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Parliamentary Questions


Question Without Notice No. 749 asked in the Legislative Council on 11 September 2018 by Hon Peter Collier

Parliament: 40 Session: 1

SOUTHERN PORTS AUTHORITY — MINISTERIAL DIRECTION

749. Hon PETER COLLIER to the minister representing the Minister for Transport:

I refer to the ministerial direction to the Southern Ports Authority tabled on 23 August 2018.

(1) Why did the minister provide a ministerial direction to the Southern Ports Authority?

(2) Did the Southern Ports Authority request the direction; and, if so, on what basis did it seek the direction?

(3) What is the value of the contracted termination payment obligations that Cliffs will be released from paying?

(4) What is the expected loss in value to the Southern Ports Authority from not exercising its rights to various asset purchase options?

(5) What is the value of the assets that are being transferred to Mineral Resources?

Hon STEPHEN DAWSON replied:

I thank the Leader of the Opposition for some notice of the question.

(1) The direction was issued to give effect to the government's support package to enable continued iron ore exports from Cliffs Asia Pacific Iron Ore Pty Ltd's tenements by Mineral Resources Ltd and to help retain jobs within the region, particularly at the port of Esperance.

(2) No.

(3) The value is $50.2 million.

(4) Nil. The Cliffs assets transferred to MRL will be surrendered to the Southern Ports Authority for a peppercorn sum on the expiry of the contract between Southern Ports and MRL. The contract includes third party access provisions.

(5) The assets were transferred from Cliffs to MRL on a temporary basis—refer to answer (4). Based on similar assets owned by the port authority, the estimated value of the assets transferred by Cliffs to MRL is $14.5 million.