Seabreeze Estate - Queens Beach Bowen

Economic Overview

Bowen is a small town in the Whitsunday Shire, ideally positioned to benefit from the mining and development boom in Northern Queensland, a boom fired by massive multi Billion dollar construction, mining and infrastructure projects.

Bowen is one of the most important Regional centers in 'The Queensland Governments 'Northern Economic Triangle Infrastructure Plan' (NET), an area they have declared as an emerging economic powerhouse for new mineral processing and industrial development in Queensland.

What does that mean for the local economy in and around Bowen?

An economic boom. The Governments development focus is bringing massive government and private sector financing into the area to develop the infrastructure required to support the masses of mining projects currently underway, with billions more committed or currently under study.

These mining projects will create tens of thousands of high value (140-150Kpa) blue collar jobs to build the infrastructure, logistics and utility projects required to support all of the economic activity in the mineral rich Bowen Basin.

Coking Coal, Gold, Silver, Alumina, Gas, Electricity, Rail, Seaport, Airport, Roads, industrial processing complexes and more, the number and value of projects is staggering.

And Bowen is ideally positioned to be a base for the families of many of these workers. The spin offs for Bowen, Queensland and the Australian economy are enormous.

 

What follows is a discussion of some of the most important projects in the area, to help you understand the magnitude of the economic stimulus that's firing a mining and minerals BOOM IN BOWEN:

Just 25 KM north of Bowen is the Abbot Point Seaport, a facility that already handles 15 million tones per annum (Mtpa) in coal exports. A staged upgrade is currently under construction to increase the ports export capacity to 50 Mtpa (scheduled to be completed in 2011). The investment in this upgrades is $913 million dollars.

Additional upgrades to increase capacity to 110Mtpa are also under study, at a projected cost of 4 Billion dollars, (i.e. four thousand million dollars).

For Property Investors or Blue collar workers looking to buy in the area, the strategic significance of Abbot Point to Bowen is pivotal.

No current port in the NET has natural deep water like Abbot Point, along with large tracts of land that are flat and undeveloped. As a consequence, any expansion of Port facilities within the NET, capable of accommodating Cape sized vessels, ie 200,000 DWT, will have to occur at Abbot Point.

Other existing ports are only capable of handling Panamax vessels ie 72,000 DWT or less, i.e. vessels with less than half the capacity of those that can be loaded at Abbot Point!

Given the natural advantages of Abbot Point and the current and planned Port expansions, Abbot Point is destined to become the pivotal sea port in Northern Queensland.

An array of associated infrastructure and mining projects will become viable as a direct result of the Port expansion, making Abbot Point a source of massive economic activity and job creation for at least the next 30 year, all just 25 KM north of the Seabreeze Estate.

As these projects come to fruition and investments increase, the population of Bowen is set to explode!

According to the Regional Economic Development Corporation (REDC) there are currently 17.85 Billion dollars in proposed major Development Projects* in the Shire of the Whitsundays alone. Include the neighbouring Shires of Mackay and Issac and the number becomes 45.7 Billion*, ie over fourty five thousand million dollars. ( N.B. A billion dollars is a thousand million dollars, to give you an idea of just how much a billion dollars is, if you wanted to pay down a billion dollar debt, paying one dollar a second, it would take 31 years, 259 days, 1 hour, 46 minutes, and 40 seconds. Multiply that by 17 or 45 and you will understand the magnitude of existing, proposed or committed development in the area).

 

Abbot Point is the major driver behind the long awaited and recently approved Northern Missing Link rail line, which will connect the Northern Goonyella rail system with the Newlands Abbot Point rail line, allowing Northern Bowen Basin Coal mines to export through the Abbot Point Port.

On the 23rd of October 2009 the Queensland Government announced it had secured the future of The Northern Missing Link Rail Project after reaching agreement with two coal companies to get the $1.1 billion dollar project off the ground.

Premier Anna Bligh said QR Network had agreed commercial principles with foundation coal company customers Lake Vermont and Bowen Central Coal for the Goonyella to Abbot Point (GAP) project.

"This project is the Suez Canal of the central Queensland coal industry - it will revolutionise coal transport in our State," said the Premier. "What this deal means is that we now have certainty that both this project and up to 4,000 jobs will be delivered not only in construction but by opening up new export opportunities in the region".

When the Northern Missing Link rail line is completed, (land has been acquired and the route surveyed) in conjunction with the the X50 expansion of Abbot Point, the Coal Terminal will have a 50 Mtpa capacity, with mines capable of producing much more than this capacity currently under study, all of them nominating Abbot Point as their preferred Port Facility. (Waratah Coal & Hancock Coal)

If either or both of these additional projects are committed, the under study expansions of Abbot Point (up to 110 Mtpa) will have to go ahead, as will the Multi User Port facility, these projects will create at least a further 4 Billion Dollars in infrastructure developments at Abbot Point.

Deal to Build Rail Link... Read Article

Rail infrastructure works between Goonyella and Abbot Point... Read Article

Northern Missing_Link project moves a step closer.... Read Article

 

Abbot Point forms a key part of the Queensland Government's Northern Economic Triangle Infrastructure Plan 2007-2012. A key objective of the plan is to develop a new industrial precinct for large scale industries at Abbot Point.

The Abbot Point State Development Area was declared by the Governor in Council on 19 June 2008.
Deputy Premier and Minister for Infrastructure and Planning Paul Lucas said. "This area has the potential to become an industrial powerhouse to rival Gladstone, with huge economic benefits not just for Bowen but the whole of Queensland," Mr Lucas said.

"Establishing the Bowen area as Queensland's newest industrial powerhouse will foster the growth of industry across the northern half of the State over the next 50 years."

This declaration has reserved the land around Abbott point for industrial developments "The protection of strategic industrial land at Abbott Point and other SDAs near Gladstone and Townsville will ensure our economy continues to boom". Deputy Premier Lucas said.

This declaration can only mean one thing. Even more multi billion dollar developments around Abbott Point, and even more high paid blue collar jobs just up the road from the Seabreeze Estate.

 

This 7.5 Billion dollar project is worth a special mention because it is committed and will be the largest coal project in Australia, producing 40Mtpa of coking coal, with construction beginning in 2010. Significantly, the Metallurgical Corporation of China, which is 100% owned by the People's Republic of China, has guaranteed to purchase 30Mtpa from the mine over 25 years. Revenues from the mine will be 4 billion per year, and royalties to the Qld Government over the life of the project will be $280 million p.a.

Speaking about the project at a recent Whitsundays Bowen Business Information Forum (October 09) The Chief Executive Office of Waratah Coal, Peter Lynch told the business forum "the China First Project will create 1500 jobs in Bowen during the construction stage alone ( Read Article )." Bowen Independent 9-10-09.

He also suggested that the completed project would double the Abbot Point ports current operational workforce.

Waratah Coal Alpha Mine Presentation ( Read Article )

There are two projects mooted, the Alpha Coal Project Alpha Coal Project and Kevins Corner. Each project is a 30Mtpa coal mine. Documentation on the website for the Alpha Coal Project says the expected expenditure for the project is 7.5 billion, 3 billion for construction of the mines, 2.5 billion for the construction of the rail and 2 billion for Port Development.

The preferred Port for the projects is Abbott Point. That means a further 2 billion in infrastructure development 25 km up the road from the Seabreeze Estate! The target date for the construction is 2011 and the first shipments of coal are expected in 2013.

 

CHALCO Australia is a subsidiary of the Aluminium Corporation of China Limited (CHALCO). CHALCO is one of the world's largest producers of alumina and is China's largest producer and supplier of alumina and aluminium.

CHALCO Australia has entered into a memorandum of understanding with the Queensland Government to undertake an Environmental Impact Statement and feasibility study to construct and operate an alumina refinery at Abbot Point. http://www.chalcoaustralia.com.au/EIS.htm

It is anticipated a final decision about the project's viability will be made at the end of 2009. If it goes ahead, it will involve the construction of a 2.2 Billion dollar alumina refinery, a map showing the proposed project is here: View Map

 

The Port of Abbot Point Multi Cargo Facility project (the MCF) involves the construction of a protected harbour at Abbot Point, capable of handling multiple cargoes. This will be a second Port facility, separate to the existing Abbot Point Port and Port Expansions.

This proposed development confirms the Queensland Government and major Enterprise see Abbot Point as THE site most suitable port for servicing Northern Queensland's major industrial hub.

The project involves the dredging of up to 12 new multi cargo berths, including a 10-berth tug base, a manoeuvring basin and an approach channel. The project also includes a new infrastructure corridor in the Abbot Point State Development Area. The capital cost of Stage 1 of the project is expected to be approximately $1.25 billion.

If the MFC development goes ahead, it will open up Abbot Point to many new industries as well as expanding the range of heavy mining-related industries that could use the port, and it would undoubtedly establish Bowen as the new economic powerhouse in Queensland's north.

The very recent event announcement of a deal being struck to create the much talked about Northern Missing Rail Link now makes the likelihood of the multi cargo facility being developed significantly increased. It's also evidence that many of the 'under study' projects that were put on the back burner because of the Global Financial crisis are increasingly likely to go ahead.

Abbot Point Multi Cargo Facility

 

SunWater is conducting a two-stage feasibility study to re-examine the technical and commercial viability of bringing water from the Burdekin River to the Bowen region. So far 3.2 million dollars has been provided by the state government and the Whitsundays Shire.

The Water for Bowen Project aims to supply water for industrial and agricultural use via a new channel and pipeline system extending 150 kilometres from the Burdekin River south across the coastal plains to Bowen and surrounding areas. The extra 60,000 liters delivered by the project would support increased agricultural production and industry mooted in the area.

SunWater has commenced Stage Two of the project which involves feasibility level engineering, an environmental impact study as well as finalising route selection for the channel and pipeline system. This is the last stage of investigations required before SunWater's Shareholding Ministers decide whether to proceed to construction, based on the project's feasibility. Sunwater Project ...More Details

 

Energy World plans to build an LNG Gas export facility in the State Development area at Abbot Point. Production is expected to start in 2012 "if the required permits and licenses can be obtained". The estimated facility and pipeline infrastructure costs are 1.5 billion AUD. The Qld State Government is very keen for the development to go ahead.

LNG Gas export facility... Read Article

 

 

The majority of the infrastructure investments mentioned above (and there are many others, too numerous to go into here) are viable because of the high quality coking/metallurgical coal reserves in the Bowen Basin.

Coking coal is a rare, premium coal characterised by a low sulphur and low ash content. Coking coal is the best coal for making steel and China, India and other developing economies in Asia need it to grow their economies.

Australia is the world's largest producer/exporter of coking coal, we produce/export well in excess of 50% of the worlds coking coal, infact almost 60% of it. (source ABARE Commodities, Issues and Forecasts).

Because the Bowen basin is so rich in Coking coal, any mining projects have the security of it's premium value, and this makes it is more attractive to invest in the Bowen basin. The coal in many other mining regions around the world and Australia is of a far lesser quality and value and its price is much more volitile.