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Parliamentary Questions

Question Without Notice No. 739 asked in the Legislative Council on 30 August 2018 by Hon Robin Scott

Parliament: 40 Session: 1

Answered on 30 August 2018

MINERAL RESOURCES LTD — HELENA AND AURORA RANGES — KOOLYANOBBING

739. Hon ROBIN SCOTT to the Leader of the House representing the Premier:

(1) Will the minister confirm that the McGowan government will waive royalty payments and issue discounted port charges for the Koolyanobbing iron ore mine's new owner, Mineral Resources Ltd?

(2) Is the Kalgoorlie Miner article ''State aids port ore export'', which appeared online on Sunday, 26 August 2018 at 11.39 am, correct in describing this decision as ''an unprecedented attempt to safeguard jobs at the Esperance Port''?

(3) Will the minister explain the astonishing contradiction between the policy of subsidising the Koolyanobbing project of Mineral Resources and the policy of banning the two Yilgarn iron ore mines planned by Mineral Resources for the Helena and Aurora Ranges, which would have generated $1 billion in life-of-mine royalties and port charges?

Hon SUE ELLERY replied:

(1) The government has agreed to provide Mineral Resources Ltd with a full royalty rebate for the balance of iron ore produced from the Cliffs tenements, up to a maximum of 30 million tonnes over five years, and discounted port charges, excluding GST, at the Esperance port of $3.05 a tonne up to 10 million tonnes; $3.50 a tonne for the next 15 million tonnes; and $4.40 a tonne for the remaining five million tonnes, up to a total of 30 million tonnes over five years.

(2) The government has agreed to provide the financial assistance package to secure jobs in the Yilgarn and Esperance regions, including jobs for mine, rail and port workers.

(3) The government did not approve Mineral Resources Ltd's proposal to mine deposits in the Helena and Aurora Ranges, taking into account the pre-eminent environmental values of the range. It was considered that the economic and social benefits did not outweigh the environmental impacts.