Through wholly owned entities, DBI owns a 100% interest in the 99 year lease (comprising a 50 year lease with a 49 year option) of DBT, the world’s largest export metallurgical coal facility.
DBT was constructed by the Queensland Government and commenced operations in 1983. DBT has operated continuously since that time. The foundation customers of DBT were Rio Tinto, Glencore, Anglo American and BHP Mitsui (BMC). Since commissioning, DBT has been expanded over seven different phases from its original capacity of 14.55Mtpa in 1983 to its current Nameplate Capacity of 85Mtpa in order to facilitate the increase in exports from central Bowen Basin mines.
Today, DBT’s User portfolio includes a diversified list of some of the world’s leading global mining companies and highly experienced coal producers. DBT is a multi-user export terminal located within the Port of Hay Point, approximately 38km south of Mackay and 900km north of Brisbane. The DBT supply chain is capable of handling up to 84.2 Million tonnes per annum (Mtpa) of coal.
DBT services mines in the Bowen Basin, a 60,000 square km region in central Queensland that is the world’s largest metallurgical (or met) coal export region. Metallurgical coal is used for steel production. DBT supports mines in the Bowen Basin to provide a reliable supply of metallurgical coal to steel producers in export markets. DBT is the lowest cost multi-user export pathway for mines located in the central area of the Bowen Basin on average.
Approximately 80% of coal shipped through DBT was metallurgical coal. DBT is a critical link in the global steelmaking supply chain. Steel is the second largest global commodity market and is used extensively in a broad range of industrial applications due to its affordability, strength and versatility, including construction, infrastructure, transport, manufacturing and consumer durables.
DBT is the world’s largest metallurgical coal export facility. Coal handled by DBT is exported to over 25 countries, with core markets comprising China, Japan, Korea, Taiwan and India.
Services at DBT are currently subject to regulation by the Queensland Competition Authority (QCA), Queensland’s independent Competition Authority Act 1997 (QCA Act) and subject to a third party access regime which provides a framework for setting the terms and conditions upon which access to DBT is provided.
DBT’s regulatory framework is reflected in a QCA-approved access undertaking (AU) that sets out the terms of terminal access, as well as a Standard Access Agreement (SAA) under which customers contract to access DBT.
The Access Undertaking is reviewed by the QCA every five years. The current AU expires on 1 July 2031.
DBT’s regulatory regime is supported by its contractual framework which is designed to minimise DBI’s exposure to volume risk, loss of Users and non-payment by Users.
Key risk mitigation mechanisms currently reflected in the AU and SAA include:
- take-or-pay contract structure;
- User security;
- compliance and variation processes; and
- O&M cost pass through.
The Queensland Treasurer is responsible for administering the QCA Act, which includes making a declaration in relation to DBT’s services. The current declaration in relation to DBT was renewed in June 2020 for a further 10 year period, expiring in September 2030.
- Latest Regulatory Updates
- Standard Access Agreement
- Ongoing Regulatory Reporting
- 2021 Access Undertaking
- 2020 Declaration Assessment
DBI has an obligation to maintain a Master Plan that has been approved by DBCT Holdings. The objective of the Master Plan is to outline the future development pathway for the terminal.