PERTH (miningweekly.com) – The Western Australian Chamber of Minerals and Energy (CME) has reinforced the need for more investment in infrastructure to support the resources sector.

Reliable infrastructure – public and private – is a key element of successful resources projects.

“It’s clear Western Australia’s ongoing prosperity relies upon further investment in resources sector infrastructure, particularly as production levels increase,” said CME director Nicole Roocke.

“With public sector investment constrained by rising debt levels, it is crucial any impediments to attracting greater private sector investment are understood and addressed by both industry and governments,” she added.

In a new report, prepared in conjunction with PwC, the CME highlights obstacles to greater private investment, including a lack of long-term, integrated planning for infrastructure, the complexity associated with structuring, funding and delivering multi-user projects, and investors’ general aversion to accepting demand risk on greenfield infrastructure projects.

The report acknowledged the overall infrastructure requirements of the state would exceed the ability of any government to provide all infrastructure required, particularly with increased public sector debt. 

“The state government has a crucial role in infrastructure planning and coordination. This report aims to assist government and infrastructure investors to identify ways to encourage infrastructure development in the state. This includes the development of a state infrastructure plan and ensuring efficient investment frameworks are in place,” Roocke said.

The report made several recommendations, including that the private sector share information regarding the development of infrastructure projects, the establishment of an arm’s-length body to advise on infrastructure strategies, a broader mandate for the Infrastructure Coordinating Committee, and a strategic review of the state’s existing assets to determine which could be recycled to fund or contribute towards resource sector infrastructure.

The CME noted that several of the 14 recommendations in the report have already been actioned, or were being considered, including a review of the state’s strategic asset base, the announcement that states would be compensated for the value of tax revenue that would otherwise move the commonwealth as part of the transfer of ownership, and possible changes to the structure of the Infrastructure Coordinating Committee.

“The future growth of the Western Australian resources sector is not guaranteed. With local projects facing an increasingly competitive environment, we need to ensure we have the right policy settings so the sector can continue to deliver benefits for all Western Australians,” said Roocke.