A WA parliamentary question seeks details about government financial involvement in the Windimurra vanadium mine and the associated gas pipeline, revealing the government's assistance to Western Power for pipeline construction.

AnsweredQoN 1817Legislative Assembly
Asked
26 August 2003
Portfolio
State Development

QuestionView source ↗

(1) Were any royalties foregone by the State Government when approval was given to establish the Windimurra vanadium mine?
(2) Did the Government make any direct financial contribution to the capital infrastructure of the mine?
(3) Will the Minister advise how much the Government contributed to the establishment of the gas pipeline to Windimurra?
(4) Will the Minister advise the terms of the financing of the gas pipeline and when it is expected the debt will be finalised?

AnswerView source ↗

Answered
9 September 2003
Responded by
Minister for State Development
Response time
14 days
1) No 2) No 3) In 1998 Cabinet agreed to assist Western Power Corporation to fund its share of the pipeline construction (the co-owner is the Australian Pipeline Trust) from the DBNGP to Mt Magnet, by paying $832,000 per annum to WPC to cover the interest payable on a $14 million loan for a period of 10 years. 4) To date, the joint venture (Western Power and AGL) has built the pipeline between the DBNGP and Mt Magnet. The assistance was to be provided for 10 years. At the end of ten years, and provided the pipeline’s daily throughput had reached 19 Tj, the capital on the loan is to be reduced by a minimum of $4 million per annum. If the daily throughput has not reached 19 Tj per day, Western Power may seek to extend the arrangement for a further 10 years. At any time, should the daily throughput reach 19 Tj, Western Power must commence to reduce the capital outstanding on the loan.
2) No 3) In 1998 Cabinet agreed to assist Western Power Corporation to fund its share of the pipeline construction (the co-owner is the Australian Pipeline Trust) from the DBNGP to Mt Magnet, by paying $832,000 per annum to WPC to cover the interest payable on a $14 million loan for a period of 10 years. 4) To date, the joint venture (Western Power and AGL) has built the pipeline between the DBNGP and Mt Magnet. The assistance was to be provided for 10 years. At the end of ten years, and provided the pipeline’s daily throughput had reached 19 Tj, the capital on the loan is to be reduced by a minimum of $4 million per annum. If the daily throughput has not reached 19 Tj per day, Western Power may seek to extend the arrangement for a further 10 years. At any time, should the daily throughput reach 19 Tj, Western Power must commence to reduce the capital outstanding on the loan.
3) In 1998 Cabinet agreed to assist Western Power Corporation to fund its share of the pipeline construction (the co-owner is the Australian Pipeline Trust) from the DBNGP to Mt Magnet, by paying $832,000 per annum to WPC to cover the interest payable on a $14 million loan for a period of 10 years. 4) To date, the joint venture (Western Power and AGL) has built the pipeline between the DBNGP and Mt Magnet. The assistance was to be provided for 10 years. At the end of ten years, and provided the pipeline’s daily throughput had reached 19 Tj, the capital on the loan is to be reduced by a minimum of $4 million per annum. If the daily throughput has not reached 19 Tj per day, Western Power may seek to extend the arrangement for a further 10 years. At any time, should the daily throughput reach 19 Tj, Western Power must commence to reduce the capital outstanding on the loan.
4) To date, the joint venture (Western Power and AGL) has built the pipeline between the DBNGP and Mt Magnet. The assistance was to be provided for 10 years. At the end of ten years, and provided the pipeline’s daily throughput had reached 19 Tj, the capital on the loan is to be reduced by a minimum of $4 million per annum. If the daily throughput has not reached 19 Tj per day, Western Power may seek to extend the arrangement for a further 10 years. At any time, should the daily throughput reach 19 Tj, Western Power must commence to reduce the capital outstanding on the loan.
If the daily throughput has not reached 19 Tj per day, Western Power may seek to extend the arrangement for a further 10 years. At any time, should the daily throughput reach 19 Tj, Western Power must commence to reduce the capital outstanding on the loan.

Explore WA Government Data

Search the full archive in the free dashboard, or query programmatically via API.

Explore more