DBI Faces Cost and Regulatory Challenges as It Plans $1.48 Billion Terminal Expansion

Dalrymple Bay Terminal, A Global Coal Export Powerhouse

Dalrymple Bay Infrastructure Limited (DBI) has released an investor presentation coinciding with a site visit to its flagship asset, the Dalrymple Bay Terminal (DBT), on 20 November 2025. The terminal, located at the Port of Hay Point in Queensland, Australia, is the world’s largest metallurgical coal export facility and a critical node in the global steelmaking supply chain.

DBT’s current contracted capacity stands at a robust 84.2 million tonnes per annum (Mtpa), secured on a 100% take-or-pay basis through to 2028. This full contract coverage underscores the terminal’s strategic importance to its 11 customers, who operate 22 mines predominantly in the Bowen Basin coal region. The terminal’s long-term lease, extending to 2100 with renewal options, provides a stable foundation for ongoing operations and investment.

Infrastructure and Operational Excellence

Since its commissioning in 1983, DBT has undergone multiple expansions, growing from an initial capacity of 14.5 Mtpa to its current scale. The terminal’s infrastructure includes three rail inloading systems capable of handling over 300,000 tonnes daily, a 2 million tonne stockyard, and four shiploaders servicing four berths that can accommodate Capesize vessels up to 220,000 deadweight tonnes. These facilities enable simultaneous loading of multiple vessels, supporting over 600 ship movements annually.

Operational management is delegated to the DBT Operator, an entity owned by a subset of customers, which reduces DBI’s operational complexity and aligns interests across the value chain. The terminal operates under a regulatory framework overseen by the Queensland Competition Authority, ensuring transparent access and pricing for customers.

Capital Investment and Growth Prospects

DBI continues to invest in maintaining and enhancing DBT through its Non-Expansion Capital Expenditure (NECAP) program, which has delivered over $430 million in sustaining and asset replacement projects since 2008. Annual NECAP spend typically ranges between $30 million and $50 million, underpinning the terminal’s reliability and operational efficiency.

Looking ahead, the company is advancing the 8X expansion project, designed to increase contracted capacity to 99.1 Mtpa. This phased expansion, with an estimated capital cost of approximately $1.48 billion, has secured all primary environmental approvals and is supported by conditional access agreements representing nearly 13 Mtpa of demand. The project reflects DBI’s strategic optionality to meet growing global demand for metallurgical coal, particularly from the Bowen Basin, which holds significant reserves to support export growth through 2040 and beyond.

Strategic Position and Market Outlook

DBT’s position as a low-cost, high-capacity export gateway for metallurgical coal places DBI at the heart of the global steel production supply chain. With stable, long-term contracts and a diversified customer base, the company is well-positioned to deliver consistent cashflows and shareholder value. However, the higher cost per tonne associated with the 8X expansion signals a careful balancing act between growth ambitions and pricing dynamics in a competitive market.

DBI’s investor presentation highlights a mature operational framework, strong stakeholder alignment, and a clear pathway for growth, all while navigating the complexities of regulatory oversight and evolving market conditions.