(EnergyAsia, October 13 2011, Thursday) — Law firm Clifford Chance said it advised Sumisho Coal Australia on its recent investment in the A$2.5 billion Stage One of the privately owned and funded Wiggins Island Coal Export Terminal (WICET) in Queensland state.

Sumisho Coal, a subsidiary of Japan’s Sumitomo Corporation, is involved in a number of coal joint ventures in Queensland, including the Rolleston and Wandoan mines, both of which will export coal through the Gladstone-based terminal.

((adsense)) Clifford Chance said the conclusion of these financing arrangements with Sumisho and other coal producers has paved the way for construction work to begin on the Wiggins Island facility. It had also led to the conclusion of negotiation of rail infrastructure arrangements with Queensland Rail.

Stage One will allow coal producers including Xstrata Coal, Itochu Corporation and Wesfarmers to export 27 million tonnes of coal each year, mostly to Asia.

When completed, the A$4 billion WICET Project is expected to export more than 80 million tonnes of coal per year through the Port of Gladstone. (US$1=A$1.03).

“With the ever-increasing demand for high quality Australian coal, this regionally strategic infrastructure will facilitate a timely mine-to-port solution for Queensland’s coal producers such as Sumisho Coal’s Rolleston Joint Venture,” said Clifford Chance partner Jason Mendens.

The Clifford Chance team was led by Jason, with assistance from associate Jerrem Ng. Both are based in Sydney.