TARONG SIGNS MINING AGREEMENTS

Mines and Energy Minister Geoff Wilson said a multi million project to power one of the state’s biggest electricity generators at the Tarong site near Kingaroy reached a significant milestone today.

Minister Wilson said Tarong Energy today signed a $500 million contract with industry leader Thiess to operate the Tarong Mine from next year.

“Tarong’s fuel project will not only create hundreds of jobs in the region, it will deliver a reliable and secure power supply for Queenslanders well into the future,” Mr Wilson said.

The Minister said Tarong Energy had been looking at a number of options for a new long-term coal source for the next 20 to 25 years.

“It was a big decision and one that the power provider did not take lightly,” he said.

Tarong’s decision to develop the nearby Meandu/Kunioon coal deposit and take over ownership of the Tarong Mine from Rio Tinto Coal Australia (RTCA) followed widespread consultation over 18 months with stakeholders and the local community.

Minister Wilson said the project would create 750 jobs across the state, including jobs during construction, and secure 550 jobs for workers at the power stations and the mines.

“The South Burnett has been severely affected by the drought and today’s signing is a real shot in the arm for people who live and work in the region.

“It’s going to give them job security. Not only that, it will deliver a long-term, reliable and secure power supply for all Queenslanders,” Mr Wilson said.

“We need electricity to get on with our daily lives and that’s where Tarong Energy plays a crucial role as a power provider.

“We need to strike the right balance between the needs of landowners and the millions of people who will benefit from a reliable and secure power supply to give us the electricity we need to get on with our daily lives.

“Thiess has been engaged by Tarong Energy to operate the Tarong Mine, which will continue to supply the power stations until a new mine at Kunioon is operational,” Mr Wilson said.

“Tarong Energy will take control of the Kunioon Mineral Development Licence from RTCA as part of the project,” he said.

Tarong Energy CEO Helen Gluer welcomed the announcement.

“I am delighted to welcome a company with the reputation and experience of Thiess to the South Burnett community as our key partner in the region,” Ms Gluer said.

“Tarong Energy and Thiess will work with RTCA over the next four months to ensure a smooth transition of mine ownership, especially for the employees of the Tarong Mine and for the Tarong power stations.

“I would like to stress that under Tarong’s agreement with RTCA, all Tarong Mine employees will be offered positions on no less favourable terms by Thiess.”

Ms Gluer said Thiess was chosen from a number of mine contractors after an exhaustive process.

“Thiess has substantial mining experience and has demonstrated commitment to the highest standards of safety management, which is of utmost importance for Tarong Energy,” she said.

“We look forward to a positive working relationship as we move forward into this new phase of Tarong Energy’s business.”

Ms Gluer said another important milestone in the Fuel project was also passed today with the formal exercise of the option and signing of the sale agreement to buy the Tarong Mine and the Kunioon development resource from RTCA.

“Under the terms of the purchase agreement we have signed today, Tarong Energy will take ownership of the operating mine from 31 January 2008,” she said.

“I would like to thank RTCA for the outstanding job it has done over the past 25 years as owners of the Tarong Mine. RTCA has invested significantly in the community and will leave a positive legacy.

“While RTCA will be moving on, we look forward to continuing to work closely with the traditional owners and the local community as we move into ownership of the mine,” Ms Gluer said.

Media Inquiries: Minister’s Office 3225 1819

Tarong Energy 3228 4121