❓ Mr. Johnston questions the Premier about the continuation of a $2.50 per tonne port charge relief for junior miners using Utah Point, and the potential impact of its withdrawal. The Premier's response indicates ongoing review and acknowledges the relief's positive impact.
AnsweredQoN 94Legislative Assembly
QuestionView source ↗
UTAH POINT
— PORT CHARGES — JUNIOR MINERS
94. Mr W.J. JOHNSTON to the
Premier; Minister for State Development:
I refer to the Premier's decision of 15 May 2015 to
provide $2.50 per tonne relief on port charges to junior miners using Utah
Point.
(1) Will this $2.50 per tonne relief be continued beyond 30
June 2016?
(2) If it will
not be continued, has the Department of State Development modelled the impact
on the junior miners of withdrawing this relief, which equates to about five per
cent of the current price of iron ore?
— PORT CHARGES — JUNIOR MINERS
94. Mr W.J. JOHNSTON to the
Premier; Minister for State Development:
I refer to the Premier's decision of 15 May 2015 to
provide $2.50 per tonne relief on port charges to junior miners using Utah
Point.
(1) Will this $2.50 per tonne relief be continued beyond 30
June 2016?
(2) If it will
not be continued, has the Department of State Development modelled the impact
on the junior miners of withdrawing this relief, which equates to about five per
cent of the current price of iron ore?
AnswerView source ↗
(1)–(2)
The state has a history of providing relief when important companies get
themselves into stressful situations, and with the very rapid fall in iron ore
prices, a lot of the junior companies were struggling to continue, and
therefore struggling to maintain their operations and their workforce. So, that
relief was provided. It is kept under continuous review. Generally, when relief
is provided, if it takes the form of royalties, that is recoverable in future
years when price recovers. It is never an easy situation to deal with. That
small amount of relief was provided, and it has helped some of those juniors to
get through. Hopefully if the price of iron ore stays at $US50-plus, they will
be able to continue to operate.
The state has a history of providing relief when important companies get
themselves into stressful situations, and with the very rapid fall in iron ore
prices, a lot of the junior companies were struggling to continue, and
therefore struggling to maintain their operations and their workforce. So, that
relief was provided. It is kept under continuous review. Generally, when relief
is provided, if it takes the form of royalties, that is recoverable in future
years when price recovers. It is never an easy situation to deal with. That
small amount of relief was provided, and it has helped some of those juniors to
get through. Hopefully if the price of iron ore stays at $US50-plus, they will
be able to continue to operate.
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