FULL TEXT; Felton Valley Coal Project Desecration

Statement by Kerry Shine, Attorney General
and Minister assisting the Premier in Western Queensland

As world oil prices reach record high levels, there issignificant interest in the production of synthetic crude oil and liquidfuels. Understandably, Queensland has attracted a share of this interestbecause of our extensive and accessible coal resource. EnsuringQueensland's regional economies continue to grow and that our regionalcommunities remain vibrant and viable is fundamental to keepingQueensland the great state that it is. Our regions are the heart of thisstate, and we must protect them and support their growth.

There currently is a proposal from Ambre Energy Limited todevelop a project in the Felton region. This represents an opportunityand a potential risk for this great region. Ambre controls a number ofExploration Permits for Coal (EPCs) in the Killarney - Felton -Millmerran region of south-east Queensland through its 100 per centowned subsidiary Ambre Energy (Felton) Pty Ltd, previously named EasternMining Corporation Pty Ltd.

The tenures contain relatively low grade deposits of highvolatile coal within seams of the Walloon Coal Measures. Equivalents ofthese coal seams are mined as fuel for the Millmerran Power Station. Iam told that the coal at Felton is generally higher in ash content thanother "Walloon" coals being mined elsewhere in the Surat Basin, and assuch are less favoured for conventional uses.

It is important to remember that this project is in its earlyplanning stages. Before any development can occur, the company must gothrough due process under mining legislation that includes negotiatingcompensation, a public objection process and environmental and culturalheritage approvals.

These are important processes that any project must go through.

There are understandable concerns from the community aboutissues of traffic increases, environmental concerns and the impact thatsuch a project may have upon the region. I do not take these concernsfrom the community lightly. These are important issues and I remaincommitted to ensuring that the Toowoomba region does not suffer as aresult of any proposed development. Projects such as the one proposedneed to go through a number of processes to ensure that detriment does not occur or that these impacts are minimised.

Without knowing what the exact extent of the project is, giventhat it’s at such an early stage, it is difficult to determine whatadverse impacts may result.

A responsible government is one that ensures it balances theconcerns of the individuals within our community, with development andprosperity of the community as a whole. This is not a process to betaken lightly, and is not a process assisted by premature cries ofcertain disaster.

This government has a commitment to ensure that Queenslandremains a strong, green and safe community. We will watch with interestthe development of the proposal by Ambre Energy Limited. We will ensurethat the necessary and appropriate processes are complied with and wewill ensure that the people of Queensland know what is happening andhave the opportunity to express their views.

This is our responsibility as government, to this and to futuregenerations, and is one we will discharge fearlessly.