minister explains cazaly decision, page-45

re: shovelanna spells uncertainty: cazaly letter I feel sorry that the government of Western Australia can't get out there and back this logically and use reasoned argument. Sorry, is Western Australia still called that, or is it the "State of Rio"?

Rio did quite well last year on royalty relief and the waive of a number of secondary processing obligations with respect to diamonds. This occured in December. Could this be the reason for a bit of a delay if this decision was made awhile ago?
Welcome to the 'super economy' of the 'state of Rio'.

Decision to expand Argyle diamond mine means more jobs for super economy


8/12/05

Premier Geoff Gallop and State Development Minister Alan Carpenter today welcomed Rio Tinto's decision to expand its Argyle diamond mine in the Kimberley.

Dr Gallop said that without the State Government's agreement to provide royalty relief and waive a number of secondary processing obligations, the Argyle diamond mine was likely to have ceased operation in 2008.

"The Argyle diamond mine is the world's largest and is vital to the Kimberley economy as the biggest single economic contributor to the region," the Premier said.

"The mine directly employs 780 people, some 51 per cent of whom are employed locally, and contributes $30million per annum for goods and services to the regional community.

"Rio Tinto's decision to develop the US$760million underground project will provide more jobs to the region with a peak workforce of 1,500, and will extend the mine's life by a further 10 years."

Dr Gallop said today's announcement was further evidence that Western Australia's economy was leading the nation with outstanding results.

"Figures released today shows that WA's unemployment rate has dropped to four per cent in November and 3.9 per cent in October, the lowest on record for the State since the Labour Force Report began compiling data almost 30 years ago," he said.

"Our domestic economy grew at 2.1 per cent in the September quarter, well ahead of the national growth rate of 0.2 per cent."

Mr Carpenter said that under the State Government's agreement, Argyle would:

pay a reduced royalty rate of five per cent on all diamond mine production from January 1, 2006, reduced from the current royalty rate of 7.5 per cent or 22.5 per cent of profit, whichever was the greater;
commit to maintain at least 25 per cent indigenous employment in its permanent workforce at the diamond mine. In addition, Argyle has undertaken to aim for at least 40 per cent indigenous employees; and
be released from further processing obligations under its current State Agreement, with the exception of an obligation to maintain cutting and polishing of pink diamonds in Perth. Under the agreement, Argyle would work towards relocating this particular operation to the Perth Mint, adding to the attraction of the mint as a tourism destination.
Mr Carpenter said today's announcement showed that the Gallop Government was providing jobs and opportunities for all Western Australians and ensuring regional WA received its fair share.

Premier's office 9222 9475
Minister for State Development's office: 9222 9699