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?
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?
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.
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.
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.