Historic Hunter coal plan

The Hunter Valley Coal Chain is set to benefit from a comprehensive industry agreement between the Hunter Valley coal industry (through Port Waratah Coal Services (PWCS) and the Newcastle Coal Infrastructure Group) and the NSW Government (through Newcastle Port Corporation). The agreement was lodged with the Australian Consumer and Competition Commission last week and a decision is expected by the end of July. Under the agreement, PWCS will be able to lock in to 10-year contracts with customers, giving it long-term operational and investment certainty.

PWCS General Manager Graham Richardson said the agreement was an historic and "very welcome" development for the Hunter Valley coal industry.

"Although PWCS already has a successful long-term infrastructure expansion program in place, the new arrangements will allow us to invest in future infrastructure and boost coal throughput in a way never seen in the Hunter," Mr Richardson said.

The plan also includes an opportunity for PWCS to lease additional government land and build a fourth coal terminal on Kooragang Island.

The system should begin operating in January 2010.