Greens to support the BHP Billiton and Rio Tinto production joint venture project in relation to Western Australian iron ore assets

MEDIA RELEASE

7 December 2009

Greens to support the BHP Billiton and Rio Tinto production joint venture project in relation to Western Australian iron ore assets

“Such an amalgamation of assets and liabilities in the Pilbara will have many sustainable benefits that the Greens endorse”, Greens (WA) MLC Robin Chapple said today in relation to the announcement of the joint venture project.

“It will lead to lower production costs and place Australia at an advantage in the international market place” Mr Chapple said.

“Combining adjacent mines into single operations will have two environmental benefits; first, cumulative impacts should now be more readily assessed and dealt with; and second, end of life mine planning and pit infill can be approached in a more regionally strategic manner”, said Mr Chapple.

Joint use of rail infrastructure will mean more energy efficient line use and curtail the development of standalone rail systems that were required in the previous competitive environment.

“With JV planning, the future rail footprint will be smaller than would otherwise have been necessary”, said Mr Chapple.

As far back as 1964, the National Bulk carriers mining company had called for an integrated plan for the railing and shipment of iron ore out of the Pilbara (referred to as the Ludwig Plan). In June 1992, the then Government endorsed the Pilbara 21 Final Strategy Report in which the need for an integrated rail network was again highlighted.

However the Greens’ support for the infrastructure JV proposed by BHP Billiton and Rio Tinto is conditional on the fact that there will be no job losses caused by the joint venture.

“Mr Barnett’s push for a more equitable return on royalties derived from the now commercial iron ore fines market is to be supported, but not by way of a threat of blocking this amalgamation”, said Mr Chapple.

All the best

Robin Chapple MLC

Member for the Mining and Pastoral Region

PO Box 94, West Perth WA 6872

41 Havelock Street, West Perth. WA 6005

Phone: (08) 9486 8255 | Email: Robin.Chapple | Freecall: 1800 138 610

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