GlencoreXstrata drops Balaclava terminal
Newly merged resources goliath GlencoreXstrata has announced it has dropped the planned Balaclava Island coal export terminal development.
Prior to its merger with Chinese resources company Glencore, Xstrata had been examining the potential of the facility, located approximately 40km north of Gladstone.
Following the merger, GlencoreXstrata has announced its decision to cease all work on the potential terminal immediately.
The company cited ’poor current marked conditions’ in the Australian coal industry, with excess port capacity being hit in Queensland.
“In the long-term, we believe Australia will need to increase its coal export capacity in an efficient and internationally competitive manner, in response to increased demand for coal in Asia,” the company said in a statement earlier this week.
“As such, we believe the Queensland State Government will need to ensure its long-term ports strategy provides for the growth of coal export capacity that is essential to the Australian economy and the maintenance and improvements of people’s living standards overseas.”