Ms MacTiernan questions the minister about the 12 million tonne cap on iron ore exports through Geraldton port, its impact on mine start-ups, and the consultation process. The Minister defends the cap, citing the development of Oakajee port as the primary iron ore export hub.

AnsweredQoN 490Legislative Assembly
Asked
9 June 2009
Portfolio
State Development

QuestionView source ↗

PORT OF GERALDTON — IRON ORE EXPORTS CAP
(1) Is the minister aware that the 12 million tonnes per annum cap that he has imposed on iron ore exports through the Geraldton port will delay a number of mine start-ups by three or more years and may even lead to some companies exiting the region? (2) What consultation took place with the industry before selecting the 12 million tonnes per annum cap? (3) Will the minister review the cap to ensure that the mid-west iron ore industry can continue to develop in an orderly fashion? Mr C.J. BARNETT

AnswerView source ↗

(1)-(3) Yes, it will be able to develop, through a port called Oakajee. Presently three million to four million tonnes of iron ore—I think it is in that order—goes through the port of Geraldton. Tonnages through Geraldton will increase hopefully as some of the smaller projects come on stream. Indeed, a project like Gindalbie Metals’ Karara mine will use Geraldton in the lead-up to the opening of the Oakajee port, where its tonnages will increase to in the order of 30 million a year, hopefully. The government made a policy decision that it will not allow Geraldton to become an iron ore port. Geraldton is a residentially-bound port. We have just experienced, for example—although it was a different set of issues—problems in Esperance. Therefore, we made a decision that yes, iron ore trade can increase through Geraldton, up to 12 million tonnes per annum. We specified that figure and that was based on some historical material, but it was also a figure that was of no surprise to anyone; 12 million tonnes has been — Mr E.S. Ripper : Yes it was. Mr C.J. BARNETT : Was it Labor’s policy to turn Geraldton into an iron ore port? Is that the direction members opposite were going in? Several members interjected. Mr C.J. BARNETT : We are not going to do that. We have a clear policy to develop Oakajee as a major deep sea port on the Australian west coast. In the interim, we will allow tonnages to grow to 12 million per annum and to continue at 12 million if that is what companies choose to do, but we will deliberately channel the development of the iron ore industry through the Oakajee port. Ms A.J.G. MacTiernan : What is going to happen in the next three to four years? Mr C.J. BARNETT : At the moment the tonnages are three or four million per annum, so there is a fair bit of scope to grow.
(2) What consultation took place with the industry before selecting the 12 million tonnes per annum cap? (3) Will the minister review the cap to ensure that the mid-west iron ore industry can continue to develop in an orderly fashion? Mr C.J. BARNETT replied: (1)-(3) Yes, it will be able to develop, through a port called Oakajee. Presently three million to four million tonnes of iron ore—I think it is in that order—goes through the port of Geraldton. Tonnages through Geraldton will increase hopefully as some of the smaller projects come on stream. Indeed, a project like Gindalbie Metals’ Karara mine will use Geraldton in the lead-up to the opening of the Oakajee port, where its tonnages will increase to in the order of 30 million a year, hopefully. The government made a policy decision that it will not allow Geraldton to become an iron ore port. Geraldton is a residentially-bound port. We have just experienced, for example—although it was a different set of issues—problems in Esperance. Therefore, we made a decision that yes, iron ore trade can increase through Geraldton, up to 12 million tonnes per annum. We specified that figure and that was based on some historical material, but it was also a figure that was of no surprise to anyone; 12 million tonnes has been — Mr E.S. Ripper : Yes it was. Mr C.J. BARNETT : Was it Labor’s policy to turn Geraldton into an iron ore port? Is that the direction members opposite were going in? Several members interjected. Mr C.J. BARNETT : We are not going to do that. We have a clear policy to develop Oakajee as a major deep sea port on the Australian west coast. In the interim, we will allow tonnages to grow to 12 million per annum and to continue at 12 million if that is what companies choose to do, but we will deliberately channel the development of the iron ore industry through the Oakajee port. Ms A.J.G. MacTiernan : What is going to happen in the next three to four years? Mr C.J. BARNETT : At the moment the tonnages are three or four million per annum, so there is a fair bit of scope to grow.
(3) Will the minister review the cap to ensure that the mid-west iron ore industry can continue to develop in an orderly fashion? Mr C.J. BARNETT replied: (1)-(3) Yes, it will be able to develop, through a port called Oakajee. Presently three million to four million tonnes of iron ore—I think it is in that order—goes through the port of Geraldton. Tonnages through Geraldton will increase hopefully as some of the smaller projects come on stream. Indeed, a project like Gindalbie Metals’ Karara mine will use Geraldton in the lead-up to the opening of the Oakajee port, where its tonnages will increase to in the order of 30 million a year, hopefully. The government made a policy decision that it will not allow Geraldton to become an iron ore port. Geraldton is a residentially-bound port. We have just experienced, for example—although it was a different set of issues—problems in Esperance. Therefore, we made a decision that yes, iron ore trade can increase through Geraldton, up to 12 million tonnes per annum. We specified that figure and that was based on some historical material, but it was also a figure that was of no surprise to anyone; 12 million tonnes has been — Mr E.S. Ripper : Yes it was. Mr C.J. BARNETT : Was it Labor’s policy to turn Geraldton into an iron ore port? Is that the direction members opposite were going in? Several members interjected. Mr C.J. BARNETT : We are not going to do that. We have a clear policy to develop Oakajee as a major deep sea port on the Australian west coast. In the interim, we will allow tonnages to grow to 12 million per annum and to continue at 12 million if that is what companies choose to do, but we will deliberately channel the development of the iron ore industry through the Oakajee port. Ms A.J.G. MacTiernan : What is going to happen in the next three to four years? Mr C.J. BARNETT : At the moment the tonnages are three or four million per annum, so there is a fair bit of scope to grow.
Mr C.J. BARNETT replied: (1)-(3) Yes, it will be able to develop, through a port called Oakajee. Presently three million to four million tonnes of iron ore—I think it is in that order—goes through the port of Geraldton. Tonnages through Geraldton will increase hopefully as some of the smaller projects come on stream. Indeed, a project like Gindalbie Metals’ Karara mine will use Geraldton in the lead-up to the opening of the Oakajee port, where its tonnages will increase to in the order of 30 million a year, hopefully. The government made a policy decision that it will not allow Geraldton to become an iron ore port. Geraldton is a residentially-bound port. We have just experienced, for example—although it was a different set of issues—problems in Esperance. Therefore, we made a decision that yes, iron ore trade can increase through Geraldton, up to 12 million tonnes per annum. We specified that figure and that was based on some historical material, but it was also a figure that was of no surprise to anyone; 12 million tonnes has been — Mr E.S. Ripper : Yes it was. Mr C.J. BARNETT : Was it Labor’s policy to turn Geraldton into an iron ore port? Is that the direction members opposite were going in? Several members interjected. Mr C.J. BARNETT : We are not going to do that. We have a clear policy to develop Oakajee as a major deep sea port on the Australian west coast. In the interim, we will allow tonnages to grow to 12 million per annum and to continue at 12 million if that is what companies choose to do, but we will deliberately channel the development of the iron ore industry through the Oakajee port. Ms A.J.G. MacTiernan : What is going to happen in the next three to four years? Mr C.J. BARNETT : At the moment the tonnages are three or four million per annum, so there is a fair bit of scope to grow.
(1)-(3) Yes, it will be able to develop, through a port called Oakajee. Presently three million to four million tonnes of iron ore—I think it is in that order—goes through the port of Geraldton. Tonnages through Geraldton will increase hopefully as some of the smaller projects come on stream. Indeed, a project like Gindalbie Metals’ Karara mine will use Geraldton in the lead-up to the opening of the Oakajee port, where its tonnages will increase to in the order of 30 million a year, hopefully. The government made a policy decision that it will not allow Geraldton to become an iron ore port. Geraldton is a residentially-bound port. We have just experienced, for example—although it was a different set of issues—problems in Esperance. Therefore, we made a decision that yes, iron ore trade can increase through Geraldton, up to 12 million tonnes per annum. We specified that figure and that was based on some historical material, but it was also a figure that was of no surprise to anyone; 12 million tonnes has been — Mr E.S. Ripper : Yes it was. Mr C.J. BARNETT : Was it Labor’s policy to turn Geraldton into an iron ore port? Is that the direction members opposite were going in? Several members interjected. Mr C.J. BARNETT : We are not going to do that. We have a clear policy to develop Oakajee as a major deep sea port on the Australian west coast. In the interim, we will allow tonnages to grow to 12 million per annum and to continue at 12 million if that is what companies choose to do, but we will deliberately channel the development of the iron ore industry through the Oakajee port. Ms A.J.G. MacTiernan : What is going to happen in the next three to four years? Mr C.J. BARNETT : At the moment the tonnages are three or four million per annum, so there is a fair bit of scope to grow.
Mr C.J. BARNETT : Was it Labor’s policy to turn Geraldton into an iron ore port? Is that the direction members opposite were going in? Several members interjected. Mr C.J. BARNETT : We are not going to do that. We have a clear policy to develop Oakajee as a major deep sea port on the Australian west coast. In the interim, we will allow tonnages to grow to 12 million per annum and to continue at 12 million if that is what companies choose to do, but we will deliberately channel the development of the iron ore industry through the Oakajee port. Ms A.J.G. MacTiernan : What is going to happen in the next three to four years? Mr C.J. BARNETT : At the moment the tonnages are three or four million per annum, so there is a fair bit of scope to grow.
Several members interjected. Mr C.J. BARNETT : We are not going to do that. We have a clear policy to develop Oakajee as a major deep sea port on the Australian west coast. In the interim, we will allow tonnages to grow to 12 million per annum and to continue at 12 million if that is what companies choose to do, but we will deliberately channel the development of the iron ore industry through the Oakajee port. Ms A.J.G. MacTiernan : What is going to happen in the next three to four years? Mr C.J. BARNETT : At the moment the tonnages are three or four million per annum, so there is a fair bit of scope to grow.
Mr C.J. BARNETT : We are not going to do that. We have a clear policy to develop Oakajee as a major deep sea port on the Australian west coast. In the interim, we will allow tonnages to grow to 12 million per annum and to continue at 12 million if that is what companies choose to do, but we will deliberately channel the development of the iron ore industry through the Oakajee port. Ms A.J.G. MacTiernan : What is going to happen in the next three to four years? Mr C.J. BARNETT : At the moment the tonnages are three or four million per annum, so there is a fair bit of scope to grow.
Ms A.J.G. MacTiernan : What is going to happen in the next three to four years? Mr C.J. BARNETT : At the moment the tonnages are three or four million per annum, so there is a fair bit of scope to grow.
Mr C.J. BARNETT : At the moment the tonnages are three or four million per annum, so there is a fair bit of scope to grow.

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