Alongside the development of the Wandoan Coal Project, Xstrata Coal is proposing a series of integrated port and rail developments which will establish a new value coal chain in Queensland. These projects will pave the way for major investment and regional development, including the potential to open up the Surat Basin.

Port

Additional port capacity at Gladstone will be required to accommodate export production from the proposed Wandoan mine and projected increased production from other mines. The proposed coal terminal would make the Port of Gladstone the largest coal exporting port in the world.

Wiggins Island Coal Terminal Project

• A proposed extension to the Gladstone Port being managed by the Gladstone Port Corporation
• Declared a significant Project in September 2005
• Environmental Impact Statement is completed and port terminal design underway
• CoG report issued in January 2008

Balaclava Island Coal Export Terminal Project

• Xstrata has is conducting detailed pre-feasibility studies and environmental assessments to investigate a future development of the proposed Balaclava Island Coal Export Terminal in Central Queensland

Rail

As part of a joint venture with Australian Transport and Energy Corridor (ATEC) and Queensland Rail, Xstrata Coal is investigating a new rail connection, ‘Surat Basin Rail’ between Wandoan and the existing Moura-Gladstone line.

The proposed Surat Basin Rail connection is in line with government intentions to open up the Surat Basin for substantial further development of natural resources. The Queensland Government has granted an exclusive mandate for the joint venture to fully investigate rail requirements.

If development of the Wandoan coal mine drives construction of the proposed Surat Basin Rail link to the Port of Gladstone, this in turn will open up an estimated four billion tonnes of thermal coal in the Surat Basin for development and export.