Question regarding water pricing for Karara Mining Ltd's abstraction from the Parmelia aquifer, compared to rates paid by local farmers, revealing no charge for private abstraction.

AnsweredQoN 3738Legislative Council
Asked
22 March 2011
Portfolio
Water

QuestionView source ↗

I refer to Karara Mining Ltd’s application for a licence to withdraw 5.3 gigalitres of water a year from the Parmelia aquifer in the Mingenew sub-area, and ask the following -
(1) How much does the Government intend to charge Karara Mining Ltd for the water, in other words what rate per kilolitre?
(2) In relation to (1), will this rate apply to all of the water drawn from the Parmelia aquifer by Karara Mining Ltd?
(3) What is the justification for charging this rate?
(4) It is understood that farmers in the Mingenew area paid for and built their own shared groundwater bore and pipeline some 10 years or so ago, and now pay Water Corporation $1.28 per kilolitre for the water from that infrastructure, with the rate due to rise to $1.80. Is this correct?
(5) If yes to (4), please explain the justification for any difference in the rates charged to Karara Mining Ltd and the farmers described in (4), for groundwater?

AnswerView source ↗

Answered
17 May 2011
Responded by
Minister for Mental Health representing the Minister for Water
Response time
56 days
(1)  $0 per kilolitre should the licence be issued.
(2)  This rate applies to all private abstraction in Western Australia.
(3)  There are currently no volumetric charges for privately abstracted water.
(4)  Yes.  These charges are to recover costs associated with the delivery infrastructure, not the value of the water resource.
(5)  The Water Corporation does not supply water to Karara Mining Ltd's mine site.
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