The Iron Boomerang inquiry was initiated by One Nation because we saw the project’s undeniable benefits.
This 3,300 km transcontinental railway represents significant advantages to all Australians across the top end by connecting Central Queensland with the Pilbara in Western Australia. It will increase our GDP by hundreds of billions of dollars from the steel alone, without counting the concrete, fertiliser, and other by-products.
This project offers a boon to Australia. One that is tangible and has details backing it up. One that makes money — doesn’t just cost money. One that keeps wealth in Australia rather than sending it offshore to further enrich foreign interests. One that will truly improve the lives of indigenous Australians with a multipurpose corridor bringing utilities, transport and tourism to their communities.
I look forward to seeing this project proceed further. The Iron Boomerang a once-in-a-lifetime opportunity for this government to make a difference for all of Australia.
Transcript
As a servant to the many varied people who make up our one Queensland community, I speak to the Rural, Regional Affairs and Transport References Committee inquiry’s report into the project known as Iron Boomerang. One Nation’s Senate motion initiated this inquiry because of this project’s undeniable benefit to all of Australia. I thank the committee and the secretariat for their work, and I thank the witnesses for attending. This is a complicated project, and the committee and the secretariat have done a great job of processing the information presented across different hearings. Project lead Shane Condon has made this his life’s work, and Australia must be forever in his debt for the vision, application and sheer determination that he has shown. One Nation is fully supportive of the report’s recommendations.
As this project moves forward to a new era, I must remark that Project Iron Boomerang is probably a misnomer. It does consist of a 3,300-kilometre transcontinental railroad with heavy-duty axle capacity connecting existing rail networks in the iron ore region of the Pilbara to the existing coal rail networks in Central Queensland. Iron ore will be transported from Western Australia to Queensland, and those carriages will then be loaded with coal to transport back to the west, hence the boomerang in the name.
Steel mills at either end combine these minerals into steel—the world’s highest-quality steel at the world’s lowest price. Steel is a huge industry that helped build the wealth of this nation, and will do so again. It is also building the wealth of many nations right now. Steel is then exported as container traffic backload through ports in northern Queensland and Western Australia, offering faster and cheaper market access for our steel as against our competitors.
The fundamental benefit of this system is to reduce freight to the smallest possible footprint, economic as well as carbon dioxide for those who think that’s important. Less coal will be exported across the world in bulk oil carriers that burn 200 tonnes of heavy diesel oil a day, carriers that then return empty while burning another 100 tonnes of oil a day on the way with huge reductions in carbon dioxide for those who believe that we need to cut human production of carbon dioxide. Less iron ore and dirt will be exported from Western Australia across the world, saving the heavy diesel consumption and again reducing carbon dioxide production and the cost. Instead, ore is transported a shorter distance in a gas electric train offering a huge competitive advantage for Australian steel and a huge benefit for the environment—the real environment, as well as that carbon dioxide sky-gas nonsense.
The committee rightly identified the railroad and the steel development are separate issues. It’s possible, as Senator Canavan has pointed out, that ships can operate the boomerang trip in first phase of the project, and we’ve had that confirmed since. The southern route is slightly longer than a direct rail link but will cost less at around $10 a tonne versus $40 a tonne for the railroad. Having said that, the railroad will become the cheaper option after the volume of ore and coal being moved exceeds 150 million tonnes a year. This point will be reached with the second stage of steel production, which is to increase the mills from 10 to 20.
The railroad carries many other benefits the committee did not hear in evidence that East West Line Parks may like to correct during their discussions with Infrastructure Australia. Grazing interests have expressed a strong desire to use the line to transport cattle from the remote cattle stations to the east and then to markets overseas. That trip is currently done using road, which puts the animals under pressure and causes a costly reduction in body weight of around 15 per cent. Rail offers a smoother, faster ride and a reduction in body weight of only five per cent. That’s a benefit all round.
Aboriginal interests own many remote cattle stations employing Aboriginal workers. This rail will represent a significant benefit to the Aboriginal community right across the Top End. Agricultural interests would use the rail line to take production from the Ord River irrigation area to market in the east, reducing their freight costs by 50 per cent or even more. The line will open stranded asset rare-earth mines that hold mineral reserves we need to make the electric cars, batteries, windmills and solar panels necessary for net zero. Hmm. The line will open the currently inaccessible East Pilbara, an area containing significant mineral wealth, while adding additional life to existing mines across the Pilbara.
Environmentalists oppose mining and oppose expanding the steel industry at the same time as calling for a transition from petrol to electric cars and the covering of our continent in steel transmission towers and steel wind turbines. Environmentalists can, of course, use their favoured building material—compressed rainbow unicorn farts. The rest of us though use steel. Project Iron Boomerang is not unique. The 2,300-kilometre Tarcoola to Darwin railway was completed 10 years ago. It was completed in five years at a cost of just $3.5 billion across similar terrain. This is not complicated engineering. Railroads like this are being built overseas, and a shorter railroad was recently completed in the Pilbara. We can do this.
A second aspect of the east-west railroad is the multifunction corridor that would normally be built alongside a railway such as this. For a small additional cost in relative terms, this could be upgraded to hold a fibre-optic cable, water and power trunk lines. These, in turn, could provide town water, power and the internet to regional and remote communities, mostly Aboriginal, right across the Top End. Sidings along the route would allow for a local passenger or freight train to improve transport and freight services to these same remote communities.
Tourism is another likely benefit. The Ghan can expand to offer what would be one of the world’s ‘must do’ trips, offering real employment to the Aboriginal community. I hope that Infrastructure Australia pursues inquiry into this aspect of the project. One Nation would love to see homes built with power, water and the internet for remote Aboriginal communities. Iron Boomerang holds that future for these communities. I hope that Infrastructure Australia reviews this most exciting aspect of the project.
The committee has recommended a separate inquiry be held into the steel component of Project Iron Boomerang. The terms of reference are well chosen, with one suggestion. During many meetings, as part of promoting this project, I met with an Australian company that has technology which captures carbon dioxide from the steel mill’s steam stack and combines that output with seawater to produce valuable commodities such as ammonia and ethanol. The process is self-funding. These building blocks can be turned into fertiliser, AdBlue, ethanol and many other products that Australia currently imports. These are not just by-products; they’re products essential to our national security. I hope the steel inquiry hears evidence on how a commercially proven coal-to-hydrogen process can power an electric arc furnace—’green steel’, if you want to use that term. There are, though, many questions around this process that’s years from commercial reality, especially in terms of quality; it’s brittle at the moment.
World steel demand is expected to remain at two per cent growth over the medium term, with the new developing crescent of India, Bangladesh and Pakistan taking up the slack from maturing Chinese, USA and European markets. Indonesia is constructing a new national capital, with construction extending to 2040. This alone will consume the output from our Project Iron Boomerang phase 1 steel mills. If we’re to wind back exports of coal for power in the name of climate change—and I hope we’re not; One Nation strongly opposes this—substituting the use of coal for power with the use of coal for steel would provide continuity of employment for the coal industry, something that should keep unions happy.
Another economic benefit of the steel mills is fly ash, a by-product of steel manufacture when the power source is coal. Fly ash can replace 20 to 30 per cent of the cement in concrete. Project Iron Boomerang will result in the construction of new concrete plants to utilise the steel parks’ by-products. As even the Greens would agree, you can’t do wind power without concrete, and Australia does not have enough concrete for the job. The world steel market is worth A$2 trillion a year. Iron Boomerang will increase Australia’s GDP by hundreds of billions of dollars, just from the steel, let alone the concrete, fertiliser, ammonia and other by-products.
The committee correctly identified the potential national security benefits of the railway, the steel parks and the port upgrades this project will deliver. The expectation is for a naval maintenance base in North Queensland to service the United States Pacific fleet. The railway offers access to parts of this country where access is currently problematic. I note the Maritime Union of Australia is advancing their rebuilding the Australian shipping and maritime industries proposal to expand the Australian shipping fleet. Project Iron Boomerang steel mills will produce four-metre wide slabs instead of the normal two-metre wide slabs. When used to produce railway rolling stock and ships, this results in half the number of welds and joins, producing a cheaper, stronger and faster product. I hope the union will participate in the steel inquiry and look for ways to breathe new life into Australia’s heavy manufacturing industries, currently languishing after decades of planned decay, a decay that has cost breadwinner jobs and economic security.
With the attractive markets, returns and many by-products, it’s no surprise private industry and net private investors are waiting ready to fund and construct this project. There is, though, a problem: private investors don’t trust our government, and after debacles like Adani who could blame them? At some point the federal government is going to have to put their hands into their pockets to fund the final business case, not because the proponents can’t fund it, but because their backers will not let them. For this project to proceed further, the government must demonstrate skin in the game. I look forward to the inquiries that have been recommended in this report, and I look forward to Infrastructure Australia advancing this project. This is a once-in-a-lifetime opportunity for the Albanese government. I seek leave to continue my remarks later.
Leave granted; debate adjourned. Consideration resumed of the motion.
