CLEVELAND–CLIFFS AND MINERAL RESOURCES —
KOOLYANOBBING
816. Hon PETER COLLIER to the Leader of the House
representing the Premier:
I refer to the government's decision to provide
royalty relief to Cleveland–Cliffs, and royalty relief and concessions
on port fees to Mineral Resources Ltd.
(1) What is the expected total cost to the state of this
agreement?
(2) What is the expected value of the royalty relief that
Mineral Resources will receive?
(3) On what basis was a $5 million royalty rebate provided to
Cleveland–Cliffs?
(4) What environmental conditions need to be reviewed as a part
of this agreement?
(5) How did
the government decide that a $5 million environmental offset package was a suitable
alternative to meeting environmental conditions?
Hon SUE ELLERY replied:
I thank the honourable member for some notice of the
question.
(1)–(2)
A significant amount of work will need to be undertaken to provide an answer to
parts (1) and (2); therefore, I request that those parts be put on notice.
(3) The
royalty rebate was provided to Cleveland–Cliffs to reduce the cost
Mineral Resources faced in acquiring Cleveland–Cliffs' assets
and liabilities and, thus, to make the acquisition a viable proposition for
Mineral Resources. The $5 million amount represented the estimated royalty that
would be owed by Cleveland–Cliffs for the June 2018 quarter.
(4)–(5)
I am advised that in discussions between Mineral Resources and the Department
of the Premier and Cabinet, Mineral Resources inquired about some environmental
conditions related to Cleveland–Cliffs' mines—ministerial
statement 982, conditions 7 and 10; ministerial statement 1054, conditions 8, 9
and 10. Department of the Premier and Cabinet staff provided general advice to
Mineral Resources on the process to review environmental conditions under the
Environmental Protection Act 1986, conducted by the Environmental Protection
Authority. Mineral Resources indicated that as part of any review of these
conditions, it would be willing to propose to fund an offsets package of $5 million
as an alternative to meeting those conditions. When environmental conditions
are reviewed, the Environmental Protection Authority will provide a report to
the Minister for Environment for consideration, at which stage a decision on
any changes to conditions would occur.