BUNDY IN COAL EXPORT TALKS

29th August 2008

Clementine Norton and Nikki Sorbello

BUNDABERG'S first foot-hold into the lucrative mining industry could be realised as early as next year with Brisbane-based Nor- thern Energy Corporation in talks with Bundaberg Port about shipping 200,000t to 500,000t of coal.

"Relatively scarce" high quality coal has been discovered by the company north of Maryborough, prompting them to consider transport options, but concerns have been raised about the lack of community consultation to this point.

Northern Energy Corporation general manager Keith Barker confirmed that the company had been in discussions with Bundaberg Port as it was the closest to the project, but said Gladstone was another alternative they were looking at.

Mr Barker said there were advantages and disadvantages of each port, but given Bundaberg was the closest and not as congested as Gladstone port, Bundaberg had a lot of potential.

"The port is there it has the capacity to do more than it currently does," Mr Barker said.

In a best-case scenario, Mr Barker said the company would look at the first shipments of coal coming out of the port by the end of 2009, which would coincide with the completion of the Bundaberg Ring Road.

"Certainly we will look to try and get things going as soon as due process allows," he said.

However, the news has not pleased everybody living near the port.

Burnett Heads Progress and Sports Association president Wayne McNee said residents were concerned at the lack of community consultation.

"I for one certainly don't want Port Bundaberg to start shipping coal, unless they can guarantee there will not be a northerly wind blowing coal dust all over Burnett Heads," he said.

"You only have to go to Gladstone to see how bad it gets." Mr McNee was also concerned about the increase in traffic "If they are talking about 500,000t, that is equivalent to 8500 B-double truck loads every year the port road couldn't handle it," he said.

"We are not against progress, but any company that wants to do that kind of thing should make sure there is the highest amount of community consultation."

Bundaberg Port general manager Jenny Ryan said Northern Energy had made contact and looked at the port, but formal negotiations to use the port were not under way.

"It is certainly possible, and we would be interested, but we have not yet done an assessment," she said.

"We have had quite a few parties interested in exporting coal and other commodities from the port."

Mrs Ryan said the company may be able to use existing facilities, although some may need upgrading.

Northern Energy Corporation currently holds an exploration permit for the area at Aldershot near Maryborough, but the company is preparing to make a mining lease application The Japanese government has already shown an interest in the project by partially funding the initial exploration.