Nobody's fooled

Readers of the Initial Advice Statement (Dec 08) in Ambre Energy's mining lease application for the so-called Felton "Clean Coal Demonstration Project" may be under the impression that Ambre plans to build a much smaller plant at Felton than the 12.8 million tonnes/year monster they originally proposed. Indeed, page 3 has the following statement -

"The mine will be developed in two stages; the initial stage will involve the extraction of 800,000 tpa with the second stage expanding to 3.8 Mtpa."

Read the whole thing here - http://www.ambreenergy.com/_uploads/22256IAS.pdf

It seems Ambre have one story for the EPA and Felton locals, and another for potential investors. Have a look at the program for a briefing given by Ambre Energy to the Mining & Energy Services Council of Australia in Brisbane last week -

BRISBANE BRIEFING
Thursday 14 May 2009
Ambre Energy - Felton Mine and Dimethyl Ether Pilot Plant Project
Speaker: Steve Messiter – Director Project Development, Ambre Energy
Ambre Energy Limited is proposing to build and operate a world-class clean coal gasification plant near Felton,
approximately 30km south west of Toowoomba and 10km south east of Pittsworth producing a hydrogen-rich
synthesis gas for the following purposes:
· Production of 2.8 million tonnes per year of dimethyl ether (DME);
· Generation of 650 MW of electricity using an Integrated Gasification Combined Cycle (IGCC) system.
The initial phase of the project will be a Demonstration Stage (scheduled for commissioning in 2011) involving
an 800,000 tonnes per year coal mine and a coal gasifier capable of producing 1,980 tonnes per day of a
hydrogen-rich syngas.
At final stage the open cut coal mine will provide 12.8 million tonnes of coal per year to the gasification plant.
The Project will also capture CO2 (1,339 tonnes per day at demonstration stage) for potential enhanced oil
recovery and geosequestration, produce by-products such as nitrogen for fertilizer production, and provide the
essential inputs for potential downstream olefins/plastics manufacturing facilities.
MESCA is Your Mining & Energy Industry Network
Program
3:45pm Registration
4:10pm Welcoming Address
4:20pm Major Sponsor’s Presentation
4:30pm Steve Messiter
Director Project Development , Ambre Energy
5:15pm Networking and refreshments
Details
Date: Thursday 14 May 2009
Venue: Hillstone St Lucia (St Lucia Golf Course)
Carawa St, St Lucia
Parking: Free onsite
Cost: MESCA Members $44.00 (inc GST)
$88.00 (2-4 Members) (inc GST)
Non Members $176.00 per person

Unfortunately, Friends of Felton couldn't afford the entry fee, but our spy behind the bar tells us the grand plan is little changed from Ambre's Initial Advice Statement (July08), available here in 2 parts -

http://www.scribd.com/doc/10841606/Ambre-Energy-Initial-Advice-Statement-2872008-Part-1

http://www.scribd.com/doc/10841900/Ambre-Energy-Initial-Advice-Statement-2872008-Part-2

Readers might also be interested in this critique from Dr Philip Machanick, University of Qld -

http://www.scribd.com/doc/11685961/Ambre-Felton-2008-critique

Response from Mines Minister & Ambre Energy

Farmers say coal will be royalty-free
Steve GrayMay 12, 2009
Approval of an open-cut coal mine on the Darling Downs would provide no financial benefit to Queensland taxpayers, say farmers whose land is threatened.
Farmers have legal advice indicating that Ambre Energy would not have to pay any royalties on the coal it intends to mine.
Ambre Energy plans to build a 12.8 million tonne a year open-cut coal mine, a petrochemical plant to convert the coal into liquid fuel, and a power station in the Felton Valley, 30km southwest of Toowoomba.
Local farmers and the community, who have formed the Friends of Felton, say the mine would destroy some of the finest agricultural land in Australia and have negative social and environmental impacts.
Spokesman Rob McCreath said the group had been advised that no royalties would be payable to the state, meaning the mine would have no direct economic benefit to taxpayers.
"Legal advice obtained by Friends of Felton indicates that royalties payable on any coal mined at Felton would not be payable to the Queensland government," Mr McCreath said.
He said a section of Queensland mining laws stated that "coal on or below the surface of the land is the property of the crown, except where that land was alienated in fee simple by the crown before 1 March, 1910".
"Farms at Felton were granted freehold title long before 1910," Mr McCreath said.
Asked if that was a correct interpretation of the law, Mines Minister Stephen Robertson said it was too early to discuss royalties.
"We first need to establish if there is going to be a mine at all before royalties are discussed," Mr Robertson said.
"All new mines must first meet the Queensland government's statutory requirements, particularly in relation to environmental standards, before any approval is granted.
"The public interest test will balance a range of considerations including environmental, economical and social impacts across the community."
Mr Robertson said the proposal would not go ahead unless it was in the best interests of the people of Queensland.
"Given the assessment process is still ongoing, it is far too early to make that decision."
Mr McCreath told AAP the project "clearly fails the public interest test".
A spokesman for Ambre Energy, Neil McGregor, said royalties would be paid on the coal, although in a small number of cases royalties could go to the landholder rather than the state.
"We won't know that until we investigate individual title documents," Mr McGregor said.
© 2009 AAP

Government would gain no royalties from a Felton coal mine

MEDIA RELEASE 11th May 2009

Government would gain no royalties from a Felton coal mine

The Felton Valley, 30km southwest of Toowoomba, Qld, is under threat from a proposal by Ambre Energy to build a 12.8 million t/yr open-cut coal mine, a petrochemical plant to convert the coal into liquid fuel, and a power station.

Legal advice obtained by Friends of Felton indicates that royalties payable on any coal mined at Felton would not be payable to the Queensland Government.

Section 8 (2) (b) of the Qld Mineral & Resources Act 1989 states –
“Coal on or below the surface of the land is the property of the Crown except where that land was alienated in fee simple by the Crown before 1 March 1910……”

Farms at Felton were granted freehold title long before 1910.

Spokesman Rob McCreath said- “The so-called Felton Clean Coal Project would have disastrous environmental impacts, destroy some of this country’s best farmland, and inflict huge social impacts on a large rural population. Our legal advice shows that there is no royalty bonanza in this for the Government. The Ambre Energy proposal clearly fails the ‘Public Interest’ test, and would in fact channel huge wealth into the hands of a few shareholders without meeting the costs it would inflict on the public at large through permanent and widespread damage to the natural environment.”