Royalties discount to attract $30b Galilee Basin projects
THE Newman Government is hoping a giant carrot will encourage a pack of giant multinational mining giants to speed up the almost $30 billion of developments proposed for the Galilee Basin in western Queensland.
At the Major Projects Conference in Brisbane on Thursday, Premier Campbell Newman announced plans to offer a royalties discount for those who are first into construction and mining.
These "first movers" could be in line to pay less to the government on their early shipments as the mine ramps up production.
In light of BHP Billiton's walking away from its own plans to develop a terminal at Abbot Point, the Queensland Government will offer access to the jilted project.
The government hopes that its plan will help accelerate the slow progress of the Galilee Basin, which it estimates has the capacity to create up to 28,000 jobs.
"My government is unashamedly all about growing the business of Queensland and we will do all we can to facilitate the projects proposed for the Galilee Basin," Mr Newman said.
Deputy Premier Jeff Seeney said the proposed projects for the Galilee were expected to total $28.4 billion and demand 15,000 jobs during construction and 13,000 once operations begin.
"Companies that are currently investigating opening mines in the Galilee Basin are contemplating many billions of dollars of investments," Mr Seeney said.
"My government is mindful of the financial magnitude of these investments and the long lead times between financial commitment and shipping the first coal to its offshore destination, which is why we are offering incentives.
"These incentives, along with the strategy's streamlined solutions for planning, land acquisition, water, power and rail, will ensure projects have the best chance of going ahead in the Galilee Basin."