Skip to main content
Home

Parliamentary Questions

Question Without Notice No. 142 asked in the Legislative Council on 12 March 2019 by Hon Robin Scott

Minister responding: Hon M. McGowan
Parliament: 40 Session: 1

Answered on

BBI GROUP — RAIL INFRASTRUCTURE — PILBARA

142. Hon ROBIN SCOTT to the minister representing the Minister for State Development, Jobs and Trade:

(1) Can the minister confirm that on 4 September 2018, BBI Group wrote to the Premier asking that the date to submit the detailed proposals under clause 11(1) of the Railway (BBI Rail Aus Pty Ltd) Agreement Act 2017 be extended from 31 March 2019 to 30 September 2020?

(2) Was the requested 18-month extension granted; and, if so, why was it granted?

(3) Is the government aware of any agreement or agreements between BBI Group or an associated entity and Flinders Mines Ltd; and, if so, what is the substance of any and all of those agreements?

(4) Why did the Railway (BBI Rail Aus Pty Ltd) Agreement Act 2017 not mention Flinders Mines Ltd?

(5) What assurance did BBI Group give to the government on the subject of rail access for the Pilbara iron ore project?

(6) Will the minister table a report on her discussions at the China International Import Expo 2018 with BBI Group?

Hon ALANNAH MacTIERNAN replied:

Madam President, can I just get some guidance. I am sorry, I did not realise that at the end, the question was going to morph into a question to me in my other capacity. I will not answer part (6) and ask the member to ask that separately so we can deal with that. The answers are as follows.

(1) Yes. BBI Group wrote to the Premier on 4 September 2018, requesting a one-off extension of 18 months in which to submit its proposals under the Railway (BBI Rail Aus Pty Ltd) Agreement Act 2017, the state agreement.

(2) The 18-month extension was granted under clause 28(2) of the state agreement to allow the company to finalise equity agreements and bank funding for the project.

(3) The Department of Jobs, Tourism, Science and Innovation is not aware of any current agreements between BBI Group or an associated entity and Flinders Mines Ltd.

(4) Flinders Mines Ltd is not a party to the state agreement. The Flinders Mines Ltd area is defined in the state agreement as the ''PIOP mining area''—Pilbara iron ore project—being the subject of mining lease 47/1451 and exploration licence 47/1560.

(5) There was no assurance given because there were no commercial contracts in place at the time the state agreement was ratified. The function of the state agreement is to enable construction of the railway infrastructure. The rail project will not proceed until BBI is able to secure sufficient iron ore.