September 20, 2012
The South Burnett Regional Council has rejected a request by Stanwell to reduce the rates the corporation pays on its Meandu coal mine.
At this week’s meeting, the SBRC was told Stanwell’s Chief Operating Officer had written to Council to query why the mine’s rates would be rising by 35.7 per cent in 2012-13 when the publicly announced general rate increase was only 5.75 per cent.
Stanwell said its total rates contribution from all property holdings was $1.1 million. It said the company had “a firm view” that the charges did not reflect the services Council provides to the mine.
The corporation found it difficult to accept the “unjustifiable” increase in rates and wanted Council to reconsider the mine’s rating classification.
Councillors were told that as part of this year’s Budget process, the SBRC had commissioned Morton Consulting Services to review its rating methodology and examine how other councils rated their coal mines and power stations.
The consultants had found the current levy on Meandu Mine was low compared with similar mines across the State. They suggested a levy of $440,000 would be more appropriate, up from the current $150,700.
Councillors heard that at September 2011 the mine employed 571 workers – up from 355 in December 2010, 393 in March 2011 and 449 in June 2011 – and had expanded production from 4.9 million tonnes of thermal coal in 2009 to a proposed 7.6 million tonnes in 2012.
The mine is expected to provide a secure source of fuel for the Tarong power stations until 2031 but its growth figures suggest the mine is also having an increased impact on the region.
The consultant’s study of 27 coal mines found that – on a per-employee basis – the SBRC’s rating of the mine was the lowest in the State ($264 per worker) while the average of the other mines studied was $1600 per worker.
The consultant’s study also found that in equivalent situations of coal mines servicing adjacent power stations, Kogan Creek ($356,665), Commodore ($263,746) and Callide ($750,159) were all much higher than the SBRC’s $150,700.
The study pointed out that the average South Burnett business is levied rates in the range of $1000 to $1600 per worker.
Councillors decided not to alter the 2012-13 rating of Meandu Mine.
