Hon Simon O'Brien raises concerns about potential closure of Koolanooka mine due to road freight haulage permit issues. Hon Kim Chance acknowledges the problem, commits to intervention, and highlights infrastructure challenges and the need for a resolution.

AnsweredQoN 878Legislative Council
Asked
27 September 2007
Portfolio
Mid West and Wheatbelt

QuestionView source ↗

KOOLANOOKA MINE - ROAD FREIGHT HAULAGE PERMITS 878. Hon SIMON O’BRIEN to the Minister for the Mid West and Wheatbelt: (1) What would be the effect on the mid-west region if the mid-west Koolanooka mine has to cease operations at midnight on Sunday because it cannot get road freight haulage permits to continue moving its iron ore? (2) Is the minister able to intervene on behalf of this operation by making a representation to the responsible minister to ensure the continuity of operations of this mid-west junior mining venture? Hon KIM CHANCE

AnswerView source ↗

(1) Clearly if an operating mine in the mid-west were not able to transport its product as a result of an inability to resolve the logistical arrangements that it has with the government, that would have a negative effect on the mine, particularly so if the company already had shipping on the way which led to delivery schedules that it would have to meet; therefore, clearly this situation needs to be resolved. (2) A resolution to this issue is clearly possible. I am aware of the correspondence travelling between that mining company and the Minister for Planning and Infrastructure. I am aware of some of the issues that have led to the time constraints in relation to some matters that could have been progressed and perhaps have not been progressed as quickly as they should have been. However, I do not believe for a moment that this is a matter beyond resolution, but I will most certainly convey Hon Simon O’Brien’s concerns to the Minister for Planning and Infrastructure, as I think this matter does need to be resolved. Having said that, Hon Simon O’Brien must appreciate that the Minister for Planning and Infrastructure is dealing with a very difficult situation in that she would be the first to concede that the road linkages that are currently being used to service the output of this mine are not what they should be for the volume of traffic and the tonnage they are taking. Everyone recognises that this is an interim position before a more permanent rail-based solution is achieved. At the same time, the company still has to get its cash flow running. We are therefore trying to manage a situation in less than ideal circumstances. Both the minister and the company are aware of that and I believe they are both powerfully inclined to get a resolution to this problem.
KOOLANOOKA MINE - ROAD FREIGHT HAULAGE PERMITS
(1) What would be the effect on the mid-west region if the mid-west Koolanooka mine has to cease operations at midnight on Sunday because it cannot get road freight haulage permits to continue moving its iron ore? (2) Is the minister able to intervene on behalf of this operation by making a representation to the responsible minister to ensure the continuity of operations of this mid-west junior mining venture? Hon KIM CHANCE replied: (1) Clearly if an operating mine in the mid-west were not able to transport its product as a result of an inability to resolve the logistical arrangements that it has with the government, that would have a negative effect on the mine, particularly so if the company already had shipping on the way which led to delivery schedules that it would have to meet; therefore, clearly this situation needs to be resolved. (2) A resolution to this issue is clearly possible. I am aware of the correspondence travelling between that mining company and the Minister for Planning and Infrastructure. I am aware of some of the issues that have led to the time constraints in relation to some matters that could have been progressed and perhaps have not been progressed as quickly as they should have been. However, I do not believe for a moment that this is a matter beyond resolution, but I will most certainly convey Hon Simon O’Brien’s concerns to the Minister for Planning and Infrastructure, as I think this matter does need to be resolved. Having said that, Hon Simon O’Brien must appreciate that the Minister for Planning and Infrastructure is dealing with a very difficult situation in that she would be the first to concede that the road linkages that are currently being used to service the output of this mine are not what they should be for the volume of traffic and the tonnage they are taking. Everyone recognises that this is an interim position before a more permanent rail-based solution is achieved. At the same time, the company still has to get its cash flow running. We are therefore trying to manage a situation in less than ideal circumstances. Both the minister and the company are aware of that and I believe they are both powerfully inclined to get a resolution to this problem.
(2) Is the minister able to intervene on behalf of this operation by making a representation to the responsible minister to ensure the continuity of operations of this mid-west junior mining venture? Hon KIM CHANCE replied: (1) Clearly if an operating mine in the mid-west were not able to transport its product as a result of an inability to resolve the logistical arrangements that it has with the government, that would have a negative effect on the mine, particularly so if the company already had shipping on the way which led to delivery schedules that it would have to meet; therefore, clearly this situation needs to be resolved. (2) A resolution to this issue is clearly possible. I am aware of the correspondence travelling between that mining company and the Minister for Planning and Infrastructure. I am aware of some of the issues that have led to the time constraints in relation to some matters that could have been progressed and perhaps have not been progressed as quickly as they should have been. However, I do not believe for a moment that this is a matter beyond resolution, but I will most certainly convey Hon Simon O’Brien’s concerns to the Minister for Planning and Infrastructure, as I think this matter does need to be resolved. Having said that, Hon Simon O’Brien must appreciate that the Minister for Planning and Infrastructure is dealing with a very difficult situation in that she would be the first to concede that the road linkages that are currently being used to service the output of this mine are not what they should be for the volume of traffic and the tonnage they are taking. Everyone recognises that this is an interim position before a more permanent rail-based solution is achieved. At the same time, the company still has to get its cash flow running. We are therefore trying to manage a situation in less than ideal circumstances. Both the minister and the company are aware of that and I believe they are both powerfully inclined to get a resolution to this problem.
Hon KIM CHANCE replied: (1) Clearly if an operating mine in the mid-west were not able to transport its product as a result of an inability to resolve the logistical arrangements that it has with the government, that would have a negative effect on the mine, particularly so if the company already had shipping on the way which led to delivery schedules that it would have to meet; therefore, clearly this situation needs to be resolved. (2) A resolution to this issue is clearly possible. I am aware of the correspondence travelling between that mining company and the Minister for Planning and Infrastructure. I am aware of some of the issues that have led to the time constraints in relation to some matters that could have been progressed and perhaps have not been progressed as quickly as they should have been. However, I do not believe for a moment that this is a matter beyond resolution, but I will most certainly convey Hon Simon O’Brien’s concerns to the Minister for Planning and Infrastructure, as I think this matter does need to be resolved. Having said that, Hon Simon O’Brien must appreciate that the Minister for Planning and Infrastructure is dealing with a very difficult situation in that she would be the first to concede that the road linkages that are currently being used to service the output of this mine are not what they should be for the volume of traffic and the tonnage they are taking. Everyone recognises that this is an interim position before a more permanent rail-based solution is achieved. At the same time, the company still has to get its cash flow running. We are therefore trying to manage a situation in less than ideal circumstances. Both the minister and the company are aware of that and I believe they are both powerfully inclined to get a resolution to this problem.
(1) Clearly if an operating mine in the mid-west were not able to transport its product as a result of an inability to resolve the logistical arrangements that it has with the government, that would have a negative effect on the mine, particularly so if the company already had shipping on the way which led to delivery schedules that it would have to meet; therefore, clearly this situation needs to be resolved. (2) A resolution to this issue is clearly possible. I am aware of the correspondence travelling between that mining company and the Minister for Planning and Infrastructure. I am aware of some of the issues that have led to the time constraints in relation to some matters that could have been progressed and perhaps have not been progressed as quickly as they should have been. However, I do not believe for a moment that this is a matter beyond resolution, but I will most certainly convey Hon Simon O’Brien’s concerns to the Minister for Planning and Infrastructure, as I think this matter does need to be resolved. Having said that, Hon Simon O’Brien must appreciate that the Minister for Planning and Infrastructure is dealing with a very difficult situation in that she would be the first to concede that the road linkages that are currently being used to service the output of this mine are not what they should be for the volume of traffic and the tonnage they are taking. Everyone recognises that this is an interim position before a more permanent rail-based solution is achieved. At the same time, the company still has to get its cash flow running. We are therefore trying to manage a situation in less than ideal circumstances. Both the minister and the company are aware of that and I believe they are both powerfully inclined to get a resolution to this problem.
(2) A resolution to this issue is clearly possible. I am aware of the correspondence travelling between that mining company and the Minister for Planning and Infrastructure. I am aware of some of the issues that have led to the time constraints in relation to some matters that could have been progressed and perhaps have not been progressed as quickly as they should have been. However, I do not believe for a moment that this is a matter beyond resolution, but I will most certainly convey Hon Simon O’Brien’s concerns to the Minister for Planning and Infrastructure, as I think this matter does need to be resolved. Having said that, Hon Simon O’Brien must appreciate that the Minister for Planning and Infrastructure is dealing with a very difficult situation in that she would be the first to concede that the road linkages that are currently being used to service the output of this mine are not what they should be for the volume of traffic and the tonnage they are taking. Everyone recognises that this is an interim position before a more permanent rail-based solution is achieved. At the same time, the company still has to get its cash flow running. We are therefore trying to manage a situation in less than ideal circumstances. Both the minister and the company are aware of that and I believe they are both powerfully inclined to get a resolution to this problem.

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