MALLESONS Stephen Jaques has acted for the APA Group and AGL Energy Limited consortium on the development of a new $500 million gas-fired Diamantina power station at Mount Isa, Queensland.
AGL and APA have signed up miner Xstrata and a Queensland Government-owned electricity utility as customers for the new power station.
AGL said the development would cost $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.
Freehills partners Robert Merrick, Toby Anderson and Sharon Wilson acted for AGL Energy Limited. John Angus in banking and fiannce and Nick Heggart in tax also advised on the deal.
Greenwoods & Freehills director Richard Hendricks and Andrew Hirst advised AGL on tax issues. Both Freehills and Greenwoods & Freehills worked closely with AGL Legal in-house lawyers Chris Reynolds and Kirstin Mann.
Clifford Chance partner Mark Pistilli acted for APA Group.
Mallesons advised the consortium on all aspects of the development. It worked on the 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 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," Rogers said.