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Legislative Council - Fifty-First Parliament, Third Session (51-3)
2009-12-02 Daily Xml
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PORT LINCOLN IRON ORE EXPORT FACILITY

The Hon. R.L. BROKENSHIRE (15:14): I seek leave to make a brief explanation before asking the Minister for Mineral Resources Development a question about minerals on Eyre Peninsula.

Leave granted.

The Hon. R.L. BROKENSHIRE: Further to my questions yesterday, my questions are:

1. Can the minister advise whether he would accept an option where further mining companies subcontract or joint venture with Centrex as a way of being able to utilise the Port Lincoln facility?

2. Can the minister advise whether there has been any consideration or discussion, given the opportunities for permanent substantial investment on Eyre Peninsula, in relation to joint partnerships between the state and federal governments, the mining companies and the grain enterprises on Eyre Peninsula with respect to joint construction of urgent port and wharf facilities at Sheep Hill or some other suitable place?

The Hon. P. HOLLOWAY (Minister for Mineral Resources Development, Minister for Urban Development and Planning, Minister for Small Business) (15:15): To obtain further details I would really need to refer the question to my colleague the Minister for Infrastructure, who has the main responsibility in relation to the development of that infrastructure. Obviously, as Minister for Mineral Resources Development I am in fairly regular contact with mining companies and am aware of their needs and interests, but tying those infrastructure issues together is the core business of the Department for Transport, Energy and Infrastructure.

However, I believe the honourable member's first question related to partnering with Centrex. The approval given to export from Port Lincoln—and I assume it is that to which the honourable member is referring—was to apply only to ore sourced from the Wilgerup exploration lease. It was not to apply to any other. Part of the reason for that is that the EPA had overseen or was given the benefit of tests probably undertaken by others that demonstrated that that particular ore would not cause problems in terms of algal blooms. I understand that that was one of the conditions: that approval would be given only for ore from that source. There is also a limitation to the ore—I think it is 1.6 million tonnes—and there were time limits and a number of other conditions placed on the export.

So, I would not have thought that that particular approval would allow for any partnering, joint venturing or use by other operations, because it was a very specific proposal. As I indicated yesterday, should any other companies wish to export they would have to make their own applications in relation to export facilities, and I am not sure that the infrastructure and capacity of the rail system would be able to accommodate that. However, it is really a matter for them and for Flinders Ports. In any case, they would have to go through a completely separate and new environmental impact process if they were to propose that course of action.

I can only repeat what I said yesterday that, in the long-term interest, I am sure we all agree that we need a new port on Eyre Peninsula. As I said, Centrex has done some work and has acquired the site at Sheep Hill. If the demand is there, one would hope that, in the first instance, Centrex will be able to develop a viable iron ore export industry and, once that is established and up and running, one would hope that that would provide the basis on which the development of a permanent, more sustainable export port operation on Eyre Peninsula would take place.

I think the honourable member mentioned in his question the need for some involvement with the grains industry. I know that the local development board and others have made some noises about that, but I am not intimately involved with those negotiations. As I said, they are probably more in the province of my colleague the Minister for Infrastructure, and I will get that detail from him and bring back a report.

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