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Australia’s $10bn coal port expansion shelved on weak demand

Australia’s $10bn coal port expansion shelved on weak demand
A proposed $10bn coal port expansion in Australia was shelved by its sponsors last Friday due to the anticipated lack of demand for the extra capacity.

The Dudgeon Point Coal Terminals Project, designed to handle 180m tonnes per year, was cancelled and all of the required studies on the project were not completed.

The two-terminal project was backed by India’s Adani Enterprises and a subsidiary of Brookfield Infrastructure and led by ports operator North Queensland Bulk Ports Corp (NQBP).

“Those interested in port development must demonstrate demand and current and short term forecast market demand for coal does not support an expansion to the capacity proposed in the Dudgeon Point Coal Terminals Project,” said Brad Fish, ceo of NQBP.

After cancelling the coal port expansion project, NQBP said it is intending to complete a port master exercise over the coming year to comply with the proposed Queensland Ports Strategy and to then revisit the scope of the Dudgeon Point project at the port of Hay Point.

“Although this particular development proposal will be withdrawn, it does not necessarily indicate that expansion to the coal export facilities will not be required at the port of Hay Point in the future,” Fish said.

“Coal export facilities may be required at Dudgeon Point in the future. With appropriate environmental and social planning and approval conditions, any future expansion of port of Hay Point can make a sustainable contribution to the economic growth and social well-being of Queensland,” he added.