Stanwell says ‘no’ to Moreton's proposed Kingaroy coal mine
WE DO not want your coal.
That is the message from Stanwell Corporation CEO Richard Van Breda as he repeated the message that Tarong Power Station was well serviced by the existing Meandu mine.
"I have advised them that Stanwell has no need for, or interest in, coal sourced from Moreton's proposed project," Mr Van Breda said.
The Brisbane-based CEO disputed figures released by Moreton, which asserted its source could deliver coal to Tarong at a lower cost.
Moreton CEO Jason Elks said the pre-feasibility study, that was done last year, and studies by Access Economics showed it could deliver coal at a saving of about $110 million a year.
Mr Van Breda said these claims by Moreton were "misleading".
"The reality is that Moreton Resources' projected coal costs are higher than Stanwell's current costs so their project would end up being a liability for Stanwell if we entered into a coal supply agreement with Moreton," he said.
The Meandu Mine, as well as the Kunioon coal resource, is owned by Stanwell Corporation, a Queensland Government- owned corporation.
The Meandu Mine is located next to Tarong Power Station and provides coal exclusively to Tarong Power Station and Tarong North.
Moreton Resources CEO Jason Elks claimed the proposed mine, located 5km outside of Kingaroy, could deliver coal at a cost of $170 million a year.
Mr Elks said he believed this would be cheaper than the cost of Meandu, which he said was about $280 million a year.
Mr Van Breda said these figures did not take in a range of factors, including the large cost that would be needed to set up a new coal mine.
"Developing a mine requires a significant investment in the approvals process, land acquisition, mine infrastructure and fleet and would require a corridor to transport the coal 25km to the power station to the power station," he said.
"The $280 million figure is wildly inaccurate and is closer to the fuel costs for all of the power stations across Queensland.
"With regards to Moreton Resources' proposed costs of $170 million, our actual mining costs at Meandu Mine are cheaper than Moreton's proposed costs."