Mallesons advised the consortium on all aspects of the development, including a long term electricity and gas supply arrangements with Mount Isa Mines (Xstrata) to meet forecast demand for the life of Xstrata’s current and planned copper and zinc-lead operations in north-west Queensland, and a power purchase agreement with Ergon Energy, the regional electricity supplier. Mallesons also advised on agreements for the construction of the power station with CTEC (a Perth based EPC contractor, supported by and utilising Siemens technology) and the consortium's gas purchase arrangements with AGL Energy.
The total capital expenditure for the Diamantina power station development is anticipated to be approximately $500 million (before project financing costs), which is expected to be funded by implementing a limited-recourse project financing and equity contributions by AGL and APA. Mallesons is advising the consortium on its project financing arrangements.
The Mallesons team was led by energy, resources and projects partner, Craig Rogers - who was supported by partners Dominic Bortoluzzi, David Bell, Matthew Austin, Scott Budd, senior associates Shannon Etwell and Roderick Smythe, and a team of lawyers from Brisbane, Sydney and Melbourne.
“It has been fantastic working closely with two of Australia's premier energy companies in their successful bid to deliver a total, low carbon emission, energy solution for the future energy needs of the Mt Isa region."
Freehills (Robert Merrick, Toby Anderson and Sharon Wilson) acted for AGL Energy Limited, with an in-house team led by Chris Reynolds and Clifford Chance (Mark Pistilli) acted for APA Group, with an in-house team lead by Nevenka Codevelle.
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For further information, please contact Elle Quinn +61 2 9296 3730 or +61 4 2416 8080.
Elle QuinnCommunications ManagerT +61 2 9296 3730
M +61 424 168 080