The Queensland government will use proceeds from $1.829 billion lease of the Abbot Point Coal Terminal to fund the state’s disaster recovery
May 6, 2011
The Queensland government will use proceeds from $1.829 billion lease of the Abbot Point Coal Terminal to fund the state’s disaster recovery.
Premier Anna Bligh says the Government finalised the 99-year lease earlier in the week with Mundra Port at a price of $1.829 billion.
Bligh says the proceeds will be set aside to fund Queensland’s share of the recovery from our summer of floods and cyclones.
“Following the catastrophic impact of the floods and Cyclone Yasi, the Government announced the proceeds from the lease of the Abbot Point Coal Terminal will help pay Queensland’s share of the recovery costs,” she says. “The transaction delivered proceeds well above initial expectations of $1.5 billion.”
Representatives of Mundra Port signed the documents in Brisbane on Tuesday and later advised the Indian Stock Exchange.
“This piece of infrastructure is designed purely to help coal companies make a profit,” Bligh says. “Taxpayers have done their bit to establish the terminal and entice investment, now it’s time for the private sector to take over.
“Because this is a long term lease, taxpayers will retain ownership of the Port land and existing infrastructure such as the jetty and the wharf.”
Mundra Port is the Australian subsidiary of Mundra Port and Special Economic Zone, which developed and manages the largest privately developed port in India and forms part of the Adani Group.
“Based in India, the Adani Group is and has substantial global interests in power generation, mining, oil and gas exploration and development and operations,” explains Acting Treasurer Rachel Nolan.
“The group has recently shown its willingness to invest in Queensland, proceeding with plans for a $6.5 billion coal project in the Galilee Basin.
“Mundra Port has significant experience in developing and operating ports and bulk cargo terminals in India.”
“The company is focused on creating, owning and operating common user port facilities and providing efficient services,” Nolan says.
According to Nolan, Mundra Port is also focused on expanding the future capacity of Abbot Point in line with rail upgrades and increased demand from port users.
The Federal Government’s Foreign Investment Review Board has approved the transaction.
“Under the deal the state retains ownership of the Port land, associated strategic infrastructure such as the jetty and wharves, and will continue to facilitate future private sector-funded expansion of export infrastructure within the broader port precinct,” Nolan adds.
Nolan says the North Queensland Bulk Ports Corporation will remain as port authority for the Port of Abbot Point, responsible for the ongoing safety, security, efficiency and development of the Port.
No State employees are moving to the purchaser, as the port has long been operated privately by Xstrata, who will continue to operate the port.