Chinese firm to boost Queensland coal exploration

Queensland has gained another vote of confidence in its multi-billion dollar coal industry.

Mines and Energy Minister Geoff Wilson announced today that a major Chinese company proposed to spend at least another $10 million exploring the Taroborah coal deposit in central Queensland.

The Shenhuo International Group Pty Limited, a wholly-owned subsidiary of Henan Shenhuo Group Co Limited, successfully tendered in 2006 for the southern half of the Taroborah coal restricted area release, located about 20 kilometres west of Emerald.

The Taroborah deposit located within Shenhuo’s tenure contains inferred open-cut thermal coal resources of up to 70 million tonnes and a further 87 million tonnes of inferred underground resources.

“Shenhuo’s commitment to this project should send a strong signal to the rest of the world that Queensland’s mining industry is robust, resilient and open for business,” Mr Wilson said.

Shenhuo is a large multi-national company engaged in coal mining, electricity generation and aluminium production in China.

The successful tender for the northern section of Taroborah coal restricted area release was international investor, SK Australia Pty Ltd, a subsidiary of the South Korean firm, SK Energy Company Limited.

“In another landmark Queensland investment, Chalco proposes to develop a new bauxite mine and smelter in Queensland.

“It’s the single biggest potential investment by a Chinese company outside China,” Mr Wilson said.

Chalco proposes to develop bauxite mining operations near Aurukun on Cape York Peninsula and a $2.2 billion alumina refinery at Abbot Point, near Bowen.

Minister Wilson said coal is Queensland’s most important export commodity, with sales last financial year reaching more than $16 billion.

“Our resource-rich regions continue to spark significant international interest and investment and that augers well for a strong, long-term future for Queensland’s mining and petroleum sectors,” he said.

Media Inquiries: Ellen McIntyre 3225 1819