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Provision of Professional Services Western Tasmania Industry Infrastructure Study TRIM File No.: 039909/002 Brief No.: 1280-3-19 Project No.: A130013.002

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Provision of Professional Services Western Tasmania Industry Infrastructure Study TRIM File No.: 039909/002 Brief No.: 1280-3-19 Project No.: A130013.002 Provision of Professional Services Western Tasmania Industry Infrastructure Study TRIM File No.: 039909/002 Brief No.: 1280-3-19 Project No.: A130013.002 Western Tasmania Industry Infrastructure Study FINAL REPORT May 2012 Sinclair Knight Merz 100 Melville St, Hobart 7000 GPO Box 1725 Hobart TAS 7001 Australia Tel: +61 3 6221 3711 Fax: +61 3 6224 2325 Web: www.skmconsulting.com COPYRIGHT: The concepts and information contained in this document are the property of Sinclair Knight Merz Pty Ltd. Use or copying of this document in whole or in part without the written permission of Sinclair Knight Merz constitutes an infringement of copyright. LIMITATION: This report has been prepared on behalf of and for the exclusive use of Sinclair Knight Merz Pty Ltd’s Client, and is subject to and issued in connection with the provisions of the agreement between Sinclair Knight Merz and its Client. Sinclair Knight Merz accepts no liability or responsibility whatsoever for or in respect of any use of or reliance upon this report by any third party. The SKM logo trade mark is a registered trade mark of Sinclair Knight Merz Pty Ltd. Final Report Contents Executive Summary 1 1. Introduction and background 13 1.1. Strategic background 13 1.2. Policy and planning framework 14 1.3. This report 15 1.4. Approach adopted 16 2. Report 1: Infrastructure audit report 17 2.1. Introduction 17 2.2. Road Infrastructure 17 2.2.1. Roads Policy and Planning Context 17 2.2.2. Major Road Corridor 20 2.2.2.1. Anthony Main Road (DIER) 20 2.2.2.2. Henty Main Road (DIER) 20 2.2.2.3. Lyell Highway (DIER) 20 2.2.2.4. Massy-Greene Drive (DIER) 21 2.2.2.5. Murchison Highway (DIER) 21 2.2.2.6. Ridgley Highway (DIER) 23 2.2.2.7. Zeehan Highway (DIER) 23 2.2.3. Feeder Roads (to study infrastructure corridor) 24 2.2.3.1. Bass Highway (DIER) 24 2.2.3.2. Corinna Road (DIER) 25 2.2.3.3. Cradle Mountain Development Road (DIER) 25 2.2.3.4. Granville Harbour Road (West Coast Council) 26 2.2.3.5. Heemskirk Road (DIER) 26 2.2.3.6. Oonah Road (Waratah Wynyard Council) 26 2.2.3.7. Pieman Road (Hydro Tasmania) 26 2.2.3.8. Trial Harbour Road (West Coast Council) 26 2.2.3.9. Waratah Road (DIER) 27 2.2.4. High Productivity Vehicle Routes 32 2.2.5. Road Conditions 34 2.2.6. Bridges 34 2.2.7. Safety 34 2.2.7.1. Overtaking Opportunities 34 2.2.7.2. Weather Constraints 34 2.2.7.3. Mix of Vehicle Types 34 2.2.7.4. Signage 35 2.2.8. Road Volumes 35 2.3. Rail Network 37 SINCLAIR KNIGHT MERZ TRIM File No: 039909, Western Tasmania Industry Infrastructure Study - Final 20120604 PAGE i Final Report 2.3.1. Melba Line 40 2.3.2. Hellyer Spur 42 2.3.3. Wiltshire Line 42 2.3.4. Melba Flats to Zeehan 43 2.3.5. Above rail infrastructure 43 2.3.6. Shiploading facility 44 2.3.7. West Coast Wilderness Railway 44 2.3.8. Key policy and planning issues – rail 45 2.4. Ports 46 2.4.1. Burnie Port 49 2.4.2. Port Latta 50 2.5. Electricity 51 2.5.1. Transend Networks 52 2.5.2. Aurora Energy 54 2.5.3. Wind Energy 56 2.6. Gas 57 2.7. Telecommunications 58 2.7.1. Telstra 59 2.7.2. Optus 61 2.7.3. Vodafone 64 2.7.4. National Broadband Network (NBN) 65 2.7.5. Transend Networks 65 2.7.6. Other telecommunications service providers 65 2.7.6.1. Tasmanet 66 2.7.6.2. BBW Telecom 67 2.7.6.3. Community Telco (TasTel) 67 2.7.6.4. Tas Communications 67 2.8. Water infrastructure 68 2.8.1. Water Supply and Water Treatment 68 2.9. Other infrastructure 71 2.9.1. Savage River Slurry Pipeline 71 2.9.2. Social infrastructure 71 3. Report 2: Current and future industry structure and operations 73 3.1. Introduction 73 3.2. Approach 73 3.3. Regional context overview 73 3.4. Mining, exploration and minerals processing 74 3.4.1. Background 74 3.4.2. Mines and mineral processing 74 3.4.2.1. Bass Metals 80 3.4.2.2. Bluestone Mines Tasmania 81 SINCLAIR KNIGHT MERZ TRIM File No: 039909, Western Tasmania Industry Infrastructure Study - Final 20120604 PAGE ii Final Report 3.4.2.3. Bright Phase Resources 82 3.4.2.4. Copper Mines of Tasmania 82 3.4.2.5. Corona Minerals and Jaguar Joint Venture 83 3.4.2.6. Grange Resources 83 3.4.2.7. Intec 84 3.4.2.8. Minerals and Metals Group (MMG) 85 3.4.2.9. Shree Minerals 86 3.4.2.10. Stellar Resources 87 3.4.2.11. Stonehenge and McDermott Mines 87 3.4.2.12. Tasmania Magnesite 88 3.4.2.13. Tasmania Mines 89 3.4.2.14. Tasmanian Advanced Minerals 90 3.4.2.15. TNT 91 3.4.2.16. Unity Mining 92 3.4.2.17. Venture Minerals 93 3.4.3. Future mineral processing options 94 3.4.4. Mining tonnages 94 3.4.5. Mineral Resource Potential 97 3.4.6. Potential Gas Users 97 3.6. Forest Products 100 3.6.1. Tasmanian Forests Intergovernmental Agreement 101 3.6.2. Forestry Tasmania 104 3.6.3. Gunns Limited 105 3.6.4. Timberlands Pacific Pty Ltd 107 3.7. Aquaculture Industry 107 3.7.1. Current operations and proposed expansion 107 3.7.2. Infrastructure requirements for new aquaculture hub 111 3.7.3. Rock Lobster Trial 113 3.8. Agriculture 113 3.9. Tourism 116 3.9.1. Current Operations 116 3.9.2. Infrastructure Issues 118 3.10. Other industries 120 3.10.1. Bee Keeping 120 4. Infrastructure deficiencies and potential upgrade projects 121 4.1. Road 121 4.2. Rail 125 4.3. Other Infrastructure 127 5. Infrastructure management challenges 128 6. Report 3 – Recommended Projects 133 SINCLAIR KNIGHT MERZ TRIM File No: 039909, Western Tasmania Industry Infrastructure Study - Final 20120604 PAGE iii Final Report 6.1. Context and approach 133 6.2. Project assessment and short-listing 133 6.3. P50 / P90 evaluation of proposals 140 6.3.1. Road Projects 141 6.3.1.1. HPV Requirements 141 6.3.1.2. Scope of Works and Rates 141 6.3.1.3. Contingent Risks 143 6.3.1.4. Murchison Hwy, Zeehan Hwy to Rosebery – upgrade to HPV standards 144 6.3.1.5. Murchison Hwy, Rosebery to Anthony Main Rd (Mt Black) 147 6.3.1.6. Murchison Hwy, Anthony Main Road to Cradle Mountain Development Road – upgrade remaining sections to HPV standards 149 6.3.2. Pieman Rd – upgrade to HPV standards 151 6.3.2.1. Zeehan Highway, Anthony Main Road to Murchison Highway 155 6.3.2.2. Zeehan Highway, Murchison Highway to Zeehan 158 6.3.3. Melba Rail Line – Upgrade to increase axle limit, reliability and efficiency 160 6.4. Summary – infrastructure development priorities 166 Appendix A Stakeholders Consulted 168 Appendix B Discussion Schedule 170 Appendix C Social Infrastructure Issues 172 Appendix D Project Identification, Murchison Highway Project 174 Abbreviations and Definitions 185 References 186 SINCLAIR KNIGHT MERZ TRIM File No: 039909, Western Tasmania Industry Infrastructure Study - Final 20120604 PAGE iv Final Report Document history and status Revision Date issued Reviewed by Approved by Date approved Revision type Structure 22 August 2011 S.Manders P.Cook 22 August 2011 Updates from DIER comments on 23 July version Part 1 – 12 September C.Webb C.Webb 13 September PD Review Infrastructure 2011 2011 Audit Parts 1 and 2 17 October C.Webb K.Leggett 19 September PD Review 2011 2011 Parts 1 and 2 19 October P.Cook P.Cook 30 September Client review and Steering 2011 Committee Review Parts 1, 2 and 8 February C.Webb C.Webb 8 February PD Review 3 2012 2012 Parts 1, 2 and 8 February S. Manders S. Manders 9 February Technical Review 3 2012 2012 Parts 1, 2 and 9 February P. Cook S. Manders 7 March 2012 Client review and Steering 3 2012 Committee Review Parts 1, 2 and 24 April 2012 P.Cook and S.Manders 26 April 2012 Amendments from 3 Interviews interviewees Parts 1, 2 and 23 May 2012 P. Cook Amendments from 3 interviews and DIER Distribution of copies Revision Copy no Quantity Issued to Structure Unnumbered Email P Cook DIER SKM team Part 1 – Unnumbered Email SKM team Infrastructure Audit Parts 1 and 2 Unnumbered Email SKM Team Parts 1, 2 and 3 Unnumbered Email P Cook DIER SKM team Printed: 6 June 2012 Last saved: 4 June 2012 07:17 AM C:\Documents and Settings\t-derrick\My Documents\Offline Records (45)\WESTERN ~ - File name: STRATEGIC FRAMEWORKS - CORRIDOR LOCAL\Western Tasmania Industry Infrastructure Study - Final Report Version for Web.DOCX Author: Steve Manders, Kirsten Leggett, Kathryn Easther Project manager: Kirsten Leggett Name of organisation: Department of Infrastructure, Energy and Resources (DIER) Name of project: West Coast Tasmania Infrastructure and Industry Study Name of document: Final Report Document version: FINAL April 2012 Project number: VT30435 SINCLAIR KNIGHT MERZ TRIM File No: 039909, Western Tasmania Industry Infrastructure Study - Final 20120604 PAGE v Final Report Executive Summary Sinclair Knight Merz (SKM) was engaged to undertake the western Tasmanian Industry Infrastructure Study for the Department of Infrastructure, Energy and Resources (DIER).
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