AMEC urges swift action on critical supplies

The Association of Mining and Exploration Companies fears bureaucratic delays will dash chances for an optimum collaborative solution to Queensland's looming sulphuric acid shortfall. The Department of State Development and Infrastructure released its Sulphuric Acid Supply Study at a workshop yesterday with industry stakeholders including AMEC members. The study was commissioned to look into acid sources and demand as well as options to meet mining and manufacturing needs in the North West and North East Minerals Provinces. AMEC Queensland director Sarah Gooley said the group had hoped for a clearer direction to come out of the study, and was frustrated by the lack of urgency. "We had hoped that the study would have produced some more firm recommendations on pathways forward, where further research is required as such, and just some more certainty for the industry within that scope of the study that was being undertaken," Ms Gooley said. After sitting on the study for months, she said the department had indicated 'quite an arduous' bureaucratic process moving forward. "I fear that the strategy now is that they're kicking this out to a point where they won't be able to take anything forward because they'll go into caretaker mode (prior to the October State election) and then it'll be a briefing of either the re-elected or new incoming government," she said. "So it's hard not to be a bit cynical after the process we've been through and see this as just a way of delaying any further action." Ms Gooley said the department had indicated the next step following the release of the report would be targeted engagement with stakeholders - in particular major players Glencore, Incitec Pivot and Evolution Mining - followed by further analysis. "Then they'll establish a small working group and then a detailed cost-benefit analysis to deliver a solution. And then they'll go back to government at that point to try and gather an agreed position from the government and then an EOI at the end of it to try and find an international supplier of acid. And part of that's also looking at 'what is the social economic impact of delaying this?'." The cost of further delays is a concern for AMEC, along with the amount of weight being given to the pipeline of future projects that will require acid. "If we are to provide an environment where we're attracting investment into some of these projects that require acid as an input to their processing, then we need to be able to show investors that there is a solution there and that there's certainty," Ms Gooley said. Ms Gooley said that, as the government process dragged on, companies that were close to going into construction or expansion would have to generate their own acid solutions. "So there'll be some small-scale acid solutions having to be included now into project scopes," she said. "As a result, the State isn't going to be able to really optimise the opportunity for a public-private partnership to possibly develop a common user or multi-user acid facility. "That becomes concerning to me because the more companies have to start looking at their own boutique approach to their acid needs, the less viable that public-private approach and collaborative approach becomes." A Department of State Development and Infrastructure spokeswoman said the Queensland Government would establish a targeted Sulphuric Acid Supply Working Group. This would encourage collaboration across industry and government stakeholders to consider and progress options for sulphuric acid supply into the future, she said. "The government will also continue to support collaboration and the sharing of information across industry and government to support a long-term, industry-led, cost-effective sulphuric acid supply solution," she said.

AMEC urges swift action on critical supplies

Industry Queensland

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