{"id":136400,"date":"2016-02-26T19:40:26","date_gmt":"2016-02-26T09:40:26","guid":{"rendered":"http:\/\/southburnett.com.au\/news2\/?p=136400"},"modified":"2020-08-03T15:28:42","modified_gmt":"2020-08-03T05:28:42","slug":"moretons-coal-too-expensive","status":"publish","type":"post","link":"https:\/\/southburnett.com.au\/news2\/2016\/02\/26\/moretons-coal-too-expensive\/","title":{"rendered":"Moreton’s Coal ‘Too Expensive’"},"content":{"rendered":"
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Stanwell CEO Richard Van Breda<\/figcaption><\/figure>\n

February 26, 2016<\/strong><\/p>\n

Stanwell has rejected suggestions that coal from Moreton Resources’ proposed mine near Coolabunia would be cheaper; in fact, the change could cost the corporation millions of dollars, says CEO Richard Van Breda.<\/p>\n

Mr Van Breda said it would not be in Stanwell\u2019s commercial interest to source more expensive coal from Moreton Resources\u2019 proposed project.<\/p>\n

Stanwell has repeatedly said that it has more than enough competitive cost coal at Meandu to supply Tarong\u2019s power stations until the end of their economic lives.<\/p>\n

Mr Van Breda referred to Moreton Resources Pre-Feasibility Study to the ASX on December 21, 2015.<\/p>\n

He said this had included significantly overstated fuel costs for Tarong Power Station, which in combination with Moreton\u2019s own projected fuel costs, created a misleading impression that their project could save Stanwell millions of dollars.<\/p>\n

\u201cThe reality is that Moreton Resources\u2019 projected coal costs are higher than Stanwell\u2019s current fuel costs so their project would end up being a liability for Stanwell if we entered into a coal supply agreement with Moreton,\u201d Mr Van Breda said.<\/strong><\/p>\n

He said the Pre-Feasibility Statement included the following: “This project will only progress if a long-term government contract is secured to supply our high energy thermal coal product to a State-owned power generator for the first 20 years of mine life …”<\/p>\n

\u201cAs that comment is presumably a reference to Stanwell, I should make it clear to the community that over the past two years Stanwell has reviewed Moreton\u2019s developmental challenges and projected costs and I have met with Moreton Resources twice and written to them a further three times,” Mr Van Breda said.<\/p>\n

\u201cI have advised them that Stanwell has no need for, or interest in, coal sourced from Moreton\u2019s proposed project.<\/p>\n

“Moreton Resources\u2019 recent Pre-Feasibility Study confirms the correctness of that assessment.<\/p>\n

\u201cDeveloping a mine requires a significant investment in the approvals process, land acquisition, mine infrastructure and fleet and would require a corridor to transport the coal 25km to the power station.<\/p>\n

“Not only do Moreton\u2019s estimates seem underdone in this regard, but why invest in infrastructure when it is not needed as we already have a very well run and cost-competitive mine?<\/strong><\/p>\n

\u201cWe own Meandu Mine, we own the infrastructure and the equipment and we have a mine plan that provides us with the flexibility to compete in the dynamic and highly challenging wholesale electricity market when conditions change.\u201d<\/p>\n

Mr Van Breda described Moreton\u2019s claims that they could receive the relevant regulatory approvals within 18 months as “unrealistic”, and suggestions the project would create between 300-500 jobs as “misleading”.<\/p>\n

\u201cAs an example of the complex and thorough process covering mining tenements, Stanwell has been working on the approvals for a relatively simple extension to the area of mining operations within our existing Meandu mining lease for the past two years,” Mr Van Breda said.<\/p>\n

\u201cSourcing coal from Moreton Resources\u2019 proposed mine would require Meandu Mine, which currently employs 400 people, to close, so the claim that the Moreton project would create additional jobs for the community is unfounded.<\/strong><\/p>\n

\u201cFrom a Stanwell point of view, maintaining our Meandu mining operations remains in the best commercial interests of Stanwell and Stanwell\u2019s Board, management and people will not be distracted from focussing on this objective.\u201d<\/p>\n

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