Huge Open-Cut Coal Project Dropped

Chronicle (Levin), 10 September 1949, Page 5

Huge Open-Cut Coal Project Dropped

BRISBANE, Sept. 9. Queensland's Premier (Mr. Hanlon) told the State Parliament that the huge English deal concerning the Blair Athol open-dut coalfieid • in Centrai yueensiand had falieji through. He read a letter Jroni the Power and Tractiou Finance Company, of Londou, oue of the lirms holding an option, stating that the capital invoived to handle a yeariy output of 3,500,000 tons of eoai was £25,000,000 (Australian) and that the provision of such an amount luight be" beyond the capacity of the combined investment markets of Britain and. Australia for private euterprise. The company" suggested that- either hn association 'Should 'bfefestablished between the Queensland* and Commonwealth Governments with" a company raismg ca'pital and sharing the risks aud profits, or that- the enterprise be developed in the fo'rm of- large-scale power production from which electricity could be distributed tnrough the States. in discussions, representatives of the British iirnis told Mt. Hanlon that the proposed scheme coiild not be in full production before 1955, and that an assured market existed for only 700,000 tons a year.