$4.2 billion Kevin’s Corner project receives state approval Friday, 07 June 2013

The $4.2 billion Kevin’s Corner coal mine in west Queensland’s Galilee Basin has moved one step closer to realisation after it was approved by the state’s coordinator-general Barry Broe. The project is now contingent on final federal environmental approval which is due by the end of June.

GVK Hancock Galilee (comprised of Indian-owned GVK and Australian-owned Hancock Prospecting) is the proponent of the Kevin’s Corner project, and has proposed a 30Mt/a underground and open-cut coal mine and other associated infrastructure 65km northwest of the Alpha township. The project would rely on the railway infrastructure of the Alpha Coal project to transport coal to the Port of Abbot Point in Bowen, and would have an operational life of 30 years. The Kevin’s Corner project is estimated to generate 1800 construction jobs and 1600 operational jobs.

The proposal consists of three primary underground longwall operations, supplemented in the early years with two open-cut pits.  Supporting infrastructure to the project includes:  

  • Temporary diesel driven generators, with the state-owned power supply authority Powerlink to provide a 132kV transmission line from the Galilee Basin Transmission Project’s new substation to the Kevin's Corner Project site.
  • Temporary potable water treatment and sewage treatment plants will be installed on site to provide for the initial construction workforce.  Both of these treatment plants will be decommissioned once permanent plants are commissioned.
  • A new multi-user rail system to be constructed along the north south rail corridor alignment connecting both Alpha and Kevin’s Corner projects in a “pit to port” logistics solution with a 495 km rail line to the Port of Abbot Point in north Queensland.
  • Expansion of the Port of Abbot Point comprising a coal handling facility, two 8km rail loops, and storage and loading facilities for 60Mt/a of coal (Kevin’s Corner and Alpha Coal’s combined output).

Other construction works include a mine infrastructure area, a light industrial area, an accommodation village suitable for approximately 2000 employees and an airport with a 2.5km runway, a 17.8km rail spur and an 8km mine access road.

Jeff Seeney, Queensland deputy premier and minister for state development, infrastructure and planning, said: “The proponent (GVK Hancock) has committed to maximising local employment over the life of the project as well as implementing local training strategies that also support critical non-mining activity.

“They will also provide local businesses with fair and reasonable opportunities to tender for project-related business, ensuring the project benefits flow back into the local community.”

To address cumulative impacts on regional water resources in the Galilee Basin, the Coordinator-General’s report includes key recommendations to manage water impacts through the relevant state agencies for the development and maintenance of a regional water balance model, local water quality objectives and a regional groundwater and surface water monitoring and assessment program.

In advance of environmental approval, GVK Hancock and Aurizon signed a non-binding term sheet in March this year to jointly progress the development of rail and port infrastructure for the Alpha, Kevin's Corner and Alpha West coal mines and to support the next phase of coal growth in the Bowen Basin.

More information from GVK Hancock here, and from the state government here.

More information on Galilee Basin projects is available here.

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