Bengalla Mine Environmental Impact Statement (1993) - Part 1 of 3

1:6
1.5 REASON FOR THE DEVELOPMENT
The demand for steaming coal in Japan, Taiwan, Korea and other Pacific Rim countries is predicted to increase
during the mid to late 1990s. The Joint Venture proposes to commence and build up production of suitable quality
steaming coal to meet this growing demand.
For the Bengalla development, the strategy of Peabody Resources Limited was to involve the end-users of the
product from the earliest stages of the development of the proposal. Thus, Korea Electric Power Corporation
(KEPCO) and Taiwan Power Company (Taipower), the power utilities of their respective governments, have, for
the first time, committed to overseas coal development. Like the other members of the Bengalla Joint Venture,
KEPCO and Taipower will contribute to the development of the Bengalla coal resource and in the placement of the
product. Similarly, Mitsui Coal Development (Australia) Pty Ltd, representing Mitsui & Co., Japan's oldest trading
house, and Korea Coal Pty Limited, representing the Overseas Coal Development Committee, a group of seven
major Korean trading houses, have decided to take part in the development and marketing of coal from Bengalla,
in association with companies experienced in resource development in Australia.
Bengalla is a large resource that can be worked economically. Benefits to the Upper Hunter will include direct
employment opportunities, infrastructure development and flow-on income and employment effects.
The large reserves will support long term supply of coal to the export market.
Coal exports are the largest contributor to Australia's trade balance and current account.
In 1990-1991, New South Wales coalfields exported approximately 50 Mtpa of coal to Asia and Europe (DMR
1992). Increased competition from Indonesia and South Africa, which may limit Australia's share of the
international market, increases the importance of economic developments to maintain Australia's position in world
coal supply. The Bengalla project, with the benefit of a low cost mining operation and the involvement of overseas
end users, is one such project.
The proposed project is therefore significant at all levels. On a regional scale, the project will provide employment
opportunities and boost the economy. It will be a revenue generator at State level from royalties, rail freight, port
charges and State taxes and at a Federal level from taxes. This revenue is all generated by the sale of coal overseas,
bringing in export dollars which will help Australia's economic recovery.
1.6 LIAISON WITH GOVERNMENT AUTHORITIES AND THE COMMUNITY
BENGALLA EIS. F156
NOVEMBER 1993