Palmer launches Australia's largest coal project

28 May 2009

Billionaire coal magnate Clive Palmer has launched thermal coal mining project in Queensland, that he says is Australia's largest.

Palmer's Waratah Coal launched China First project that will mine 1.4 billion tonnes of coal in the Galilee Basin, south-west of Mackay. According to the venture's feasibility study it will cost $6.55 billion to set up including $2.1 billion for a 490-kilometre railway line, $3.18 billion for mine equipment and infrastructure construction and $1.27 billion in port construction.

Palmer, who comes in as the fifth-richest Australian on the latest BRW Rich 200 list, said the project would generate 6,000 direct jobs during construction and an additional 1500 during operation. According to his estimates the project would generate 45,000 jobs overall.

Palmer is locked in a less than cordial relationship with Queensland government with a pending defamation case he slapped on Anna Bligh, premier of Queensland, who questioned his relationship with the Liberal National Party during the state election campaign. Palmer said that Ms Bligh should be grateful to him for helping the state regain its AAA credit rating.

He alluded at the possibility of the project being blocked by Ms Bligh for political reasons.

"I'm not important to this project; Anna Bligh is not important in this project. What is important is that this project goes ahead and that it happens in Queensland," Palmer said. "We are both Queenslanders and we've got a vested interest in the future so I can't see why she wouldn't be a supporter."