30 September 2005
Key Points:
Clayton Utz is helping to bring a critical infrastructure project for Australia's coal export industry to fruition through its role as adviser to the NSW Government on the $530 million Kooragang Coal Loader project
The Government last month announced that it had appointed the Newcastle Coal Infrastructure Group (NCIG), a consortium of seven coal producers including BHP, to develop and operate the Kooragang Coal Loader project, which involves construction of a new coal loader on 136 hectares of former BHP land on Kooragang Island at Newcastle.
The project will give the Port of Newcastle - the world's largest coal export port - a much-needed third coal loader to meet increased demand for coal-loading capacity on the back of the growth of coal exports from the Hunter Valley.
The NCIG consortium is targeting an additional 30 million tonnes of annual export capacity, worth an estimated $2 billion at current coal prices.
Clayton Utz was appointed by the NSW Government in December last year to advise on the project in conjunction with the Crown Solicitor's Office. Led by partner John Shirbin, the firm's team includes partner and environmental law specialist Brendan Bateman, senior associate Stuart Cosgriff and solicitor Philip Sealey.
The firm advised on the tender process which led to NCIG's appointment and will continue to advise the Government during the next "proving up" phase of the project, which could take several years. Clayton Utz' role will involve advice on planning approval processes, issues concerning BHP's dredging of contaminated sediments in the Hunter River and the finalisation by NCIG of its construction contracts, operation contracts and financing arrangements.
Mr Shirbin, who has advised on some of the country's largest infrastructure projects, praised the NSW Government's handling of the first stage of the Kooragang terminal. "It's an example of a tender process that was run very efficiently and to timetable," Mr Shirbin said. "The firm is pleased to be involved in a project that is significant not only for the Hunter Valley region, but for the country."
Construction of the terminal is expected to begin in 2008 and be completed within three years.
