Newcastle Coal Terminal

Second Development Stage of New Newcastle Coal Terminal started

11.08.2010 | Deskman: Marcel Dröttboom

Newcastle (NSW), Australia – On August 9, 2010, the Newcastle Coal Infrastructure Group announced that the second development stage of the third Newcastle coal terminal project will begin immediately. This second stage will increase capacity to 53 million tonnes per year.

Construction of the second stage of the third coal export terminal in the Port of Newcastle will begin immediately, following completion of finance arrangements. The first stage of the terminal, with export capacity of 30 million tonnes per year, is now in operation and was officially opened on May 3, 2010. The second stage of the terminal will boost capacity to 53 million tonnes per year, and keep a construction workforce of up to 600 busy for the next two years.

Michael Egan, Chairman of the Newcastle Coal Infrastructure Group (NCIG), said the total finance package, sufficient to cover the expected project construction cost of AUD 900 million, has been completed with a range of Australian and overseas financial institutions. “The Board has given the immediate go-ahead for the construction of the second stage of the terminal to meet the export demands for coal from mines already in production, or about to start” he said.

180 million tonnes by 2013

The announcement means that coal export capacity at Newcastle is expected to increase to more than 180 million tonnes per year by 2013, with potential for further expansion. This next stage of works on the 136-hectare site includes a new rail unloading facility and rail sidings, an additional stacker/reclaimer and stockyards, additional conveyors and sample stations and an additional shiploader. Funding for the expansion has built on the initial financing structure established in late 2007 and is supported by long-term throughput contracts.

About the NCIG

NCIG was formed in 2004 to address fundamental capacity issues associated with coal handling facilities for regional coal exporters. In April 2007 the New South Wales Government granted NCIG approval to construct the new coal terminal, with an ultimate capacity of up to 66 million tonnes per year.

The members of the consortium are all significant coal producers who have projects to materially increase their coal production to be shipped through the new terminal. Partners in the project include BHP Billiton (through Hunter Valley Energy Coal), Peabody Energy, Centennial Coal, Donaldson Coal, Yancoal and Whitehaven Coal.