BHP fires salvo as $850m coal terminal Hay Point Coal Terminal upgrade revealed

Mining giant BHP has signalled projects like the new $850m Hay Point Coal Terminal upgrade, which has supported 700 jobs, are unlikely to come to Queensland in the future as we reveal the first look at the massive project.

BMA’s new shiploader and berth at its Hay Point Coal Terminal. Picture: supplied by BHP

Mining giant BHP has signalled projects like the new $850m Hay Point Coal Terminal upgrade will not happen again because of stifling taxes.

But the Treasurer has hit back saying the coal royalties regime ensures regional areas like Mackay get their fair share.

This comes as this publication was given a first look at the new shiploader and berth dubbed a “critical piece of infrastructure” for the region that supported 700 jobs over its three year construction time span.

It has expanded capacity at the coal terminal, which is a BMA joint venture, and made it more cyclone proof.

“It took 250,000 of work hours and 15,000 tonnes of steel to construct the new berth,” Hay Point general manager Linda Murry said.

“The terminal now has the capacity to export more than 60 million tonnes of met coal each year and is more resilient to extreme weather events.

“The increased capacity will drive economic growth throughout the region, well beyond this port.”

BMA’s new shiploader and berth at its Hay Point Coal Terminal. Picture: supplied by BHP

Linda Murry said the project, nicknamed SABR, it was an “$850m investment for Central Queensland’s future” that had been made before state government’s controversial new coal royalties regime.

“We had the confidence to make such a significant investment, because at the time policy settings were stable, predictable, and competitive,” she said, hitting out at the scheme that made Queensland “the highest coal taxing regime in the world”.

As a result BHP has said it would not invest in any further growth in Queensland.

“This project is a great example of what is at risk,” Ms Murry said.

Hay Point General Manager Linda Murry said Hay Point Coal Terminal’s new shiploader was an example of what was at risk. Picture: supplied by BHP

“While we will spend to maintain our existing operations and improve safety, Queensland will miss out on opportunities like this which will go to Western Australia, South Australia and other countries.”

The move has prompted concerns among Mackay businesses like iCutter Industries that supply to the major mining companies.

iCutter Industries services manager Dallas Morris “it’s very difficult for us to make investment … if we see BHP and other big businesses not making investment”.

‘THIS IS HOW IT DRIES UP’

“That’s how it dries up … it’s not a good thing for anyone,” Mr Morris said, adding it also prompted concern from business owners about the longevity of their own operations.

“We rely on coal, most of our business relies on coal, without investment into coal and its future where are these local businesses going to be at the end of the day.”

BHP has also reached out to about 2000 of its suppliers to lend their voice to the company’s Keep Queensland Competitive campaign in a letter penned by A/Asset President Tim Day.

“This campaign is asking the Queensland Government to work with industry to keep our state competitive,” it read.

State Treasurer Cameron Dick said investment in the Qld coal industry is strong.

Treasurer and Minister for Trade and Investment Cameron Dick responded by quoting comments from BHP chief executive Mike Henry, who in August said “we are continuing to invest in these Queensland businesses” and that mining in Queensland was “attractive”.

“At the same time Mr Henry committed to investing $1 billion each and every year into BHP’s Queensland operations,” Mr Dick said.

“This week Whitehaven Coal agreed to buy Blackwater and Daunia coal mines from BHP for $6.4bn, $4.4bn over Swiss Bank UBS’s $2bn valuation of the mines.

“This shows investment in Queensland’s coal industry remains strong while our progressive coal royalty tiers are making sure Queenslanders in places like Mackay get their fair share from the resources they own.”

Independent economic group GW3 chief executive officer Kylie Porter said the stand off between state government and all mining companies prompted a “high level of concern in the region”.

“BHP has made it very clear that they are deferring all new large capital investment plans in Queensland due to the current coal royalties environment. This lack of long term, investment certainty is troubling for the region,” she said.

“A steady pipeline of investment into regions like ours is necessary for future economic prosperity.

Kylie Porter GW3 CEO.

“Queensland, and most importantly regional Queensland, needs a return to more diplomatic conditions to ensure regional economies don’t suffer the economic and social consequences.”

Ms Porter said Hay Point’s SABRE project was an example of the export confidence in the Bowen Basin metallurgical coal reserves.

“Projects like these are very complex and require years of planning and investment to get off the ground and BHP are to be commended for their foresight,” she said.

“Metallurgical coal is Queensland’s biggest export commodity and is an essential component of the global transition to green energy for many decades to come.

“It is in Queensland’s best interests both economically and socially, for the Government and mining companies to find some common ground on this issue.”

Originally published as BHP fires salvo as $850m coal terminal Hay Point Coal Terminal upgrade revealed