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It is important to understand the different types of coal/ supply & demand.
Coking coal is what does not fluctuate in demand therefore the most stable coal town in central qld is Middlemount, as it has one of the highest quality of coking coal in the world, it is not used for electricity. It is also locked into to fixed term contracts because it is so much in demand- it did not fluctuate throughout the Global Financial Crisis.
Most other coal towns are thermal coal–ie. all the hunter and most others like; BMA, Xtrata, westfarmers
You only have to go out there to see for your self that there is no way that Anglo-coal would have invested there and recently taken over another mine for over $200Mil, especially if there was even the slightest chance of mining ceasing in the area.On the other hand places like Alfa remains a huge gamble because its construction is only an agreement in principle and advertised and hyped up by an x realestate agent (Mr Clive Palmer).
Check out the vacancies in jobs sections- none in Alfa, yet 39 jobs today advertised in Middlemount with Anglo-coal.
I just got back from the Central Qld coal mining area and most managers i spoke to said they are just pleased that the Emissions Trading Scheme is finished with.
They also seem pleased that there are alot of incentives for the new mines that are currently being developed.
Most stated that the end result will be in the detail, and that in the mean time they will fight to get the best deals they can for their share holders.
Over all they believe that it will simplify and condense what is currently a very messy taxation system for them.
The Central Qld coal fields are booming, definately another karratha/ port headland. l have just returned from a trip to central qld coal mining towns 24th May 2010, i met with local miners/managers, shop keepers, and councillors, i also checked local news boards, news papers.
I went out there to check whether things had slowed or not and how they faired throughout the GFC with the staff lay offs etc.
It appears the the GFC was a good thing for the mines as they could use it as an excuse to get rid of dead wood and to re-structure their businesses.
I was amazed things are booming from Blackwater to Moranbah but especially in a town called Middlemount (one of the fastest developing and nicest towns in the area). I was stunned to see that Middlemount has been over looked, yet it seems to be increasing its work force at a greater rate than in other towns in that area- Anglocoal is the main miner, they are currently doubling their output according to one of the managers i spoke to, and there are other new mines like Macarthur coal- Middlemount Coal which has been in the news alot lately.There is a shortage of commercial shop space and accommodation in this town (i could not get a room at the motel and had to stay in Capella caravan park 1 hour away). I think buying into or developing single to 2 bedroom units are the only way to go as the mines are focusing on getting people out of the dongas and into independant living to save them on catering costs.
I saw an approved 19 unit development site and commercial complex on 2 acres in the heart of Middlemount, i came across it by talking to an agent in Emerald- He was very helpfull, i could not find it advertised anywhere- but have since found he only has the unit development site part of it advertised under commercial in realestate .com.au. I am just hoping i can raise the money.
What i learnt most from the road trip was that it was worth driving to these places to get the information from the horses mouths and that sometimes the best opportunities are not on realestate web sites, or in the windows of agents but by word of mouth. Especially when the properties are unusual, as is the one i am looking at -ie there are so many opportunities: to subdivide it, do units, vacant land to do alot more with, ie – sell, build storage sheds etc, strata sections of the commercial – good passive income and the list goes on.
I have just returned from researching central qld coal mining towns 24th May 2010, i met with local miners/managers, shop keepers, and councillors, i also checked local news boards, news papers.
I went out there to check whether things had slowed or not and how they faired throughout the GFC with the staff lay offs etc.
It appears the mines used the GFC as an excuse to get rid of dead wood and to re-structure some aspects of their business.
I was amazed things are booming from Blackwater to Moranbah but especially in Middlemount (one of the nicest towns in the area). I was stunned to see that Middlemount has been over looked, yet it seems to be increasing its work force more than in other areas- Anglocoal is the main miner, they are currently doubling doubling their output according to one of the managers i spoke to, and there are other new mines like Macarthur coal- Middlemount Coal which has been in the news alot lately. There is also a shortage of commercial shop space and accommodation in this town (i could not get a room at the motel and had to stay in Capella caravan park 1 hour away).I am currently looking at a unit development site and commercial complex that i found there, i came across it by talking to a Ray White agent (Mark) in Emerald- He was very helpfull, i could not believe that he did not even have it advertised anywhere. I am just hoping i can raise the money as the banks seem to be tight at the moment.
What i learnt most, was that it was worth driving to these places to get the information from the horses mouths and that sometimes the best opportunities are not on realestate web sites, or in the windows of agents but by word of mouth. Especially when the properties are unusual as is the one i am looking at -ie there are so many opportunities: to subdivide, do units, vacant land to do alot more ie – sell, storage sheds etc, strata sections of the commercial – good passive income and the list goes on.
