NEW COAL SOURCE TO SECURE POWER SUPPLY FOR THE FUTURE

Premier Peter Beattie and Mines and Energy Minister Geoff Wilson today announced a multi-million dollar project to power one of Queensland’s biggest electricity generators.

Mr Beattie said the $500 million project, at the Tarong site near Kingaroy, would create hundreds of new jobs in the region and deliver a reliable and secure power supply for the future.

“Mine construction will create 750 new jobs in the region and around the state and the project will protect more around 550 local jobs at the two power stations and the mines,” Mr Beattie said.

The Premier said the South Burnett region had been severely affected by the drought.

“Today’s announcement is a real shot in the arm for the people who live and work in the South Burnett,” Mr Beattie said.

“Not only does Tarong Energy play a crucial role as a power provider, it plays a crucial role as a jobs provider in the South Burnett.

“We’re delivering job security for hundreds of local workers at the power stations and the mines.

“Not only that, this project will deliver a long-term, reliable and secure power supply for all Queenslanders.

“We need electricity to get on with our daily lives and this is about finding a long-term fuel source for Tarong Energy’s two power stations for the next 20 to 25 years,” Mr Beattie said.

The Premier said Tarong Energy provides around 18% of Queensland’s energy needs.

After extensive consultation with stakeholders and the local community over the last 18 months, Tarong Energy has recommended to government that the organisation takes over and develops the nearby Meandu and Kunioon coal deposits.

The power stations currently use coal from the Meandu mine which is owned by Rio Tinto Coal Australia. It will continue to supply coal to the power stations until the new mine at Kunioon is operational. As part of the project, Tarong Energy will take over ownership of the Meandu mine and engage an experienced mining company to operate it.

“A 16 kilometre coal transport conveyor will be built to carry about seven million tonnes of coal a year from Kunioon to the Tarong site,” Mr Beattie said.

Minister for Mines and Energy Geoff Wilson said Tarong Energy had recommended the Meandu and Kunioon coal deposits because it was the most cost-effective, was closer to the Tarong site and would have less impact on local communities.

“One option was to build a 70 kilometre coal conveyor to the Tarong site and another would have meant building a 150 kilometre rail line to a new mine.

“The Meandu and Kunioon coal deposits are much closer to the Tarong site. It makes good economic sense to go with that option,” Mr Wilson said.

“We need to strike the right balance between the needs of local landowners and the millions of people who will benefit from a reliable and secure power supply,” Mr Wilson said.

“Good governments have to make tough decisions. If we sat on our hands and did nothing, we would be letting down the millions of people who have every right to demand a government be prepared to take tough decisions on vital infrastructure needs.

“We wouldn’t have as many hospitals, schools, a Gateway Motorway or a South East Busway if we chose the soft option. What we’re putting in place now, is an investment in the long term future of each and every Queenslander,” Mr Wilson said.

10 September, 2007

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