❓ The Minister outlines government support for the mining industry, particularly junior iron ore miners, through a temporary royalty rebate program due to low iron ore prices. The program aims to protect jobs and economic benefits.
AnsweredQoN 96Legislative Assembly
QuestionView source ↗
MINING INDUSTRY — GOVERNMENT SUPPORT
96. Mr S.K. L'ESTRANGE to the Minister for Mines and Petroleum:
Can the minister please update the house on how the state
government continues to support a strong mining industry in Western Australia?
96. Mr S.K. L'ESTRANGE to the Minister for Mines and Petroleum:
Can the minister please update the house on how the state
government continues to support a strong mining industry in Western Australia?
AnswerView source ↗
I thank the member for Churchlands
for the question. As people in this room would know, junior miners play a very
important role in our economy. They provide key jobs and opportunities for
people in Western Australia. They employ 4 000 people, and with a multiplier of
four, that means that 16 000 people rely on the junior iron ore miners for
their income. They also provide other benefits to the Western Australian
economy, because apart from the royalties that they pay, they pay $50 million
in payroll tax, and the Treasurer is very pleased about that. Another important
role that the junior iron ore producers play in our economy is that they pick
up the lesser grade and smaller iron ore deposits, which would otherwise be
stranded and not developed, and the taxpayers of Western Australia would then
not benefit from the payroll tax and the royalties and the jobs that are
generated from their input.
Everyone knows that the iron ore
price is around $US63 a tonne, down from the heady days a year ago of $US135 a
tonne, and that is placing a lot of pressure on the viability of some of our
junior miners. What has the government done? We have not just sat back. We have
listened to them. We have now developed a temporary assistance package for
junior miners, and that is run through my Department of Mines and Petroleum.
They need to meet certain criteria, and there is also a probity audit. They
need to meet financial viability criteria and community benefit criteria, and,
of course, they need to show that they are making inroads into reducing their
costs. The package provides a 50 per cent rebate on the royalty that they are
paying, over a 12-month period, and the conditions are that it must be repaid
within a two-year period. The other aspect is that the assistance package will
remain in force provided the price of iron ore remains at below $A90 a tonne.
The guidelines for junior miners were put on the DMP website in December last
year. A number of junior miners have approached my department and are being
assessed at this moment, and some of them will be successful in due course,
probably in the next few weeks.
This government is very proud to be
stepping up to the plate and supporting junior iron ore producers, because they
provide jobs to Western Australians and economic benefits to the taxpayers of
Western Australia, including income to the state government.
for the question. As people in this room would know, junior miners play a very
important role in our economy. They provide key jobs and opportunities for
people in Western Australia. They employ 4 000 people, and with a multiplier of
four, that means that 16 000 people rely on the junior iron ore miners for
their income. They also provide other benefits to the Western Australian
economy, because apart from the royalties that they pay, they pay $50 million
in payroll tax, and the Treasurer is very pleased about that. Another important
role that the junior iron ore producers play in our economy is that they pick
up the lesser grade and smaller iron ore deposits, which would otherwise be
stranded and not developed, and the taxpayers of Western Australia would then
not benefit from the payroll tax and the royalties and the jobs that are
generated from their input.
Everyone knows that the iron ore
price is around $US63 a tonne, down from the heady days a year ago of $US135 a
tonne, and that is placing a lot of pressure on the viability of some of our
junior miners. What has the government done? We have not just sat back. We have
listened to them. We have now developed a temporary assistance package for
junior miners, and that is run through my Department of Mines and Petroleum.
They need to meet certain criteria, and there is also a probity audit. They
need to meet financial viability criteria and community benefit criteria, and,
of course, they need to show that they are making inroads into reducing their
costs. The package provides a 50 per cent rebate on the royalty that they are
paying, over a 12-month period, and the conditions are that it must be repaid
within a two-year period. The other aspect is that the assistance package will
remain in force provided the price of iron ore remains at below $A90 a tonne.
The guidelines for junior miners were put on the DMP website in December last
year. A number of junior miners have approached my department and are being
assessed at this moment, and some of them will be successful in due course,
probably in the next few weeks.
This government is very proud to be
stepping up to the plate and supporting junior iron ore producers, because they
provide jobs to Western Australians and economic benefits to the taxpayers of
Western Australia, including income to the state government.
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