CAZ 0.00% 2.3¢ cazaly resources limited

I would have thought that how your state is perceived globally...

  1. 257 Posts.
    I would have thought that how your state is perceived globally is a far most important Public Interest argument than small BS small p policy....

    WA slammed for govt interference
    Robin Bromby and Andrew Trounson
    March 12, 2007

    GLOBAL mining executives say Western Australia is the worst place in this country to do business.
    The state ranks 18th - well below the rest of Australia and most of Canada - because of low marks on regulatory consistency and ministerial interference.
    Fraser Institute, a Canadian research firm, polled more than 3000 mining bosses worldwide in its latest industry survey, and those who responded represent about 14.5 per cent of global exploration spending last year.

    Survey responses were kept anonymous but one exploration company manager said: "WA's state Government cancels licences at ministers' discretion and changes gas taxing policies after discoveries. Database and titles systems (are) a disgrace."

    The report finding comes as evidence before an inquiry by WA's Corruption and Crime Commission has caused an uproar over the lobbying activities of former premier Brian Burke and partner Julian Grill, costing the jobs of three WA ministers.

    Tim Shanahan, CEO of WA's Chamber of Minerals and Energy, said the Fraser Institute survey results were "very concerning" and reflected overly complex approval processes.

    "On a national basis, given that WA is the No1 resource state in Australia, we should be the No1 state for benign resources policy frameworks, and we certainly should be No1 when it comes to getting projects into reality," Mr Shanahan said.

    But a spokesman for State Development Minister Eric Ripper rejected suggestions the state was difficult for business.

    "The survey appears at odds with the fact that WA continues to experience record levels of investment in the mining sector," he said. He noted that a review of the state's project approval system in 2002 had found no unnecessary regulation, though it had recommended better administration. He said the Government was systematically working to improve the system, last year setting time limits for processing applications and boosting funds to approval agencies.

    Global mining giant Xstrata certainly has a dim view that Mr Burke was able to corrupt a 2004 parliamentary report into the closure of its vanadium mine, which was used to trash its reputation in Parliament.

    Xstrata last week said PMA, its disgruntled mine partner and Mr Burke's client, was able to use the report to force the Switzerland-based miner to pay out $17.5 million to settle a court dispute over the decision to shut the mine. Xstrata is now examining whether it has grounds to launch legal action against the Government or individual politicians.

    Mr Shanahan said it was difficult to know whether the Burke scandal was hurting the state but that it had undoubtedly tarnished its reputation.

    The Frasser survey was conducted before the recent CCC hearings but WA's mining law was also in the spotlight last year when Cazaly Resources pegged an iron ore tenement in the state after Rio Tinto had failed to renew its licence on time. The state Government startled the industry by handing the Shovelanna deposit back to Rio, even though the global giant has no plans to develop it.

    WA has also put miners offside by resisting the subject of uranium mining.

    Three Australian states came into the top 10. South Australia, which is friendly to uranium mining, made it to fifth spot, behind Manitoba, Alberta, Nevada (which had been in the top spot for six years on the trot) and Utah. For the second year running, Zimbabwe was ranked the world's worst state for business, with a score of just 2.9 per cent.

    The Fraser survey did contain some snapshots of responses about Australia.

    One company president said South Australia "really (goes) out of their way to welcome you". Another pointed to a good mining act, excellent databases and mineral titles system in NSW.

    But there were brickbats as well. "Jabiluka uranium mine in the Northern Territory - what a disaster," said one exploration vice-president.

 
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