A parliamentary question regarding the WA government's commitment to purchase Rio Tinto land and bulk handling facilities to facilitate the HIsmelt project in Kwinana. The response avoids direct answers, emphasizing the strategic value of the land and the government's desire to encourage investment.

AnsweredQoN 636Legislative Assembly
Asked
4 December 2001
Member
Portfolio
State Development

QuestionView source ↗

RIO TINTO LAND AND BULK HANDLING FACILITIES
I refer to an article in The West Australian today and the Premier’s statement yesterday advising that the Government has promised to buy Rio Tinto land and bulk handling facilities if the company builds a proposed HIsmelt plant in Kwinana. (1) What would be the cost to the taxpayers for the land component of the deal? (2) Will Rio Tinto use the bulk handling facilities exclusively or will they be available to other third-party users? (3) As part of this deal, has the Government offered Rio Tinto any deferral or release from downstream processing obligations that relate to access to Pilbara iron ore reserves under the State Agreement Act? Mr BROWN

AnswerView source ↗

I thank the member for the question. (1)-(3) The Government has made arrangements for the purchase of this land to facilitate the potential investment of HIsmelt on that particular site. The site is very strategic to the Kwinana area and is of considerable value. That project will not take up all of the space at the site. Indeed, at this stage there is no absolute guarantee that it will be taken up by the project at all. The Government desires to facilitate that investment in Western Australia. Successive Governments have been keen to facilitate the downstream processing. We hope that the Rio Tinto board will decide to invest in the project. This is a strategic piece of land and the project will assist in its development but it will also assist in the further long-term development of Kwinana by making other options available. The Government is keen to facilitate this investment. There is no question of any subsidy arrangement or anything like that having been offered to BHP or Rio Tinto. This piece of land is strategic and it must be purchased. We do not step away from that decision because if we can facilitate this type of investment in Western Australia, we will do so.
(1) What would be the cost to the taxpayers for the land component of the deal? (2) Will Rio Tinto use the bulk handling facilities exclusively or will they be available to other third-party users? (3) As part of this deal, has the Government offered Rio Tinto any deferral or release from downstream processing obligations that relate to access to Pilbara iron ore reserves under the State Agreement Act? Mr BROWN replied: I thank the member for the question. (1)-(3) The Government has made arrangements for the purchase of this land to facilitate the potential investment of HIsmelt on that particular site. The site is very strategic to the Kwinana area and is of considerable value. That project will not take up all of the space at the site. Indeed, at this stage there is no absolute guarantee that it will be taken up by the project at all. The Government desires to facilitate that investment in Western Australia. Successive Governments have been keen to facilitate the downstream processing. We hope that the Rio Tinto board will decide to invest in the project. This is a strategic piece of land and the project will assist in its development but it will also assist in the further long-term development of Kwinana by making other options available. The Government is keen to facilitate this investment. There is no question of any subsidy arrangement or anything like that having been offered to BHP or Rio Tinto. This piece of land is strategic and it must be purchased. We do not step away from that decision because if we can facilitate this type of investment in Western Australia, we will do so.
(2) Will Rio Tinto use the bulk handling facilities exclusively or will they be available to other third-party users? (3) As part of this deal, has the Government offered Rio Tinto any deferral or release from downstream processing obligations that relate to access to Pilbara iron ore reserves under the State Agreement Act? Mr BROWN replied: I thank the member for the question. (1)-(3) The Government has made arrangements for the purchase of this land to facilitate the potential investment of HIsmelt on that particular site. The site is very strategic to the Kwinana area and is of considerable value. That project will not take up all of the space at the site. Indeed, at this stage there is no absolute guarantee that it will be taken up by the project at all. The Government desires to facilitate that investment in Western Australia. Successive Governments have been keen to facilitate the downstream processing. We hope that the Rio Tinto board will decide to invest in the project. This is a strategic piece of land and the project will assist in its development but it will also assist in the further long-term development of Kwinana by making other options available. The Government is keen to facilitate this investment. There is no question of any subsidy arrangement or anything like that having been offered to BHP or Rio Tinto. This piece of land is strategic and it must be purchased. We do not step away from that decision because if we can facilitate this type of investment in Western Australia, we will do so.
(3) As part of this deal, has the Government offered Rio Tinto any deferral or release from downstream processing obligations that relate to access to Pilbara iron ore reserves under the State Agreement Act? Mr BROWN replied: I thank the member for the question. (1)-(3) The Government has made arrangements for the purchase of this land to facilitate the potential investment of HIsmelt on that particular site. The site is very strategic to the Kwinana area and is of considerable value. That project will not take up all of the space at the site. Indeed, at this stage there is no absolute guarantee that it will be taken up by the project at all. The Government desires to facilitate that investment in Western Australia. Successive Governments have been keen to facilitate the downstream processing. We hope that the Rio Tinto board will decide to invest in the project. This is a strategic piece of land and the project will assist in its development but it will also assist in the further long-term development of Kwinana by making other options available. The Government is keen to facilitate this investment. There is no question of any subsidy arrangement or anything like that having been offered to BHP or Rio Tinto. This piece of land is strategic and it must be purchased. We do not step away from that decision because if we can facilitate this type of investment in Western Australia, we will do so.
Mr BROWN replied: I thank the member for the question. (1)-(3) The Government has made arrangements for the purchase of this land to facilitate the potential investment of HIsmelt on that particular site. The site is very strategic to the Kwinana area and is of considerable value. That project will not take up all of the space at the site. Indeed, at this stage there is no absolute guarantee that it will be taken up by the project at all. The Government desires to facilitate that investment in Western Australia. Successive Governments have been keen to facilitate the downstream processing. We hope that the Rio Tinto board will decide to invest in the project. This is a strategic piece of land and the project will assist in its development but it will also assist in the further long-term development of Kwinana by making other options available. The Government is keen to facilitate this investment. There is no question of any subsidy arrangement or anything like that having been offered to BHP or Rio Tinto. This piece of land is strategic and it must be purchased. We do not step away from that decision because if we can facilitate this type of investment in Western Australia, we will do so.
I thank the member for the question. (1)-(3) The Government has made arrangements for the purchase of this land to facilitate the potential investment of HIsmelt on that particular site. The site is very strategic to the Kwinana area and is of considerable value. That project will not take up all of the space at the site. Indeed, at this stage there is no absolute guarantee that it will be taken up by the project at all. The Government desires to facilitate that investment in Western Australia. Successive Governments have been keen to facilitate the downstream processing. We hope that the Rio Tinto board will decide to invest in the project. This is a strategic piece of land and the project will assist in its development but it will also assist in the further long-term development of Kwinana by making other options available. The Government is keen to facilitate this investment. There is no question of any subsidy arrangement or anything like that having been offered to BHP or Rio Tinto. This piece of land is strategic and it must be purchased. We do not step away from that decision because if we can facilitate this type of investment in Western Australia, we will do so.
(1)-(3) The Government has made arrangements for the purchase of this land to facilitate the potential investment of HIsmelt on that particular site. The site is very strategic to the Kwinana area and is of considerable value. That project will not take up all of the space at the site. Indeed, at this stage there is no absolute guarantee that it will be taken up by the project at all. The Government desires to facilitate that investment in Western Australia. Successive Governments have been keen to facilitate the downstream processing. We hope that the Rio Tinto board will decide to invest in the project. This is a strategic piece of land and the project will assist in its development but it will also assist in the further long-term development of Kwinana by making other options available. The Government is keen to facilitate this investment. There is no question of any subsidy arrangement or anything like that having been offered to BHP or Rio Tinto. This piece of land is strategic and it must be purchased. We do not step away from that decision because if we can facilitate this type of investment in Western Australia, we will do so.

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