Mr. Redman questions the Minister about Rio Tinto's water infrastructure contribution in the Pilbara and its impact on state agreements and GST returns. The Minister confirms the contribution was offset against state agreement obligations, specifically related to steel production and secondary processing proposals.

AnsweredQoN 1830Legislative Assembly
Asked
16 August 2017
Portfolio
State Development, Jobs and Trade

QuestionView source ↗

I refer the Minister to the construction of water infrastructure paid by Rio Tinto from the Bungaroo creek bore field in the Pilbara into the system supplying Karratha, supplementing the Millstream bores as a supply source; and ask: (a) was there an infrastructure contribution made by Rio Tinto into the development; (b) if no to (a) what was the nature of the contribution from Rio Tinto; (c) if yes to (a) is the infrastructure contribution from Rio Tinto, offset against obligations Rio Tinto had in state agreements; (d) if yes to (c) what component of the state agreement obligations were offset in the negotiated outcome; and (e) if yes to (c) was the infrastructure contribution from Rio Tinto used as relevant revenue to the state in the Commonwealth Grants Commission calculation of GST returns to Western Australia?

AnswerView source ↗

Answered
10 October 2017
Responded by
Minister for State Development, Jobs and Trade
Response time
11 days
(a)        The Bungaroo Water Project involved Rio Tinto funding an estimated US$310 million to construct, maintain and operate a borefield, pipeline system and treatment facilities to supply potable water for its operations and domestic use (including an allocation of water to Dampier, Karratha and Wickham) from the Bungaroo borefield to Water Corporation’s Millstream headworks.
(b)       Not applicable.
(c)        Yes.
(d)       The Bungaroo Water Project was considered an “alternative project” under the Iron Ore (Mount Bruce) Agreement Act 1972 in lieu of establishing a plant for the production of steel.
The Bungaroo Water Project also postponed an obligation to submit a secondary processing proposal under the Iron Ore (Yandicoogina) Agreement Act 1996 for a period of 10 years from 31 December 2013 to 31 December 2023.
Rio Tinto’s water entitlement from the Millstream aquifer under the Iron Ore (Hamersley Range) Agreement Act 1963 and Iron Ore (Robe River) Agreement Act 1964 was released for wider use in the Pilbara.
(e)        Not applicable.

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