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Parliamentary Questions

Question Without Notice No. 817 asked in the Legislative Council on 18 September 2018 by Hon Peter Collier

Minister responding: Hon R. Saffioti
Parliament: 40 Session: 1

Answered on 18 September 2018

SOUTHERN PORTS AUTHORITY — MINISTERIAL DIRECTION

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

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

(1) What is the forecast cost of maintaining employment at the port during the transition period?

(2) What is the difference in revenue between the full port charges and the discounted port charges that Mineral Resources will be paying?

(3) What is the total cost of the operating subsidy to the Esperance port over the term of the agreement?

(4) Who will remain responsible for Cleveland–Cliffs' assets and associated costs if the cause of any problems relates to major maintenance that had not been previously undertaken by Cleveland–Cliffs?

Hon ALANNA CLOHESY replied:

On behalf of the minister representing the Minister for Transport, I am advised the following.

(1) The estimated transition costs to retain the workforce and place unused infrastructure under care and maintenance for an assumed transition period of six months is $9 million.

(2) The full port charge per tonne is $4.40, excluding GST. The discounted rates are $3.05 for the first 10 million tonnes, $3.50 for the next 15 million tonnes, and $4.40 a tonne thereafter—all excluding GST. The difference in revenue is, therefore, $1.35 and 90c a tonne, excluding GST, depending on the applicable tonnage volume to be applied.

(3) The total cost of the operating subsidy is $62.9 million, including the estimated $9 million referred to in part (1).

(4) Mineral Resources Ltd will be responsible for major maintenance on assets it owns at the port to the extent necessary to bring those assets back into the condition they were in as at the date of their asset transfer—that is, August 2018.