The recent decision to scrap the proposed RSPT and the introduction of the revised MRRT has lead Swiss mining company Xstrata to restart work on the Wandoan Coal mine. The planned $6 billion coal mine including exploration activities are firing back up.
Expenditure on the project had been suspended in May this year after the then Prime Minister Kevin Rudd had announced the proposed 40% mining tax.
Peter Freyberg, Xstrata Coal chief executive, has been at the forefront of the mining industry’s campaign against the new tax. He is happy with the new MRRT and hopes that the detailed and constructive discussion with the government this week will yield to a more acceptable tax.
If approved the Wandon Coal mine is likely to provide over 3,000 jobs over the construction of infrastructure in the next five years. A final investment decision on the mine and associated infrastructure is expected in the second half of 2011.
Banana Shire Mayor John Hooper was happy that the uncertainty over the project had finally been resolved. Banana Shire is situated in Central Queensland. It is 120 km west of the Port of Gladstone.