Joint Govt-W Mining Corp agreement on upgrading NE Goldfields road

29/7/94

A joint funding agreement between the State Government and Western Mining Corporation will see the completion of major upgrading work on the remote road between Leinster to Mt Keith in the North Eastern Goldfields in two years.

Transport Minister Eric Charlton said the work would cost $23.4 million and would greatly assist mining development in the region.

Mr Charlton said the funding agreement was negotiated with WMC by Resources Development Minister Colin Barnett, the Department of Resources Development and Main Roads.

Under the arrangement, funds would come from three sources - 50 per cent, or $11.7 million, from Main Roads; $5.85 million from WMC and a special allocation of $5.85 million from Consolidated Revenue.

Mr Charlton said it was the Government's intention to recoup the special Treasury allocation from mining companies expected to progressively open up new developments in the Mt Keith area in the years ahead.

The upgrading would involve sealing the remaining 50 kilometres of road between Leinster and the Mt Keith nickel development. Last year, the 30 kilometre section between Leinster and Lake Miranda was sealed and WMC recently constructed nine kilometres of sealed road at the project site as part of the funding agreement.

"Design work for the remainder of this section is already underway and Main Roads expects to be able to award a construction contract by the middle of 1995," Mr Charlton said.

"Environmental and Aboriginal heritage work has also commenced and is nearly completed.

"Construction should be completed by the middle of 1996."

"The only disappointing feature to this project is that it contains no Commonwealth funding element, and its the Commonwealth Government that will be a huge benefactor of new mining development in this region.

"Despite the large revenue collections through company and employee taxation and the Federal fuel franchise levy, the Commonwealth is not contributing to the cost of establishing transport infrastructure in wealth creating areas of Western Australia."

Mr Charlton said the road would be a major link between the mine site and Leinster, where WMC intended locating part of the project work force.

It would also carry road trains transporting more than 25,000 tonnes per annum of nickel concentrate to the rail head at Leonora.

"The sealed road will improve efficiency of the Mt Keith nickel development, due to commence early next year, by reducing transport costs as well as improving safety and reducing the risk of accidents," he said.

"The improved road will provide access to proposed and potential mining resource developments from Leinster to Wiluna.

"By providing improved transport infrastructure, the Government is encouraging capital investment in this remote area which leads to the creation of new jobs.

"This road also forms part of the Goldfields-Pilbara main road, which the Government intends to ultimately bring to a sealed standard."

Media contact:   Dean Roberts  321 7333