forwarding to Geoff. Turnaround on this is very short, by start of tomorrow at the latest.


Regards

David Stolz

-----Original Message----From: Noel Thorne Sent: Wednesday, 24 March 2010 3:46 PM To: David Stolz Subject: FW: SUPER URGENT - Concerning Alpha and Kevin 1 s Corner Projects and regarding Chinese Consortium delegation visit - 6 April 2010

David

1

RTI Document No.258


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For your consideration. Can we please discuss tomorrow. Thanks, Noel

-----Original Message-----From: Graham Marshall [mailto:Graham.Marshall®premiers.qld.gov.au] Sent, Wednesday, 24 March 2010 3o36 PM To: Noel Thorne Subject: FW: SUPER URGENT - Concerning Alpha and Kevin 1 s Corner Projects and regarding Chinese Consortium delegation visit - 6 April 2010

-----Original Message----From: Graham Marshall Sento Wednesday, 24 March 2010 3o34 PM To: 1 Susie Parker 1

Subject: SUPER URGENT - Concerning Alpha and Kevin 1 s Corner Projects and regarding Chinese Consortium delegation visit - 6 April 2010

Hi Susie



Thanks

Graham

This email is intended only for the addressee. Its use is limited to that intended by the author at the time and it is not to be distributed without the author 1 S consent.



2


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FW: Hancock Coal Pty Ltd: Rail Corridor Project

Dickson, Kylie

From:

Sent:

To:

Cc:

Subject:

Ling, Latiffa [[email protected]]

Thursday, 1 April2010 12:18 PM

Calm O'Byrne; Kylie Dickson

Thomas, Mathew


Page I of6

Please advise whether you have any further info.

Latiffa

Dr Latiffa Ling, Manager, Economic Policy & Planning Division Employment PoliCJj, Projects & Employment Department of Employment, Economic Development and Innovation Level 21, 111 George St Brisbane PO Box 15168 City East Brisbane Qld 4002


From: Thomas, Mathew

Sent: Thursday, 1 April 2010 12:13 PM

To: Ling, Latiffa

Subject: FW: Hancock Coal pty Ltd: Rail Corridor Project

From: Rees Marcus [mailto:[email protected]]

Sent: Wednesday, 31 March 2010 11:00 AM

To: Thomas, Mathew

Cc: Oflynn, Mick ; Ferenczi, Phil i Johnson, Dave

Subject: FW: Hancock Coal pty Ltd: Rail Corridor Project

Hi Mathew

Please see the advice contained in the email chain below.





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Hope the info is useful.

Cheers

Marcus Rees A/Manager Policy Resources, Energy and Manufacturing Department of Employment, Economic Development and Innovation

ph. 07 3227 7583

61 Mary St Brisbane Qld 4000 PO Box 1521 6 City East Qld 4001 www.dme.gld.gov.au

From: O'flynn Mick Sent: Wednesday, 31 March 2010 9:36 AM To: Rees Marcus Subject: RE: Hancock Coal Pty Ltd: Rail Corridor Project

Hi marcus

Page 2 of6

Cheers Mick

From: Rees Marcus

Sent: Wednesday, 31 March 2010 9:09 AM

To: O'flynn Mick

Subject: RE: Hancock Coal Ply Ltd: Rail Corridor Project

Thanks Mick.

Cheers

Marcus Rees A/Manager





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FW: Hancock Coal Pty Ltd: Rail Corridor Project Page 3 of6

Policy Resources, Energy and Manufacturing Department of Employment, Economic Development and Innovation

ph. 07 3227 7583

61 Mary St Brisbane Qld 4000 PO Box 15216 City East Qld 4001

www.dme.gld.gov.au

13/08/2012

From: O'flynn Mick Sent: Tuesday, 30 March 2010 5:24 PM To: Rees Marcus Subject: FW: Hancock Coal Pty Ltd: Rail Corridor Project

Hi Marcus

Cheers Mick

From: Rees Marcus


To: O'flynn Mick

Subject: FW: Hancock Coal Pty Ltd: Rail Corridor Project

RTI Document No.269


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www.dme.gld.qov.au

Cheers

Marcus Rees A/Manager Policy Resources, Energy and Manufacturing Department of Employment Economic Development and Innovation

ph. 07 3227 7583

61 Mary St Brisbane Qld 4000 PO Box 1521 6 City East Qld 400 1

From: Thomas, Mathew [mailto:[email protected]] Sent: Friday, 26 March 2010 12:23 PM To: Rees Marcus Cc: Ling, Latiffa; Jeffries, Matthew Subject: FW: Hancock Coal Pty Ltd: Rail Corridor Project

HI Marcus,




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Thanks for your assistance here.

Let me know if you require any more information.

Cheers, Mathew

13/08/2012

From: Thomas, Mathew

Sent: Wednesday, 24 March 2010 4:16PM

To: Rees, Marcus

Cc: Ling, Latiffa; Goodwin, Thorn

Subject: Hancock Coal Pty Ltd: Rail Corridor Project

Hi Marcus,

As discussed, the Department of Infrastructure and Planning is considering a request to have the Handcock Rail Corridor considered as significant piece of infrastructure under section 125(1) (f) of the State Development and Public Works Organisation Act 1971 (SDPWOA).

Could you get back to me with timelines for a response.

Happy to meet if necessary to go through.

RTI Document No.271


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Cheers, Mathew

Page 6 of6

Mathew Thomas, Project Manager, Economic Research and Analysis Unit, Economic Policy and Planing Department of Employment, Economic Development and Innovation Level21, 111 George St, Brisbane OLD 4001 PO Box 15168 City East OLD 4002 T +61 7 322 22966 F+61 7 3210 0739

E [email protected] www.dtrdi.qld.gov.au

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************************************************************************

* * * * * * * * * * * * * * * * * * * * * * * * ********DISCLAIMER**************************** The information contained in the above e-mail message or messages (which includes any attachments) is confidential and may be legally privileged. It is intended only for the use of the person or entity to which it is addressed. If you are not the addressee any form of disclosure, copying, modification, distribution or any action taken or omitted in reliance on the information is unauthorised. Opinions contained in the message(s) do not necessarily reflect the opinions of the Queensland Government and its authorities. If you received this communication in error, please notifY the sender immediately and delete it from your computer system network.


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. '~•

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7;7IOOGOmk·. ?,

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7 COO OCO n~N.

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Known coal deposits in Bowen Creek area

e:

!t,r:. Son~m~Mine;,.'

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Kilometres

. .


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1021

1022

1023

Legend

II Extractive Operation

..... Ill

Mineral Project/Resource

• .A

Operating Mine

Gas Project

Operating Coal Mine

Coal Project/Resource

-t- Railway_Une

-+- Proposed NML rail

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-Major Road

•• • •' Gas Pipelines

• Coal Resource

Coal Measures

k : .J EPC Feb2010

IZ2J EPC Proposal

EPC Application

I:::: :I ML Feb201 0

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. Crush Creek A Gold

Queensland Government

Significant Mining Resource areas in the Whitsunday Regional Shire (March 2010)

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Please open the attached document. This document was digitally sent to you using an HP Digital Sending device.

2


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Pages 289 through 296 redacted for the following reasons:- - - - - - - - - - - - - - - - - - - - - - - - - - - -Sch 3(7)Sch. 3(7)

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. . -----Original Message-----From: P502212 [mailto:P502212®dip.qld.gov.au] Sent: Saturday, 4 September 2010 1:02 AM To: Ellie Reidy Subject:

Please open the attached document. This document was digitally sent to you using an HP Digital Sending device.

2


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redacted for the following reason:- - - - - - - - - - - - - - - - - - - - -Sch. 3(7)

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Melvin Lo

From: Patricia McKaySent: Thursday, 14 January 2010 3:02 PMTo: Kim MahoneySubject: RE: Confirmation of maps to landowners provided by Hancock

Importance: High

My suggested text:

Can you please confirm that the maps previously provided to all landowners by Hancock showed not only the corridor through their property but showed the corridor through all adjoining properties?

Patti McKayA/Director State Development AreasInfrastructure and Economic DevelopmentDepartment of Infrastructure and PlanningLevel 4, 63 George StreetBrisbane Queensland07 3224 [email protected]

_____________________________________________From: Vanessa Cornell Sent: Thursday, 14 January 2010 2:43 PMTo: Patricia McKay; Kim MahoneySubject: Confirmation of maps to landowners provided by Hancock

Patti, Kim

As discussed, words are below. I have also attached Attachment Q.

<< File: Attachment Q - Rail Outline Combined.pdf >>

Let me know if you have any changes or if this is ok to go.

Thanks, Vanessa.

----------

Helen,

Can you please confirm that the maps previously provided by Hancock to all landowners showed the centre line through their property but also through adjoining properties, that is, as per the maps in Attachment Q of Hancock's application for the IFS declaration.

----------

Vanessa CornellCoal Infrastructure Taskforce | Regional DevelopmentDepartment of Infrastructure and PlanningEmail: [email protected]: 340 55448 | Fax: 3229 7315

Web: www.dip.qld.gov.au

Please consider the environment before printing this email

RTI Document No.299

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of 3

*Encl.

RTI Document No.302

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1

Melvin Lo

From: Kim MahoneySent: Friday, 15 January 2010 12:20 PMTo: Vanessa CornellCc: Donn Berghofer; Noel Thorne; Connie Seeto; Jenny LyonsSubject: RE: Hancock IFS Declaration - Letter, information sheet

Importance: High

Attachments: S125 Hancock Letter to Affected Landowners 13Jan10 v2.doc; S125 Hancock Draft Information Sheet 13Jan10 v2.doc

Hi Vanessa,

I trust my thoughts are of assistance.

Cheers Kim

S125 Hancock Letter to Affecte...

S125 Hancock Draft Information...

Kim MahoneyA/Executive Director State Development AreasInfrastructure and Economic Development Department of Infrastructure and PlanningQueensland Government

tel +61 7 3405 6674 xt 56674 I fax +61 7 3229 7315post PO Box 15009 City East Qld 4002visit Level 4 63 George Street [email protected]

www.dip.qld.gov.au

_____________________________________________ From: Vanessa Cornell Sent: Thursday, 14 January 2010 2:58 PMTo: Kim Mahoney; Donn BerghoferSubject: FW: Hancock IFS Declaration - Letter, information sheet

Kim, Donn

Do you have any comments, amendments?

Thanks, Vanessa.

______________________________________________ From: Vanessa Cornell Sent: Wednesday, 13 January 2010 4:28 PMTo: Connie Seeto; Jenny Lyons; Kim Mahoney; Donn BerghoferCc: Noel ThorneSubject: Hancock IFS Declaration - Letter, information sheet

RTI Document No.305


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2

For your review and comments, please find attached the draft letter to affected landowners and accompanying information sheet.

The draft advert will be forwarded shortly.

<< File: Draft Information Sheet 13Jan10 v2.doc >> << File: Letter to Affected Landowners 13Jan10 v2.doc >>

Regards, Vanessa.




RTI Document No.306

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Melvin Lo

From: John Smith

Sent: Friday, 22 January 2010 4:15 PM

Cc: Kim Mahoney; Vanessa Cornell

Page 1 of 1Blank

28/08/2012

If you have any queries or require further information, please don't hesitate to contact me.

John

John Smith Principal Project Officer Spatial Economic and Infrastructure Analysis Unit State Development Implementation State Development Areas Level 4 63 George Street, Brisbane Q, 4001 Phone 07 3404 8206 Speed Dial 72206 Fax 07 3229 7315 Email : [email protected] Web : www.dip.qld.gov.au

RTI Document No.309



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Public noticeProposed Surat to Gladstone Pipeline ProjectApplication for approval as an Infrastructure Facility of Signifi canceThe Coordinator-General has received an application from Surat Gladstone Pipeline Pty Ltd (SGP) under the State Development and Public Works Organisation Act 1971 (the Act) relating to the Surat to Gladstone Pipeline Project to have that project approved under section 125 (1) (f) as an Infrastructure Facility of Signifi cance.

SGP is proposing a 466 km long buried high pressure steel pipeline (the Facility) to deliver coal seam gas from Arrow Energy’s gas fi elds near Dalby to a liquefi ed natural gas plant currently under construction at Fishermans Landing, Gladstone. The Facility includes the infrastructure associated with above ground facilities such as main line valves, scraper stations, regulator and gas transfer custody transfer station.

SGP wishes to acquire all land (or easements) necessary and desirable for the planning, construction, operation and maintenance of the Facility by consultation and agreement with the relevant Landholders and Native Title Parties.

Section 125 (1) (f) of the Act provides that the Governor-in-Council may approve by Gazette notice that an infrastructure facility has signifi cance, particularly economically or socially to Australia, Queensland or the region in which the facility is to be constructed. An approval by the Governor-in-Council represents the fi rst step in a process under which the Coordinator-General may, to the extent he is lawfully able to do so, compulsorily acquire land (or easements) and native title for the Facility should voluntary negotiations be unsuccessful.

These negotiations must meet the requirements of the Guidelines made under the Act and, in particular, subsequent steps in the compulsory acquisition process cannot be commenced unless SGP is able to demonstrate that reasonable attempts have been made to reach voluntary agreements with Landholders or Native Title Parties.

Under section 125 (2) and (3) of the Act, when considering whether an infrastructure facility would be of economic or social signifi cance, the potential for the facility to contribute to community wellbeing and economic growth or employment levels must be taken into account. When assessing these potentials, the contribution the infrastructure facility makes to agriculture, industrial, resource or technological development in Australia, Queensland or the region in which it is to be constructed is a relevant consideration.

The map shows the approximate location of the land which may be affected by the Facility (the Affected Land). In order to construct and operate the Facility, SGP requires certain interests in the Affected Land. The primary interest is a 466 km long and a nominally 30 metre wide easement, and other additional tenures for associated infrastructure.

The Affected Land description is based on SGP’s preferred alignment and knowledge at the date of the Application. The Surat to Gladstone Pipeline Project is in the front end engineering design stage. The fi nal route and placement of the Facility and Affected Land will be determined by:

• engineering requirements such as constructability• cost of construction• environmental factors, including vegetation surveys• cultural heritage factors• consultation with stakeholders, including

negotiations with registered Landholders and Native Title Parties

• the requirements of Government approvals related to the Facility

• hydrostatic modelling of the pipeline system.

The Coordinator-General is now seeking submissions from person(s) who may be affected by the Facility. Submissions must be lodged in writing by 5 pm Friday 19 February 2010, and be addressed to:

The Coordinator Generalc/- Director, Infrastructure and Indigenous NegotiationsInfrastructure and Economic DevelopmentDepartment of Infrastructure and PlanningPO Box 15009City East Qld 4002Fax: (07) 3225 8282Email: [email protected]

The Application and supporting materials can be viewed at www.arrowenergy.com.au/sgp and a CD Rom is available on request. Contact the Director, Infrastructure and Indigenous Negotiations on (07) 3224 2416.

Persons or groups with special communication needs who wish to comment on the proposed Surat to Gladstone Pipeline Project should contact the Director, Infrastructure and Indigenous Negotiations to make alternative arrangements.

TMP Q

0853

91


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Melvin Lo

From: Vanessa CornellSent: Monday, 1 February 2010 12:27 PMTo: Kim MahoneySubject: Galilee Forum & Hancock IFS declaration

Attachments: Q085391_25x14.6_V2.pdf

Hi Kim,

We had a meeting with Geoff this morning to discuss the Galilee forum and Hancock's IFS declaration.

Happy to further discuss.

Thanks, Vanessa.




RTI Document No.311


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Melvin Lo

From: Vanessa CornellSent: Monday, 1 February 2010 2:21 PMTo: Kim MahoneySubject: RE: Galilee Forum & Hancock IFS declaration

Vanessa.

_____________________________________________ From: Kim Mahoney Sent: Monday, 1 February 2010 1:29 PMTo: Vanessa CornellSubject: RE: Galilee Forum & Hancock IFS declaration

Vanessa - what exactly did Geoff have in mind re the map - just the SDA and its precincts I presume...

Kim MahoneyDirector State Development AreasInfrastructure and Economic Development Department of Infrastructure and PlanningQueensland Government


www.dip.qld.gov.au

_____________________________________________ From: Vanessa Cornell Sent: Monday, 1 February 2010 12:27 PMTo: Kim MahoneySubject: Galilee Forum & Hancock IFS declaration

Hi Kim,



Thanks, Vanessa.


RTI Document No.312



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Melvin Lo

From: Kim MahoneySent: Monday, 1 February 2010 1:29 PMTo: Vanessa CornellSubject: RE: Galilee Forum & Hancock IFS declaration

Vanessa - what exactly did Geoff have in mind re the map - just the SDA and its precincts I presume...

Kim MahoneyDirector State Development AreasInfrastructure and Economic Development Department of Infrastructure and PlanningQueensland Government


www.dip.qld.gov.au

_____________________________________________ From: Vanessa Cornell Sent: Monday, 1 February 2010 12:27 PMTo: Kim MahoneySubject: Galilee Forum & Hancock IFS declaration

Hi Kim,



Thanks, Vanessa.




RTI Document No.314


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redacted for the following reason:- - - - - - - - - - - - - - - - - - - - -Sch.4(4)(7) Disclosing trade secrets, business affairs or research

RTI RELEASE

Melvin Lo

From: Vanessa Cornell

Sent: Thursday, 4 February 2010 10:59 AM

To: Kim Mahoney

Cc: David Stolz

Subject: Hancock IFS corridor - Plan - updated

Attachments: Landowner Plans Alt 040210.pdf

Page 1 of 1

28/08/2012

Hi Kim,

Thanks, Vanessa.

RTI Document No.316


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Tel:07 3224 6839

<< File: DCG IED Ltr.doc >>


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Melvin Lo

From: David StolzSent: Wednesday, 24 March 2010 4:33 PMTo: Geoff Dickie; Ed Ebert; Noel Thorne; Phil Dash; Colm O'Byrne; Colin Bunker; Rod

Beausang; Connie Seeto; Kim MahoneyCc: Vanessa CornellSubject: Update on Hancock IFS application and assessment

All,

This email is just to give a very brief update on progress. As you would be aware, the public consultation period on Hancock's IFS application closed on 22 March 2010. Twenty-three submissions have been received. Due to the recent whether events however, we have also granted four requests for extensions of time for the receipt of submissions - through until 29 March 2010.


Copies of all submissions (on CD) will be provided to Hancock Coal. Hancock Coal will be requested to respond to and address issues raised in the submissions.

Regards

David StolzDirector Coal Infrastructure TaskforceRegional DevelopmentDepartment of Infrastructure and PlanningQueensland Government

tel +61 7 3404 3474 ext 43474mpost PO Box 15009 City East Qld 4002visit Level 3 Executive Building 100 George Street [email protected] www.dip.qld.gov.au


RTI Document No.336



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Melvin Lo

From: Kate WeirSent: Wednesday, 31 March 2010 11:07 AMTo: Kim MahoneyCc: Patricia McKaySubject: Comments on Hancock Coal's application for declaration of an infrastructure facility of

significance

Kim,

Below are draft comments on the IFS application. Please let me know if these are OK.

Kate.

*****Vanessa,

Regards,

Kate.

Kate WeirA/Project ManagerState Development Areas Implementation BranchDepartment of Infrastructure and PlanningPh. 3405 5640

RTI Document No.337



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Melvin Lo

From: Kate WeirSent: Thursday, 1 April 2010 4:29 PMTo: Vanessa CornellCc: Kim Mahoney; Patricia McKay; David StolzSubject: Comments on Hancock Coal's application for declaration of an infrastructure facility of

significance

Vanessa,

Please find below SDA's comments on Hancock Coal's application for declaration of an infrastructure facility of significance.

Regards,

Kate.


RTI Document No.338


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Melvin Lo

From: Kim Mahoney

Sent: Wednesday, 12 May 2010 8:19 AM

To: Patricia McKay

Subject: FW: Update from Helen

Page 1 of 5Fw: Any updates?

Patti - as discussed. Cheers Kim

Kim Mahoney Director State Development Areas Infrastructure and Economic Development Department of Infrastructure and Planning Queensland Government tel +61 7 3405 6674 xt 56674 I fax +61 7 3229 7315 post PO Box 15009 City East Qld 4002 visit Level 4 63 George Street Brisbane [email protected] www.dip.qld.gov.au

From: Phil Dash Sent: Tuesday, 11 May 2010 4:54 PM To: Bob Gannon; Brett Harwood Cc: Russell Davie; Bruce Edwards; Kim Mahoney; Kate Weir Subject: Update from Helen See Helen's feedback at bottom of email.

Regards

Phil Dash Assistant Coordinator-General, Industry Projects Facilitation Ph 61 7 3225 1215 MobSch.4(4)(6) Personal Information

Deferred Access

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This email (including all attachments) may contain personal information that is intended solely for the named addressee. It is confidential and may be subject to legal or other professional privilege. Any confidentiality or privilege is not waived or lost because this email has been sent to you by mistake. Any personal information in this email must be handled in accordance with the Privacy Act 1988 (Cth). Any unauthorised use of the contents is expressly prohibited. If you have received this email in error, please let us know by reply email, delete it from your system and destroy any copies. Before opening or using attachments, check them for viruses and defects. It is the responsibility of the recipient to ensure that it is virus free and no responsibility is accepted by us for any loss or damage arising in any way from its use. Our liability is limited to re-supplying the email . This email and any attachments are also subject to copyright. No part of them may be reproduced, adapted or transmitted without the written permission of the copyright owner. Unless stated otherwise, this email, together with any attachments, is intended for the named recipient(s) only and may contain privileged and confidential information. If received in error, you are asked to inform the sender as quickly as possible and delete this email and any copies of this from your computer system network. If not an intended recipient of this email, you must not copy, distribute or take any action(s) that relies on it; any form of disclosure, modification, distribution and/or publication of this email is also prohibited. Unless stated otherwise, this email represents only the views of the sender and not the views of the Queensland Government. Unless stated otherwise, this email, together with any attachments, is intended for the named recipient(s) only and may contain privileged and confidential information. If received in error, you are asked to inform the sender as quickly as possible and delete this email and any copies of this from your computer system network. If not an intended recipient of this email, you must not copy, distribute or take any action(s) that relies on it; any form of disclosure, modification, distribution and/or publication of this email is also prohibited. Unless stated otherwise, this email represents only the views of the sender and not the views of the Queensland Government. Unless stated otherwise, this email, together with any attachments, is intended for the named recipient(s) only and may contain privileged and confidential information. If received in error, you are asked to inform the sender as quickly as possible and delete this email and any copies of this from your computer system network. If not an intended recipient of this email, you must not copy, distribute or take any action(s) that relies on it; any form of disclosure, modification, distribution and/or publication of this email is also prohibited. Unless stated otherwise, this email represents only the views of the sender and not the views of the Queensland Government.

Page 5 of 5Fw: Any updates?


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Melvin Lo

From: Kim Mahoney

Sent: Wednesday, 9 June 2010 11:49 AM

To: Patricia McKay; Kate Weir

Subject: FW: Hancock, Kevin’s' Corner coal project updated

Page 1 of 2China first coal project

28/08/2012

Hi Ladies - finally going through some email. Thought you might like to have this one. Cheers Kim

Kim Mahoney Director State Development Areas Infrastructure and Economic Development Department of Infrastructure and Planning Queensland Government tel +61 7 3405 6674 xt 56674 I fax +61 7 3229 7315 post PO Box 15009 City East Qld 4002 visit Level 4 63 George Street Brisbane [email protected] www.dip.qld.gov.au

From: Phil Dash Sent: Saturday, 17 April 2010 5:51 PM To: Colin Jensen Cc: Kim Mahoney; Donn Berghofer; Russell Davie Subject: Fw: Hancock, Kevin’s' Corner coal project updated Colin, it wil be a busy few weeks ahead with both Waratah and Hancock inviting delegations over. Kim, FYI commentPhil

RTI Document No.345



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redacted for the following reason:- - - - - - - - - - - - - - - - - - - - -Sch.4(4)(7) Disclosing trade secrets, business affairs or research

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Melvin Lo

From: Kate WeirSent: Thursday, 24 June 2010 4:33 PMTo: Patricia McKaySubject: FW: Hancock IFS Application

FYI.

______________________________________________ From: David Stolz Sent: Thursday, 24 June 2010 4:11 PMTo: Phil Dash; Donn Berghofer; Kim Mahoney; Kate Weir; Brett Harwood; Steve Mill; Bob GannonCc: Noel Thorne; Michele Bauer; Vanessa Cornell; Rod BeausangSubject: Hancock IFS Application

All,

Regards

David StolzDirector Coal Infrastructure TaskforceRegional DevelopmentDepartment of Infrastructure and PlanningQueensland Government

tel +61 7 3404 3474 ext 43474mpost PO Box 15009 City East Qld 4002visit Level 3, 63 George Street [email protected] www.dip.qld.gov.au


RTI Document No.347



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Melvin Lo

From: Kim MahoneySent: Friday, 25 June 2010 11:32 AMTo: Thomas KohutCc: Kate Weir; Patricia McKaySubject: RE: Entry point into APSDA fo rHancock and Wratah

Thomas - Donn was in meetings all day yesterday and he is in Gladstone today.

I will discuss this with Kate and ask her to advise accordingly.

Cheers Kim

Kim Mahoney Director State Development Areas Project Assessment and AttractionDepartment of Infrastructure and Planning Queensland Government

tel +61 7 3405 6674 xt 56674 I fax +61 7 3229 7315 post PO Box 15009 City East Qld 4002 visit Level 4 63 George Street Brisbane [email protected]

www.dip.qld.gov.au

_____________________________________________ From: Thomas Kohut Sent: Friday, 25 June 2010 11:10 AMTo: Kim MahoneyCc: Kate WeirSubject: FW: Entry into APSDAImportance: High

Kim, I haven't heard back from Donn. Would you be able to assist ?

We are looking to meet with Waratah soon to discuss their IFS application.

______________________________________________ From: Thomas Kohut Sent: Thursday, 24 June 2010 1:03 PMTo: Donn BerghoferSubject: Entry into APSDAImportance: High

Donn,

Cheers, Thomas

Ext 46774

RTI Document No.348


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Melvin Lo

From: Kate WeirSent: Thursday, 1 April 2010 4:29 PMTo: Vanessa CornellCc: Kim Mahoney; Patricia McKay; David StolzSubject: Comments on Hancock Coal's application for declaration of an infrastructure facility of

significance

Vanessa,

Please find below SDA's comments on Hancock Coal's application for declaration of an infrastructure facility of significance.

Regards,

Kate.


RTI Document No.351


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Connie Seeto

From: Sent: To: Subject:


Mark,

David Stolz

Jenny Lyons Thursday, 6 May 201011:14 AM Connie Seeto FW: Update on Hancock IFS activities

Wednesday, 28 April 2010 5:15PM [email protected] Noel Thorne; Ed Ebert; Jenny Lyons; 01flynn Mick Update on Hancock IFS activities

As per our discussion, following are some update points;

Status of Hancock IFS facilitation

RTI Document No.364

Sch. 3(7)


Sch. 3(7)

Sch. 3(8)(1)

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Let me know if you have any questions/concerns.

Regards


.el +61 7 3404 3474 ext 43474 mpost PO Box 15009 City East Qld 4002 visit Level 3 Executive Building 100 George Street Brisbane [email protected]

www.dip.qld.gov.au

,}, Please consider the environment before printing this email

2

RTI Document No.365

Sch. 3(8)(1)


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RE: Update on Hancock IFS Page 1 of2

Connie Seeto

From: O'flynn Mic:k [Mic:[email protected]]

Sent: Tuesday, 18 May 2010 3:34PM

To: David Stolz; [email protected]; [email protected]; [email protected]; Noel Thome; Ed Ebert; Geoff Dickie; Vanessa Cornell; [email protected]; [email protected]; Connie Seeto; Calm O'Byme; Rod Beausang

Cc: Hunt Dan; Mason David; Grundy Jim; John Brad; Green Peter; Coffey David; Smith Ray

Subject: RE: Update on Hancock IFS

Hi David

Regards Mick

From: David Stolz [mailto:[email protected]) Sent: Tuesday, 18 May 2010 2:10PM To: [email protected]; [email protected]; [email protected]; O'Hynn Mlck; Noel Thome; Ed Ebert; Geoff Dickie; Vanessa Cornell; [email protected]; [email protected]; Connie Seeto; Co!m O'Byrne; Rod Beausang Subject: RE: Update on Hancock IFS

All,

Regards


tel +61 7 3404 3474 ext 43474 mpost PO Box 15009 City East Qld 4002 visit Level3 Executive Building 100 George Street Brisbane [email protected]

J., Please consider the environment before printing this email

From; David Stolz

Sent; Tuesday, IS May 2Gl0 9:33AM

To; [email protected].~u; m~rk.bermiO!Jh~m0'-deedl.qld.grn.~u

Cc; debornh.cass!dy®treasury,qld.gr>v.au; O'fl)'M Mlcl:; N~!Thnme; Ed Ebert; Geoff D!cl<le; V•nes.oa Com<!ll; lawroi\Cil.C.hannah®tmr.qld.gov.au; a!lf\[email protected]; Ccnn~ See to

Subject: Upd~te on Hancock IFS

Sluart and Mark,



Sch. 3(8)(1)



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RE: Update on Hancock IFS Page 2 of2

Please let me know if you need any additional details.

Regards


tel +617 3404 3474 ext 43474 mpost PO Box 15009 City East Old 4002 visit Level3 Executive Building 100 George Street Brisbane david.stolz@dip gld.gov.au

www.dip.g!d.qov.au

lA Please consider the environment before printing this email

Unless stated otherwise, this email, togethe~ with any attachments, is intended fo~ the named recipient{s) only and may contain pr

If not an intended recipient of this email, you must not copy, dist~ibute o~ take any action(s) that relies on it; any form of dis•

Unless stated otherwise, this email ~epresents only the views of the sende~ and not the views of the Queensland Government.

The informaUon In this email together with ~ny attachments Is intern! eel only lor the person or entity to whl~h ills addressee! ami may contain conficlenUal and/or privileged materllll.

Any form of review. dl5closurl!, modifi~ation, distribution and/or publ1cat1on of this ema~ mes~ago i>; prohibited. unlcn ~sa necenary part of Departmental bu51ness.




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Connie Seeto

From: Sent: To: Cc:

David Stolz Friday, 21 May2010 11:09AM Colm O'Byrne

Subject: Vanessa Cornell; Noel Thorne; Connie Seeto; Rod Beausang FW: Update on Hancock IFS

Calm,

Regards

Oavid Stolz c "from: David Stolz Sent: Tuesday, 18 May 2010 2:10PM To: '[email protected]'; '[email protected]'; '[email protected]'; 'O'flynn

Mick'; Noel Thorne; Ed Ebert; Geoff Dickie; Vanessa Cornell; '[email protected]'; '[email protected]'; Connie Seeto; Calm O'Byrne; Rod Beausang

Subject: RE: Update on Hancock IFS

All,

Regards


1

RTI Document No.374


Sch. 3(8)(1)

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www.dip.qld.qov.au

.f', Please consider the environment before printing this email

From: David Stolz Sent: Tuesday, 18 May 2010 9:33 AM To: Cc:

[email protected]; [email protected] [email protected]; O'flynn Mick; Noel Thorne; Ed Ebert; Geoff Dickie; Vanessa Cornell; [email protected]; [email protected]; Connie Seeto

Subject: Update on Hancock IFS

Stuart and Mark,

Please let me know if you need any additional details.

Regards


tel +61 7 3404 3474 ext43474 m post PO Box 15009 City East Qld 4002 visit Level 3 Executive Building 100 George Street Brisbane [email protected]

www.dip.qld.gov.au

.f', Please consider the environment before printing this email

2

RTI Document No.375




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Connie Seeto


Vanessa,

David Stolz Thursday, 27 May 2010 10:23 AM Vanessa Cornell Connie Seeto; Noel Thorne File Note

'egards

OS

1

RTI Document No.377


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Ellie Reidy

From: Ellie Reidy

Sent: Thursday, 1 July 2010 2:34 PM

To: Vanessa Cornell

Subject: RE: Will you get any feedback on the IFS outcome today?

Thanks Vanessa!

Ellie Reidy Senior Legal Officer Department of Infrastructure and Planning

tel 07 3235 9559 (ext 59559) [email protected]

; From: Vanessa Cornell Sent: Thursday, 1 July 2010 2:32 PM To: Connie Seeto; Ellie Reidy Subject: FW: Will you get any feedback on the IFS outcome today?

Connie, Ellie

FYI.

Vanessa.

From: Filomena Pastore Sent: Thursday, 1 July 2010 2:10 PM To: David Stolz Cc: Vanessa Cornell Subject: RE: Will you get any feedback on the IFS outcome today?

Hi David,

The ECM has been approved by the Governor.

Cheers

Filomena ·Pastore Acting Cabinet Legislation and Liaison Officer Strategic' Policy and Legislation Department oflnfrastructure and Planning Queensland Government

tel +61 7 3224 4038 (ext 44038) m (Blackberry) post PO Box 15009 City East Qld 4002 visit Level12 Executive Building 100 George Street Brisbane Filomena pastore@!:!ill.g'-'lgov.au

www.dip.qld.gov.au

Tomorrow's Queensland: strong, green, smart, healthy and fair www.towardQ2.gld.gov.au

6/07/2010

Page 1 of2


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From: David Stolz Sent: Thursday, 1 July 2010 10:57 AM To: Filomena Pastore Subject:. RE: Will you get any feedback on the IFS outcome today?

Page 2 of2

Thanks Filomena. Would you mind dropping me an email when you know please. I will actually be in a meeting with Hancock between 2pm and 3pm this afternoon, so it might be opportune.

Regards

DS

From: Filomena Pastore Sent: Thursday, 1 July 2010 10:46 AM To: David Stolz Subject: RE: Will you get any feedback on the IFS outcome today?

Hi David

We should know some time after 2.00 p.m. if the Governor has approved.

Cheers

Filornena Pastore Acting Cabinet Legislation and Liaison Officer Strategic Policy and Legislation Department of Infrastructure and Planning Queensland Government

tel +61 7 3224 4038 (ext 44038) m (Blackberry) post PO Box 15009 City East Old 4002 visit Level12 Executive Building 100 George Street Brisbane Filomena.pastore@di~MJid.gov.au

www.dip.>Jid.gov.au

Tomorrow's Queensland: strong, green, smart, healthy and fair www.toward02.q!Q,_gov.au

.!l Please consider the environment before printing this email

From: David Stolz Sent: Thursday, 1 July 2010 10:44 AM To: Filomena Pastore Subject: Will you get any feedback on the IFS outcome today?


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SESch. 4(4)(6) - Personal information


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From: Vanessa Cornell Sent: Tuesday, 17 August 2010 1:37PM To: Ellie Reidy Subject: Hancock - Financial report

Ellie,

Attached is the report.

Hancock SDPWOA 5125 Financial ...

Vanessa Cornell Coal Infrastructure Taskforce I Regional Development Department of Infrastructure and Planning Email: [email protected] Ph: 340 55448 I Fax: 3229 7315


Tomorrow's Queensland: strong, green, smart, healthy and fair www.towards02.qld.gov.au

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1

RTI Document No.469

73(2) Not relevant - Out of scope partial refusal

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1004 QUEENSLAND GOVERNMENT GAZETTE No. 85 [2 july 2010

DEPARTMENT OF INFRASTRUCTURE AND PLANNING

State Development and Public Works Organisation Act 1971

NOTICE

The Governor in Council has approved, under Section 125 (1) (f) of the State Development and Public Works 01ganisation Act 1971, the Hancock Coal Pty Ltd Alpha Coal Project Rail Corridor as an infrastructure facility that is of significance, particularly economically or socially, to Queensland, the Galilee Basin and the Abbot Point regions being the regions in which the Hancock Coal Pty Ltd Alpha Coal Project Rail Corridor is to be constructed.

STATEMENT GIVING REASONS WHY THE GOVERNOR IN COUNCIL APPROVED BY GAZETTE NOTICE ON 2 JULY 2010 THE HANCOCK COAL PTY LTD ALPHA COAL

PROJECT AS AN INFRASTRUCTURE FACILITY THAT IS OF SIGNIFICANCE UNDER THE STATE DEVELOPMENT AND PUBLIC WORKS ORGANISATION ACT 197I

1. Decision

On 2 July 2010, the Governor in Council approved by gazette notice under Section 125 (1) (f) of the State Development and Public Works Organisation Act 1971 (SDPWO Act) the Hancock Coal Pty Ltd Alpha Coal Project Rail Corridor as an infrastructure facility that is of significance, particularly economically or socially, to Queensland and the Galilee Basin and the Abbot Point regions, being the regions in which the rail corridor is to be constructed. The Govemor in Council, in making that decision, considered and adopted the reasons set out below that were prepared by The Coordinator-General, Mr Colin Jensen under Section 125 (5) of the SDPWO Act.

2. Introduction

On 16 February 2010, the Coordinator-General received an application (the Application) . from Hancock Coal Pty Ltd (Hancock Coal) requesting that a coal rail corridor and track from its Alpha Coal mine in the Galilee Basin to Abbot Point (the Rail Corridor) be approved .by the Govemor in Council as an infrastructure facility of significance under Section 125 (I) '(f) of the SDPWO Act.

Section 125 (1) (f) of the SDPWO Act provides that the Coordinator-General may take land for the purposes of an infrastructure facility that is:

• of significance, particularly economically or socially, to Australia, Queensland or the region in which the facility is to be constructed; and

• approved by the Governor in Council, by gazette notice, as having that significance.


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Zjuly 2010} QUEENSLAND GOVERNMENT GAZETTE No. 85 1005

Pursuant to Section 125 (2) of the SDPWO Act, in considering whether an infrastructure facility would be of economic or social significance, the potential for the Rail Corridor to contribute to community wellbeing and economic growth or employment levels must be taken into account. In accordance with Section 125 (3) of the SDPWO Act, in assessing such potential, the contribution the Rail Corridor makes to agricultural, industrial, resource or technological development in Australia, Queensland or the region is a relevant consideration.

3. Evidence or Other Material on Which Findings of Material Questions of Fact are Based

In considering whether the Hancock Coal Pty Ltd Alpha Coal Project Rail Corridor is an infrastructure facility that is of significance, particularly economically or socially, to Queensland and the region in which the facilities are to be constructed, The CoordinatorGeneral and the Governor in Council had regard to the following materials:

• State Development and Public Works Organisation Act 1971 (Qld), particularly Sections 125 and 174;

• Guidelines for acquisition of land for in.fi'astructure projects by persons other than the State, September 1999, prepared pursuant to Section 174 of the SDPWO Act;

• Guidelines for consultation and negotiation with native title interests, September I 999 prepared pursuant to Section 174 of the SDPWO Act;

• Letter dated 16 February 2010 from Hancock Coal Pty Ltd, to The Coordinator-General, attaching Hancock Coal's Application for Declaration of an Infrastructure Facility of Significance and supporting material (the Application);

• Letter dated 16 February 20 l 0 from Hancock Coal Pty Ltd, to the Deputy CoordinatorGeneral (Geoff Dickie), attaching confidential doctm1entation in support of the Application;

• Letter dated 19 February 2010 from the Deputy Coordinator-General (Geoff Dickie) inviting submissions from persons affected by the proposed infrastructure facility, including Native Title Parties;

• Publication of Public Notices for the Proposed Hancock Coal Rail Corridor in The Courier Mail and regional Queensland papers on Saturday 20 February 20 I 0, and Wednesday 24 February 2010;

• Press release dated Saturday 20 Februaty 2010 by the Minister for Infrastructure and Planning;

• Report dated 10 March 2010 titled ''Supplementaty information for Hancock Coal Pty Ltd Infrastructure Facility of Significance Application", prepared by the Economic and Analysis Unit, Economic Policy and Research Branch, Economic Policy and Planning Division, Department of Employment, Economic Development and Innovation;

• Department of Infrastructure and Planning, "Projects - Alpha Coal Mine", http://www. dip.q ld. gov .aulproj eels/mining -and-mineral-processing/coal/alpha-coalproject.html, accessed 17 June 201 0;


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1006 QUEENSLAND GOVERNMENT GAZETTE No. 85 [2 July 2010

• Twenty-seven submissions received from affected persons in response to the Deputy Coordinator-General's letter dated 19 February 2010 inviting submissions from persons affected by the proposed infrastructure facility;

• Letter dated 12 April 2010 from Hancock Coal to The Coordinator-General responding to the twenty-seven submissions received from affected persons;

• Email dated 19 April 2010 from Warren Phillips of Hancock Coal to David Stolz of the Department of Infrastructure and Planning, attaching a replacement Attachment F to Hancock Coal's letter dated 12 April2010;

• Letter dated 20 April 2010 from the Deputy Coordinator-General (Geoff Dickie) to Hancock Coal requesting claliftcation of con·idor alignment and update of Financial and Technical Capability material;

• Letter dated 28 April 2010 from the Deputy Coordinator-General (Geoff Dickie) to Xstrata Coal Pty Ltd advising of a potential amendment to the alignment of the Rail Corridor and seeking comments from Xstrata Coal Pty Ltd on an informal basis;

• Letter dated 28 April 2010 from the Deputy Coordinator-General (Geoff Dickie) to QCoal Pty Ltd advising of a potential amendment to the alignment of the Rail Conidor and seeking comments from QCoal Pty Ltd on an informal basis;

• Letter dated 30 April 2010 from Hancock Coal to the Deputy Coordinator-General (Geoff Dickie) responding to the Deputy Coordinator-General's letter of20 Apri12010;

• Letter dated 30 April2010 from East West Line Parks Pty Ltd making a late submission to Hancock Coal's IFS application;

• Letter dated 4 May 2010 from QCoal to the Deputy Coordinator-General (Geoff Dickie) providing comments on the potential amendment to the alignment of the Rail Corridor;

• Letter dated 11 May 2010 from Xstrata Coal to the Deputy Coordinator-General (Geoff Dickie) providing comments on the potential amendment to the alignment of the Rail Corridor;

• Copy of letter dated 14 May 20 I 0 from Hancock Coal to the Treasurer confirming discussions in meeting of6 May 2010;

• Letter dated 28 May 2010 from Hancock Coal to the Deputy Coordinator-General (Geoff Dickie) formally requesting an amendment to its Application in respect of the alignment of the Rail Conidor in the Newlands area;

• Copy of letter dated 31 May 2010 from Hancock Coal to QCoal regarding Hancock Coal's changes to the rail conidor alignment;

• Copy of letter dated 2 June 2010 from Hancock Coal to East West Line Parks Pty Ltd responding to its submission;

• Letter dated 2 June 2010 from the Deputy Coordinator-General (Geoff Dickie) to QCoal advising of Hancock Coal's amended Application and seeking comments;


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2 july 2010] QUEENSLAND GOVERNMENT GAZETTE No. 85 1007

• Letter dated 2 June 2010 from the Deputy Coordinator-General (Geoff Dickie) to Xstrata Coal advising of Hancock Coal's amended Application and seeking comments;

• Letter dated 4 June 2010 from QCoal to the Deputy Coordinator-General (Geoff Dickie) requesting additional time to respond to Hancock Coal's amended Application;

• Letter dated 8 June 2010 from QCoal to David Stolz of the Department ofinfrastmcture and Planning providing supporting information for request for additional time to respond to Hancock Coal's amended Application;

• Letter dated 11 June 2010 from the Deputy Coordinator-General (Shane McDowall) to QCoal granting an extension of time to respond to Hancock Coal's amended Application until 18 June 20 I 0;

• Letters dated II June 20 I 0 from the Executive Director to five landowners affected by Hancock Coal's amended Application;

• Letter dated 15 June 2010 from the Deputy Coordinator-General (Shane McDowall) to Hancock Coal outlining proposed tenure arrangements and project arrangements between Hancock Coal and the State;

• Letter dated 17 June 20 I 0 from Hancock Coal to the Deputy Coordinator-General (Shane McDowall) responding to the Deputy Coordinator-General's letter of 15 June 20 I 0;

• Letter dated 18 June 20 I 0 from an affected landowner to The Coordinator-General responding to Hancock Coal's amended Application;

• Letter dated 18 June 2010 from QCoal to The Coordinator-General responding to Hancock Coal's amended Application;

• Report dated 18 June 2010 titled "Assessment of 'statement' and 'relevant supporting documentation' submitted by proponent in satisfaction of criteria: (a) Preliminary Financial Analysis (of the facility), and (b) Proponent Financial and Technical Capacity", prepared by the Commercial Unit, Department oflnfrastructure and Planning;

• Report dated 21 June 2010 titled "Report on QCoal Pty Ltd's Submission on Infrastmcture Facility of Significance Application by Hancock Coal Pty Ltd for the Alpha Coal Project", prepared by Statewide Services Unit, Mines and Energy, Department of Employment, Economic Development and I1111ovation;.

• Letter dated 21 June 2010 from an affected landowner to The Coordinator-General responding to Hancock Coal's amended Application;

• Letter dated 21 June 2010 from Hancock Coal to David Stolz of the Department of lnfrastmcture and Planning responding to QCoal's letter of 18 June 2010;

• Letter dated 22 June 2010 from Hancock Coal to David Stolz of the Department of Infrastructure and Planning responding to the letter from an affected landowner of 18 June 2010;

• Letter dated 22 June 2010 from Hancock Coal to David Stolz of the Department of Infrastructure and Pla1111ing responding to the letter from an affected landowner of 21 June 2010; and


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' Letter dated 23 June 2010 from the Deputy Coordinator-General (Shane McDowall) in response to Hancock Coal's letter of 17 June 2010.

4. Findings of Material Questions of Fact

The conclusions set out below were made after having regard to the material set out above.

4.1 Type of Infrastructure Facility Proposed Including Land on Which the Facility is to be Located

The proposed infrastructure facility is a standard gauge, standalone railway line designed to transport significant quantities of bulk coal from Hancock Coal's Alpha Coal mine in the Galilee Basin to the Port of Abbot Point.

Details o[the in{rastructure facility

Hancock Coal, a wholly-owned subsidiary of Hancock Prospecting Pty Ltd (Hancock Prospecting), is proposing to develop the Alpha Coal Mine in the Galilee Basin, approximately 50 kilometres north of the township of Alpha, 130 kilometres south-west of the Clermont township, and approximately 360 kilometres south-west of Mackay. Upon final development in 2018, it is anticipated that the Alpha Coal Mine will produce approximately 30 million tonnes per annum (Mtpa) of thermal coal for export over a mine life in excess of 30 years.

Hancock Galilee Pty Ltd, also a wholly owned subsidiary of Hancock Prospecting, is proposing to develop the Kevin's Corner Mine in the Galilee Basin, which is also expected to produce approximately 30 Mtpa of coal over 30 years.

The Rail Corridor, the subject of this Application, is a single standard gauge railway, approximately 495 kilometres long, from Hancock Coal's Alpha Coal Mine to Abbot Point that will accommodate between 30 and 60 Mtpa of coal throughput from the Galilee Basin. Hancock Coal is proposing to use the Rail Corridor to transport 30 Mtpa of coal from its Alpha Coal Mine, and a further 30 Mtpa of coal from Hancock Galiliee's proposed Kevin's Comer Mine following the development of that mine, including the construction of a loadout loop and a spur line from the Joadout loop to the Rail Corridor, by that company. An area of land for marshalling yards (including maintenance facilities) to be located south of the Rail Corridor near the Abbot Point State Development Area is also included in the application.

The railway track has been designed to carry 60 to 80 Mtpa. Five passing loops along the length of the mainline will allow capacity of 30 Mtpa. An additional three passing loops will increase that capacity to 60 Mtpa. Additional passing loops and rollingstock will allow capacity to be increased to at least 80 Mtpa, and selective partial duplication will enable tonnages to be further increased. This will allow the railway to provide enough capacity to transpm1 coal from other mines in the Galilee Basin area to Abbot Point.

The railway will be managed and operated in accordance with the provisions of the Transport Infi'astructure Act 1994.

Hancock Coal anticipates that the final Rail Corridor will be approximately 60 to 100 metres in width. This will include the land required for the track itself, as well as drainage, access roads and other infrastructure necessary to support the railway. For the purpose of this declaration Hancock Coal is seeking a footprint of 500 metres in width (250 metres either side of the nominal centre line).


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2 July 2010] QUEENSLAND GOVERNMENT GAZETTE No. 85 1009

The infrastmcture facility to which this application relates consists of the main railway line from Alpha Coal Mine to the Port of Abbot Point. Hancock Coal proposes other rail infrastmcture, not the subject of this declaration which will include a loadout loop at the Alpha Coal Mine site and unloading loops at the Port. Hancock Coal envisages that an associated company, Hancock Galilee, will constmct a spur line to a loadout loop to service Hancock Galilee's proposed Kevin's Corner Mine site. A further three passing loops in the Rail Corridor will be required to create capacity for trains from Kevin's Corner.

Four trains per day on average will be required to transport 30 Mtpa of coal.

Details o(the land upon which the infrastructure (acilitv is proposed to be located:

The proposed Rail Corridor will pass through land in which there are 40 individual interest holders. All of the affected land is held in either freehold or leasehold title. The total land area covered by the final Rail Corridor will be approximately 50km2

•

By letter dated 17 June 2010, Hancock Coal confirmed that it intended to transfer to the State any land it voluntarily acquired for the Rail Corridor, in order to enable the State to own the underlying land for the Rail Corridor with such land being leased or sub-leased to Hancock Coal on a long term basis.

There are no Native Title holders affected by the Rail Corridor. However, there are three registered Native Title claim groups that intersect the proposed route: the Wangan and Jagalingou People, the Jangga People and the Birri People. The final 60 kilometres of the proposed route does not affect a registered Native Title claim group.

The Rail Corridor passes through three Local Government areas: Barcaldine Regional Council, Isaac Regional Council, and Whitsunday Regional Council.

Details o(the proposed alignment o[the Rail Corridor:

Hancock Coal has undertaken detailed investigations to dctern1ine the preferred alignment for the Rail Cmridor. Details of the investigations are set out at 4.10 below.

The proposed alignment has been developed by Hancock Coal having regard to:

• Avoidance of all National Parks, State Forests and Nature Reserves;

• Avoidance where possible of all mining leases and mineral development licences;

• A voidance where possible of all remnant vegetation;

• Minimising the impact on rivers and streams;

• Minimising the impact on farming and grazing property;

• A voiding towns and populated areas;

• Ensuring that the railway is as short as possible;

• Ensuring that the railway does not climb unnecessarily;

• Ensuring that the railway can be constmcted;


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1010 QUEENSLAND GOVERNMENT GAZmE No. 85 [2July 2010

• Ensuring that the rollingstock can be operated efficiently and effectively; and

• Balancing the above criteria with the requirement for sustainable operating cost parameters.

Where possible, Hancock Coal also sought to align the route with the Queensland Rail Northern Missing Link rail corridor, to minimise multiple impacts on interest holders and coal resource developers.

Hancock Coal wrote to all affected Exploration Permit holders giving them an opportunity for discussion to ensure that known resources were not impacted by the railway. The alignment was specifically chosen to avoid, to the greatest extent possible, all mining lease and mineral development licences and exploration pern1its.

The rail alignment enters the Abbot Point precinct from the west, crossing the Bruce Highway and the North Coast Rail Line as it enters the Abbot Point State Development Area. In this manner the alignment minimises noise impacts for residents of Collinsville and avoids the Sonoma State Forest.

Hancock Coal notes that the proposed alignment is subject to changes that may arise as further studies and detailed design of the railway are undertaken.

Hancock Coal states that approximately 85 per cent of the Rail Corridor is firm. The remaining parts of the Rail Corridor are subject to flexibility, to ensure that potentially adverse effects are minimised. These areas of flexibility include:

• major river and creek crossings and their approaches;

• the proposed route through certain interest holders properties;

• alignment of that part of the Rail Corridor which runs alongside the Bowen River Valley; and

• land which is covered by exploration and mining tenures, where the alignment traverses significant resources within existing exploration permits.

The Rail Corridor traverses land in the n01thern part of the Bowen Basin over which QCoal Pty Ltd (QCoal) and its subsidiaries hold exploration permits. QCoal expressed conccms regarding the potential sterilisation of resources as a result of construction of the Rail Corridor. Following discussions with QCoal, by Jetter dated 28 May 2010, Hancock Coal formally amended its Application to seek a realignment of the Rail Corridor in the area adjacent to the souiliern end of the Ncwlands coal rail system. Hancock Coal proposes to "hug" the existing Newlands rail line and the Northem Missing Link (which is currently under construction) so as to minimise additional impacts on QCoal. Hancock Coal stated that it believed that this was the most workable solution for both parties.

4.2 Demand Projections for the Services Associated with the Infrastructure

The coal deposits of the Galilee Basin comprise large volumes of high volatile, low rank thermal coals. Hancock Coal estimates that within the Galilee Basin across a number of projects there are over 14 billion tonnes of coal already identified by various companies, to the standards set by the Joint Ore Reserves Committee (JORC) in the JORC Code 2004, which is the standard adopted by the Australian Securities Exchange for reporting.


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In respect of the Alpha Coal and Kevin's Comer Projects, Hancock Coal has identified resources in excess of 7.8 billion tonnes (in compliance with JORC standards), 1.2 billion tonnes of which has been categorised in the JORC "Measured" category, which is the current equivalent of a bankable standard.

The Alpha Coal and Kevin's Comer Mines are ranked as one of the largest thermal coal resources in the world. The coal from those projects has been identified as a high quality thermal coal with low ash content and low sulphur. The coal has attractive Hardgrove Grindability Index (HOI) properties, is low in trace elements, and is a large resource capable of providing coal of a consistent quality.

Consumption of thermal coal globally increased by more than 35 per cent during the period 2001 to 2008, and is forecast to increase a further 34 per cent from 2009 to 2020. This reflects the significant growth in coal-fired generation. In the 2008-09 financial year, Queensland's exports of thermal coal rose by almost 10 million tonnes, mostly to China and Taiwan, in response to increased consumption, reduced prices and placement of some weaker coking coals into the thermal coal market. Reports indicate that China and India will require an additional 700 Mtpa of thermal coal by 2013, which cannot be met by their domestic markets. Ongoing demand for thermal coal is supported by leading energy and resources forecasters Wood Mackenzie, whose services are subscribed to by the Department of Infrastructure and Planning.

The global trade in thermal coal is estimated at 5.75 billion tonnes per annum, with the seaborne trade (export market) estimated at 700 million tonnes per annum. Australia, Indonesia, Colombia and South Africa are the largest seaborne exporters of coal. It is expected that increased demand for them1al coal in China and India will be the key driver of growth in the seaborne market. China in particular is now a net importer of coal and as its imports grow, the market is expected to become increasingly tight, providing opportunities for new thermal coal projects.

In order to meet this increasing demand for expmted thermal coal and tap into the coal resources situated in the Galilee Basin, rail transportation is required to move the coal from Galilee Basin to Abbot Point, which has been identified as being the State's preferred northern location for exporting coal from the Galilee Basin. Potential Galilee Basin coal producers are expected to export at least I 00 Mtpa.

4.3 Needs Which the Facilities Would Meet and How the Infrastructure Would Satisfy the Identified Need

Given the forecast increased demand for thermal coal globally, particularly through the seaborne export market, and the l!n·ge amounts of thermal coal which have already been identified in the Galilee Basin, there is a need for infrastructure for transportation of coal from the Galilee Basin to Abbot Point for expmtation. The lack of transport and expmi infrastmcture has been a major contributing factor to the present underdevelopment of the Galilee Basin.

There is no current rail infrastructure which services the Galilee Basin. The existing Newlands and Goonyella Queensland Rail (QR) networks are primarily servicing the Bowen Basin area and, even with construction of the Northern Missing Link, will not be equipped to accommodate demand from Galilee Basin producers.


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1012 QUEENSLAND GOVERNMENT GAZmE No. 85 [2 July 2010

Expansion of the existing networks is not preferable, given that they are already heavily utilised, and any expansion would cause significant delays to existing users during construction.

Transportation by road is also not considered to be suitable, given the number of trucks which would be required to transport the projected tonnages of coal from the Galilee Basin. Rail transportation has significant advantages over road transportation, in that it is economically more efficient and results in less greenhouse gas emissions.

The Rail Corridor would satisfy the need for transportation of coal from Galilee Basin to Abbot Point by providing a separate, standalone railway specifically designed for the transportation of coal between the two destinations. Due to the size of the Alpha Coal Mine and Kevin's Comer Mine, Hancock Coal took the view that the preferable approach would be to construct a purpose built railway.

Although Hancock Coal wishes to construct the Rail Corridor for the purpose of transporting coal from its Alpha Coal Mine to Abbot Point, and envisages that an associated company, Hancock Galilee, will use the Rail Corridor for that company's proposed Kevin's Comer Mine, Hancock Coal has also undertaken to provide access to the railway to third parties in accordance with a voluntary undertaking to be made by Hancock Coal pursuant to Part lilA of the Trade Practices Act 1974 (Cth). In this regard, there are a number of other significant coal producers in the Galilee Basin which are likely to benefit from the construction of the railway.

4.4 Timing of Project or Service Delivery

Hancock Coal has indicated that it wishes to commence construction for the Alpha Coal Project in mid-2011 for export of first coal late in 2013. Hancock Coal has advised that an associated entity, Hancock Galilee, has brought its project known as Kevin's Comer, forward to mesh in with the Alpha Coal Project timetable as far as possible.

Construction of the rail infrastructure within the Rail Corridor will take approximately 24 months to complete. Pending relevant approvals, Hancock Coal has indicated that it intends to commence construction of the railway in 20 II, so that the railway is completed in time to transfer the first coal from the Alpha Coal Mine in late 2013.

4.5 Special Assistance Required from Government other than Land Acquisition

Hancock Coal's Application indicates that during the construction of the Rail Corridor it may seek State assistance with respect to road openings, closures and crossings, dealings with water crossings, access to land both within and outside of the corridor to carry out necessary and appropriate investigations, and any other dealings with respect to State land generally. Hancock Coal does not envisage requiring State assistance once construction of the Rail Corridor has been completed.

4.6 Preliminary Financial Analysis (of the proposed Infrastructure Facility)

In the Application, Hancock Coal estimates that construction of the railway will cost approximately $2.2 billion for a capacity of 30 Mtpa, including the cost of earthworks and drainage, track supply, bridges, signalling, construction facilities and land acquisition.

An increased capacity to carry 60 Mtpa will cost approximately an extra $60 million, including for an additional three passing loops to create capacity for additional trains.


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2 July 2010) QUEENSLAND GOVERNMENT GAZETTE No. 85 1013

In the Application, Hancock Coal notes that its Alpha Coal Project and Hancock Galilee's Kevin's Comer Project have "sufficient financial robustness to underwrite the economic and sustainable development of the railway". Capacity expansion to allow fhrther third party use, ftuiher improves the net present value for the Rail Corridor. Hancock Coal has confirmed that the Alpha Coal Project is financially viable on a standalone basis.

Hancock Coal has provided further infommtion both in the Application, and subsequently, including by inspection, on a Commercial-in-Confidence basis.

Upon review of both the publicly available and Commercial-in-Confidence material provided by Hancock Coal, the Commercial Unit of the Department ofinfrastructure and Planning, in its Report dated 18 June 2010, considered that Hancock Coal has progressed the financial analysis of the proposed facility as far as possible at this stage and that, based on the material to hand at this point in time, the Rail Corridor is expected to be viable.

4.7 Possible Environmental Impacts

An Environmental Impact Statement (EIS) is required for the Rail Corridor as a result of it being declared by the Coordinator-General under Section 26 of the SDPWO Act to be a significant project for which an EIS is required. The purpose of the EIS is to assess the potential adverse and beneficial environmental, economic and social impacts of the project; and management, monitoring, planning and other measures proposed to minimise any adverse environmental impacts of the project. In June 2009, The Coordinator-General approved the terms of reference for Hancock Coal's EIS. Hancock Coal anticipates that its EIS will be submitted to The Coordinator-General in August 2010.

On 13 January 2009 the Rail Corridor as part of the broader Alpha Coal Project was declared to be a 'controlled action' under the Environment Protection and Biodiversity Conservation Act 1999 (Cth) for potential impacts on the following matters of national environmental significance:

a) world heritage properties; b) national heritage places; c) listed threatened species and ecological communities; d) listed migratory species; and e) Commonwealth marine areas.

Hancock Coal will prepare one EIS to satisfY the requirements under both Commonwealth and State legislation.

Hancock Coal noted that its investigations to date have not indicated any significant adverse impacts from the Rail Corridor that are not capable of being managed within the SDPWO Act EIS process. Hancock Coal advised that the alignment of the Rail Corridor has been designed to minimise impact on the environment, particularly to avoid areas of high ecological value where possible. The Rail Corridor docs not cross any State Forests, National Parks or Reserves.

Hancock Coal stated that, as far as is possible, the Rail Corridor has been aligned so that vegetation areas "of concern" or "endangered" have been avoided. A high level examination of the remnant vegetation make-np of the Rail Corridor (within the 500 metre footptint) by the Depmiment of Infrastructure and Planning has identified that approximately 15 per cent of the corridor comprises vegetation other than "Non remnant" or "Not of concern", and considered to be of concern.


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One section of "endangered-dominant" vegetation is eight kilometres long. Where vegetation clearing cannot be avoided, Hancock Coal has indicated that environmental offsets will be provided to compensate for vegetation loss.

Hancock Coal stated that the EIS process will be used to determine measures to minimise noise impacts from the operation of the railway. The technology that Hancock Coal has opted to use in the operation of the railway is likely to result in the railway being comparatively quiet. Hancock Coal has further stated that specific outcomes will be negotiated with interest holders that are likely to be impacted due to noise from operating coal trains.

The impact of dust on affected properties will be considered as part of the EIS process, however Hancock Coal noted at this stage that air quality operations for the railway will be developed in accordance with the Environmental Protection Policy for Air and in consultation with Government agencies. Further, the EIS process will require an assessment of the Rail Corridor against relevant Commonwealth and State policies relating to greenhouse gas emissions and climate change.

Hancock Coal has indicated that prior to commencement of construction of the Rail Corridor, it will prepare a Construction Environmental Management Plan (CEMP) which will be reflective of interest holder and other stakeholder consultation. The CEMP will contain measures for:

• minimisation of dust generation;

• mitigation of potential impacts on water quality;

• management of weeds during construction;

• minimisation of clearing, particularly clearing of remnant vegetation for temporary construction purposes;

• monitoring by an ecologist during deming;

• rehabilitation of disturbed areas;

• provision of culverts to allow uninterrupted surface flows across landscape;

• collection of seeds prior to clearing from local native trees; and

• ongoing monitoring of development areas and rehabilitation sites.

Hancock Coal anticipates that during construction the main air quality impacts are likely to be associated with dust and emissions generated during earthworks and the movement of vehicles over exposed surfaces. Hancock Coal anticipates that, at this stage, dust and exhaust emissions are unlikely to have a significant impact. Further, Hancock Coal anticipates that noise and vibration impacts during construction are unlikely to be significant given that Hancock Coal has selected the location of its workers' camps, lay-down areas and temporary site operations a distance away from nearby properties.

These issues described above will be more fully discussed in the EIS.


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2 july 2010) QUEENSLAND GOVERNMENT GAZETTE No. 85 1015

4.8 Proponent's Financial and Technical Capacity to Implement the Proposed Facility

The Proponent is Hancock Coal Pty Ltd, a wholly-owned subsidia1y of Hancock Prospecting Pty Ltd.

Hancock Prospecting is a private company fully owned and controlled by Ms Gina Rinehart and her family which has experience in prospecting, development, operations and marketing of bulk conunodities, particularly iron ore. Under the direction of Mr Lang Hancock, Hancock Prospecting was responsible for initial development of the Pilbara region of Western Australia into the world's premier iron ore mining region. Hancock Prospecting has previous experience in developing a similar railway line in Western Australia, the Lang Hancock Railway.

Hancock Prospecting holds significant interests in a number of operating iron ore mines and a manganese mine, as well as a 50 per cent interest in the $1.3 billion Hope Downs iron ore joint venture with Rio Tinto.

Hancock Coal has a dedicated Queensland-based team to oversee the development of the Alpha Coal and Kevin's Corner Projects and associated infrastructure, including the Rail Corridor as outlined in the Application, and in Hancock Coal's letter of30 April2010.

Hancock Coal has on a Commercial-in-Confidence basis advised The Coordinator-General the entities that it has appointed as its preferred operators in respect of its above rail operations, below rail operations and port operations.

Hancock Coal has provided to The Coordinator- General on a Commercial-in-Confidence basis a copy of its Project Execution Plan which outlines its plan to implement the proposed facility, attached to its letter of 30 April 2010. Hancock Coal has provided further information both in the Application, and subsequently, including by inspection, on a Commercial-in-Confidence basis.

Upon review of both the publicly available and Commercial-in-Confidence material provided by Hancock Coal, the Commercial Unit of the Department oflnfrastructure and Planning, in its Report dated 18 June 2010, considered that Hancock Coal has progressed its implementation planning as far as possible at this stage, and that the implementation planning appears to be feasible and reasonable.

4.9 Negotiations to Acquire Land by Agreement

Hancock Coal has indicated that it has been undertaking all reasonable endeavours to negotiate successful outcomes with interest holders. Hancock Coal has stated that it will commence fonnal negotiations with relevant interest holders for the purchase of land by agreement in July 20 I 0. Hancock Coal has stated its preference to obtain the land necessary by vohmtary agreement with the relevant interest holders. In any event, prior to The Coordinator-General taking steps to acquire the land on behalf of Hancock Coal, Hancock Coal will be required to demonstrate that it has first made reasonable attempts to obtain the land by commercial negotiation.

With respect to the registered Native Title claim groups that intersect the Rail Corridor, Hancock Coal has issued to the Jangga and Bini People notices of its intention to develop a Cultural Heritage Management Plan (CHMP) pursuant to Part 7 of the Aboriginal Cultural Heritage Act 2003 (Qld).


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Discussions with Native Title claimants are well advanced. Hancock Coal has entered into a CriMP with the Wangan and Jagalingou People, which was approved by the Chief Executive of the Department of Environment and Resource Management in December 2009.

CHMPs for the entire Rail Corridor have now been approved or submitted for approval.

On 27 March 2010, Hancock Coal issued public advertisements advising of its intention to commence negotiations for an Indigenous Land Use Agreement (ILUA) in respect ofthe area covered by the Rail Corridor. The ILUA with the Wangan and Jagalingou People has reached in principle agreement. The terms of an ILUA has been negotiated with both the Jangga People and the Birri People.

With regard to the last 60 kilometres of the Rail Corridor which does not have a registered Native Title claim group, Hancock Coal will be working with Queensland South Native Title Services (QSNTS) to identify the appropriate indigenous party for the purposes of the development of a CHMP and an ILUA.

4.10 Investigations on the Required Land

Hancock Coal has sought and, in many cases been provided with, access agreements from interest holders to undertake on ground ecological testing and other relevant studies as required for the EIS. Such access has been arranged through private negotiations with the interest holders rather than through the process provided for in the SDPWO Act.

Hancock Coal has also undertaken comprehensive investigations into the proposed alignment for the Rail Corridor. These investigations include a Pre-Feasibility Study in 2008, Value Engineering and Peer Review and Bridging Studies in 2009 and a Bankable Feasibility Study which is to be completed in 2010. These studies have covered the following areas:

• refinement and improvement of possible routes and the testing of other potential routes, using 12D modelling and I :250,000 scale digital mapping;

• environment, land tenure and cultural heritage issues affecting route design and selection;

• teclmology and recommendations for signalling and commm1ications issues;

• civil engineering works;

• structural engineering, including bridges and culverts;

• interactions with roads and access points;

• rail maintenance and provisioning facilities;

• rollingstock selection for the preferred alignment;

• temporary construction facilities;

• geotechnical desktop study and investigation oflocal construction materials;

• desktop study of available hydrology data for water supply and flooding issues; and

• power supply and utilities options.


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Hancock Coal engaged the consultants Quantum to assist in the development of the proposed alignment through use of its Quantum Alignment Planning Solution (QAPS). QAPS enabled an analysis of all potential route alignments to determine which best met the relevant environmental, cultural, social, engineering and cost constraints. Hancock Coal assessed over 200 proposed routes through QAPS.

LiDAR surveys were also undertaken for the entire rail route. LiDAR is a laser based technology used to produce terrain, elevation and canopy models, and high accuracy surveys for detailed design of roads and railways.

4.11 Summary of the Public Submissions

As part of the significance, particularly economically or socially, to Australia, Queensland or the Galilee Basin and the Abbot Point regions, The Coordinator-General invited submissions on the relevant issues from affected persons, in accordance with the Guidelines for acquisition of land for inji·astructure projects by persons other than the State.

Twenty-eight submissions were received. Nineteen submissions were received from private individuals with the remainder being from the following organisations:

0 Isaac Regional Council;

0 QCoal Pty Ltd;

• North Coal Pty Ltd;

• AMCI (Alpha) Pty Ltd;

• Calibre Global Pty Ltd;

• Bimblebox Nature Refuge;

• Mackay Conservation Group;

• Queensland South Native Title Services; and

• East West Line Parks Pty Ltd.

Copies of all of the submissions were provided to Hancock Coal with an opportunity to respond, and on 12 April 20 I 0 Hancock Coal provided to The Coordinator-General its response to these submissions.

Many submissions argued that construction of the Alpha Coal Mine would lead to negative impacts. However, the subject of Hancock Coal's Application relates solely to the Rail Conidor. Hancock Coal is not seeking infrastructure facility of significance approvals in respect of its Alpha Coal and Kevin's Comer Projects, nor is such approval required in order for Hancock Coal to proceed with those projects.

Private individuals

Fifteen submissions received from private individuals were fi·om interest holders whose land is likely to be affected by the Rail Corridor. Four submissions were received from interest holders residing near the Rail Conidor.


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These individuals raised a number of concerns, including the potential for flood impacts and altered overland water flows negatively impacting farm water storages and land usage, separation of farming lands with associated loss of economic productivity, issues associated with the day-to-day management of their farming operations (such as the need to move or install new water pipelines, dams, fences, stockyards, under and overpasses, safety at rail crossings, noise pollution), and the health and safety risks to the local residents and cattle from dirt and coal dust pollution.

In response to the concerns raised by private individuals, Hancock Coal has noted the following:

• In accordance with the EIS process, Hancock Coal is required to put in place measures to minimise environmental impacts. Hancock Coal will be liaising in this regard with individual interest holders to ascertain their specific concerns; and

• Hancock Coal will consult individually with affected interest holders regarding losses suffered as a result of constmction of the railway. Hancock Coal has undertaken to in consultation with interest holders reinstate or relocate existing farm infrastructure directly impacted by the railway. Where land is compulsorily acquired by The CoordinatorGeneral, affected interest holders will be entitled to compensation in accordance with the Acquisition of Land Act 1967 (Qld).

Further, Hancock Coal has committed to undertaking the same actions that Queensland Rail has undertaken with respect to interest holders affected by the Northern Missing Link, namely to:

• implement a Land Access Protocol for visiting personnel, consultants and contractors;

• provide cattle, vehicle and machinery crossings of the railway;

• provide service conduits at nominated locations under the railway to allow the laying of water pipes and other services;

• fence the corridor boundaries;

• pay financial compensation for property severance and any reduced economic viability;

• implement a Weed Management Plan;

o provide a safety and operational contact phone number; and

• once construction is underway, develop a plan with interest holders to implement the works in a coordinated manner.

As a result of Hancock Coal's amendment to its Application to seek a realignment of the Rail Corridor in the Newlands area, by letter of the II June 2010, the Department of Infrastructure and Planning wrote to five interest holders affected by Hancock Coal's amended Application inviting submissions on the proposed changes to the original alignment traversing their land interests. Two additional submissions from landowners were received objecting to the realignment. In respect of those additional submissions, Hancock Coal noted that it would be amenable to seeking voluntarily agreed outcomes with the landowners in order to minimise impacts on their properties.


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QCoal Pty Ltd

QCoal and its subsidiaries are the registered holders of a number of exploration permits in the northern part of the Bowen Basin. QCoal noted that the original route of the Rail

·Corridor ran through land over which QCoal's exploration permits applied. QCoal claimed that the corridor as proposed would result in sterilisation of significant resources of coal and presented "best case", "likely case" and "worst case" scenarios. QCoal estimated that the areas subject to the original alignment of the Rail Corridor had potential in situ coal resources of up to 498 million tonnes of raw coal, yielding up to 330 million !annes of mainly hard coking coal product. In QCoal's estimate, this meant that up to $66 billion worth of coal could be sterilised by the Rail Corridor. QCoal submitted that, as a result, QCoal and the State of Queensland would be deprived of significant coking resources, which had been identified as critical for replacement of declining coking resources in the State, and that the State would lose substantial coal royalties in the sum of up to $5.56 billion. QCoal fi1rther claimed that the Rail Corridor had not taken into account the cost of compensation payable to QCoal as a result of sterilisation of its resources.

Hancock Coal in response stated that, in respect of one of the exploration permits which QCoal noted was pmiicularly affected by the Rail Corridor, that the proposed alignment of the Rail CmTidor in that area is parallel to the existing Northern Missing Link corridor, and that fi1rther impact as a result of the Rail Corridor is therefore expected to be minimal.

Hancock Coal also noted that the Rail Corridor is only expected to be 60 to I 00 metres in width, and that QCoal's calculations as to the amount of coal likely to be sterilised may have been based on the nominal 500 metres conidor width proposed by Hm1cock Coal for the purposes of its Application. In Hancock Coal's view, therefore, QCoal's estimate as to the value of coal likely to be sterilised is likely to be overstated. Further, if coal resources were in the future determined to be of significant value, Hancock Coal noted that there were precedents for the temporary or permanent reallocation of rail corridors.

QCoal claimed that the Rail Corridor effectively severs the Galilee Basin from existing east coast rail and pipeline infrastructure, as well as severing the Bowen Basin vertically such that any projects or services that cross from east Bowen to west Bowen will need to cross the Rail Corridor. Hancock Coal, in its response, noted that the Rail Corridor has been designed to ensure that it does not cross any existing Queensland Rail networks except at the entry to Abbot Point, so as to avoid isolating Bowen Basin coal producers from existing Queensland Rail networks. Hancock Coal further noted that there were no submissions from any Galilee Basin proponents as to isolation as a result of the Rail Corridor. The Rail Corridor is required to cross the North Queensland Gas Pipeline, Sunwater Pipeline and QR North Coast line. However, Hancock Coal stated that there are reasonably priced engineering solutions available to all these crossings.

QCoal also submitted that, as the Mineral Resources Act 1989 (Qid) prevents the carrying on of operations within certain distances of a railway, this will significantly restrict new developments within the vicinity of the Rail Corridor. Hancock Coal, in its response, stated that the Mineral Resources Act relates only to activity on a mining lease, and does not apply where there is existing infrastructure in place.

QCoal expressed concem that the effect of the Rail Corridor on other projects being carried on within the Bowen Basin area had not been adequately addressed in Hancock Coal's Application, including the North Queensland Gas Pipeline, proposed Burdekin water pipeline duplication and Water for Bowen canal.


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1020 QUEENSLAND GOVERNMENT GAZmE No. 85 [2 July 2010

Hancock Coal noted that the Pilbara railway in Western Australia had been successfully constructed to cross gas pipelines without significant impact. Further, some of the projects that QCoal referred to in its submission, such as the Water for Bowen balancing storage facility, Abbot Point Pumping Station, Ergon Energy Substation and Ramsar Wetlands are located within the Abbot Point State Development Area, and are not the subject of Hancock Coal's Application.

QCoal further claimed that Hancock Coal failed to properly negotiate with it.

QCoal claimed that all necessary considerations for an approval under Section 125 of the SDPWO Act had not been made out. In particular, it claimed that Hancock Coal failed to undertake a cost/benefit analysis of the route to the State and other Galilee Basin producers, and had failed to properly consider alternative routes, particularly those proposed by QCoal. QCoal fhrther submitted that the computer modelling program utilised by Hancock Coal in detennining the preferred alignment of the Rail Corridor was based on a flawed process. Hancock Coal responded by stating that it had undertaken an extensive analysis, consisting of a number of studies and a number of alternative rail routes.

QCoal submitted that the Rail Corridor would have a net negative financial impact on Australia, Queensland and the local region, by being a financial drain on the State's resources and the people of Queensland, and that it would have a negative impact upon the community wellbeing, economic growth and employment levels of the affected regions and Queensland as a whole. Hancock Coal has disputed this claim.

QCoal requested that an IFS declaration be defen·ed until a Bankable Feasibility Study had been completed for the Alpha Coal Project.

QCoal requested that the current route be realigned so as not to impact on QCoal's projects. To that end, QCoal proposed two alternative alignments for the Rail Corridor which would avoid impacting QCoal's tenements in the Bowen Basin and, in QCoal's submission, better service other coal producers in the Galilee Basin. In its response Hancock Coal stated that it had considered an aligmnent to the west of the current Rail Corridor, as suggested by QCoal, but had rejected an alignment in that area because it would have led to significantly increased construction and operational costs, as well as adding approximately 12 months to the construction period due to the topography and geology of the area. Hancock Coal noted that the alignments proposed by QCoal would involve traversing the Leichhardt Range, which was a major impediment to the establishment of an alignment in that area.

In response, Hancock Coal proposed a realignment of the route in the areas over which QCoal's mining interests lie so as to minimise the impact on QCoal. Hancock Coal noted that the amended alignment, which "hugs" the Northern Missing Link, minimises any potential impacts on possible coal resources. This is because the Rail Corridor will be placed as close as possible to the existing narrow gauge rail corridor. Hancock Coal was of the view tl1at the amended alignments proposed by QCoal were not reasonable, and could not be progressed by Hancock Coal, as they would not enable the development of a viable, long te1m railway that will underpin the Galilee Basin developments.

On 28 April 20 I 0 the Deputy Coordinator-General wrote to QCoal on an informal basis seeking comments on Hancock Coal's proposed realignment. QCoal responded by letter dated 4 May 20 I 0 stating that the amended aligmncnt was worse than the original alignment.


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Geological Survey of Queensland, a division within the Department of Employment, Economic Development and Innovation (DEEDI), at a meeting on I April 20 I 0, was requested to carry out an independent assessment of the claims of sterilisation made by QCoal in its submission. To this end, QCoal provided further supplementary infonnation to DEED I on a Commercial-in-Confidence basis.

This assessment found that the geological and coal quality data was sparse in all of the three areas of claimed sterilisation and insufficient to make a definitive determination of tonnage of sterilisation claimed. However, consideration of the resources demonstrated and the regional geology supported the view that significant resources of coal would be sterilised by the original alignment proposed in the Application. The assessment therefore recommended that an alternative route be considered.

Following discussions with QCoal, on 31 May 2010 Hancock Coal fmmally amended its Application, to change the alignment of the Rail Corridor in the area adjacent to the southern end of the New lands coal rail system. The amended alignment proposes to "hug" the existing Newlands rail line and the Northern Missing Link (which is currently under constmction), in order to provide a workable solution for both parties. Hancock Coal has also offered engineering design assistance to QCoal to optimise QCoal's access requirements to infrastmcture.

The assessment by Geological Survey of Queensland found that the new proposed route by Hancock Coal appeared to substantially reduce the coal sterilisation impacts claimed in QCoal's original submission, as it:

• eliminates potential sterilisation in QCoal's Area 2;

• virtually eliminates sterilisation in QCoal's Area 3;

• significantly lessens the impact on coal resources in Area I by adjoining the corridor for the Northern Missing Link which is under constmction; and

• passes over areas of deeper coal inferred to be of lesser quality and areas of major geological faults, and where coal is already sterilised by the existing Newlands line.

On 2 June 201 0, the Deputy Coordinator-General wrote to both QCoal and Xstrata Coal formally advising of Hancock Coal's amended Application and the traversing of the Rail Corridor over land in which QCoal and Xstrata Coal hold interests.

QCoal, by letters dated 4 June 20 I 0 and 8 June 20 I 0, stated that it remained committed to opposing any rail corridor which traversed and sterilises the Moranbah Coal measures and sought an extension of time until 18 June 2010 to respond. This extension of time was granted by the Deputy Coordinator-General on II June 2010.

QCoal provided a response to the amended Application on 18 June 20 I 0. QCoal noted that the amended route continues to severely affect QCoal's exploration pem1its by significantly sterilising resources and also affects QCoal's Drake Project.

QCoal submitted that Hancock Coal was required to amend its original Application, rather than just provide updated maps, and publish the amended Application on its website. QCoal also submitted that The Coordinator-General was required to re-advertise the amended Application.


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QCoal repeated its submissions with respect to:

• The excessive natme of the 500 metre wide Rail Corridor footprint;

• The detrimental economic and social impact of the Rail Corridor;

• That the alternate route was not properly investigated;

• Should compulsory acquisition proceed, QCoal will seek full compensation for the value of its interests in the affected tenements, and costs attributable to disturbance and severance; and

e The failure by Hancock Coal to properly negotiate with it.

Additionally, QCoal submitted that:

• The Rail Corridor would sever the connection between QCoal's Byerwen Coal Mine and the Newlands Rail Line and Northern Missing Link. QCoal submitted that the additional bridges required to cross the Rail Corridor would render the Rail Corridor uneconomic;

• The amended alignment would continue to sever other QCoal developments such as the Havilah (Rosella Creek) Mine and Fig Tree Mine;

• The Rail Corridor would sever coal scam gas deposits held by BG and Westside;

• Hancock Coal bas failed to undertake an EIS in relation to the proposed Rail Corridor, which is fundamental to satisfying the requirements of Section 125 and Section 174 of the SDPWO Act;

• Hancock Coal has not procured the necessary infrastructure for the delivery of water, power, port and rail facilities;

• Hancock Coal has failed to demonstrate a market for its medium grade them1al coal; and

• The proposed Resources Super Profits Tax renders the Alpha Coal Project uneconomic because it is a medium quality thermal coal project.

On 21 Jtme 20 I 0 Hancock Coal provided a response to the issues raised in QCoal' s submission of 18 June 2010. Hancock Coal noted that the Rail Corridor does not actually impact upon the infrastructure or mining areas of QCoal's proposed Drake development. Hancock Coal also noted that, contrary to QCoal's submission, no significant impacts arc expected to coal seam gas deposits in the New lands to Collinsville area, as the alignment of the railway is adjacent to the Northern Missing Link and Newlands railway.

Hancock Coal did not accept that there was a need to re-advertise the Application, as consultation has already occurred and the parties affected by the amendment were already in discussions with the Department of Infrastructure and Planning and/or Hancock Coal. Hancock Coal again clarified that the width of the final Rail Corridor will only be 60 to I 00 metres.

Hancock Coal reiterated that the amended alignment for the Rail Corridor minimised any impacts on QCoal by following as close to the Northern Missing Link as possible, and also minimises impacts on any future Xstrata landholdings.


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Hancock Coal also provided two recent demand forecasts and two recent price forecasts to demonstrate the ongoing demand for thermal coal globally. Hancock Coal noted that Australia's main competitor for thermal coal is Indonesia, and that Australia has lost market to Indonesia primarily due to a lack of rail and port infrastrnctnre.

Hancock Coal submitted that the bridge costs provided by QCoal are substantially overstated. Hancock Coal has previously indicated that it would be prepared to locate the Rail Corridor in close proximity to the Northern Missing Link to share the approaches to bridge structures. Hancock Coal also submitted that the bridges referred to in the QCoal submission are planned regardless of the Rail Corridor as they are required to cross the Northern Missing Link.

Hancock Coal stated that it was in discussions with providers of the relevant necessary infrastructure.

Hancock Coal noted that the proposed Resource Super Profits Tax would have a negative impact on the entire minerals industry, but was of the view that it would have a far greater impact on QCoal's projects given they are still in a concept phase, making it more difficult to attract investment.

Other organisations

AMCI (Alpha) Pty Ltd, as the manager of the South Galilee Coal Project, was generally supportive of Hancock Coal's initiative but sought to ensure that the Rail Corridor is adequate to support the infrastrnctnrc required for both present and future demand, and that it would be a trne multi-user corr-idor. In its response, Hancock Coal noted that the railway, as cutTently proposed, could be increased to hold a capacity of 120 Mtpa through additional rollingstock, passing loops and duplications. Beyond 120 Mtpa Hancock Coal noted that further duplication systems would be required. Hancock Coal stated that modelling work has been undertaken to confirm this approach, and that partial duplication could occur within the proposed 60 metre corridor. Further, Hancock Coal has consistently advised that it intends to make the railway available to third party users.

Calibre Rail Pty Ltd, which has been engaged by Hancock Coal as the railway consultant to undertake the Bankable Feasibility Project, provided a submission in support of Hancock Coal's application. Calibre Rail referred to the wide ranging benefits which could result from a large project such as this, including employment opportunities for local and lndigenons communities, economic and skills development for supporting local industries and a direct and significant contribution to the State's export performance.

Isaac Regional Council provided a submission noting that if the Rail Corridor is not negotiated properly there may be a negative impact on the effective running of local cattle and cropping businesses. However, the Council also stated that it recognises the economic benefits to the communities within the Galilee and Bowen Basins, and has provided a letter of support in respect of Hancock Coal's Application.

Mackay Conservation Group raised concerns regarding environmental impacts and the compensation payable to affected interest holders. Although these concerns are not directly relevant to the criteria to be satisfied under Section 125 (1) of the SDPWO Act, Hancock Coal has stated its intention to minimise environmental impacts as much as possible and ensure that fair compensation is paid to interest holders.


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Bimblcbox Nature Refuge submitted that the grazing industry would suffer in having to compete with the wages offered by the mining industry, and that exploitation of the Galilee Basin's coal reserves prevented more sustainable and longer tern1 development in the area.

Queensland South Native Title Services, acting for the Wangan and Jagalingou People, raised concerns that if the Rail Corridor is declared to be an infrastructure facility of significance, Hancock Coal will seek to compulsorily acquire the affected Native Title claim land prior to an ILUA being entered into. Hancock Coal in its response noted that its preference is to enter into an ILUA if possible. An ILUA with the Wangan and Jagalingou People has now in fact reached in-principle agreement.

North Coal Pty Ltd (North Coal) is the holder of an exploration permit in the Bowen Basin which is affected by the Rail Corridor. North Coal raised concerns with respect to impediments to the existing rail line and exploration activities. North Coal noted that it did not have any coal deposits directly sterilised by the Rail Corridor, but that it was concerned as to the effect the Rail Corridor will have on its future interests. Hancock Coal, in its response, stated that it had been careful to ensure that known, demonstrated mining resources will not be impacted by the Rail Corridor. In relation to access concerns, Hancock Coal noted that it is required to provide access for property holders during construction and that it did not expect that there would be any significant impediments in this regard.

East West Line Parks Ply Ltd (EWLP) through its Project Iron Boomerang (PIB), proposes to build a heavy-haul (40t/axle) standard gauge multi-user railroad for the transport of coal (cast to west) and iron ore (west to cast) across the width of Australia. EWLP submitted its objection to any and all development, including Hancock Coal's Alpha Coal Project, that would impede or affect the development of PIB. Hancock Coal responded by letter dated 2 June 20 I 0 to EWLP noting that, as far as it was aware, it did not impede EWLP's plans with respect to the State Development Area, and indicating its undertaking to provide third party access to the Rail Corridor.

Xstrata Coal has mining exploration pennits over land which is affected by the amended alignment of the Rail Corridor. In response to a request from the Deputy CoordinatorGeneral for informal comment on the proposed realignment to the Rail Corridor, on I 1 May 2010 Xstrata Coal provided a submission stating that it had not completed its exploration in the area proposed to be traversed by the Rail Corridor, and it was concerned that there may be mineable resources in that area which it had not discovered. Xstrata Coal stated that its preference would be for an alignment which ran para11el to the existing railway line as much as possible and minimised the width of the Rail Conidor. Xstrata Coal noted that it was prepared to work with Hancock Coal to finalise an alignment which minimises impacts on Xstrata Coal. The amended Application submitted by Hancock Coal did propose an alignment "hugging" the Newsland Railway Line and Northern Missing Link. By letter dated 2 June 2010 the Deputy Coordinator-General wrote to Xstrata Coal seeking comments on Hancock Coal's amended Application. Xstrata Coal did not provide a submission.

4.12 Economic Significance of the Infrastructure Facilities

In respect of the potential capability of the Rail Corridor to contribute to employment levels, as a factor which must he taken into account under Section I 25 (2) of the SDPWO Act, the Rail Corridor will have significance to the Galilee Basin to Abbot Point region by providing greater employment opportunities. During construction of the railway between 2011 and 2013, Hancock Coal is intending to establish four different work camps along the Rail Corridor, with the possibility of further work camps also being established at each end of the railway. Each camp is expected to consist of approximately 250-300 workers.


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Upon construction, Hancock Coal estimates that 150-200 predominately operational staff will be employed to work on the railway, mostly at or near Bowen in the Whitsunday Region. It is anticipated that significant support businesses will also be required to assist with the running of the railway and the increased staff in the area.

The Rail Corridor is also likely to contribute to economic growth within Australia, Queensland and the Galilee Basin to Abbot Point region. Such a potential for economic growth must be taken into account in accordance with Section 125 (2) of the SDPWO Act.

Hancock Coal estimates that the Alpha Coal and Kevin's Corner Mines will increase Australia's export revenues by approximately $5-6 billion per year, and will increase Queensland's overall coal production by 35 per cent. Such economic return is not possible without the necessary rail infrastmcture to transport the coal to the port.

There will also be a demand for additional products as a result of the Rail Corridor, such as the need for the manufacture of coal transporting bins, additional locomotives and signalling equipment. This will have flow-on benefits not only for the region but also for the State.

In addition, by providing Hancock Coal with the ability to successfully produce the coal from the Alpha Coal and Kevin's Corner Mines for export, the Rail Corridor will indirectly benefit the Galilee Basin region by providing long-term sustainable jobs and increased wages spent primarily in the region. Hancock Coal estimates that it will also provide the State of Queensland with over $430 million per annum in royalty payments at full production of the above Mines.

It is anticipated that the Rail Corridor will open up mining of thern1al coal in the Galilee Basin, as its remote location and corresponding lack of supporting infrastmcture have precluded large-scale mining to date. The Rail Corridor would, therefore, provide a solid basis for future resource development in the area. There are many mining interests conducting exploration activities in the Galilee Basin at present. As noted above, over 14 billion tonnes of thermal coal which complies witl1 JORC standards has been identified in the Galilee Basin by Hancock Coal and other potential producers.

There will be further significant flow-on economic benefits from the use and constmction of such mines. Regionally it will lead to increased investment in the Galilee Basin, increased employment at the mines and for associated services, and an increase in money spent in the region. At a State and National level, opening up the Galilee Basin will contribute to the growth of the coal industry in Queensland, an increase in royalties payable to the State and an increase in Australia's export revenue. Therefore, the Rail Corridor is likely to contribute to resource development, which is a relevant consideration in accordance with Section 125 (3) of the SDPWO Act.

4.13 Social Significance of the Infrastructure Facilities

In accordance with Section 125 (2) of the SDPWO Act the potential for the Rail Corridor to contribute to community well-being must be taken into account. There are a number of factors which indicate that the Rail Conidor will contribute positively to community wellbeing.

Opening up the Galilee Basin through the establishment of tl1e Rail Corridor will lead to enhanced local infrastmcture such as power, roads, water and communications, which local Councils would in all likelihood not be able to fund without outside intervention.


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In 2008, the Barcaldine and Isaac Regional Councils had an estimated population of 3,394 and 21,933 people respectively, with unemployment levels lower than the State average. Forecasts indicate that the Barcaldine region will experience only limited population growth over the next 20 years, whereas the Isaac region is expected to experience rapid population growth. The anticipated labour requirements, at the very least during the construction process, would represent a significant expansion of the population base in these areas.

The Whitsunday Regional Council area, which has a largely tourism-based industry, has recently seen its unemployment rate rise to a level higher than the State average. Given that most of the operational and maintenance staff to be employed on the railway will be located in the Whitsunday Regional Council area, this will have significant social benefits, both in providing employment opportunities and also in diversifying the employment market. Further, as the Rail Corridor requires a skilled workforce, this presents opportunities for training and upskilling. This is a particularly important benefit given that the level of educational attainment in the areas along the Rail Corridor is lower than the State average.

Further, Hancock Coal has established the Hancock Community Support Program based at Alpha, to assist the Alpha community to achieve independent growth and long-term sustainability.

5. The Reasons for the Decision

The Hancock Coal Rail Corridor was approved as an infrastructure facility that is of significance, particularly economically or socially, to Australia, Queensland and the Galilee Basin and the Abbot Point regions, being the region in which the infrastructure facility is to be constructed, for the following reasons:

• There are forecasts of a significant increased demand in thermal coal globally in the next five years, particularly through the seaborne export market. Significant amounts of thennal coal have been identified in the Galilee Basin which could be exported to meet this demand;

• The Alpha Coal and Kevin's Comer Mines, to be constructed by Hancock Coal and related entities, are ranked as having one of the largest thennal coal resources in the world. Hancock Coal has identified in excess of 7.8 billion tonnes of coal which meets JORC compliance standards from those two Projects;

• There is no existing infrastructure suitable to allow transportation of coal from the Galilee Basin to Abbot Point, or to any other port, for exportation. This has contributed, at least in part, to the lack of large-scaling mining operations in the Galilee Basin. Existing rail infrastructure is unable to accommodate the demand and road transportation is unsuitable due to the projected tonnages of coal proposed that would need to be transported;

• Hancock Coal is proposing to construct a standard gauge, stand alone railway of approximately 495 km in length from its Alpha Coal Mine in the Galilee Basin to the Port at Abbot Point. It is expected that a spur and loadout loop will also allow the railway to transport coal from the Kevin's Comer Mine, which is proposed to be constmcted and operated by another subsidiary of Hancock Prospecting;

• It is expected that the railway will carry between 30 and 60 Mtpa of coal, although the railway has been designed to carry up to 80 Mtpa of coal, with an ability to further increase this capacity through the use of partial duplication;


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2july 2010) QUEENSLAND GOVERNMENT GAZETTE No. 85 1027

• The Rail Corridor traverses land owned by approximately 40 different interest holders. Hancock Coal has proposed to transfer to the State any land it voluntarily acquires for the Rail Conidor, so that the State will own the underlying tenure for the land. Hancock Coal then proposes that the State lease or sub-lease the necessary land back to Hancock Coal on a long-term basis;

• The final width of the Rail Conidor will be between 60 and 1 00 metres, although for the purposes ofits Application Hancock Coal has sought a footprint of 500 metres in width;

• Hancock Coal has undertaken to make the railway available to third party users pursuant to a voluntary undertaking in accordance with Part IliA of the Trade Practices Act 197 4 (Cth). To this end, there arc a number of other existing and potential coal producers in the Galilee Basin which are likely to benefit from a railway from the Galilee Basin to the Port at Abbot Point;

• Hancock Coal has undertaken a detailed analysis to determine the preferable route for the Rail Conidor, having regard to the minimisation of environmental impacts and the impact on affected interest holders. Hancock Coal amended its Rail Conidor in the area adjacent to the southern end of the Newlands coal rail system to minimise coal sterilisation and infrastructure access impacts. In that area Hancock Coal proposes to "hug" the existing New lands rail line and the Northern Missing Link (which is currently under construction);

• Constmction of the Rail Conidor is likely to commence in 20 ll, and will take approximately 24 months to complete. First export of coal from the Alpha Coal Mine, utilising the Rail Corridor, is anticipated for late 2013;

• Hancock Coal may require assistance from the State with respect to land acquisition in accordance with Section 125(1)(!) of the SDPWO Act, access to land and assistance with temporary closures of infrastructure during constmction. Hancock Coal does not expect to require State assistance once the construction ofthe Rail Conidor has been completed;

• The information contained in Hancock Coal's Application and subsequent material, including that provided on a Commercial-in-Confidence basis, demonstrates that Hancock Coal has progressed the financial analysis of the proposed Rail CoiTidor as far as is reasonably possible at this stage and that, based on the material to hand the Rail Corridor is expected to be viable;

• The possible environmental impacts of the Rail Corridor will be scrutinised during the EIS process. Hancock Coal's EIS will need to be approved at both a State and Commonwealth level before the Rail Conidor can proceed. However, Hancock Coal has at this stage undertaken to provide environmental offsets where vegetation cannot be restored and to implement a CEMP to mitigate environmental effects of construction of the Rail Corridor;

• The information contained in Hancock Coal's Application and subsequent material, including that provided on a Commercial-in-Confidence basis, demonstrates that Hancock Coal has progressed its implementation planning as far as possible at this stage, and that the implementation planning appears to be feasible and reasonable;

• Hancock Coal has indicated that it will seek to commence negotiations with relevant interest holders to purchase the necessary land once the EIS and relevant approvals have been obtained.


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1028 QUEENSLAND GOVERNMENT GAZmE No. 85 [2 july 2010

In this regard, it should be noted that, prior to The Coordinator-General being able to take land for the Rail Corridor, The Coordinator-General will need to be satisfied that Hancock Coal has taken reasonable steps to negotiate to acquire the land by agreement;

• In accordance with clause 3.18 of the Gzddelines for acquisition of landfor infi'aslntcture projects by persons other than the State, made pursuant to Section 174 of the SDPWO Act, should Hancock Coal seek assistance from The Coordinator-General in compulsorily acquiring land required for the Rail Corridor, Hancock Coal will be required to confirm that the Rail Corridor will proceed within reasonable timeframes;

• Hancock Coal has negotiated the tezms of ILUAs with two of the three affected registered Native Title claim groups. An ILUA with the third affected registered Native Title claim group has reached in principle agreement. In this regard, it should also be noted that, prior to The Coordinator-General being able to take any Native Title interests in land for the purpose of the Rail Corridor, he must be satisfied that Hancock Coal has taken reasonable steps to form an JLUA with the affected claim groups;

• Hancock Coal has conducted investigations on the affected land for the purpose of the EIS process. Hancock Coal has also undertaken a number of studies to determine the most preferable alignment for the Rail Corridor;

• The Rail Corridor will have economic significance to the Galilee Basin and the Abbot Point regions, Queensland and Australia, through:

a) providing an increase in employment opportunities, both during constmction of the railway and on an ongoing basis;

b) providing an opportunity for support businesses to be established to support the railway and its staff;

c) increasing Australia's export revenue in the amount of $5 to 6 billion per year; d) increasing the need for additional products to be manufactured as a result of the

railway, such as coal transporting bins, additional locomotives and signalling equipment;

e) increasing Queensland's overall coal production by 35 per cent; f) increasing the amonnt of royalties payable to the State, estimated to be $430

million per year; g) by providing the means through which coal from the Alpha Coal and Kevin's

Corner Projects can be exported, indirectly contributing to long-term sustainable jobs; and

h) potentially opening up the Galilee Basin to encourage other large-scale mining projects in the area, which will have further flow-on economic benefits at the national, State and regional levels.

• On the basis of the factors identified above:

a) the Rail Corridor will make an important contribution to resource development in the Galilee Basin region, as well to Queensland and Australia more generally, pursuant to Section 125 (3) of the SDPWO Act; and

b) the Rail Corridor will contribute positively to economic growth and employment levels within the Galilee Basin and the Abbot Point regions and within Queensland and Australia, pursuant to Section 125 (2) of the SDPWO Act.


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• The Rail Corridor will have social significance to the Galilee Basin and the Abbot Point regions, Queensland and Australia, through:

a) providing a need for enhanced local infrastructure and technology, which may not have been financially viable otherwise;

b) increasing the population base in the Barcaldine and Isaac Regional Council areas particularly during the construction phase;

c) providing ongoing employment opportunities in the Whitsunday Regional Council area, which has an unemployment rate higher than the State average;

d) diversifying the employment opportunities available in the Whitsunday Regional Council area, which has a largely tourism-based industry; and

e) providing the opportunity for training or upskilling in areas where the level of education attainment is lower than the State average.

• On the basis of the factors identified above, the Rail Corridor will positively contribute to community wellbeing, pursuant to Section 125 (2) of the SDPWO Act;

• The submissions by affected parties have been taken into account insofar as they are relevant to determining whether the Rail Conidor is of significance, particularly economically or socially, to Australia, Queensland and the Galilee Basin and the Abbot Point regions. Notwithstanding the views expressed by these parties, the findings of fact outlined above lead to the conclusion that the Rail Conidor should be approved as an infrastructure facility of significance;

• Regard has been had particularly to the submissions made by QCoal in respect of the potential sterilisation of its resources. However, it is considered that the realignment proposed by Hancock Coal in its amended Application balances the needs of both parties. Consistent with the advice of Geological Survey of Queensland, it is considered that the realignment substantially reduces any coal sterilisation impacts in respect of QCoal's exploration permits, by adjoining the Rail Con·idor to tl1e Northern Missing Link which is currently under construction and passes over areas of coal already sterilised by the existing Newlands line. QCoal's concern that the amended alignment continues to potentially sterilise its resources has been taken into account. However, given the significantly increased costs to Hancock Coal, as well as the geographical difficulties of realigning the Rail Corridor completely outside of the Bowen Basin area, combined with the preliminary stages of QCoal's exploration in the area, it is considered that the amended alignment is the best solution to balance the interests of both QCoal and Hancock Coal.

• In response to QCoal's concerns that Hancock Coal failed to negotiate with it, there is no stiict requirement under the SDPWO Act for the proponent to first attempt to purchase the land by commercial negotiation before a declaration under Section 125 (I) can be made. However, prior to any application for compulsory acquisition, Hancock Coal will need to demonstrate that it took reasonable steps to first purchase the land by agreement;


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Digital Sending device.

2


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l"!ancock follow up

www.dip.gld.gov.au

Tomorrow's Queensland: strong, green, smart, healthy and fair www.toward02.gld.gov.au


From: Rachel! Buckley

Sent: Monday, 6 September 2010 1:15 PM

To: Chris Bishop

Cc: Elspeth Costello

Subject: Phone message

Hi Chris

David Stolz called at 1:14pm. Could you please call him back on x45914

Kind regards,

Rachell Buckley

Senior Media Officer Office of the Director-General 1 Media Services Unit

Department of Infrastructure and Planning

Queensland Government

Tel: +61 7 3405 3481

Post PO Box 15009 City East Qld 4002 Visit Level 12 I 100 George Street I Brisbane Queensland 4000 Email: rachel I. [email protected] .au

www.dip.qld.gov.au

Page 3 of3

Tomorrow's Queensland: strong, green, smart, healthy and fair www.toward02.qld.gov.au

~Please consider the environment before printing this email


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Ellie Reid


Attachments:

Hi Ellie,

Michelle Mulvey Tuesday, 7 September2010 5:11PM Ellie Reidy FW: Hancock CoaiiFS Application

Letter to QCoal.pdf

As per discussion with David Stolz.

Thanks,

Michelle

Michelle Mulvey Administration Officer

C 'gional Development ... Jpartment of Infrastructure and Planning Queensland Government

tel 07 3238 3095 (ext 83095) post PO Box 15009 City East Qld 4002 visit Level 3 63 George Street Brisbane [email protected]

www.dip.qld.gov.au

.J; Please consider the environment before printing this email


Noel Thorne Tuesday, 7 September 2010 5:08 PM Michelle Mulvey FW: Hancock Coal IFS Application

' r :helle 'following is an emailand attachment which was sent to of Qcoal this evening. Could you please lodge this in TRIM. Thanks, Noel

Noel Thorne Acting Assistant Coordinator-General Land and Regional Development Department of Infrastructure and Planning Queensland Government

tel +61 7 340 55634 (ext 55634) mpost PO Box 15009 City East Qld 4002 visit Level 3, 63 George Street Brisbane [email protected]

www.dip.qld.gov.au

Tomorrow's Queensland: strong, green, smart, healthy and fair www.towardQ2.qld.gov.au

P Please consider the environment before printing this email

1

RTI Document No.721



Sch.4(4)(6) Personal InformationRTI

REL

EASE


Dear

Noel Thorne Tuesday, 7 September 2010 5:03 PM

Hancock Coal IFS ApplicaMn

Please find attached a letter of 7 September 2010 from the Deputy Coordinator-General, Infrastructure and Land Group, Department of Infrastructure and Planning in relation to the above matter.

Letter to -QCoal.pdf ...

Yours sincerely

Noel Thorne Acting Assistant Coordinator-General Land and Regional Development Department of Infrastructure and Planning Queensland Government

.~:1 +61 7 340 55634 (ext 55634) ( 'post PO Box 15009 City East Qld 4002 visit Level 3, 63 George Street Brisbane [email protected]

www.dip.qld.gov.au

Tomorrow's Queensland: strong, green, smart, healthy and fair www.towardQ2.qld.qov.au

P Please consider the environment before printing this email

2

RTI Document No.722



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Ellie Reid

From: Kim Mulvahil Sent: To:

Tuesday, 7 September 2010 12:48 PM Ellie Reidy

Subject: Please phone Jo @ Regional Development on 46923 re: email you sent to David Stoltz

Kim Mulvahil Administration Officer Legal Services Department of Infrastructure and Planning Queensland Government

tel +61 7 3227 7466 (ext 77466) post PO Box 15009 City East Qld 4002 visit Level11 Executive Building 100 George Street Brisbane

[email protected]

Nw.dip.qld.qov.au

Tomorrow's Queensland: strong, green, smart, healthy and fairwww.towardQ2.qld.qov.au


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of2

Ellie Reidy

From: Ellie Reidy

Sent: Wednesday, 8 September 2010 2:28 PM

To: David Stolz; Vanessa Cornell

Cc: Leanne Fox



From: David Stolz Sent: Wednesday, 8 September 2010 2:25PM To: Ellie Reidy; Vanessa Cornell Subject: Hancock respons to Xstrata

All, FYI and discussion.

Regards

David Stolz




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Hancock Coal-- Review ofDEEDI report

Ellie Reidy

From: David Stolz


To: Ellie Reidy; Noel Thorne

Cc: Connie Seeto; Leanne Fox

Subject: RE: Hancock Coal - Review of DEEDI report

Ellie,

I was thinking that between you, myself and Mick we could handle this.

Regards

David Stolz

Page 1 of2

Sch. 3(7)

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Ellie Reidy

From:

Sent:

To:

Vanessa Cornell

Thursday, 9 September2010 2:19PM

Ellie Reidy

Subject: FW: Letter sent on behalf of

Attachments: img-909135245-000 1. pdf

Ellie,

Do I also send this to Mick?

Regards, Vanessa.

From: Michelle Mulvey On Behalf Of David Stolz Sent: Thursday, 9 September 2010 1:59 PM To: Vanessa Cornell Subject: FW: Letter sent on behalf of

Davids coming down now to see you re this

Michelle Mulvey Administration Officer Regional Development Department of Infrastructure and Planning Queensland Government

tel 07 3238 3095 (ext 83095) post PO Box 15009 City East Qld 4002 visit Level 3 63 George Street Brisbane michelle.mulvey_@QjJ:UI.!Q,.gov.au

www.dip.g]Q,gov.au

oJ; Please consider the environment before printing this email

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From: David Stolz Sent: Wednesday, 8 September 2010 2:25PM To: EIIJe Reidy; Vanessa cornell Subject: Hancock respons to Xstrata

AU, FYI and discussion.

Regards

David Stolz


Sch. 3(7)

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DATE DUE TO MINISTER'S OFFICE:

/Jure: ....... :J,J .. ~[~1 .. 2019 .... .

R~(: :: .............................. .

.. !::t.JI.9. .. /L9. .......................... .

Ref: 1 or.f. J/!!.0.. .... . Received

'I J SEP 'lOIO lnft!rllal Documa.m ........... .

ESU MINISTERIAL CORRESPONDENCE . . . . . .. .

Prepared by ESU ACKNOWLEDGEMENT OR REFERRAL LETTER:

7:s-standard

SIGNATORY:

0 ~Isler 0

[]

0

Yes -as courtesy

and final

No

G(" . Principal Advisor

Referral Agency/Minister ______ _

ACTION:

[] BRIEFING NOTE REQUIRED

[]

[]

D

D

Refer to Department for direct reply

N.o response required

Copies to: [] Minister .. .Jj PA t:l SMA

IJ SPA 1:'1 OW [I GC I] KH

[I Personal Assislanl

1':1 Other:----------

CONSTITUENT

Prepared byDepartment RESPONSE LETTER:

D ~ority- 5 days

12(' Standard - 15 days

0 Other: .......... days

SIGNATORY:

~inister D Principal Advisor

REFER TO BUSINESS GROUP:

0 Office of the DG/CG

D Growth Management Queensland

~Project A,ssessment and Attraction

. D Infrastructure and Land

D · Local Government Services

D Regional Services - --------

0 Strategy & Governance

[] ESU

0 COMPLAINT

Drafting Instructions: ................................................................................................... ..

\ ........................... ········ .... ·······························.·························································

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................................... ···········.·················································································· •••••••••••• ' •••••••••••• 0 •••••••••• •• ' ••• ' ••••••••••••••••• '; •••••••••••••••••••••••••••• ' ••••••••••••••••• ' ••••••••• ' •••••••••

Name: ___ _ Date: ---·-------·--

J:J CorresnnnriPnr.:. l=ln-:Jiic-ori


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Ellie Reidy

From: David Stolz


To: Ellie Reidy

Subject: FW: Draft Response to

Are you happy with an email response?

Regards

David Stolz

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I '\.

Ellie Reid

From: Ellie Reidy Sent: To:

Wednesday, 15 September 2010 9:16AM David Stolz

Subject: RE: File note - template

David This file note should be signed and put on the file Regards Ellie



From: David Stolz Sent: Monday, 13 September 2010 4:10 PM To: Ellie Reidy Subject: File note - template

<<File: File%20note%20-%20template.doc >> Ellie,

As per our earlier discussion, this is what I proposed to print and put on file. Can you please provide advice.

Regards

OS

1


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Sch. 3(7)

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Ellie Reidy

From: David Stolz Sent: To: Subject:

Friday, 17 September 2010 8:13AM Ellie Reidy; Filomena Pastore Hancock IFS

Hi Ladies, can you please give me a call when you get in this morning and I'll fill you in on the meeting this morning with Graeme.

Regards

David Stolz A/Executive Director Regional Development Department of Infrastructure and Planning Queensland Government

tel +61 7 3404 3474 ext 43474 mpost PO Box 15009 City East Qld

( .. is it Level 3, 63 George Street .,[email protected]

www.dip.qld.gov.au

4002 Brisbane

1

RTI Document No.914


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Ellie Reidy

From: Kim Mulvahil Sent: To:

Monday, 20 September 2010 3:59 PM Ellie Reidy

Subject: Please phone Chris@ CLLO 35437- Quick question re Hancock

Kim Mulvahil Administration Officer Legal Services Department of Infrastructure and Planning Queensland Government

tel +61 7 3227 7466 (ext 77466) post PO Box 15009 City East Old 4002 visit Level 11 Executive Building 1 00 George Street Brisbane

[email protected]

vw.dip.qld.gov.au

Tomorrow's Queensland: strong, green, smart, healthy and fair www.towardQ2.qld.gov.au


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1 October 2010] QUEENSLAND GOVERNMENT GAZETTE No. 35 257

DEPARTMENT OF INFRASTRUCTURE AND PLANNING

State Development and Public Works Organisation Act 1971

NOTICE

The Governor in Council has approved, under Section 125 (1) (f) of the State Development and Public Works Organisation Act 1971, the Hancock Coal Pty Ltd Alpha Coal Rail Corridor Project as an infrastructure facility that is of significance, particularly economically or socially, to Australia, Queensland and the Fitzroy and Mackay regions being the regions in which the Hancock Coal Pty Ltd Alpha Coal Rail Corridor Project is to be constructed.

RTI Document No.1019

Full

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258 QUEENSLAND GOVERNMENT GAZETTE No. 35 [1 October 2010

STATEMENT GIVING REASONS WHY THE GOVERNOR IN COUNCIL APPROVED BY GAZETTE NOTICE ON 1 OCTOBER 2010 THE HANCOCK COAL PTY LTD ALPHA

COAL RAIL CORRIDOR PROJECT AS AN INFRASTRUCTURE FACILITY THAT IS OF SIGNIFICANCE UNDER THE STATE DEVELOPMENT AND PUBLIC WORKS

ORGANISATION ACT 1971

I. Decision

On 1 October 2010, the Governor in Council approved by gazette notice under Section 125 (1) (f) of the State Development and Public Works Organisation Act 1971 (SDPWO Act) the Hancock Coal Pty Ltd Alpha Coal Rail Corridor Project as an infrastructure facility that is of significance, particularly economically or socially, to Australia, Queensland and the Fitzroy and Mackay regions, being the regions in which the rail corridor is to be constructed. The Governor in Council, in making that decision, considered and adopted the reasons set out below that were prepared by The Coordinator-General, Mr Graeme Newton under Section 125 (5) of the SDPWO Act.

2. Introduction

On 16 February 2010, The Coordinator-General received an application (the Application) from Hancock Coal Pty Ltd (Hancock Coal} requesting that a coal rail corridor and track from its Alpha Coal mine in the Galilee Basin to the western boundary of the Abbot Point State Development Area (the Rail Corridor) be approved by the Governor in Council as an infrastructure facility of significance under Section 125 (1) (f) of the SDPWO Act.

Section 125 (1} (f) of the SDPWO Act provides that the Coordinator-General may take land for the purposes of an infrastructure facility that is:

• of significance, particularly economically or socially, to Australia, Queensland or the region in which the facility is to be constructed; and

• is approved by the Governor in Council, by gazette notice, as having that significance.

Pursuant to Section 125 (2) of the SDPWO Act, when considering whether an infrastructure facility would be of economic or social significance, the potential for the Rail Corridor to contribute to community wellbeing and economic growth or employment levels must be taken into account. In accordance with Section 125 (3) of the SDPWO Act, in assessing such potential, the contribution the Rail Corridor makes to agricultural, industrial, resource or technological development in Australia, Queensland or the region is a relevant consideration.

3. Evidence or Other Material on Which Findings of Material Questions of Fact are Based

In considering whether the Hancock Coal Pty Ltd Alpha Coal Rail Corridor Project is an infrastructure facility that is of significance, particularly economically or socially, to Australia, Queensland and the region(s} in which the facilities are to be constructed, The Coordinator-General and the Governor in Council had regard to the following materials:

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1 October 2010] QUEENSLAND GOVERNMENT GAZETIE No. 35 259

• State Development and Public Works Organisation Act 1971 (Qld) and particularly Sections 125 and 174;

• Guidelines for acquisition of land for infrastructure projects by persons other than the State, September 1999, prepared pursuant to Section 174 of the SDPWO Act;

• Guidelines for consultation and negotiation with native title interests, September 1999 prepared pursuant to Section 174 of the SDPWO Act;

• Letter dated 16 February 2010 from Hancock Coal Pty Ltd, to The Coordinator-General, attaching Hancock Coal's Application for Declaration of an Infrastructure Facility of Significance and supporting material (the Application);

• Letter dated 16 February 2010 from Hancock Coal Pty Ltd, to the Deputy CoordinatorGeneral (Geoff Dickie), attaching confidential documentation in support of the Application;

• Letter dated 19 February 2010 from the Deputy Coordinator-General (Geoff Dickie) inviting submissions from persons who may be affected by the proposed infrastructure facility, including Native Title Parties;

• Publication of Public Notices for the Proposed Hancock Coal Rail Corridor in The Courier Mail and regional Queensland papers on Saturday 20 February 2010, and Wednesday 24 February 2010;

• Press release dated Saturday 20 February 2010 by the Minister for Infrastructure and Planning;

• Report dated 10 March 2010 titled "Supplementary information for Hancock Coal Pty Ltd Infrastructure Facility of Significance Application", prepared by the Economic and Analysis Unit, Economic Policy and Research Branch, Economic Policy and Planning Division, Department of Employment, Economic Development and Innovation;

• Department of Infrastructure and Planning, "Projects - Alpha Coal Mine", http://www.dip.gld.gov.au/projects/mining-and-mineral-processing/coal/alpha-coalproject.html, (accessed 17 June 2010);

• Submissions commenting on the Application that were received from a range of affected interest holders and interested parties;

• Letter dated 12 April 2010 from Hancock Coal to The Coordinator-General responding to certain submissions which had commented on the Application;

• Email dated 19 April 2010 from Warren Phillips of Hancock Coal to David Stolz of the Department of Infrastructure and Planning, attaching a replacement Attachment F to Hancock Coal's letter dated 12 April 2010;

• Letter dated 20 April 2010 from the Deputy Coordinator-General (Geoff Dickie) to Hancock Coal requesting clarification of corridor alignment and update of Financial and Technical Capability material;

··-----------·-----·------···------·-------------------------~-----------------------·-------------~----------RTI Document No.1021Full

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• Letter dated 28 April 2010 from the Deputy Coordinator-General (Geoff Dickie) to Xstrata Coal Pty Ltd advising of a potential amendment to the alignment of the Rail Corridor and seeking comments from Xstrata Coal Pty Ltd on an informal basis;

• Letter dated 28 April 20 I 0 from the Deputy Coordinator-General (Geoff Dickie) to QCoal Pty Ltd advising of a potential amendment to the alignment of the Rail Corridor and seeking comments from QCoal Pty Ltd on an informal basis;

• Letter dated 30 April 20 I 0 from Hancock Coal to the Deputy Coordinator-General (Geoff Dickie) responding to the Deputy Coordinator-General's letter of20 April20!0;

• Letter dated 4 May 20 I 0 from QCoal to the Deputy Coordinator-General (Geoff Dickie) providing comments on the potential amendment to the alignment of the Rail Corridor;

• Letter dated II May 2010 from Xstrata Coal to the Deputy Coordinator-General (Geoff Dickie) providing comments on the potential amendment to the alignment of the Rail Corridor;

• Copy of letter dated 14 May 2010 from Hancock Coal to the Treasurer confirming discussions in meeting of 6 May 201 0;

• Letter dated 28 May 2010 from Hancock Coal to the Deputy Coordinator-General (Geoff Dickie) formally requesting an amendment to its Application in respect of the alignment of the Rail Corridor in the New lands area;

• Copy of letter dated 31 May 2010 from Hancock Coal to QCoal regarcling Hancock Coal's changes to the Rail Corridor alignment;

• Copy ofletter dated 2 June 2010 from Hancock Coal to East West Line Parks Pty Ltd responding to its submission;

• Letter dated 2 June 2010 from the Deputy Coordinator-General (Geoff Dickie) to QCoal advising of Hancock Coal's amended Application and seeking comments;

• Letter dated 2 June 2010 from the Deputy Coordinator-General (Geoff Dickie) to Xstrata Coal advising of Hancock Coal's amended Application and seeking comments;

• Letter dated 4 June 2010 from QCoal to the Deputy Coordinator-General (Geoff Dickie) requesting additional time to respond to Hancock Coal's amended Application;

• Letter dated 8 June 2010 from QCoal to David Stolz of the Department ofinfrastructure and Planning providing supporting information for request for additional time to respond to Hancock Coal's amended Application;

• Letter dated 11 June 2010 from the Deputy Coordinator-General (Shane McDowall) to QCoal granting an extension of time to respond to Hancock Coal's amended Application until 18 June 20 10;

• Letters dated 11 June 2010 from the Executive Director of the Department of Infrastructure and Planning to five landowners affected by Hancock Coal's amended Application;

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/

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• Letter dated 15 June 2010 from the Deputy Coordinator-General (Shane McDowall) to Hancock Coal outlining proposed tenure arrangements and project arrangements between Hancock Coal and the State;

• Letter dated 17 June 2010 from Hancock Coal to the Deputy Coordinator-General (Shane McDowall) responding to the Deputy Coordinator-General's letter of 15 June 201 0;

• Letter dated 18 June 20 10 from the lawyers acting for an affected landowner to The Coordinator-General responding to Hancock Coal's amended Application;

• Letter dated 18 June 2010 from QCoal to The Coordinator-General responding to Hancock Coal's amended Application;

• Report dated 18 June 2010 titled "Assessment of 'statement' and 'relevant supporting documentation' submitted by proponent in satisfaction of criteria: (a) Preliminary Financial Analysis (of the facility), and (b) Proponent Financial and Technical Capacity", prepared by the Commercial Unit, Department ofinfrastructure and Planning;

• Letter dated 21 June 2010 from an affected landowner to The Coordinator-General responding to Hancock Coal's amended Application;

• Letter dated 21 June 2010 from Hancock Coal to David Stolz of the Department of Infrastructure and Planning responding to QCoa!'s letter of 18 June 201 0;



• Letter dated 23 June 2010 from the Deputy Coordinator-General (Shane McDowall) in response to Hancock Coal's letter of 17 June 2010;

• Letter dated 23 June 2010 from Xstrata Coal to the Deputy Coordinator-General (Geoff Dickie) responding to Hancock Coal's amended Application;

• Letter dated 7 September 20 1 0 from the Deputy Coordinator-General (Ed Ebert) to QCoal;

• Letter dated 7 September 2010 from the Deputy Coordinator-General (Ed Ebert) to Xstrata Coal acknowledging receipt of correspondence dated 23 June 201 0;

• Letter dated 9 September 2010 from Hancock Coal to the Department of Infrastructure and Planning commenting on the letter from Xstrata Coal dated 23 June 2010;

• Letter dated 9 September 2010 from QCoal to the Deputy Coordinator-General (Ed Ebert);

• Report dated 10 September 2010 titled "Report on QCoal Pty Ltd's Submission on Infrastructure Facility of Significance Application by Hancock Coal Pty Ltd as part of the


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Alpha Coal Project", prepared by Statewide Services Unit, Mines and Energy, Department of Employment, Economic Development and Innovation;

• Letter dated 16 September 2010 from the Deputy Coordinator-General (Ed Ebert) to QCoal;

• Letter dated 16 September 2010 from Hancock Coal to the Department ofinfrastructure and Planning; and

• Letter dated 17 September 2010 from QCoal to the Deputy Coordinator-General (Ed Ebert); and

• Explanatory Memorandum to Executive Council Minute.

4. Findings of Material Questions of Fact

The conclusions set out below were made after having regard to the documents and materials set out above.

4.1 Type oflnfrastructure Facility Proposed Including Land on Which the Facility is to be Located

The proposed infrastructure facility is a standard gauge, standalone railway line designed to transport significant quantities of bulk coal from Hancock Coal's Alpha Coal mine in the Galilee Basin to the Port of Abbot Point.

Details ofthe infrastructure (acilitv

Hancock Coal, a wholly-owned subsidimy of Hancock Prospecting Pty Ltd (Hancock Prospecting), is proposing to develop the Alpha Coal Mine in the Galilee Basin, approximately 50 kilometres north of the township of Alpha, 130 kilometres south-west of the Clermont township, and approximately 360 kilometres south-west of Mackay. Upon final development in 2018, it is anticipated that the Alpha Coal Mine will produce approximately 30 million tonnes per annum (Mtpa) of thermal coal for export over a mine life in excess of30 years.

Hancock Galilee Pty Ltd, also a wholly owned subsidiary of Hancock Prospecting, is proposing to develop the Kevin's Comer Mine in the Galilee Basin, which is also expected to produce approximately 30 Mtpa of coal over 30 years.

The proposed railway is a single standard gauge railway, approximately 495 kilometres long, from Hancock Coal's Alpha Coal Mine to Abbot Point that will accommodate between 30 and 60 Mtpa of coal throughput from the Galilee Basin. For the purposes of the Application, the Rail Corridor consists of that part of the railway from the Alpha Coal Mine to the western boundary of the Abbot Point State Development Area. An area ofland for marshalling yards (including maintenance facilities) to be located south of the Rail Corridor near the Abbot Point State Development Area is also included in the Application.

Hancock Coal is proposing to use the Rail Corridor to transport 30 Mtpa of coal from its Alpha Coal Mine, and a further 30 Mtpa of coal from Hancock Galilee's proposed Kevin's Comer Mine following the development of that mine, including tbe construction of a loadout loop and a spur line from the loadout loop to the Rail Corridor, by that company. The railway track has been designed to carry 60 to 80 Mtpa. Five passing loops along tbe length of tbe mainline will allow capacity of 30 Mtpa. An additional tbree passing loops will

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increase that capacity to 60 Mtpa. Additional passing loops and rollingstock will allow capacity to be increased to at least 80 Mtpa, and selective partial duplication will enable tonnages to be further increased. This will allow the railway to provide enough capacity to transport coal from other mines in the Galilee Basin area to Abbot Point.

The railway will be managed and operated in accordance with the provisions of the Transport Infrastructure Act 1994.

Hancock Coal anticipates that the final Rail Corridor will be approximately 60 to 100 metres in width. This will include the land required for the track itself, as well as drainage, access roads and other infrastructure necessary to support the railway. For the purpose of this approval Hancock Coal is seeking a footprint of 500 metres in width (250 metres either side of the nominal centre line). This footprint will be refined as the project proceeds to the construction phase.

The infrastructure facility to which this Application relates consists of the main railway line from Alpha Coal Mine to the western boundary of the Abbot Point State Development Area. Hancock Coal proposes other rail infrastructure, not the subject of this approval which will include a loadout loop at the Alpha Coal Mine site and unloading loops at the Port. Hancock Coal envisages that an associated company, Hancock Galilee, will construct a spur line to a loadout loop to service Hancock Galilee's proposed Kevin's Comer Mine site. A further three passing loops in the Rail Corridor will be required to create capacity for trains from Kevin's Comer.

Four trains per day on average will be required to transport 30 Mtpa of coal.

Details o[the land upon which the inftastructure [acilitv is proposed to be located:

The proposed Rail Corridor will pass through land in which there are 40 individual interest holders. All of the affected land is held in either freehold or leasehold title. The total land area covered by the final Rail Corridor will be up to approximately 50km2

•

By letter dated 17 June 2010, Hancock Coal confirmed that it intended to transfer to the State any land it voluntarily acquired for the Rail Corridor, in order to enable the State to own the underlying land for the Rail Corridor with such land being leased or sub-leased to Hancock Coal on a long term basis.

There are no Native Title holders affected by the Rail Corridor. However, there are three registered Native Title claim groups that intersect the proposed route: the Wangan and Jagalingou People; the Jangga People; and the Birri People. The final 60 kilometres of the proposed route does not affect a registered Native Title claim group.

The Rail Corridor passes through three Local Government areas: Barcaldine Regional Council; Isaac Regional Council; and Whitsunday Regional Council.

Details a[ the p,roposed alignment of the Rail Corridor:

Hancock Coal has undertaken detailed investigations to determine the preferred alignment for the Rail Corridor. Details of the investigations are set out at 4.10 below.

The proposed alignment has been developed by Hancock Coal having regard to:

• Avoidance of all National Parks, State Forests and Nature Reserves;


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264 QUEENSLAND GOVERNMENT GAZETIE No. 35 [1 October 2010

• Avoidance where possible of all mining leases and mineral development licences;

• A voidance where possible of all remnant vegetation;

• Minimising the impact on rivers and streams;

• Minimising the impact on farming and grazing property;

• A voiding towns and populated areas;

• Ensuring that the railway is as short as possible;

• Ensuring that the railway does not climb unnecessarily;

• Ensuring that the railway can be constructed;

• Ensuring that the rollingstock can be operated efficiently and effectively; and

• Balancing the above criteria with the requirement for sustainable operating cost parameters.

Where possible, Hancock Coal also sought to align the route with the Queensland Rail Northern Missing Link rail corridor, to minimise multiple impacts on interest holders and coal resource developers.

Hancock Coal wrote to all affected Exploration Permit holders giving them an opportunity for discussion to ensure that known resources were not impacted by the railway. The alignment was specifically chosen to avoid, to the greatest extent possible, all mining lease and mineral development licences and exploration permits.

The rail alignment enters the Abbot Point precinct from the west, crossing the Bruce Highway and the North Coast Rail Line as it enters the Abbot Point State Development Area. In this manner, the alignment minimises noise impacts for residents of Collinsville and avoids the Sonoma State Forest.

Hancock Coal notes that the proposed alignment is subject to changes that may arise as further studies and detailed design of the railway are undertaken.

Hancock Coal states that approximately 85 per cent of the Rail Con·idor is firm. The remaining parts of the Rail Corridor are subject to flexibility, to ensure that potentially adverse effects are minimised. These areas of flexibility include:

• major river and creek crossings and their approaches;

• the proposed route through certain interest holders' properties;

• alignment of that part of the Rail Corridor which runs alongside the Bowen River Valley; and

• land which is covered by exploration and mining tenures, where the alignment traverses significant resources within existing exploration permits.


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1 October 201 0] QUEENSlAND GOVERNMENT GAZETIE No. 35 265

The Rail Corridor traverses land in the northern part of the Bowen Basin over which QCoal Pty Ltd (QCoal) and its subsidiaries hold exploration permits. QCoal expressed concerns regarding the potential sterilisation of resources as a result of construction of the Rail Corridor. Following discussions with QCoal, by letter dated 28 May 2010, Hancock Coal formally amended its Application to seek a realignment of the Rail Corridor in the area adjacent to the southern end of the New lands coal rail system. Hancock Coal proposes to "hug" the existing Newlands rail line and the Northern Missing Link (which is currently under construction) so as to minimise additional impacts on QCoal. Hancock Coal stated that it believed that this was the most workable solution for both parties.

4.2 Demand Projections for the Services Associated with the Infrastructure

The coal deposits of the Galilee Basin comprise large volumes of high volatile, low rank thermal coals. Hancock Coal estimates that within the Galilee Basin across a number of projects there are over 14 billion tonnes of coal already identified by various companies, to the standards set by the Joint Ore Reserves Committee (JORC) in the JORC Code 2004, which is the standard adopted by the Australian Securities Exchange for reporting. In respect of the Alpha Coal and Kevin's Corner Projects, Hancock Coal has identified resources in excess of7.8 billion tonnes (in compliance with JORC standards), 1.2 billion tonnes of which has been categorised in the JORC "Measured" category, which is the current equivalent of a bankable standard.

The Alpha Coal and Kevin's Corner Mines are ranked as one of the largest thermal coal resources in the world. The coal from those projects has been identified as a high quality thermal coal with low ash content and low sulphur. The coal has attractive Hardgrove Grindability Index (HGI) properties, is low in trace elements, and is a large resource capable of providing coal of a consistent quality.

Consumption of thermal coal globally increased by more than 35 per cent during the period 2001 to 2008, and is forecast to increase a further 34 per cent from 2009 to 2020. This reflects the significant growth in coal-fired generation. In the 2008-09 financial year, Queensland's exports of thermal coal rose by almost 10 million tonnes, mostly to China and Taiwan, in response to increased consumption, reduced prices and placement of some weaker coking coals into the thermal coal market. Reports indicate that China and India will require an additional 700 Mtpa of thermal coal by 2013, which cannot be met by their domestic markets. Ongoing demand for thermal coal is supported by leading energy and resources forecasters Wood Mackenzie, whose services are subscribed to by the Department of Infrastructure and Planning.

The global trade in thermal coal is estimated at 5.75 billion tonnes per annum, with the seaborne trade (export market) estimated at 700 million tonnes per annum. Australia, Indonesia, Colombia and South Africa are the largest seaborne exporters of coal. It is expected that increased demand for thermal coal in China and India will be the key driver of growth in the seaborne market. China in particular is now a net importer of coal and as its imports grow, the market is expected to become increasingly tight, providing opportunities for new thermal coal projects.

In order to meet this increasing demand for exported thermal coal and tap into the coal resources situated in the Galilee Basin, rail transportation is required to move the coal from Galilee Basin to Abbot Point, which has been identified as being the State's preferred northern location for exporting coal from the Galilee Basin. Potential Galilee Basin coal producers may export in excess of 100 Mtpa.

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4.3 Needs Which the Facilities Would Meet and How the Infrastructure Would Satisfy the Identified Need

Given the forecast increased demand for thermal coal globally, particularly through the seaborne export market, and the large amounts of thermal coal which have already been identified in the Galilee Basin, there is a need for infrastructure for transportation of coal from the Galilee Basin to Abbot Point for exportation. The lack of transport and export infrastructure has been a major contributing factor to the present underdevelopment of the Galilee Basin.

There is no current rail infrastructure which services the Galilee Basin. The existing Newlands and Goonyella Queensland Rail (QR) networks are primarily servicing the Bowen Basin area and, even with construction of the Northern Missing Link, will not be equipped to accommodate demand from Galilee Basin producers.

Expansion of the existing networks is not preferable, given that they are already heavily utilised, and any expansion would cause significant delays to existing users during construction.

Transportation by road is also not considered to be suitable, given the number of trucks which would be required to transport the projected tonnages of coal from the Galilee Basin. Rail transportation has sigoificant advantages over road transportation, in that it is economically more efficient and results in less greenhouse gas emissions.

The Rail Corridor would satisfy the need for transportation of coal from Galilee Basin to Abbot Point by providing a separate, standalone railway specifically desigoed for the transportation of coal between the two destinations. Due to the size of the Alpha Coal Mine and Kevin's Comer Mine, Hancock Coal took the view that the preferable approach would be to construct a purpose built railway.

Although Hancock Coal wishes to construct the Rail Corridor for the purpose of transporting coal from its Alpha Coal Mine to Abbot Point, and envisages that an associated company, Hancock Galilee, will use the Rail Corridor for that company's proposed Kevin's Comer Mine, Hancock Coal has also undertaken to provide access to the railway to third parties in accordance with a voluntary undertaking to be made by Hancock Coal pursuant to Part IliA of the Trade Practices Act 1974 (Cth). In this regard, there are a number of other significant coal producers in the Galilee Basin which are likely to benefit from the construction of the railway.

4.4 Timing of Project or Service Delivery

Hancock Coal has indicated that it wishes to commence construction for the Alpha Coal Project in mid-2011 for export of first coal late in 2013. Hancock Coal has advised that an associated entity, Hancock Galilee, has brought its project known as Kevin's Comer, forward to mesh in with the Alpha Coal Project timetable as far as possible.

Construction of the rail infrastructure within the Rail Corridor will take approximately 24 months to complete. Pending relevant approvals, Hancock Coal has indicated that it intends to commence construction of the railway in 2011, so that the railway is completed in time to transfer the first coal from the Alpha Coal Mine in late 2013.

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4.5 Special Assistance Required from Government other than Land Acquisition

Hancock Coal's Application indicates that during the construction of the Rail Corridor it may seek State assistance with respect to road openings, closures and crossings, dealings with water crossings, access to land both within and outside of the corridor to carry out necessary and appropriate investigations, and any other dealings with respect to State land generally. Hancock Coal does not envisage requiring State assistance once construction of the Rail Corridor has been completed.

4.6 Preliminary Financial Analysis (of the proposed Infrastructure Facility)

In the Application, Hancock Coal estimates that construction of the railway will cost approximately $2.2 billion for a capacity of 30 Mtpa, including the cost of earthworks and drainage, track supply, bridges, signalling, construction facilities and land acquisition.

An increased capacity to carry 60 Mtpa will cost approximately an extra $60 million, including for an additional three passing loops to create capacity for additional trains.

In the Application, Hancock Coal notes that its Alpha Coal Project and Hancock Galilee's Kevin's Comer Project have "sufficient financial robustness to underwrite the economic and sustainable development of the railway". Capacity expansion to allow further third party use further improves the net present value for the Rail Corridor. Hancock Coal has confirmed that the Alpha Coal Project is financially viable on a standalone basis.

Hancock Coal bas provided further information both in the Application, and subsequently, including by inspection, on a Commercial-in-Confidence basis.

Upon review of both the publicly available and Commercial-in-Confidence material provided by Hancock Coal, the Commercial Unit of the Department oflnfrastructure and Planning, in its Report dated 18 June 2010, considered that Hancock Coal has progressed the financial analysis of the proposed facility as far as possible at this stage and that, based on the material to hand at this point in time, the Rail Corridor is expected to be viable.

4.7 Possible Environmental Impacts

An Environmental Impact Statement (EIS) is required for the Rail Corridor as a result of it being declared by the Coordinator-General under Section 26 of the SDPWO Act to be a significant project for which an EIS is required. The purpose of the EIS is to assess the potential adverse and beneficial environmental, economic and social impacts of the project; and management, monitoring, planning and other measures proposed to minimise any adverse environmental impacts of the project. In June 2009, The Coordinator-General approved the terms of reference for Hancock Coal's EIS. Hancock Coal anticipates that its EIS will be considered by The Coordinator-General in the last quarter of2010.

On 13 January 2009 the Rail Corridor as part of the broader Alpha Coal Project was declared to be a 'controlled action' under the Environment Protection and Biodiversity Conservation Act 1999 (Cth) for potential impacts on the following matters of national environmental significance:

a) world heritage properties; b) national heritage places; c) listed threatened species and ecological communities; and d) listed migratory species.

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Hancock Coal will prepare one EIS to satisfY the requirements under both Commonwealth and State legislation.

Hancock Coal noted that its investigations to date have not indicated any significant adverse impacts from the Rail Corridor that are not capable of being managed within the SDPWO Act EIS process. Hancock Coal advised that the alignment of the Rail Corridor has been designed to minimise impact on the environment, particularly to avoid areas of high ecological value where possible. The Rail Corridor does not cross any State Forests, National Parks or Reserves.

Hancock Coal stated that, as far as is possible, the Rail Corridor has been aligned so that vegetation areas "of concern" or "endangered" have been avoided. A high level examination of the remnant vegetation make-up of the Rail Corridor (within the 500 metre footprint) by the Department of Infrastructure and Planning has identified that approximately 15 per cent of the corridor comprises vegetation other than "Non remnant" or "Not of concern", and considered to be of concern. One section of "endangered-dominant" vegetation is eight kilometres long. Where vegetation clearing cannot be avoided, Hancock Coal has indicated that environmental offsets will be provided to compensate for vegetation loss.

Hancock Coal stated that the EIS process will be used to determine measures to minimise noise impacts from the operation of the railway. The technology that Hancock Coal has opted to use in the operation of the railway is likely to result in the railway being comparatively quiet. Hancock Coal has further stated that specific outcomes will be negotiated with interest holders that are likely to be impacted due to noise from operating coal trains.

The impact of dust on affected properties will be considered as part of the EIS process, however Hancock Coal noted at this stage that air quality operations for the railway will be developed in accordance with the Environmental Protection Policy for Air and in consultation with Government agencies. Further, the EIS process will require an assessment of the Rail Corridor against relevant Commonwealth and State policies relating to greenhouse gas emissions and climate change.

Hancock Coal has indicated that prior to commencement of construction of the Rail Corridor, it will prepare a Construction Environmental Management Plan (CEMP) which will be reflective of interest holder and other stakeholder consultation. The CEMP will contain measures for:

• minimisation of dust generation;

• mitigation of potential impacts on water quality;

• management of weeds during construction;

• minimisation of clearing, particularly clearing of remnant vegetation for temporary construction purposes;

• monitoring by an ecologist during clearing;

• rehabilitation of disturbed areas;

• provision of culverts to allow uninterrupted surface flows across landscape;

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• collection of seeds prior to clearing from local native trees; and

• ongoing monitoring of development areas and rehabilitation sites.

Hancock Coal anticipates that during construction the main air quality impacts are likely to be associated with dust and emissions generated during earthworks and the movement of vehicles over exposed surfaces. Hancock Coal anticipates that, at this stage, dust and exhaust emissions are unlikely to have a significant impact. Further, Hancock Coal anticipates that noise and vibration impacts during construction are unlikely to be significant given that Hancock Coal has selected the location of its workers' camps, lay-down areas and temporary site operations a distance away from nearby properties.

These issues described above will be more fully discussed in the EIS.

4.8 Proponent's Financial and Technical Capacity to Implement the Proposed Facility

The Proponent is Hancock Coal Pty Ltd, a wholly-owned subsidiary of Hancock Prospecting Pty Ltd.

Hancock Prospecting is a private company fully owned and controlled by Ms Gina Rinehart and her family which has experience in prospecting, development, operations and marketing of bulk commodities, particularly iron ore. Under the direction of Mr Lang Hancock, Hancock Prospecting was responsible for initial development of the Pilbara region of Western Australia into the world's premier iron ore mining region. Hancock Prospecting has previous experience in developing a similar railway line in Western Australia, the Lang Hancock Railway.

Hancock Prospecting holds significant interests in a number of operating iron ore mines and a manganese mine, as well as a 50 per cent interest in the $1.3 billion Hope Downs iron ore joint venture with Rio Tinto.

Hancock Coal has a dedicated Queensland-based team to oversee the development of the Alpha Coal and Kevin's Comer Projects and associated infrastructure, including the Rail Corridor as outlined in the Application, and in Hancock Coal's letter of30 April2010.

Hancock Coal has on a Commercial-in-Confidence basis advised The Coordinator-General the entities that it has appointed as its preferred operators in respect of its above rail operations, below rail operations and port operations.

Hancock Coal has provided to The Coordinator- General on a Commercial-in-Confidence basis a copy of its Project Execution Plan which outlines its plan to implement the proposed facility, attached to its letter of 30 April 2010. Hancock Coal has provided further information both in the Application, and subsequently, including by inspection, on a Commercial-in-Confidence basis.

Upon review of both the publicly available and Commercial-in-Confidence material provided by Hancock Coal, the Commercial Unit of the Department of!nfrastructure and Planning, in its Report dated 18 June 2010, considered that Hancock Coal has progressed its implementation planning as far as possible at this stage, and that the implementation planning appears to be feasible and reasonable.


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• interactions with roads and access points;

• rail maintenance and provisioning facilities;

• rollingstock selection for the preferred alignment;

• temporary construction facilities;

• geotechnical desktop study and investigation of!ocal construction materials;

• desktop study of available hydrology data for water supply and flooding issues; and

• power supply and utilities options.

Hancock Coal engaged the consultants Quantum to assist in the development of the proposed alignment through use of its Quantum Alignment Planning Solution (QAPS). QAPS enabled an analysis of all potential route alignments to determine which best met the relevant environmental, cultural, social, engineering and cost constraints. Hancock Coal assessed over 200 proposed routes through QAPS.

LiDAR surveys were also undertaken for the entire rail route. LiDAR is a laser based technology used to produce terrain, elevation and canopy models, and high accuracy surveys for detailed design of roads and railways.

4.11 Summary of the Public Submissions

As part of the significance, particularly economically or socially, to Australia, Queensland or the Fitzroy and Mackay regions, The Coordinator-General invited submissions on the relevant issues from affected persons, in accordance with the Guidelines for acquisition of landfor infi·astructure projects by persons other than the State.

A range of submissions were received from private individuals and from the following organisations:

• Isaac Regional Council;

• QCoal Pty Ltd;

• North Coal Pty Ltd;

• AMCI (Alpha) Pty Ltd;

• Calibre Global Pty Ltd;

• Bimblebox Nature Refuge;

• Mackay Conservation Group;

• Queensland South Native Title Services; and

• East West Line Parks Pty Ltd.

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Following the submission of Hancock Coal's amended Application on 28 May 2010, additional submissions were received from QCoal, Xstrata Coal and two additional submissions were received from affected landowners.

Copies of all of the submissions were provided to Hancock Coal with an opportunity to respond. Hancock Coal has provided to The Coordinator-General its response to all submissions.

Many submissions argued that construction of the Alpha Coal Mine would lead to negative impacts. However, the subject of Hancock Coal's Application relates solely to the Rail Corridor. Hancock Coal is not seeking infrastructure facility of significance approvals in respect of its Alpha Coal and Kevin's Comer Projects, nor is such approval required in order for Hancock Coal to proceed with those projects.

Private individuals

A range of submissions were received from private individuals whose land is likely to be affected by the Rail Corridor and from interest holders residing near the Rail Corridor.

These individuals raised a number of concerns, including the potential for flood impacts and altered overland water flows negatively impacting farm water storages and land usage, separation of farming lands with associated loss of economic productivity, issues associated with the day-to-day management of their farming operations (such as the need to move or install new water pipelines, dams, fences, stockyards, under and overpasses, safety at rail crossings, noise pollution), and the health and safety risks to the local residents and cattle from dirt and coal dust pollution.

In response to the concerns raised by private individuals, Hancock Coal has noted the following:

• In accordance with the EIS process, Hancock Coal is required to put in place measures to minimise and manage environmental impacts. Hancock Coal will be liaising in this regard with individual interest holders to ascertain their specific concerns; and

• Hancock Coal will consult individually with affected interest holders regarding losses suffered as a result of construction of the railway. Hancock Coal has undertaken to, in consultation with interest holders reinstate or relocate existing farm infrastructure directly impacted by the railway. Where land is compulsorily acquired by The CoordinatorGeneral, affected interest holders will be entitled to compensation in accordance with the Acquisition of Land Act 1967 (Qld).

Further, Hancock Coal has committed to undertaking the same actions that Queensland Rail has undertaken with respect to interest holders affected by the Northern Missing Link, namely to:

• implement a Land Access Protocol for visiting personnel, consultants and contractors;

• provide cattle, vehicle and machinery crossings of the railway;

• provide service conduits at nominated locations under the railway to allow the laying of water pipes and other services;

• fence the corridor boundaries;


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1 October 201 0] QUEENSLAND GOVERNMENT GAZETTE No. 35 273

• pay financial compensation for property severance and any reduced economic viability;

• implement a Weed Management Plan;

• provide a safety and operational contact phone number; and

• once construction is underway, develop a plan with interest holders to implement the works in a coordinated manner.

As a result of Hancock Coal's amendment to its Application to seek a realignment of the Rail Corridor in the Newlands area, by letters dated the II June 2010, the Department of Infrastructure and Planning wrote to five interest holders affected by Hancock Coal's amended Application inviting submissions on the proposed changes to the original aligoment traversing their land interests. Two additional submissions from landowners were received objecting to the realignment. In respect of those additional submissions, Hancock Coal noted that it would be amenable to seeking voluntarily agreed outcomes with the landowners in order to minimise impacts on their properties.

QCoa/ Pty Ltd

QCoal and its subsidiaries are the holders of various types of exploration and mining permits in the northern part of the Bowen Basin. QCoal noted that the original route of the Rail Corridor ran through areas held under QCoal's granted exploration permits. QCoal claimed that the corridor as proposed would result in sterilisation of sigoificant resources of coal and presented "best case", "likely case" and "worst case" scenarios. QCoal estimated that the areas subject to the original aligoment of the Rail Corridor had potential in situ coal resources of up to 498 million tonnes of raw coal, yielding up to 330 million tonnes of mainly hard coking coal product. In QCoal's estimate, this meant that up to $66 billion worth of coal could be sterilised by the Rail Corridor. QCoal submitted that, as a result, QCoal and the State of Queensland would be deprived of significant coking resources, which had been identified as critical for replacement of declining coking resources in the State, and that the State would lose substantial coal royalties in the sum of up to $5.56 billion. QCoal further claimed that the Rail Corridor had not taken into account the cost of compensation payable to QCoal as a result of sterilisation of its resources.

Hancock Coal in response stated that, in respect of one of the exploration permits which QCoal noted was particularly affected by the Rail Corridor, that the proposed alignment of the Rail Corridor in that area is parallel to the existing Northern Missing Link corridor, and that further impact as a result of the Rail Corridor is therefore expected to be minimal.

Hancock Coal also noted that the final Rail Corridor is only expected to be 60 to 100 metres in width, and that QCoal's calculations as to the amount of coal likely to be sterilised may have been based on the nominal 500 metres corridor width proposed by Hancock Coal for the purposes of its Application. In Hancock Coal's view, therefore, QCoal's estimate as to the value of coal likely to be sterilised is likely to be overstated. Further, if coal resources were in the future determined to be of significant value, Hancock Coal noted that there were precedents for the temporary or permanent relocation of rail corridors.

QCoal claimed that the Rail Corridor effectively severs the Galilee Basin from existing east coast rail and pipeline infrastructure, as well as severing the Bowen Basin vertically such that any projects or services that cross from east Bowen to west Bowen will need to cross the Rail Corridor. Hancock Coal, in its response, noted that the Rail Corridor has been desigoed to ensure that it does not cross any existing Queensland Rail networks except at the entry to


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QUEENSlAND GOVERNMENT GAZEm No. 35 [1 October 2010

Abbot Point, so as to avoid isolating Bowen Basin coal producers from existing Queensland Rail networks. Hancock Coal further noted that there were no submissions from any Galilee Basin proponents as to isolation as a result of the Rail Corridor. The Rail Corridor is required to cross the North Queensland Gas Pipeline, Sunwater Pipeline and QR North Coast line. However, Hancock Coal stated that there are reasonably priced engineering solutions available to all these crossings.

QCoal also submitted that, as the Mineral Resources Act 1989 (Qld) prevents the carrying on of operations within certain distances of a railway, this will significantly restrict new developments within the vicinity of the Rail Conidor. Hancock Coal, in its response, stated that the Mineral Resources Act relates only to activity on a mining lease, and does not apply where there is existing infrastructure in place.

QCoal expressed concern that the effect of the Rail Corridor on other projects being carried on within the Bowen Basin area had not been adequately addressed in Hancock Coal's Application, including the North Queensland Gas Pipeline, proposed Burdekin water pipeline duplication and Water for Bowen canal. Hancock Coal noted that the Pilbara railway in Western Australia had been successfully constructed to cross gas pipelines without significant impact. Further, some of the projects that QCoal referred to in its submission, such as the Water for Bowen balancing storage facility, Abbot Point Pumping Station, Ergon Energy Substation and Ramsar Wetlands are located within the Abbot Point State Development Area, and are not the subject of Hancock Coal's Application.

QCoal further claimed that Hancock Coal failed to properly negotiate with it.

QCoal claimed that all necessary considerations for an approval under Section 125 of the SDPWO Act had not been made out. In particular, it claimed that Hancock Coal failed to undertake a cost/benefit analysis of the route to the State and other Galilee Basin producers, and had failed to properly consider alternative routes, particularly those proposed by QCoal. QCoal further submitted that the computer modelling program utilised by Hancock Coal in determining the preferred alignment of the Rail Corridor was based on a flawed process. Hancock Coal responded by stating that it had undertaken an extensive analysis, consisting of a number of studies and a number of alternative rail routes.

QCoal submitted that the Rail Corridor would have a net negative financial impact on Australia, Queensland and the local region, by being a financial drain on the State's resources and the people of Queensland, and that it would have a negative impact upon the community wellbeing, economic growth and employment levels of the affected regions and Queensland as a whole. Hancock Coal has disputed this claim.

QCoal requested that an IFS declaration be deferred until a Bankable Feasibility Study had been completed for the Alpha Coal Project.

QCoal requested that the current route be realigned so as not to impact on QCoal's projects. To that end, QCoal proposed two alternative alignments for the Rail Corridor which would avoid impacting QCoal's tenements in the Bowen Basin and, in QCoal's submission, better service otl1er coal producers in the Galilee Basin. In its response Hancock Coal stated that it had considered an alignment to the west of the current Rail Corridor, as suggested by QCoal, but had rejected an alignment in that area because it would have led to significantly increased construction and operational costs, as well as adding approximately 12 months to the construction period due to the topography and geology of the area. Hancock Coal noted that the alignments proposed by QCoal would involve traversing the Leichhardt Range, which was a major impediment to the establishment of an alignment in that area.


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In response, Hancock Coal proposed a realignment of the route in the areas over which QCoal's mining interests lie so as to minimise the impact on QCoal. Hancock Coal noted that the amended alignment, which "hugs" the Northern Missing Link, minimises any potential impacts on possible coal resources. This is because the Rail Corridor will be placed as close as possible to the existing narrow gauge rail corridor. Hancock Coal was of the view that the amended alignments proposed by QCoal were not reasonable, and could not be progressed by Hancock Coal, as they would not enable the development of a viable, long term railway that will underpin the Galilee Basin developments.

On 28 April 20 I 0 the Deputy Coordinator-General wrote to QCoal on an informal basis seeking comments on Hancock Coal's proposed realignment. QCoal responded by letter dated 4 May 2010 stating that the amended alignment was worse than the original alignment.

Geological Survey of Queensland, a division within the Department of Employment, Economic Development and Innovation (DEEDI), at a meeting on 1 April 2010, was requested to carry out an independent assessment of the claims of sterilisation made by QCoal in its submission. To this end, QCoal provided further supplementary information to DEEDI on a Commercial-in-Confidence basis.

This assessment found that the geological and coal quality data was sparse in all of the three areas of claimed sterilisation and insufficient to make a definitive determination of tonnage of sterilisation claimed. However, consideration of the resources demonstrated and the regional geology supported the view that significant resources of coal would be sterilised by the original alignment proposed in the Application. The assessment therefore recommended that an alternative route be considered.

Following discussions with QCoal, on 31 May 2010 Hancock Coal formally amended its Application, to change the alignment of the Rail Corridor in the area adjacent to the southern end of the New lands coal rail system. The amended alignment proposes to "hug" the existing New lands rail line and the Northern Missing Link (which is currently under construction), in order to provide a workable solution for both parties. Hancock Coal has also offered engineering design assistance to QCoal to optimise QCoal' s access requirements to infrastructure.

The assessment by Geological Survey of Queensland found that the new proposed route by Hancock Coal appeared to substantially reduce the coal sterilisation impacts claimed in QCoal's original submission, as it:

• eliminates potential sterilisation in QCoal's Area 2;

• virtually eliminates sterilisation in QCoal's Area 3;

• significantly lessens the impact on coal resources in Area I by adjoining the corridor for the Northern Missing Link which is under construction; and

• passes over areas of deeper coal inferred to be of Jesser quality and areas of major geological faults, and where coal is already sterilised by the existing Newlands line.

On 2 June 2010, the Deputy Coordinator-General wrote to both QCoal and Xstrata Coal formally advising of Hancock Coal's amended Application and the traversing of the Rail Corridor over land in which QCoal and Xstrata Coal hold interests.

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QCoal, by letters dated 4 June 2010 and 8 June 2010, stated that it remained committed to opposing any rail corridor which traversed and sterilises the Moranbah Coal measures and sought an extension of time until 18 June 20 I 0 to respond. This extension of time was granted by the Deputy Coordinator-General on II June 2010.

QCoal provided a response to the amended Application on 18 June 20 I 0. QCoal noted that the amended route continues to severely affect QCoal's exploration permits by significantly sterilising resources and also affects QCoal's Drake Project.

QCoal submitted that Hancock Coal was required to amend its original Application, rather than just provide updated maps, and publish the amended Application on its website. QCoal also submitted that The Coordinator-General was required to re-advertise the amended Application.

QCoal repeated its submissions with respect to:

• The excessive nature of the 500 metre wide Rail Corridor footprint;

• The detrimental economic and social impact of the Rail Corridor;

• That the alternate route was not properly investigated;

• Should compulsory acquisition proceed, QCoal will seek full compensation for the value of its interests in the affected tenements, and costs attributable to disturbance and severance; and

• The failure by Hancock Coal to properly negotiate with it.

Additionally, QCoal submitted that:

• The Rail Corridor would sever the connection between QCoal's Byerwen Coal Mine and the New lands Rail Line and Northern Missing Link. QCoal submitted that the additional bridges required to cross the Rail Corridor would render the Rail Corridor uneconomic;

• The amended alignment would continue to sever other QCoal developments such as the Havilah (Rosella Creek) Mine and Fig Tree Mine;

• The Rail Corridor would sever coal seam gas deposits held by BG and Westside;

• Hancock Coal has failed to undertake an EIS in relation to the proposed Rail Corridor, which is fundamental to satisfying the requirements of Section 125 and Section 174 of the SDPWO Act;

• Hancock Coal has not procured the necessary infrastructure for the delivery of water, power, port and rail facilities;

• Hancock Coal has failed to demonstrate a market for its medium grade thermal coal; and

• The proposed Resources Super Profits Tax renders the Alpha Coal Project uneconomic because it is a medium quality thermal coal project.

On 21 June 2010 Hancock Coal provided a response to the issues raised in QCoal's submission of 18 June 2010. Hancock Coal noted that the Rail Corridor does not actually impact upon the infrastructure or mining areas of QCoal's proposed Drake development.

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Hancock Coal also noted that, contrary to QCoal's submission, no significant impacts are expected to coal seam gas deposits in the Newlands to Collinsville area, as the alignment of the railway is adjacent to the Northern Missing Link and New lands railway.

Hancock Coal did not accept that there was a need to re-advertise the Application, as consultation has already occurred and the parties affected by the amendment were already in discussions with the Department of Infrastructure and Planning and/or Hancock Coal. Hancock Coal again clarified that the width of the final Rail Corridor will only be 60 to 100 metres.

Hancock Coal reiterated that the amended alignment for the Rail Corridor minimised any impacts on QCoal by following as close to the Northern Missing Link as possible, and also minimises impacts on any future Xstrata landholdings.

Hancock Coal also provided two recent demand forecasts and two recent price forecasts to demonstrate the ongoing demand for thermal coal globally. Hancock Coal noted that Australia's main competitor for thermal coal is Indonesia, and that Australia has lost market to Indonesia primarily due to a lack of rail and port infrastructure.

Hancock Coal submitted that the bridge costs provided by QCoal are substantially overstated. Hancock Coal has previously indicated that it would be prepared to locate the Rail Corridor in close proximity to the Northern Missing Link to share the approaches to bridge structures. Hancock Coal also submitted that the bridges referred to in the QCoal submission are planned regardless of the Rail Corridor as they are required to cross the Northern Missing Link.

Hancock Coal stated that it was in discussions with providers of the relevant necessary infrastructure.

Hancock Coal noted that the proposed Resource Super Profits Tax would have a negative impact on the entire minerals industry, but was of the view that it would have a far greater impact on QCoal's projects given they are still in a concept phase, making it more difficult to attract investment.

QCoal, by letter dated 17 September 2010 raised several issues of concern in relation to the manner in which the Application was being processed. It is not considered that the additional process steps which have been suggested by QCoal are, in the circumstances, required or necessary.

Other organisations

AMCI (Alpha) Pty Ltd, as the manager of the South Galilee Coal Project, was generally supportive of Hancock Coal's initiative but sought to ensure that the Rail Corridor is adequate to support the infrastructure required for both present and future demand, and that it would be a true multi-user corridor. In its response, Hancock Coal noted that the railway, as currently proposed, could be increased to hold a capacity of 120 Mtpa through additional rollingstock, passing loops and duplications. Beyond 120 Mtpa Hancock Coal noted that further duplication systems would be required. Hancock Coal stated that modelling work has been undertaken to confirm this approach, and that partial duplication could occur within the proposed 60 metre corridor. Further, Hancock Coal has consistently advised that it intends to make the railway available to third party users.

Calibre Rail Ply Ltd, which has been engaged by Hancock Coal as the railway consultant to undertake the Bankable Feasibility Project, provided a submission in support of Hancock


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Coal's application. Calibre Rail referred to the wide ranging benefits which could result from a large project such as this, including employment opportunities for local and Indigenous communities, economic and skills development for supporting local industries and a direct and significant contribution to the State's export performance.

Isaac Regional Council provided a submission noting that if the Rail Corridor is not negotiated properly there may be a negative impact on the effective running of local cattle and cropping businesses. However, the Council also stated that it recognises the economic benefits to the communities within the Galilee and Bowen Basins, and has provided a letter of support in respect of Hancock Coal's Application.

Mackay Conservation Group raised concerns regarding environmental impacts and the compensation payable to affected interest holders. Although these concerns are not directly relevant to the criteria to be satisfied under Section 125 (I) of the SDPWO Act, Hancock Coal has stated its intention to minimise environmental impacts as much as possible and ensure that fair compensation is paid to interest holders.

Bimblebox Nature Refuge submitted that the grazing industry would suffer in having to compete with the wages offered by the mining industry, and that exploitation of the Galilee Basin's coal reserves prevented more sustainable and longer term development in the area.

Queensland South Native Title Services, acting for the Wangan and Jagalingou People, raised concerns that if the Rail Corridor is declared to be an infrastructure facility of significance, Hancock Coal will seek to compulsorily acquire the affected Native Title claim land prior to an ILUA being entered into. Hancock Coal in its response noted that its preference is to enter into an ILUA if possible. An ILUA with the Wangan and Jagalingou People has now in fact reached in-principle agreement.

North Coal Pty Ltd (North Coal) is the holder of an exploration permit in the Bowen Basin which is affected by the Rail Corridor. North Coal raised concerns with respect to impediments to the existing rail line and exploration activities. North Coal noted that it did not have any coal deposits directly sterilised by the Rail Corridor, but that it was concerned as to the effect the Rail Corridor will have on its future interests. Hancock Coal, in its response, stated that it had been careful to ensure that known, demonstrated mining resources will not be impacted by the Rail Corridor. In relation to access concerns, Hancock Coal noted that it is required to provide access for property holders during construction and that it did not expect that there would be any significant impediments in this regard.

East West Line Parks Pty Ltd (EWLP) through its Project Iron Boomerang (PIB), proposes to build a heavy-haul (40tlaxle) standard gauge multi-user railroad for the transport of coal (east to west) and iron ore (west to east) across the width of Australia. EWLP submitted its objection to any and all development, including Hancock Coal's Alpha Coal Project, that would impede or affect the development of PIB. Hancock Coal responded by letter dated 2 June 2010 to EWLP noting that, as far as it was aware, it did not impede EWLP's plans with respect to the State Development Area, and indicating its undertaking to provide third party access to the Rail Corridor.

Xstrata Coal has mining exploration permits over land which is affected by the amended alignment of the Rail Corridor. In response to a request from the Deputy CoordinatorGeneral for informal comment on the proposed realignment to the Rail Corridor, on 11 May 2010 Xstrata Coal provided a submission stating that it had not completed its exploration in the area proposed to be traversed by the Rail Corridor, and it was concerned that there may be mineable resources in that area which it had not discovered. Xstrata Coal stated that its

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preference would be for an alignment which ran parallel to the existing railway line as much as possible and minimised the width of the Rail Corridor. Xstrata Coal noted that it was prepared to work with Hancock Coal to finalise an alignment which minimises impacts on Xstrata Coal. The amended Application submitted by Hancock Coal did propose an alignment "hugging" the Newlands Railway Line and Northern Missing Link. By letter dated 2 June 2010 the Deputy Coordinator-General wrote to Xstrata Coal seeking comments on Hancock Coal's amended Application. Xstrata Coal provided a response dated 23 June 2010, advising that the Rail Corridor will potentially sterilise coal assets held by Xstrata Coal and its joint venture partners. Xstrata Coal repeated its preference for the Rail Corridor to be included within the rail corridor currently required for the Northern Missing Link. Xstrata Coal advised that it would like sufficient time to conduct a drilling program to ascertain what, if any, economic coal deposits are contained beneath the Rail Corridor.

Hancock Coal in response by letter dated 9 September 2010 noted that the Rail Corridor does "hug" the Northern Missing Link wherever possible. Hancock Coal also stated that there were precedents to deal with the situation where coal resources are later located in land over which a railway has been built or is proposed to be built.

4.12 Economic Significance of the Infrastructure Facilities

In respect of the potential capability of the Rail Corridor to contribute to employment levels, as a factor which must be taken into account under Section 125 (2) of the SDPWO Act, the Rail Corridor will have significance to the Fitzroy and Mackay regions by providing greater employment opportunities. During construction of the railway between 2011 and 2013, Hancock Coal is intending to establish four different work camps along the Rail Corridor, with the possibility of further work camps also being established at each end of the railway. Each camp is expected to consist of approximately 250-300 workers. Upon construction, Hancock Coal estimates that 150-200 predominately operational staff will be employed to work on the railway, mostly at or near Bowen in the Whitsunday Region. It is anticipated that significant support businesses will also be required to assist with the running of the railway and the increased staff in the area.

The Rail Corridor is also likely to contribute to economic growth within Australia, Queensland and the Fitzroy and Mackay regions. Such a potential for economic growth must be taken into account in accordance with Section 125 (2) of the SDPWO Act.

Hancock Coal estimates that the Alpha Coal and Kevin's Comer Mines will increase Australia's export revenues by approximately $5-6 billion per year, and will increase Queensland's overall coal production by 35 per cent. Such economic return is not possible without the necessary rail infrastructure to transport the coal to the port.

There will also be a demand for additional products as a result of the Rail Corridor, such as the need for the manufacture of coal transporting bins, additional locomotives and signalling equipment. This will have flow-on benefits not only for the relevant regions but also for the State.

In addition, by providing Hancock Coal with the ability to successfully produce the coal from the Alpha Coal and Kevin's Comer Mines for export, the Rail Corridor will indirectly benefit the Galilee Basin area by providing long-term sustainable jobs and increased wages spent primarily in the relevant region. Hancock Coal estimates that it will also provide the State of Queensland with over $430 million per annum in royalty payments at full production of the above Mines.

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280 QUEENSlAND GOVERNMENT GAZETIE No. 35 [1 October 2010

It is anticipated that the Rail Corridor will open up mining of thermal coal in the Galilee Basin, as its remote location and corresponding lack of supporting infrastructure have precluded large-scale mining to date. The Rail Corridor would, therefore, provide a solid basis for future resource development in the area. There are many mining interests conducting exploration activities in the Galilee Basin at present. As noted above, over 14 billion tonnes of thermal coal which complies with JORC standards has been identified in the Galilee Basin by Hancock Coal and other potential producers.

There will be further significant flow-on economic benefits from the use and construction of such mines. Regionally it will lead to increased investment in the Galilee Basin, increased employment at the mines and for associated services, and an increase in money spent in the relevant region. At a State and National level, opening up the Galilee Basin will contribute to the growth of the coal industry in Queensland, an increase in royalties payable to the State and an increase in Australia's export revenue. Therefore, the Rail Corridor is likely to contribute to resource development, which is a relevant consideration in accordance with Section 125 (3) of the SDPWO Act.

4.13 Social Significance of the Infrastructure Facilities

In accordance with Section 125 (2) of the SDPWO Act the potential for the Rail Corridor to contribute to community well-being must be taken into account. There are a number of factors which indicate that the Rail Corridor will contribute positively to community wellbeing.

Opening up the Galilee Basin through the establishment of the Rail Corridor will lead to enhanced local infrastructure such as power, roads, water and communications, which local Councils would in all likelihood not be able to fund without outside intervention.

In 2008, the Barcaldine and Isaac Regional Councils had an estimated population of 3,394 and 21,933 people respectively, with unemployment levels lower than the State average. Forecasts indicate that the Barcaldine region will experience only limited population growth over the next 20 years, whereas the Isaac region is expected to experience rapid population growth. The anticipated labour requirements, at the very least during the construction process, would represent a significant expansion of the population base in these areas.

The Whitsunday Regional Council area, which has a largely tourism-based industry, has recently seen its unemployment rate rise to a level higher than the State average. Given that most of the operational and maintenance staff to be employed on the railway will be located in the Whitsunday Regional Council area, this will have significant social benefits, both in providing employment opportunities and also in diversifying the employment market. Further, as the Rail Corridor requires a skilled workforce, this presents opportunities for training and upskilling. This is a particularly important benefit given that the level of educational attainment in the areas along the Rail Corridor is lower than the State average.

Further, Hancock Coal has established the Hancock Community Support Program based at Alpha, to assist the Alpha community to achieve independent growth and long-term sustainability.

5. The Reasons for the Decision

The Hancock Coal Rail Corridor was approved as an infrastructure facility that is of significance, particularly economically or socially, to Australia, Queensland and the Fitzroy

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and Mackay regions, being the regions in which the infrastructure facility is to be constructed, for the following reasons:

• There are forecasts of a significant increased demand in thermal coal globally in the next five years, particularly through the seaborne export market. Significant amounts of thermal coal have been identified in the Galilee Basin which could be exported to meet this demand;

• The Alpha Coal and Kevin's Comer Mines, to be constructed by Hancock Coal and related entities, are ranked as having one of the largest thermal coal resources in the world. Hancock Coal has identified in excess of 7.8 billion tonnes of coal which meets JORC compliance standards from those two Projects;

• There is no existing infrastructure suitable to allow transportation of coal from the Galilee Basin to Abbot Point, or to any other port, for exportation. This has contributed, at least in part, to the lack of large-scaling mining operations in the Galilee Basin. Existing rail infrastructure is unable to accommodate the demand and road transportation is unsuitable due to the projected tonnages of coal that would need to be transported;

• Hancock Coal is proposing to construct a standard gauge, stand alone railway of approximately 495 km in length from its Alpha Coal Mine in the Galilee Basin to the Port at Abbot Point. It is expected that a spur and loadout loop will also allow the rail way to transport coal from the Kevin's Comer Mine, which is proposed to be constructed and operated by another subsidiary of Hancock Prospecting;

• It is expected that the railway will carry between 30 and 60 Mtpa of coal, although the railway has been designed to carry up to 80 Mtpa of coal, with an ability to further increase this capacity through the use of partial duplication;

• The Rail Corridor traverses land owned by approximately 40 different interest holders. Hancock Coal has proposed to transfer to the State any land it voluntarily acquires for the Rail Corridor, so that the State will own the underlying tenure for the land. Hancock Coal then proposes that the State lease or sub-lease the necessary land back to Hancock Coal on a long-term basis;

• The final width of the Rail Corridor will be between 60 and l 00 metres, although for the purposes of its Application Hancock Coal has sought a footprint of 500 metres in width. This footprint will be refined as the project proceeds to the construction phase;

• Hancock Coal has undertaken to make the railway available to third party users pursuant to a voluntary undertaking in accordance with Part IliA of the Trade Practices Act 1974 (Cth). To this end, there are a number of other existing and potential coal producers in the Galilee Basin which are likely to benefit from a railway from the Galilee Basin to the Port at Abbot Point;

• Hancock Coal has undertaken a detailed analysis to determine the preferable route for the Rail Corridor, having regard to the minimisation of environmental impacts and the impact on affected interest holders. Hancock Coal amended its Rail Corridor in the area adjacent to the southern end of the Newlands coal rail system to minimise coal sterilisation and infrastructure access impacts. In that area Hancock Coal proposes to "hug" the existing Newlands rail line and the Northern Missing Link (which is currently under construction);


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282 QUEENSlAND GOVERNMENT GAZETTE No. 35 [l October 2010

• Construction of the Rail Corridor is likely to commence in 20 ll, and will take approximately 24 months to complete. First eXport of coal from the Alpha Coal Mine, utilising the Rail Corridor, is anticipated for late 2013;

• Hancock Coal may require assistance from the State with respect to land acquisition in accordance with Section 125(1) (f) of the SDPWO Act, access to land and assistance with temporary closures of infrastructure during construction. Hancock Coal does not expect to require State assistance once the construction of the Rail Corridor has been completed;

• The information contained in Hancock Coal's Application and subsequent material, including that provided on a Commercial-in-Confidence basis, demonstrates that Hancock Coal has progressed the financial analysis of the proposed Rail Corridor as far as is reasonably possible at this stage and that, based on the material to hand the Rail Corridor is expected to be viable;

• The possible environmental impacts of the Rail Corridor will be scrutinised during the EIS process. Hancock Coal's EIS will need to be approved at both a State and Commonwealth level before the Rail Corridor can proceed. However, Hancock Coal has at this stage undertaken to provide environmental offsets where vegetation cannot be restored and to implement a CEMP to mitigate environmental effects of construction of the Rail Corridor;

• The information contained in Hancock Coal's Application and subsequent material, including that provided on a Commercial-in-Confidence basis, demonstrates that Hancock Coal has progressed its implementation planning as far as possible at this stage, and that the implementation planning appears to be feasible and reasonable;

• Hancock Coal has indicated that it will seek to commence negotiations with relevant interest holders to purchase the necessary land once the EIS and relevant approvals have been obtained. In this regard, it should be noted that, prior to The Coordinator-General being able to take land for the Rail Corridor, The Coordinator-General will need to be satisfied that Hancock Coal has taken reasonable steps to negotiate to acquire the land by agreement;

• In accordance with clause 3.18 of tbe Guidelines for acquisition of land for infrastructure projects by persons other than the State, made pursuant to Section 17 4 of the SDPWO Act, should Hancock Coal seek assistance from The Coordinator-General in compulsorily acquiring land required for the Rail Corridor, Hancock Coal will be required to confirm that the Rail Corridor will proceed within reasonable timeframes;

• Hancock Coal bas negotiated the terms of ILUAs with two of the three affected registered Native Title claim groups. An ILUA with the third affected registered Native Title claim group has reached in principle agreement. In this regard, it should also be noted that, prior to The Coordinator-General being able tc take any Native Title interests in land for the purpose of the Rail Corridor, he must be satisfied that Hancock Coal has taken reasonable steps to form an ILUA with the affected claim groups;

• Hancock Coal has conducted investigations on the affected land for the purpose of the EIS process. Hancock Coal has also undertaken a number of studies to determine the most preferable alignment for the Rail Corridor;

• The Rail Corridor will have economic significance to the Fitzroy and Mackay regions, Queensland and Australia, through:


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a) providing an increase in employment opportunities, both during construction of the railway and on an ongoing basis;

b) providing an opportunity for support businesses to be established to support the railway and its staff;

c) increasing Australia's export revenue in the amount of $5 to 6 billion per year; d) increasing the need for additional products to be manufactured as a result of the

railway, such as coal transporting bins, additional locomotives and signalling equipment;

e) increasing Queensland's overall coal production by 35 per cent; f) increasing the amount of royalties payable to the State, estimated to be $430

million per year; g) by providing the means through which coal from the Alpha Coal and Kevin's

Comer Projects can be exported, indirectly contributing to long-term sustainable jobs; and

h) potentially opening up the Galilee Basin to encourage other large-scale mining projects in the area, which will have further flow-on economic benefits at the national, State and regional levels.

• On the basis of the factors identified above:

a) the Rail Corridor will make an important contribution to resource development in the Galilee Basin area and the relevant region, as well to Queensland and Australia more generally, pursuant to Section 125 (3) of the SDPWO Act; and

b) the Rail Corridor will contribute positively to economic growth and employment levels within the Fitzroy and Mackay regions and within Queensland and Australia, pursuant to Section 125 (2) of the SDPWO Act.

• The Rail Corridor will have social significance to the Fitzroy and Mackay regions, Queensland and Australia, through:

a) providing a need for enhanced local infrastructure and technology, which may not have been financially viable otherwise;

b) increasing the population base in the Barcaldine and Isaac Regional Council areas particularly during the construction phase;

c) providing ongoing employment opportunities in the Whitsunday Regional Council area, which has an unemployment rate higher than the State average;

d) diversifying the employment opportunities available in the Whitsunday Regional Council area, which has a largely tourism-based industry; and

e) providing the opportunity for training or upskilling in areas where the level of education attainment is lower than the State average.

• On the basis of the factors identified above, the Rail Corridor will positively contribute to community wellbeing, pursuant to Section 125 (2) of the SDPWO Act;

• The submissions that have commented on Hancock Coal's Application or amended Application have all been taken into account. The findings of fact outlined above lead to the conclusion that the Rail Corridor should be approved as an infrastructure facility of significance;

• Regard has been had particularly to the submissions made by QCoal in respect of the potential sterilisation of its resources. However, it is considered that the realignment proposed by Hancock Coal in its amended Application balances the needs of both parties. Consistent with the advice of Geological Survey of Queensland, it is considered that the

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realignment substantially reduces any coal sterilisation impacts in respect of QCoal's exploration permits, by adjoining the Rail Corridor to the Northern Missing Link which is currently under construction and passes over areas of coal already sterilised by the existing New lands. line. QCoal's concern that the amended alignment continues to potentially sterilise· its resources has been taken into account. However, given the significantly increased costs to Hancock Coal, as well as the geographical difficulties of realigning the Rail Corridor completely outside of the Bowen Basin area, combined with the preliminary stages of QCoal's exploration in the area, it is considered that the amended alignment is the best solution to balance the interests of both QCoal and Hancock Coal; and

• In response to QCoal's concerns that Hancock Coal failed to negotiate with it, there is no strict requirement under the SDPWO Act for the proponent to first attempt to purchase the land by commercial negotiation before a declaration under Section 125 (1) can be made. However, prior to any application for compulsory acquisition, Hancock Coal will need to demonstrate that it took reasonable steps to first purchase the land by agreement.


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