❓ Hon Robin Chapple questions the Treasurer regarding subsidies provided to Citic and Ansteel, their profits, and royalty payments. The answer details subsidy amounts, profit information (or lack thereof), and justifies the royalty discount due to market conditions.
AnsweredQoN 460Legislative Council
QuestionView source ↗
I refer to the article in
The Australian
on 13 May 2016, "WA budget 2016: royalty relief grants $41m to Chinese giants", and ask:
(a) what is the current subsidy provided by the State Government to Citic;
(b) what is Citic's annual profit for the 2016-17 financial year;
(c) what is Citic's royalty and how much have they paid for the 2016-17 financial year;
(d) what is the current subsidy provided by the State Government to Ansteel;
(e) what is Ansteel's annual profit for the 2016-17 financial year;
(f) what is Ansteel's royalty and how much have they paid for the 2016-17 financial year; and
(g) why is the State Government providing the subsidies to Citic and Ansteel?
The Australian
on 13 May 2016, "WA budget 2016: royalty relief grants $41m to Chinese giants", and ask:
(a) what is the current subsidy provided by the State Government to Citic;
(b) what is Citic's annual profit for the 2016-17 financial year;
(c) what is Citic's royalty and how much have they paid for the 2016-17 financial year;
(d) what is the current subsidy provided by the State Government to Ansteel;
(e) what is Ansteel's annual profit for the 2016-17 financial year;
(f) what is Ansteel's royalty and how much have they paid for the 2016-17 financial year; and
(g) why is the State Government providing the subsidies to Citic and Ansteel?
AnswerView source ↗
Answered
5 December 2017
Responded by
Minister for Environment representing the Treasurer
Response time
9 days
$ millions Actual 2015-16 12.8 Budget estimate 2016-17 17.3 Actual 2016-17 42.2 Budget estimate 2017-18 37.7 The actual in 2016-17 was higher than originally budget due to a higher than expected prices and production volumes. (b) Citic Pacific does not report profit figures separately for its Australian subsidiary CITIC Pacific Mining, which operates the Sino Iron project. However, its Resources and Energy division made a loss of HK$6.5 billion or around $1.1 billion in calendar 2016. The parent company CITIC made a profit of HK$43.1 billion or around $7.5 billion. (c – d) See (a). (e) Ansteel (short for Angang Steel) made a net profit of RMB1.6 billion or around $327 million in calendar 2016. (f) See (a). (g) The 50% discount on magnetite royalties was extended for two years in the 2016-17 Budget in light of difficult market conditions and the potential of the magnetite industry.
The actual in 2016-17 was higher than originally budget due to a higher than expected prices and production volumes. (b) Citic Pacific does not report profit figures separately for its Australian subsidiary CITIC Pacific Mining, which operates the Sino Iron project. However, its Resources and Energy division made a loss of HK$6.5 billion or around $1.1 billion in calendar 2016. The parent company CITIC made a profit of HK$43.1 billion or around $7.5 billion. (c – d) See (a). (e) Ansteel (short for Angang Steel) made a net profit of RMB1.6 billion or around $327 million in calendar 2016. (f) See (a). (g) The 50% discount on magnetite royalties was extended for two years in the 2016-17 Budget in light of difficult market conditions and the potential of the magnetite industry.
(b) Citic Pacific does not report profit figures separately for its Australian subsidiary CITIC Pacific Mining, which operates the Sino Iron project. However, its Resources and Energy division made a loss of HK$6.5 billion or around $1.1 billion in calendar 2016. The parent company CITIC made a profit of HK$43.1 billion or around $7.5 billion. (c – d) See (a). (e) Ansteel (short for Angang Steel) made a net profit of RMB1.6 billion or around $327 million in calendar 2016. (f) See (a). (g) The 50% discount on magnetite royalties was extended for two years in the 2016-17 Budget in light of difficult market conditions and the potential of the magnetite industry.
(c – d) See (a). (e) Ansteel (short for Angang Steel) made a net profit of RMB1.6 billion or around $327 million in calendar 2016. (f) See (a). (g) The 50% discount on magnetite royalties was extended for two years in the 2016-17 Budget in light of difficult market conditions and the potential of the magnetite industry.
(e) Ansteel (short for Angang Steel) made a net profit of RMB1.6 billion or around $327 million in calendar 2016. (f) See (a). (g) The 50% discount on magnetite royalties was extended for two years in the 2016-17 Budget in light of difficult market conditions and the potential of the magnetite industry.
(f) See (a). (g) The 50% discount on magnetite royalties was extended for two years in the 2016-17 Budget in light of difficult market conditions and the potential of the magnetite industry.
(g) The 50% discount on magnetite royalties was extended for two years in the 2016-17 Budget in light of difficult market conditions and the potential of the magnetite industry.
The actual in 2016-17 was higher than originally budget due to a higher than expected prices and production volumes. (b) Citic Pacific does not report profit figures separately for its Australian subsidiary CITIC Pacific Mining, which operates the Sino Iron project. However, its Resources and Energy division made a loss of HK$6.5 billion or around $1.1 billion in calendar 2016. The parent company CITIC made a profit of HK$43.1 billion or around $7.5 billion. (c – d) See (a). (e) Ansteel (short for Angang Steel) made a net profit of RMB1.6 billion or around $327 million in calendar 2016. (f) See (a). (g) The 50% discount on magnetite royalties was extended for two years in the 2016-17 Budget in light of difficult market conditions and the potential of the magnetite industry.
(b) Citic Pacific does not report profit figures separately for its Australian subsidiary CITIC Pacific Mining, which operates the Sino Iron project. However, its Resources and Energy division made a loss of HK$6.5 billion or around $1.1 billion in calendar 2016. The parent company CITIC made a profit of HK$43.1 billion or around $7.5 billion. (c – d) See (a). (e) Ansteel (short for Angang Steel) made a net profit of RMB1.6 billion or around $327 million in calendar 2016. (f) See (a). (g) The 50% discount on magnetite royalties was extended for two years in the 2016-17 Budget in light of difficult market conditions and the potential of the magnetite industry.
(c – d) See (a). (e) Ansteel (short for Angang Steel) made a net profit of RMB1.6 billion or around $327 million in calendar 2016. (f) See (a). (g) The 50% discount on magnetite royalties was extended for two years in the 2016-17 Budget in light of difficult market conditions and the potential of the magnetite industry.
(e) Ansteel (short for Angang Steel) made a net profit of RMB1.6 billion or around $327 million in calendar 2016. (f) See (a). (g) The 50% discount on magnetite royalties was extended for two years in the 2016-17 Budget in light of difficult market conditions and the potential of the magnetite industry.
(f) See (a). (g) The 50% discount on magnetite royalties was extended for two years in the 2016-17 Budget in light of difficult market conditions and the potential of the magnetite industry.
(g) The 50% discount on magnetite royalties was extended for two years in the 2016-17 Budget in light of difficult market conditions and the potential of the magnetite industry.
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