COLLIE coal-fired power - not gas - will be used by iron ore producer Grange Resources for its planned $2.9 billion mine near Albany.
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Collie-Preston MLA Mick Murray yesterday welcomed the news as “a real shot in the arm for the local industry”.
Collie could end up supplying an extra 500,000 tonnes of coal a year, he said.
On Collie’s usual production of seven million tonnes a year, that could be an increase of seven per cent.
Chinese-backed Grange Resources had gone against the State Government’s wish that it underwrite a gas pipeline extension, to Albany, Mr Murray said.
Now the Government has reluctantly agreed that Grange could provide, at its cost, a 278-kilometre power line from Collie.
“It is great to see that Grange recognises that the price of power from Collie coal is cheaper than gas,” Mr Murray said. “There will be a flow-on to the mining industry, securing jobs in the coal mines.”
He added: “Grange has gone against the wishes of Colin Barnett to try to gut the coal industry.
“The power line from Collie will not only be cheaper, it will be faster to build. (than a gas pipeline).
The announcement will boost the value of Collie’s coal resources and the Bluewaters power station, Collie Chamber of Commerce and Industry chief executive officer Richard Jackson said yesterday.
“To quote a well known United Kingdom union activist, this is another victory for King Coal and good news for Collie people.
“It reassures us that coal will be the opri9mary source of energy in WA for many many years to come.”
Premier Coal general manager Patrick Warrand said production could easily be ramped up to cover the increased demand.
Grange will buying its energy from Verve and Premier is Verve’s sole supplier.
