❓ Minister acknowledges the sale of Western Metals' Lennard Shelf zinc operations to Teck Cominco Ltd, the planned suspension, and community concerns. The government is willing to assist with employment opportunities but will not provide subsidies.
AnsweredQoN 1155Legislative Assembly
QuestionView source ↗
(1) Is the minister aware of the closure of Western Metals Ltd Lennard Shelf zinc operations in the Kimberley? (2) Has the minister received any information on potential buyers of the company and any requests from the Derby and Broome communities for assistance? Mr C.M. BROWN
AnswerView source ↗
I thank the member for Kimberley for her question and her significant interest in this matter and, in particular, in those employees and contractors who will be affected by this decision. (1)-(2) Yesterday, PricewaterhouseCoopers released a statement indicating that the Western Metals receiver had sold the Lennard Shelf zinc and lead mines to Teck Cominco Ltd, a Canadian-based company, for some $26 million. The transaction is subject to an orderly suspension program placing the operations at the Pillara and Kapok mines on a care-and-maintenance basis. The suspension program is expected to take approximately six weeks, and completion should occur before the end of November. The receiver manager reported that since July it had tried to obtain a sale of the company as a going concern within the available time frame. Unfortunately, that has not been possible. The purchaser will use the suspension period to look at placing the mine on a more solid long-term footing and eventually re-employing a significant number of the staff. The question of restarting the mines will depend on the outcome of the work program, as well as zinc market conditions and exchange rates. Mr Speaker, you would be aware from your association with the mining industry that zinc rates have fallen to very low levels. Of course, with the Australian dollar appreciating quite significantly against the United States dollar, the operation is simply not viable in its current form. This company is a significant employer in the Kimberley. The member for Kimberley has been making representations to government to see what may be able to be done. Clearly, the Government is not in a position to provide subsidies to continue the operation. However, the member for Kimberley and, indeed, the Broome Chamber of Commerce have made representations to the Government requesting my involvement. I am happy to become involved in seeking some solutions in the circumstances. No request has been made for government funding to provide an ongoing subsidy, but obviously there is concern for the employees and contractors who will find themselves out of work. In a letter I received from the Broome Chamber of Commerce, attention was drawn to the Sally Malay project, which is a new project that will commence operations in the north, and to proposals regarding the Argyle diamond mine, and a request was made for government involvement to see whether it would be possible for the Government to work with either of those two companies to provide employment opportunities for some of the people who may be displaced as a result of the Western Metals situation. The Government is happy to work with the receiver manager and those companies to see what it can do to assist the employees and the contractors concerned. The Government is certainly prepared to work with the new owner of the project to see whether it can assist in any way in getting the project under way. As I have indicated, it is simply not possible for the Government to subsidise the operations, but if it can assist in any other way, it is only too happy to do so.
(2) Has the minister received any information on potential buyers of the company and any requests from the Derby and Broome communities for assistance? Mr C.M. BROWN replied: I thank the member for Kimberley for her question and her significant interest in this matter and, in particular, in those employees and contractors who will be affected by this decision. (1)-(2) Yesterday, PricewaterhouseCoopers released a statement indicating that the Western Metals receiver had sold the Lennard Shelf zinc and lead mines to Teck Cominco Ltd, a Canadian-based company, for some $26 million. The transaction is subject to an orderly suspension program placing the operations at the Pillara and Kapok mines on a care-and-maintenance basis. The suspension program is expected to take approximately six weeks, and completion should occur before the end of November. The receiver manager reported that since July it had tried to obtain a sale of the company as a going concern within the available time frame. Unfortunately, that has not been possible. The purchaser will use the suspension period to look at placing the mine on a more solid long-term footing and eventually re-employing a significant number of the staff. The question of restarting the mines will depend on the outcome of the work program, as well as zinc market conditions and exchange rates. Mr Speaker, you would be aware from your association with the mining industry that zinc rates have fallen to very low levels. Of course, with the Australian dollar appreciating quite significantly against the United States dollar, the operation is simply not viable in its current form. This company is a significant employer in the Kimberley. The member for Kimberley has been making representations to government to see what may be able to be done. Clearly, the Government is not in a position to provide subsidies to continue the operation. However, the member for Kimberley and, indeed, the Broome Chamber of Commerce have made representations to the Government requesting my involvement. I am happy to become involved in seeking some solutions in the circumstances. No request has been made for government funding to provide an ongoing subsidy, but obviously there is concern for the employees and contractors who will find themselves out of work. In a letter I received from the Broome Chamber of Commerce, attention was drawn to the Sally Malay project, which is a new project that will commence operations in the north, and to proposals regarding the Argyle diamond mine, and a request was made for government involvement to see whether it would be possible for the Government to work with either of those two companies to provide employment opportunities for some of the people who may be displaced as a result of the Western Metals situation. The Government is happy to work with the receiver manager and those companies to see what it can do to assist the employees and the contractors concerned. The Government is certainly prepared to work with the new owner of the project to see whether it can assist in any way in getting the project under way. As I have indicated, it is simply not possible for the Government to subsidise the operations, but if it can assist in any other way, it is only too happy to do so.
Mr C.M. BROWN replied: I thank the member for Kimberley for her question and her significant interest in this matter and, in particular, in those employees and contractors who will be affected by this decision. (1)-(2) Yesterday, PricewaterhouseCoopers released a statement indicating that the Western Metals receiver had sold the Lennard Shelf zinc and lead mines to Teck Cominco Ltd, a Canadian-based company, for some $26 million. The transaction is subject to an orderly suspension program placing the operations at the Pillara and Kapok mines on a care-and-maintenance basis. The suspension program is expected to take approximately six weeks, and completion should occur before the end of November. The receiver manager reported that since July it had tried to obtain a sale of the company as a going concern within the available time frame. Unfortunately, that has not been possible. The purchaser will use the suspension period to look at placing the mine on a more solid long-term footing and eventually re-employing a significant number of the staff. The question of restarting the mines will depend on the outcome of the work program, as well as zinc market conditions and exchange rates. Mr Speaker, you would be aware from your association with the mining industry that zinc rates have fallen to very low levels. Of course, with the Australian dollar appreciating quite significantly against the United States dollar, the operation is simply not viable in its current form. This company is a significant employer in the Kimberley. The member for Kimberley has been making representations to government to see what may be able to be done. Clearly, the Government is not in a position to provide subsidies to continue the operation. However, the member for Kimberley and, indeed, the Broome Chamber of Commerce have made representations to the Government requesting my involvement. I am happy to become involved in seeking some solutions in the circumstances. No request has been made for government funding to provide an ongoing subsidy, but obviously there is concern for the employees and contractors who will find themselves out of work. In a letter I received from the Broome Chamber of Commerce, attention was drawn to the Sally Malay project, which is a new project that will commence operations in the north, and to proposals regarding the Argyle diamond mine, and a request was made for government involvement to see whether it would be possible for the Government to work with either of those two companies to provide employment opportunities for some of the people who may be displaced as a result of the Western Metals situation. The Government is happy to work with the receiver manager and those companies to see what it can do to assist the employees and the contractors concerned. The Government is certainly prepared to work with the new owner of the project to see whether it can assist in any way in getting the project under way. As I have indicated, it is simply not possible for the Government to subsidise the operations, but if it can assist in any other way, it is only too happy to do so.
I thank the member for Kimberley for her question and her significant interest in this matter and, in particular, in those employees and contractors who will be affected by this decision. (1)-(2) Yesterday, PricewaterhouseCoopers released a statement indicating that the Western Metals receiver had sold the Lennard Shelf zinc and lead mines to Teck Cominco Ltd, a Canadian-based company, for some $26 million. The transaction is subject to an orderly suspension program placing the operations at the Pillara and Kapok mines on a care-and-maintenance basis. The suspension program is expected to take approximately six weeks, and completion should occur before the end of November. The receiver manager reported that since July it had tried to obtain a sale of the company as a going concern within the available time frame. Unfortunately, that has not been possible. The purchaser will use the suspension period to look at placing the mine on a more solid long-term footing and eventually re-employing a significant number of the staff. The question of restarting the mines will depend on the outcome of the work program, as well as zinc market conditions and exchange rates. Mr Speaker, you would be aware from your association with the mining industry that zinc rates have fallen to very low levels. Of course, with the Australian dollar appreciating quite significantly against the United States dollar, the operation is simply not viable in its current form. This company is a significant employer in the Kimberley. The member for Kimberley has been making representations to government to see what may be able to be done. Clearly, the Government is not in a position to provide subsidies to continue the operation. However, the member for Kimberley and, indeed, the Broome Chamber of Commerce have made representations to the Government requesting my involvement. I am happy to become involved in seeking some solutions in the circumstances. No request has been made for government funding to provide an ongoing subsidy, but obviously there is concern for the employees and contractors who will find themselves out of work. In a letter I received from the Broome Chamber of Commerce, attention was drawn to the Sally Malay project, which is a new project that will commence operations in the north, and to proposals regarding the Argyle diamond mine, and a request was made for government involvement to see whether it would be possible for the Government to work with either of those two companies to provide employment opportunities for some of the people who may be displaced as a result of the Western Metals situation. The Government is happy to work with the receiver manager and those companies to see what it can do to assist the employees and the contractors concerned. The Government is certainly prepared to work with the new owner of the project to see whether it can assist in any way in getting the project under way. As I have indicated, it is simply not possible for the Government to subsidise the operations, but if it can assist in any other way, it is only too happy to do so.
(1)-(2) Yesterday, PricewaterhouseCoopers released a statement indicating that the Western Metals receiver had sold the Lennard Shelf zinc and lead mines to Teck Cominco Ltd, a Canadian-based company, for some $26 million. The transaction is subject to an orderly suspension program placing the operations at the Pillara and Kapok mines on a care-and-maintenance basis. The suspension program is expected to take approximately six weeks, and completion should occur before the end of November. The receiver manager reported that since July it had tried to obtain a sale of the company as a going concern within the available time frame. Unfortunately, that has not been possible. The purchaser will use the suspension period to look at placing the mine on a more solid long-term footing and eventually re-employing a significant number of the staff. The question of restarting the mines will depend on the outcome of the work program, as well as zinc market conditions and exchange rates. Mr Speaker, you would be aware from your association with the mining industry that zinc rates have fallen to very low levels. Of course, with the Australian dollar appreciating quite significantly against the United States dollar, the operation is simply not viable in its current form. This company is a significant employer in the Kimberley. The member for Kimberley has been making representations to government to see what may be able to be done. Clearly, the Government is not in a position to provide subsidies to continue the operation. However, the member for Kimberley and, indeed, the Broome Chamber of Commerce have made representations to the Government requesting my involvement. I am happy to become involved in seeking some solutions in the circumstances. No request has been made for government funding to provide an ongoing subsidy, but obviously there is concern for the employees and contractors who will find themselves out of work. In a letter I received from the Broome Chamber of Commerce, attention was drawn to the Sally Malay project, which is a new project that will commence operations in the north, and to proposals regarding the Argyle diamond mine, and a request was made for government involvement to see whether it would be possible for the Government to work with either of those two companies to provide employment opportunities for some of the people who may be displaced as a result of the Western Metals situation. The Government is happy to work with the receiver manager and those companies to see what it can do to assist the employees and the contractors concerned. The Government is certainly prepared to work with the new owner of the project to see whether it can assist in any way in getting the project under way. As I have indicated, it is simply not possible for the Government to subsidise the operations, but if it can assist in any other way, it is only too happy to do so.
This company is a significant employer in the Kimberley. The member for Kimberley has been making representations to government to see what may be able to be done. Clearly, the Government is not in a position to provide subsidies to continue the operation. However, the member for Kimberley and, indeed, the Broome Chamber of Commerce have made representations to the Government requesting my involvement. I am happy to become involved in seeking some solutions in the circumstances. No request has been made for government funding to provide an ongoing subsidy, but obviously there is concern for the employees and contractors who will find themselves out of work. In a letter I received from the Broome Chamber of Commerce, attention was drawn to the Sally Malay project, which is a new project that will commence operations in the north, and to proposals regarding the Argyle diamond mine, and a request was made for government involvement to see whether it would be possible for the Government to work with either of those two companies to provide employment opportunities for some of the people who may be displaced as a result of the Western Metals situation. The Government is happy to work with the receiver manager and those companies to see what it can do to assist the employees and the contractors concerned. The Government is certainly prepared to work with the new owner of the project to see whether it can assist in any way in getting the project under way. As I have indicated, it is simply not possible for the Government to subsidise the operations, but if it can assist in any other way, it is only too happy to do so.
In a letter I received from the Broome Chamber of Commerce, attention was drawn to the Sally Malay project, which is a new project that will commence operations in the north, and to proposals regarding the Argyle diamond mine, and a request was made for government involvement to see whether it would be possible for the Government to work with either of those two companies to provide employment opportunities for some of the people who may be displaced as a result of the Western Metals situation. The Government is happy to work with the receiver manager and those companies to see what it can do to assist the employees and the contractors concerned. The Government is certainly prepared to work with the new owner of the project to see whether it can assist in any way in getting the project under way. As I have indicated, it is simply not possible for the Government to subsidise the operations, but if it can assist in any other way, it is only too happy to do so.
(2) Has the minister received any information on potential buyers of the company and any requests from the Derby and Broome communities for assistance? Mr C.M. BROWN replied: I thank the member for Kimberley for her question and her significant interest in this matter and, in particular, in those employees and contractors who will be affected by this decision. (1)-(2) Yesterday, PricewaterhouseCoopers released a statement indicating that the Western Metals receiver had sold the Lennard Shelf zinc and lead mines to Teck Cominco Ltd, a Canadian-based company, for some $26 million. The transaction is subject to an orderly suspension program placing the operations at the Pillara and Kapok mines on a care-and-maintenance basis. The suspension program is expected to take approximately six weeks, and completion should occur before the end of November. The receiver manager reported that since July it had tried to obtain a sale of the company as a going concern within the available time frame. Unfortunately, that has not been possible. The purchaser will use the suspension period to look at placing the mine on a more solid long-term footing and eventually re-employing a significant number of the staff. The question of restarting the mines will depend on the outcome of the work program, as well as zinc market conditions and exchange rates. Mr Speaker, you would be aware from your association with the mining industry that zinc rates have fallen to very low levels. Of course, with the Australian dollar appreciating quite significantly against the United States dollar, the operation is simply not viable in its current form. This company is a significant employer in the Kimberley. The member for Kimberley has been making representations to government to see what may be able to be done. Clearly, the Government is not in a position to provide subsidies to continue the operation. However, the member for Kimberley and, indeed, the Broome Chamber of Commerce have made representations to the Government requesting my involvement. I am happy to become involved in seeking some solutions in the circumstances. No request has been made for government funding to provide an ongoing subsidy, but obviously there is concern for the employees and contractors who will find themselves out of work. In a letter I received from the Broome Chamber of Commerce, attention was drawn to the Sally Malay project, which is a new project that will commence operations in the north, and to proposals regarding the Argyle diamond mine, and a request was made for government involvement to see whether it would be possible for the Government to work with either of those two companies to provide employment opportunities for some of the people who may be displaced as a result of the Western Metals situation. The Government is happy to work with the receiver manager and those companies to see what it can do to assist the employees and the contractors concerned. The Government is certainly prepared to work with the new owner of the project to see whether it can assist in any way in getting the project under way. As I have indicated, it is simply not possible for the Government to subsidise the operations, but if it can assist in any other way, it is only too happy to do so.
Mr C.M. BROWN replied: I thank the member for Kimberley for her question and her significant interest in this matter and, in particular, in those employees and contractors who will be affected by this decision. (1)-(2) Yesterday, PricewaterhouseCoopers released a statement indicating that the Western Metals receiver had sold the Lennard Shelf zinc and lead mines to Teck Cominco Ltd, a Canadian-based company, for some $26 million. The transaction is subject to an orderly suspension program placing the operations at the Pillara and Kapok mines on a care-and-maintenance basis. The suspension program is expected to take approximately six weeks, and completion should occur before the end of November. The receiver manager reported that since July it had tried to obtain a sale of the company as a going concern within the available time frame. Unfortunately, that has not been possible. The purchaser will use the suspension period to look at placing the mine on a more solid long-term footing and eventually re-employing a significant number of the staff. The question of restarting the mines will depend on the outcome of the work program, as well as zinc market conditions and exchange rates. Mr Speaker, you would be aware from your association with the mining industry that zinc rates have fallen to very low levels. Of course, with the Australian dollar appreciating quite significantly against the United States dollar, the operation is simply not viable in its current form. This company is a significant employer in the Kimberley. The member for Kimberley has been making representations to government to see what may be able to be done. Clearly, the Government is not in a position to provide subsidies to continue the operation. However, the member for Kimberley and, indeed, the Broome Chamber of Commerce have made representations to the Government requesting my involvement. I am happy to become involved in seeking some solutions in the circumstances. No request has been made for government funding to provide an ongoing subsidy, but obviously there is concern for the employees and contractors who will find themselves out of work. In a letter I received from the Broome Chamber of Commerce, attention was drawn to the Sally Malay project, which is a new project that will commence operations in the north, and to proposals regarding the Argyle diamond mine, and a request was made for government involvement to see whether it would be possible for the Government to work with either of those two companies to provide employment opportunities for some of the people who may be displaced as a result of the Western Metals situation. The Government is happy to work with the receiver manager and those companies to see what it can do to assist the employees and the contractors concerned. The Government is certainly prepared to work with the new owner of the project to see whether it can assist in any way in getting the project under way. As I have indicated, it is simply not possible for the Government to subsidise the operations, but if it can assist in any other way, it is only too happy to do so.
I thank the member for Kimberley for her question and her significant interest in this matter and, in particular, in those employees and contractors who will be affected by this decision. (1)-(2) Yesterday, PricewaterhouseCoopers released a statement indicating that the Western Metals receiver had sold the Lennard Shelf zinc and lead mines to Teck Cominco Ltd, a Canadian-based company, for some $26 million. The transaction is subject to an orderly suspension program placing the operations at the Pillara and Kapok mines on a care-and-maintenance basis. The suspension program is expected to take approximately six weeks, and completion should occur before the end of November. The receiver manager reported that since July it had tried to obtain a sale of the company as a going concern within the available time frame. Unfortunately, that has not been possible. The purchaser will use the suspension period to look at placing the mine on a more solid long-term footing and eventually re-employing a significant number of the staff. The question of restarting the mines will depend on the outcome of the work program, as well as zinc market conditions and exchange rates. Mr Speaker, you would be aware from your association with the mining industry that zinc rates have fallen to very low levels. Of course, with the Australian dollar appreciating quite significantly against the United States dollar, the operation is simply not viable in its current form. This company is a significant employer in the Kimberley. The member for Kimberley has been making representations to government to see what may be able to be done. Clearly, the Government is not in a position to provide subsidies to continue the operation. However, the member for Kimberley and, indeed, the Broome Chamber of Commerce have made representations to the Government requesting my involvement. I am happy to become involved in seeking some solutions in the circumstances. No request has been made for government funding to provide an ongoing subsidy, but obviously there is concern for the employees and contractors who will find themselves out of work. In a letter I received from the Broome Chamber of Commerce, attention was drawn to the Sally Malay project, which is a new project that will commence operations in the north, and to proposals regarding the Argyle diamond mine, and a request was made for government involvement to see whether it would be possible for the Government to work with either of those two companies to provide employment opportunities for some of the people who may be displaced as a result of the Western Metals situation. The Government is happy to work with the receiver manager and those companies to see what it can do to assist the employees and the contractors concerned. The Government is certainly prepared to work with the new owner of the project to see whether it can assist in any way in getting the project under way. As I have indicated, it is simply not possible for the Government to subsidise the operations, but if it can assist in any other way, it is only too happy to do so.
(1)-(2) Yesterday, PricewaterhouseCoopers released a statement indicating that the Western Metals receiver had sold the Lennard Shelf zinc and lead mines to Teck Cominco Ltd, a Canadian-based company, for some $26 million. The transaction is subject to an orderly suspension program placing the operations at the Pillara and Kapok mines on a care-and-maintenance basis. The suspension program is expected to take approximately six weeks, and completion should occur before the end of November. The receiver manager reported that since July it had tried to obtain a sale of the company as a going concern within the available time frame. Unfortunately, that has not been possible. The purchaser will use the suspension period to look at placing the mine on a more solid long-term footing and eventually re-employing a significant number of the staff. The question of restarting the mines will depend on the outcome of the work program, as well as zinc market conditions and exchange rates. Mr Speaker, you would be aware from your association with the mining industry that zinc rates have fallen to very low levels. Of course, with the Australian dollar appreciating quite significantly against the United States dollar, the operation is simply not viable in its current form. This company is a significant employer in the Kimberley. The member for Kimberley has been making representations to government to see what may be able to be done. Clearly, the Government is not in a position to provide subsidies to continue the operation. However, the member for Kimberley and, indeed, the Broome Chamber of Commerce have made representations to the Government requesting my involvement. I am happy to become involved in seeking some solutions in the circumstances. No request has been made for government funding to provide an ongoing subsidy, but obviously there is concern for the employees and contractors who will find themselves out of work. In a letter I received from the Broome Chamber of Commerce, attention was drawn to the Sally Malay project, which is a new project that will commence operations in the north, and to proposals regarding the Argyle diamond mine, and a request was made for government involvement to see whether it would be possible for the Government to work with either of those two companies to provide employment opportunities for some of the people who may be displaced as a result of the Western Metals situation. The Government is happy to work with the receiver manager and those companies to see what it can do to assist the employees and the contractors concerned. The Government is certainly prepared to work with the new owner of the project to see whether it can assist in any way in getting the project under way. As I have indicated, it is simply not possible for the Government to subsidise the operations, but if it can assist in any other way, it is only too happy to do so.
This company is a significant employer in the Kimberley. The member for Kimberley has been making representations to government to see what may be able to be done. Clearly, the Government is not in a position to provide subsidies to continue the operation. However, the member for Kimberley and, indeed, the Broome Chamber of Commerce have made representations to the Government requesting my involvement. I am happy to become involved in seeking some solutions in the circumstances. No request has been made for government funding to provide an ongoing subsidy, but obviously there is concern for the employees and contractors who will find themselves out of work. In a letter I received from the Broome Chamber of Commerce, attention was drawn to the Sally Malay project, which is a new project that will commence operations in the north, and to proposals regarding the Argyle diamond mine, and a request was made for government involvement to see whether it would be possible for the Government to work with either of those two companies to provide employment opportunities for some of the people who may be displaced as a result of the Western Metals situation. The Government is happy to work with the receiver manager and those companies to see what it can do to assist the employees and the contractors concerned. The Government is certainly prepared to work with the new owner of the project to see whether it can assist in any way in getting the project under way. As I have indicated, it is simply not possible for the Government to subsidise the operations, but if it can assist in any other way, it is only too happy to do so.
In a letter I received from the Broome Chamber of Commerce, attention was drawn to the Sally Malay project, which is a new project that will commence operations in the north, and to proposals regarding the Argyle diamond mine, and a request was made for government involvement to see whether it would be possible for the Government to work with either of those two companies to provide employment opportunities for some of the people who may be displaced as a result of the Western Metals situation. The Government is happy to work with the receiver manager and those companies to see what it can do to assist the employees and the contractors concerned. The Government is certainly prepared to work with the new owner of the project to see whether it can assist in any way in getting the project under way. As I have indicated, it is simply not possible for the Government to subsidise the operations, but if it can assist in any other way, it is only too happy to do so.
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