Grrrr. Yesterday in The West Australian The McGowan Government...

Grrrr. Yesterday in The West Australian

The McGowan Government has left the door open to pushing ahead with the sale of Port Hedland’s Utah Point bulk-handling terminal over the objections of its users, despite opposing the sale last year.
While new Treasurer Ben Wyatt yesterday confirmed the State Government would make good on promises to unwind sales processes for Fremantle Port and Western Power — both the subject of prominent election promises — he would not rule out continuing with the sale of Utah Point.
Labor voted against legislation enabling the sale last November on the grounds it would deliver little benefit to the State’s finances and contained little protection for the facility’s users from a predatory owner.
Opened in 2010, the berth was built by the State Government at a cost of about $300 million to provide export facilities for junior iron-ore miners struggling to find options elsewhere.
It has since been wildly profitable, generating more than $242 million in before-tax profit from its major users — Mineral Resources, Atlas Iron and Consolidated Minerals — according to figures provided by the Pilbara Ports Authority to a Parliamentary committee last year.
Its users have long believed they have been overcharged at Utah Point and were vocal opponents of the Barnett Government’s move to sell the facility, arguing a private owner could jack up prices and make their businesses unviable.
Last month Atlas boss Cliff Lawrenson reiterated calls for the new Government to can the sale.
Mr Wyatt said yesterday the sales process had been suspended ahead of the election campaign and the incoming Government was yet to make a decision about its future.
“The Labor Party committed to not proceeding with the sale of Western Power and Fremantle Port during the election campaign and the Government will deliver on this commitment,” he said.
“The future of other asset sales projects, including the Utah Point bulk-handling facility, will be subject to separate Government decisions.”
Mr Wyatt’s comments come as the PPA this week applied for permits with the Department of Environment Regulation seeking a 2.75 million tonne increase to its maximum export rate, to 24.1 million tonnes a year.
The Pilbara Ports Authority is also preparing for the facility’s use by the emerging Pilbara lithium industry, asking the DER to allow the export of up to 3 million tonnes of ore through Utah Point.
TOPICS
MiningIron ore
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