PERTH (miningweekly.com) – The Western Australian government on Friday announced a price relief at Port Hedland’s Utah Point bulk handling facility to assist junior miners in exporting iron-ore while facing a slump in commodity prices.

Transport Minister Dean Nalder said that effective from July 1, port charges would be lowered to A$2.50/t for a 12-month period, helping the struggling iron-ore miners to preserve employment.

The decision comes as iron-ore miner Atlas Iron announced that it would restart operations following agreements with key contractors to lower costs.

“I have supported the Pilbara Ports Authority in its discussions with Atlas, in particular, on port price relief,” Nalder said on Friday.

“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 A$40-million package was another example of the government’s responsible approach to industry assistance in the face of major iron-ore price reductions.

“This is about doing our best for Western Australian workers and their families, by providing measured support for smaller companies that contribute so much to our communities,” Marmion said.

The relief package also included a 12-month deferral of A$12-million in haulage fees for the trucking of ore to the port.

The $2.50/t port charge discount was conditional on the iron-ore price staying below A$80/t. As the price rises above A$80/t the discount would reduce, phasing out at A$90/t.

The port charge discount applied to ore shipped between July 1, 2015 and June 30, 2016.

The Port Hedland port handling facility was one of the state-owned entities targeted for sale in August last year, to help reduce the state government’s debt.

The Utah Point bulk handling facility is one of four berths owned by the Pilbara Ports Authority. It includes a shiploader, two stockyard product storage facilities and supporting infrastructure.