Photo by: Bloombeg
PERTH (miningweekly.com) – The Western Australian government on Wednesday introduced legislation to Parliament to enable the divestment of the Utah Point port facilities.
Treasurer Mike Nahan said the Pilbara Port Assets (Disposal) Bill 2015 would provide the legal framework to transfer the Utah Point facility to the private sector through a long-term lease.
Nahan said the legislation was a key milestone in the state's asset sales programme.
The Western Australian government in August last year identified two of its port handling facilities as possible sales assets aimed at generating revenues to reduce debt levels and regain a AAA credit rating for the state.
The assets were expected to generate between A$1-billion and A$2-billion.
“The sale of this asset will provide unique investment and innovation opportunities through private sector ownership, while also helping to reduce state debt,” the Treasurer said on Wednesday.
“The impact of the recent subdued conditions in the iron-ore industry will be assessed as part of the detailed due diligence process, but the state government remains confident that bidders will view the facility as an attractive long-term investment proposition.”
Nahan said that if the proposed sale was identified as being in the best interests of taxpayers, the process for the divestment of the Utah Point facility was expected to occur during the first half of 2016.
In addition to the upfront benefit of the divestment proceeds, the government would also continue to benefit from Utah Point through royalty payments on the commodities exported through the facility, the Treasurer said.
Furthermore, the Bill provided the ability for government to make regulations relating to both the access to, and pricing of, services provided by Utah Point.
Nahan said that the state government would consider all aspects of the divestment before a decision was made to seek expressions of interest for the lease of the asset.