PERTH (miningweekly.com) – The Association of Mining and Exploration Companies (Amec) on Thursday welcomed a move by the Western Australian National Party to refer the Pilbara Port Privatisation Bill to a parliamentary committee for review.

The state government in November last year introduced legislation to Parliament to enable the divestment of the Utah Point port facility to the private sector through a long-term lease.

However, Amec said on Thursday that at the request of the industry body, and on behalf of the current users of the Utah Point, the National party had pushed for a review of the legislation.

Amec CEO Simon Bennison said that the referral would ensure that current users had the opportunity to raise their concerns regarding the privatisation of the Utah Point port.

“A complete lack of any meaningful consultation by government, prior to introduction of the Pilbara Port Privatisation Bill to enable the sale of the Port Hedland Utah Point bulk handling facility has created considerable uncertainty for Atlas Iron, Mineral Resources and Consolidated Minerals, the junior miners that currently export from Utah Point, as well as for the wider Western Australian community,” Bennison said.

“Each of these companies made significant capital contributions to part fund the original construction costs of Utah Point and they also invested heavily to develop and expand their mining operations in the Pilbara region on the strict understanding that Utah Point would remain exclusively available to the junior mining industry.”

Bennison said that the scant detail that government had released in respect of the principles proposed to govern the privatisation of Utah Point was cause for "significant and justifiable concerns" over the implications it would have on the survival of the junior mining industry in the Pilbara region.

“Without these proposed principles being amended to include appropriate safeguards, there is no doubt that disposal of Utah Point to a nongovernment entity will put the significant social and economic future benefits that the junior mining industry will continue to deliver to Western Australia at risk.”

Bennison added that to ensure access to Utah Point remained commercially viable for the junior mining industry in the future, the regulations to be adhered to by an incoming operator post privatisation must prohibit unjustified or arbitrary increases in port costs, as well as the introduction of new fees and charges to the Utah Point pricing regime.

“Any pricing adjustments permitted must be limited to address substantiated increases and decreases in the costs of operating and maintaining the facility,” he added.

Bennison noted that while Utah Point was only one of 47 export facilities around Western Australia, it was unique in that it was co-funded by the junior mining industry and remained the only export facility exclusively dedicated for the use of junior miners that wish to export from the Pilbara.

“It is crucial for the survival of the junior mining industry that Utah Point remain that way,” he said.

The parliamentary committee was expected to report back on their findings on May 17.