$5b infrastructure project brings potential property gains
Posted on Wednesday, September 25 2013 at 3:40 PM
The Braemar Bulk Export Project has been designated a Major Development by the South Australian Government, moving the approval process another step closer to finalisation.
The proposal incorporates a 385-kilometre infrastructure corridor that
would link the upper Spencer Gulf to iron ore resources in SA’s northeast.
Infrastructure and Mineral Resources Minister Tom Koutsantonis says the
corridor would provide a low-cost, high-volume export solution for transporting
iron ore to port.
“A project of this size generates jobs and economic activity benefiting
all South Australians, as it contributes to a viable, long-term mining
processing industry.”
The works will include up to four underground iron ore slurry pipelines,
plus roads, electricity transmission, fibre optic communications and four
underground process water pipelines to support and facilitate mining in the
area.
As part of the scheme, a floating processing, storage and offloading
facility would also be developed north of Wallaroo, approximately four
kilometres off the coast of the Yorke Peninsula.
Once completed, a multi-user facility north of Wallaroo would be able to
receive iron ore concentrate produced by mines located in the Braemar Region in
northeast South Australia.
It could then deliver it to a floating processing, storage and
offloading facility located in the Spencer Gulf, where concentrate will be
received, filtered, stored and then loaded onto ships for export.
The SA Government’s gazetted plan indicates the corridor will traverse
through Burra passing south of Snowtown, and north of Clare, Kadina and
Wallaroo.
Peter Koulizos, a property academic and investor, says the impact of
major projects such as this depends on where the
operations will be located, and how complex they are to run.
“In theory, the two places that will benefit the most from a project
like this is where it starts and where it finishes. Even if the platform is
offshore, it will still benefit the closest town.”
Koulizos says projects similar to this one have substantially
strengthened nearby property markets, but it’s been dependent on the
complexities of running the infrastructure once it’s completed.
While a substantial workforce may be required during construction, often
they’re housed in a work camp.
Koulizos says investors need to get more details about the operation of
the infrastructure before commitment to locations like Wallaroo.
“In the end it really depends on how many people will need to work that
port facility which will help determine what’s going to happen to property
prices. If you need hundreds of people working on that port facility, then it’s
certainly going to benefit the nearest town, and if that’s Wallaroo, then it’s
certainly going to benefit Wallaroo.”
SA Planning Minister John Rau says Major Development status is granted
to projects deemed to be of major environmental, social and economic importance
to the state.
“Major Development status allows for the most sophisticated and thorough
set of planning approvals available within our planning regime,” Rau says.
The initial stage of the project is estimated to cost $2 billion with an
overall cost at completion in the order of $5 billion.
Braemar Infrastructure is now required to lodge its development
application to the Development Assessment Commission, which will then determine
the level of assessment required and guidelines for the proposed development.
Article source: http://feedproxy.google.com/~r/API_Property_News/~3/bi4HvXU6RLo/$5b-infrastructure-project-brings-potential-property-gains