Geoff Gallop

Geoff Gallop

Former Premier; Minister for Public Sector Management; Water Resources; Federal Affairs

    New coal contracts bring certainty to Collie's future

    16/08/2005 12:00 AM

    Premier Geoff Gallop has welcomed Western Power’s new 25-year coal arrangement for the supply of coal to the State’s existing coal-fired power stations, saying it would bring long-term certainty to Western Australia’s coal industry and the people of Collie.

    Dr Gallop was responding to Western Power’s announcement today that Wesfarmers Premier Coal was the successful bidder for a reliable and low-cost coal supply for the life of the Muja and Collie power stations.

    “We are committed to maintaining and developing the coal industry in this State given the need for fuel diversity and the importance and reliability of coal in meeting WA’s energy needs,” the Premier said.

    “While Western Power has announced that the next major power station for WA will be gas-powered, it is absolutely vital that WA maintains a diversity of fuel supplies for power generation.

    “It is essential that we continue to have a range of energy sources such as coal, gas and renewable energy so that we are not relying on just one source to provide all of our electricity needs.

    “Western Power’s 25-year coal supply contracts should reassure Collie residents that the coal industry will continue to play a central role in WA’s future economy.”

    Dr Gallop said the State Government had committed to a $100million upgrade of Western Power’s coal-fired Muja C and D units, which would include a 52MW increase in generating capacity.

    He said the ‘Western Australian Coal Future Strategy’ announced by the State Government in January was helping the coal industry develop export opportunities and identify new domestic markets.

    The strategy comprises six initiatives including:
    • the appointment of a Coal Industry Advocate tasked with developing WA's coal industry;
    • assisting Griffin and Wesfarmers to develop export markets with the State Government agreeing not to levy royalties on up to 400,000 tonnes of coal exported for trial by both companies;
    • deepening the Port of Bunbury - a $1.5million study is under way and is looking at deepening the Port of Bunbury, which would improve the international competitiveness of Collie coal through reduced transport costs. Necessary supporting infrastructure such as rail and road is also being considered;
    • reviewing the method of royalty calculation on coal exports;
    • assisting Griffin and Wesfarmers to develop new domestic markets with the State Government agreeing not to levy royalties on coal to be used for trial in new industrial projects within WA; and
    • Clean Coal Centre of Excellence - $100,000 has been committed to conduct a feasibility study into establishing a Clean Coal Centre of Excellence in Collie. Should the feasibility study confirm the benefits of a Centre of Excellence, up to $2million would be made available to build and operate the centre from the Centres of Excellence Fund.
    Premier's office: 9222 9475