With more than $5 billion in mining deals secured in Queensland in the past six months observers are saying the mining and gas sector is on the road back and expected to revive and generate hundreds of jobs.
It’s tipped also that there’s more to come with the wider benefits of the revival to be noted when the State Government Budget which is expected to show a boost to royalty’s income of over $1 billion when its handed down in 2 weeks’ time.
In deals this week Santos and its LNG partners also pushed the button on a $400 million coal seam gas field in the Bowen Basin and S32 bought a stake in the Eagle Downs coal mine for $283 million while Japanese company Sojitz’s purchased the mothballed Gregory Crinum coal mine for $100 million.
Santos says the $400 million investment would develop the 137-well Arcadia gas project in the Bowen Basin in Queensland’s Central Highlands region and builds onto the $900 million Santos investments in developments in the Maranoa, Western Downs, Central Highlands and Banana regions.
On top of that and other key projects under the microscope this year Rio Tinto sold off its coal projects for more than $4 billion. The Rolleston coal mine, owned by Glencore, is still up for sale.
Analyst Wood Mackenzie says we should expect the growth to continue.
They tip global oil and gas giant Shell is looking for LNG investments and say Origin’s Queensland business would be looking attractive.