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The Guardian reported that BHP Billiton Ltd. (ASX:BHP,NYSE:BHP,LSE:BLT) has opted out of a $5-billion plan to build a second terminal at the Abbot Point port, located near the Queensland, Australia town of Bowen. The move was reportedly prompted by the release of a report that states an expansion would be “misguided and could result in job losses.”
The Guardian reported that BHP Billiton Ltd. (ASX:BHP,NYSE:BHP,LSE:BLT) has opted out of a $5-billion plan to build a second terminal at the Abbot Point port, located near the Queensland, Australia town of Bowen. The move was reportedly prompted by the release of a report that states an expansion would be “misguided and could result in job losses.”
As quoted in the market news:
The $5bn plan, which would have transferred up to 60m tonnes of coal a year to Abbot Point for export, was expected to begin in 2015. But BHP put the development on ice in September and has now abandoned the idea.
‘Formal relinquishment of the right to develop T2 has now been agreed with North Queensland Bulk and the company will formally withdraw from related regulatory applications,’ a BHP spokeswoman said.
The decision was taken against a backdrop of falling global coal prices and existing port capacity at Hay Point.
A report by the Centre for Policy Development has found there is an excess of port capacity along the Queensland coast, raising concerns that the push to expand ports at Abbot Point, Gladstone and Townsville could put the state ‘at risk of stranded assets in the long term’.