Opening of the South-West Focus 2000 conference in Bunbury

4/11/99
The on-going deregulation of the gas industry should pave the way for a sharp rise in downstream processing activity in the South-West during the early years of the new millennium, according to Resources Development Minister Colin Barnett.
Opening the South-West Focus 2000 conference in Bunbury today, Mr Barnett said competition had increased considerably since the State Government began deregulating the energy industry in 1994.
For example, he said, from the start of the new century - now less than two months away - gas consumers requiring 100 terajoules of gas per annum or more will be entitled to negotiate directly with suppliers and by July 1, 2002 there will be no restriction on market parameters.
"Competition will be fierce in the years ahead, and this can only be good for resources development in the South-West, particularly downstream processing," Mr Barnett said.
"Potential new industries could be an aluminium smelter if an electricity price of three cents per kilowatt hour can be obtained.
"Other large employment-generating industries such as a pulp mill and plants for the production of silicon metal, magnesium metal, titanium sponge, fused silica and glass feedstock could also emerge in an environment of competitive energy prices."
Mr Barnett said the recovery of major economies in Asia should stimulate mineral exports from the South-West, especially commodities such as mineral sands, alumina and gold.
He said there were encouraging signs of growth now emerging from major Asian economies, with Korea recording an economic growth of 9 per cent in the second quarter of this year, and Taiwan recording 6.5 per cent growth.
Western Australia's biggest export customer, Japan, is expecting growth of more than 1 per cent for the full calendar year.
Mr Barnett said the South-West region had experienced a relatively busy year in the resources sector.
The $800 million Collie Power Station was commissioned in June and a $257 million round-out program at Alcoa's Wagerup alumina refinery celebrated last month.
Another $800 million is currently being invested in the expansion of the Worsley alumina refinery near Collie.
A potential new gas source could be the Whicher Range gas field south of Busselton where a new exploration program is being considered for 2000.
Also on the horizon are new mineral sands projects at Dardanup and Jangardup South, expansion of the Boddington gold mine and expansion of the Kemerton industrial park, all of which will help maintain growth for a region that already produces about $3.5 billion worth of minerals and value-added mineral products annually.
Media contact: Justine Whittome, Minister's office (08) 9222 9699