AN application to expand the licensed capacity of one of two coal loaders on Kooragang Island could be "very positive" for Newcastle if it allowed the closure of the third loader, at Carrington, the Lock The Gate Alliance lobby group says.
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As the Newcastle Herald reported yesterday, Newcastle Coal Infrastructure Group (NCIG) wants NSW government approval to lift its loader capacity from 66 million tonnes a year to 79 million tonnes, at a time when it expects to export no more than 55 million tonnes this year.
NCIG and the Kooragang and Carrington terminals operated by Port Waratah Coal Services (PWCS) last year shipped 164 million tonnes, well under the 208 million tonnes that the three loaders are licensed to handle.
Despite these figures, NCIG's Statement of Environmental Effects says exports could hit 225 million tonnes within two years and that lifting NCIG's limit would help meet demand now that PWCS had shelved its planned T4 loader.
NCIG says the work has been done to allow the loader to handle the extra coal. It says the application is to allow "future flexibility" for its customers and is "in no way linked" to the Carrington terminal.
This has not stopped speculation of a link, especially as mine owner Yancoal would become the biggest shareholder in both loader companies if it buys the Mount Arthur mine from BHP, as has been widely speculated.
Lock The Gate's NSW coordinator, Georgina Woods, said the capacity expansion proposal "underscores the Hunter's and Australia's confusion about climate change, and its implications for local industry".
"In the absence of political leadership, multinational mining companies continue to set our course," Ms Woods said. "We face an uncertain future if coal demand falls as Asian countries switch to cleaner and cheaper renewable energy."
"If this modification allows for the closure of the export terminal at Carrington that could be very positive for Newcastle, but only if it is planned and prepared for.
"We need new sustainable industry to be built in its place, responding to climate change, making use of the Hunter's proud industrial and maritime history and giving the region some control over its destiny.
"We can't expect coal mining and export companies to plan our diversified future.
"We need the state and local government leadership for that and it will take time and money.
"The people of Newcastle and the Hunter are ready to get behind a process that can deliver full employment and a healthy environment."
Correct Planning and Consultation for Mayfield convener John L. Hayes said the group was looking closely at the application documents before commenting.
Mr Hayes, who sits on each of the NCIG and PWCS community consultative committees, said NCIG had told its committee last year about its plans but had asked members not to make the news public.
He said PWCS had told its committee it wanted to extend the Carrington lease, which expires in 2024.
PWCS spent $60 million in 2016 on two new ship loaders for Carrington.
It added new waste-water filters in 2017 and two tanks capable of storing 13 megalitres of stormwater in 2019 after a series of fines by the NSW Environment Protection Authority.
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Ian Kirkwood
Reporting journalist at the Newcastle Herald since 1987. Editorial writer, general reporter, industrial relations, industry and coal.
Reporting journalist at the Newcastle Herald since 1987. Editorial writer, general reporter, industrial relations, industry and coal.
