Govt moves to save junior miners
The State Government has taken further steps to avoid the collapse of junior iron ore miners, cutting $2.50 a tonne off the port charges facing users of the Utah Point Bulk Handling Facility at Port Hedland.
The latest relief, worth an estimated $40 million, is valid for 12 months.
It follows on from royalty relief for magnetite and small hematite producers.
The principal users of Utah Point are Atlas Iron, which announced a radical operational and capital restructure this morning to stave off collapse, and Mineral Resources.
Transport Minister Dean Nalder said the price relief at Utah Point was designed to “help junior miners continue exporting iron ore” and would be effective from July 1.
“I have supported the Pilbara Ports Authority in its discussions with Atlas, in particular, on port price relief,” Mr Nalder said.
“This announcement will provide important interim support for both major Utah Point users, as well as helping maintain throughput at the facility.”
Finance Minister Bill Marmion said the $40 million package was another example of the Government’s approach to industry assistance, in the face of major iron ore price reductions.
“This is about doing our best for WA workers and their families, by providing measured support for smaller companies that contribute so much to our communities,” Mr Marmion said.
The relief package also includes a 12-month deferral of $12 million in haulage fees for the trucking of ore to the port.
The $2.50 port charge discount is conditional on the iron ore price staying below $80 per tonne.
Iron ore is worth $US62.90 a tonne imported to China, or $77.29/t in Australian dollar terms, having recovered from dipping below $US48/t last month.
The conditions of the latest Government assistance stipulate that as the price rises above $80.t the discount will reduce, phasing out at $90/t.
The port charge discount applies to ore shipped between July 1 and June 30 of next year.
