Opposition asks about a ministerial direction to Southern Ports Authority regarding Cliffs Asia Pacific Iron Ore and Mineral Resources Ltd, focusing on financial implications and asset transfers. The government defends the direction as supporting jobs and iron ore exports.

AnsweredQoN 749Legislative Council
Asked
11 September 2018
Portfolio
Transport

QuestionView source ↗

SOUTHERN PORTS AUTHORITY
— MINISTERIAL DIRECTION
749. Hon PETER COLLIER to
the minister representing the Minister for Transport:
I refer to the ministerial direction
to the Southern Ports Authority tabled on 23 August 2018.
(1) Why did the
minister provide a ministerial direction to the Southern Ports Authority?
(2) Did the
Southern Ports Authority request the direction; and, if so, on what basis did
it seek the direction?
(3) What is the
value of the contracted termination payment obligations that Cliffs will be
released from paying?
(4) What is the
expected loss in value to the Southern Ports Authority from not exercising its
rights to various asset purchase options?
(5) What is the value of the assets
that are being transferred to Mineral Resources?

AnswerView source ↗

I thank the Leader of the Opposition
for some notice of the question.
(1) The direction
was issued to give effect to the government's support package to enable
continued iron ore exports from Cliffs Asia Pacific Iron Ore Pty Ltd's
tenements by Mineral Resources Ltd and to help retain jobs within the region,
particularly at the port of Esperance.
(2) No.
(3) The value is $50.2 million.
(4) Nil. The
Cliffs assets transferred to MRL will be surrendered to the Southern Ports
Authority for a peppercorn sum on the expiry of the contract between Southern
Ports and MRL. The contract includes third party access provisions.
(5) The assets
were transferred from Cliffs to MRL on a temporary basis—refer to
answer (4). Based on similar assets owned by the port authority, the estimated
value of the assets transferred by Cliffs to MRL is $14.5 million.

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