Media Release
11 June, 2009
Investment in new mine and clean coal technologies to create jobs
Trade Minister Simon Crean today welcomed the announcement by German firm, Direct Invest, that it will substantially increase its Australian investments creating new jobs through development of the firm’s Surat Basin mine and clean coal technology projects.
Mr Crean said that the investments by Direct Invest will provide a significant boost to the development of clean coal technologies in Australia and create much needed employment in regional areas.
“The global recession has created a more competitive market for investment attraction. However, major projects, such as those announced by Direct Invest today, demonstrate that Australia remains a highly attractive destination for foreign investors.
“Earlier this year, I announced $14.9 million to fund the Government’s Clean Energy Trade and Investment Strategy to attract productive investment in Australia’s clean energy sector and to assist Australian clean energy companies to access international markets.
“This strategy demonstrates the Rudd Government is committed to Australia becoming a world leader in clean energy, including clean coal technologies and carbon capture, helping to create long-term sustainable jobs.
“Foreign investors, such as Direct Invest, are a critical ingredient in the growth of Australia’s clean energy future helping to fund industry development and research into innovative technologies.
Direct Invest has already invested $250 million in the Surat Basin project and will invest a further $250 million to make the mine operational. Construction on the project will start in July creating 100 jobs while a further 100 jobs will be created once the mine opens. Initial shipments are expected to start in the second half of 2010 with an annual capacity of 1.4 million tons.
Phase 2 of the Surat Basin project is expected to commence in 2013 with total employment expected to expand up to 600 jobs.
The Surat Basin is one of the last major undeveloped coal deposits in Australia and contains a type of coal which produces significantly lower emissions. Direct Invest has already received strong interest from buyers in Europe, Asia and China keen to access the Surat Basin’s cleaner burning coal.
Direct Invest also announced that it will significantly increase its investment in Australian clean coal projects, including coal-to-liquid (CTL), gas-to-liquid (GTL), as well as carbon capture and storage.
Direct Invest says its investment in Australian clean coal technology projects is likely to rise to more than $1.5 billion over the next 5 years. The first project is the Sunstate CTL/GTL project, also located in the Surat Basin, and the second project, to be located in New South Wales, is in the preparatory stages. Once operational both projects are expected to create several hundred jobs.
Direct Invest received support from the Australian Government’s trade and investment development agency, Austrade, and from the Queensland Government.
PROJECT DETAILS
The scope of the Surat Basin project is:
- $250 million dollars invested to date with a plan to invest up to another $250 million in the mine opening/expansion
- Stage 1 development commencing on 1st July 2009
- Employment of 100 people in construction, and 100 people when operational
- Existing exploitable deposits of 700 million tons of high-grade thermal coal with indications of lease potential up to 1.5 billion tons
- Exports to commence in 2nd half 2010 with capacity of 1.4 million tons per annum
- Stage 2 development with production commencement forecast for 2013 will employ up to 600 people.
Direct Invest has interests in clean coal technologies – “Coal to Liquid”, “Gas to Liquid” and developments in CCTL (Clean Coal to Liquids) that enables carbon capture and storage:
- More than $7 million investments to date with the potential to invest more than $1.5 billion dollars in this technology development over next 5 years.
- The first site is the Sunstate CTL/GTL project also situated in the Surat Basin.
- A second project in New South Wales is in a preparatory stage.
- Several hundred jobs expected to be created in each location.
Media Inquiries: Mr Crean's office 02 6277 7420 - Clinton Porteous 0403 369 588 - Departmental Media Liaison 02 6261 1555 - Austrade 0425 354 972