Major New Coal Project for Queensland A Boost for the Australian Economy

Anglo American, a large coal and steel producer, announced that it has approved a huge $1.7 billion coal project at Grosvenor in Queensland, Australia.

The vast project, currently in the planning stage, is likely to begin in the very near future and has a stated goal that is exciting and ambitious. The company expects to triple Australian metallurgical coal output by 2120.

It is anticipated that the new Grosvenor work site, which is south of the company’s Maranbah North mine will, when fully operational and functioning at capacity, produce about 5 million tons of metallurgical coal annually. However, the initial production forecast for the first year of operation is 4.3 million tons.

Anglo American has budgeted about $85 billion dollars for the project, a sum it plans to spend over the next ten years in order to dramatically raise and expand output of a number of critically important raw materials including coal, copper, iron ore and a variety of other valuable metals.

The raw materials and metals, when extracted, will help meet the needs of Asia’s many rapidly-growing national economies.

The Grosvenor project will dramatically impact another economy, as well … the local economy of the Queensland area. Why … the project is big and long-term. It’s going to require lots of labour and skilled manpower. And that bodes well for mine workers and steel workers in need of quality jobs.

It’s probable that the Grosvenor project will put hundreds of people to work for the next several years … and the number of Australians who actually acquire jobs can be even higher.

Clearly, this is a project that is likely to have an extremely positive impact on the local economy. Workers who earn money spend money – on food … on entertainment … on clothing … and on other products and services, as well.

It’s obvious that the Grosvenor project will inject lots of money into the area …and that will help the workers and the local businesses where workers will go to purchase the things they need and want.

Anglo American has also announced that its projected development costs of $340 per ton are higher than originally anticipated, but the company believes the higher cost reflects the effect of inflation on mining projects in Australia and globally, too.

The first actual production of coal and other metals and raw materials is expected to take place in 2013 … a little over a year from now.

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