2006 17 February, 2006] QUEENSLAND GOVERNMENT GAZETTE, No. 40 689 State Development and Public Works Organisation Act 1971 NOTICE The Governor in Council has approved the Sonoma Infrastructure Facility as shown on the map at Schedule A, as an infrastructure facility that is of significance , particularly economically or socially, to Queensland and the Mackay region, pursuant to s 125 (1)(f) of the State Development and Public Works Organisation Act 1971. -Schedule A PROZC; SONOMA COAL PROJECT COLLINSVILLE (00E INFRASTRUCTURE AREA /SUBDIVISION iY tf_ Pats of Lot 25 m D0276 Pot of Lot 3 .or. SP134564 PAThOIA 9IRRALEE, COUNTY,. DRAKE LOCAWOA BCYEN DEVELOPMENTAL ROAD 1CS1/NSMLLE LOCAL AU(0000Y BOWEN SHIRE COUNCIL SCALE ::40,0000 Sonoma EMIR dyes "'-I 3 Infrastructure SP134YS4 Facility Area DIAGRAM 618 r, 22000 .02(40 COITRELL CAMERON & STEEN SURVEYS PTY, LTD. 'ION 1 Jrs 610 SP231 LICENSED SURVEYORS LAND DEVELOPMENT AND EmtB1 MAPPING CONSULTANTS Unit 9 , rAfN/rr CHAMBERS. DxJJ6 W.., ►ATERIM mA 91D0`3 $W= CLEVELAND, QUEENSLAND 4(63 P.O. BOX 461, CLEVELAND 4(63 3 PHONE (O?) 3286 33x2 FAX (0?) 3286 2561 .1°/34.64 11 1 0x4(0 ^<Koa.u Emt i i SF+¢3f57 r_lu^ I, 27/01/06 3555-05 STATEMENT GIVING REASONS WHY THE GOVERNOR IN COUNCIL APPROVED BY GAZETTE NOTICE ON 17 FEBRUARY 2006 AN INFRASTRUCTURE FACILITY AS HAVING SIGNIFICANCE UNDER THE STATE DEVELOPMENT AND PUBLIC WORKS ORGANISATIONACT 1971 1. Decision On 17 February 2006, the Governor in Council approved by gazette notice under section 125(1)(f) of the State Development and Public Works Organisation Act 1971 ("the SDPWO Act") the Sonoma Infrastructure Facility as having significance, particularly economically or socially, to Queensland and the Mackay Region, the region in which the infrastructure facility is to be constructed. 690 QUEENSLAND GOVERNMENT GAZETTE, No. 40 [17 February, 20064 2. Introduction By letter dated 1 December 2005; QCoal Pty Ltd ("QCoal") made an application to the Coordinator-General, requesting that the Sonoma Infrastructure Facility, be approved by the Governor- in Council as an infrastructure facility having significance under s 125(1)(f) of the SDPWO Act. The Infrastructure Facility is comprised of the rail and other infrastructure necessary for the production and transportation of coking coal from the proposed Sonoma Coal Project ("the Project"). S 125(l)(f) of the SDPWO Act provides that the Coordinator-General may take land for the purposes of an infrastructure facility that is: • of significance, particularly economically or socially, to Queensland or the region in which the facility is to be constructed; and • approved by the Governor in Council, by gazette notice, as having that significance. Pursuant to s 125(2) of the SDPWO Act, in considering whether an infrastructure facility would be of economic or social significance, the potential for the facility to contribute to community wellbeing and economic growth or employment levels must be taken into account. In accordance with s 125(3) of the SDPWO Act, in assessing such potential, the contribution the infrastructure facility makes to agricultural, industrial, resource or technological development in Australia, Queensland or the region in which the appropriate infrastructure facility is to be constructed is a relevant consideration. 3. Evidence or Other Material on Which Findings of Material Questions of Fact are Based In forming-the decision to approve the Sonoma Infrastructure Facility as having significance, particularly economically or socially, to Queensland and the region in which the facility is to be constructed, the Governor in Council had regard to the following materials: • Extract from State Development and Public Works Organisation Act 1971, ss 125 and 174; • Appendix A and C of the Guidelines for acquisition of land for infrastructure projects by persons other than the State, September 1999, prepared pursuant to s 174 of the SDPWO Act; • Letter dated 29 November 2005 from Queensland Rail ("QR") to The Coordinator-General about the proposed rail line to service the Project; • Letter dated 1 December 2005 from Chris Wallin, Managing Director of QCoal to the Coordinator-General enclosing QCoal's application requesting that the Sonoma Infrastructure Facility be approved by the Governor in Council as an infrastructure facility having significance under s 125(1)(f) of the SDPWO Act; • Letter dated 1 December 2005 from Chris Wallin, Managing Director of QCoal to the Coordinator-General providing supplementary information to support QCoal's application as an infrastructure facility having significance under s 125(1)(f) of the SDPWO Act; e Deputy Coordinator-General's letter dated 8 December 2005 inviting submissions from persons potentially affected by the application and proposed infrastructure facility: ® QR; • Department of Natural Resources and Mines; • Yvonne Cox; • Clive and Diane Watts; • Seven submissions received from affected persons in response to the Deputy Coordinator-General's letter dated 8 December 2005 inviting submissions from persons affected by the infrastructure facility: • Letter dated 23 December 2005 from QR (Network Access); • Letters (2) dated 22 December 2005 from the Department of Natural Resources and Mines; • Letters (2) dated 20 December 2005 and 13 January 2006 from Ruddy Tomlins & Baxter on behalf of Clive and Diane Watts; and • Letters (2) dated 20 December 2005 and 13 January 2006 from Ruddy Tomlins & Baxter on behalf of Yvonne Cox. • Facsimile dated 22 December 2005 from The Coordinator-General to Ruddy Tomlins & Baxter, extending the time for the receipt of submissions from Clive and Diane Watts and Yvonne Cox until 13 January 2006; • The Coordinator-General's Briefing Note dated 2 February 2006 to the Honourable Peter Beattie MP, Premier containing the Coordinator-General's recommendation in relation to whether the Sonoma Infrastructure Facility constitutes an infrastructure facility of significance under s 125(1)(f) of the SDPWO Act. , 2006 17 February, 2006] QUEENSLAND GOVERNMENT GAZETTE, No. 40 691 a Explanatory Memorandum to Executive Council Minute about the Sonoma Infrastructure Facility. e Macquarie Research - Equities, Coal Industry Outlook, 13 October 2005, Macquarie Bank. testing laving c' Queensland's World-class Coals, December 2005, Department of Natural Resources and Mines ("DNRM"). other e Media Statement -'Boom time for Queensland mining industry', 10 November 2005, The Hon. Henry Palaszczuk reject MP, Minister for Natural Resources and Mines. c Media Statement - `Massive Expansion Ahead for Central Queensland', 4 October 2005, The Hon. Peter Beattie of an MP, Premier & Treasurer. Queensland Economic Review - September 2005, Office of Economic and Statistical Research ("OESR"). to be 4. Findings of Material Questions of Fact From the material to which regard was had, the following findings of fact were made: 4.1 Type of Infrastructure Facility Proposed Including Land on Which the Facility is to be Located The application from QCoal identified the components of the Sonoma Infrastructure Facility as: ® an approximately 3.8km rail loop, weighbridge and associated coal washery and train loading facilities that will ted be connected to the existing Newlands rail line for the purpose of transporting coal from the Project to the export Port of Abbot Point; ® roads and other infrastructure to provide access to the rail loop by QR; ® a water pipeline to connect the Project to the existing Collinsville-pipcline operated by SunWater; ally Ord ® water storage, distribution and reticulation facilities to service the Project and provide water for the coal washery and rail loading facility; ® electrical transmission and distribution facilities to transfer power for the Infrastructure Facility and the Project 7the, from the existing power lines operated by Ergon Energy; ® infrastructure for the storage of fuel; I rail ® multipurpose office and other workshop facilities and communication infrastructure; and ® all other associated facilities required for the primary purpose or for any purpose incidental to carrying out the feral primary purpose described above. >r in Details of the infrastructure facility are set out below: feral The Sonoma Infrastructure Facility is proposed to be located 6 km south of Collinsville on land adjacent to the Sonoma ring Coal Project at the northern end of the Bowen Basin coalfields. The Sonoma Coal Project will consist of at least three open cut pits, coal rejects and tailings disposal dams, haul roads, coal stockpiles, other site developments associated -ted with coal mine operations, environmental buffer zones and the Sonoma Infrastructure Facility. QCoal lodged 3 Mining Lease Applications ("MLAs") on 21 November 2005: Belmore West MLA 10325; Sonoma East MLA 10327; and Sonoma West 10326 to covering an area of around 2,595ha. The land required for the Sonoma Infrastructure Facility, as shown in Schedule A, is held in a combination of freehold and leasehold title with an area of approximately 302 ha comprising: • 278.8ha of Lot 3 on SP134564 in the Shire of Bowen; and d8 • 23.18ha of Lot 25 on DK 276 in the Shire of Bowen. Production of coal will involve the hauling of raw coal from pits at the Sonoma Mine to the coal processing plant. The raw coal will be washed to meet the quality specifications determined by Sonoma Coal's customers. After washing, the coal will be loaded onto trains provided by QR. A purpose built train loadout facility and approximately 3.8 km rail loop ive will be constructed by QR to service the Sonoma Coal Project. Coal will be hauled 105 km by rail from the Sonoma Mine to the Port of Abbot Point for export. Initial production from the Sonoma Mine is expected to be approximately 2 million tonnes per annum (Mtpa) with expansion up to 4Mtpa possible once additional rail and port capacity becomes me available. me 4.2 Demand Projections for the Services Associated with the Infrastructure The Sonoma Mine is expected to produce over 60% coking coal to be used primarily in the steel manufacturing process. ier The remainder of the coal produced will be thermal coal products for use in electricity generation and cement industries, ity amongst others.