Woodie Woodie Rd (E Pilbara) to be replaced to aid mining development

3/2/96

Transport Minister Eric Charlton says a new road will be built to assist mining development, tourism and people living in the remote East Pilbara.

Mr Charlton said it was hoped that with the co-operation and assistance of four mining companies operating in the region, the road would be built to seal stage over a distance of 132 kilometres, to replace the Woodie Woodie Road, which was no more than a bush track.

A total of $32 million was needed to complete the road.

The Minister said a joint funding arrangement had been proposed, the details of which were to be worked out between Main Roads Western Australia and the four companies.

A joint arrangement was necessary because the Federal Government had refused to make a financial contribution to the road, despite collecting millions of dollars in revenue from mining operations taking place in the region.

"Woodie Woodie is a vital road linking East Pilbara mineral deposits east of Marble Bar with Port Hedland," Mr Charlton said.

"It carries 78 vehicles per day, 57 per cent of them road trains and trucks carrying mining supplies and nearly 500,000 tonnes of manganese and copper from mines in the Telfer region.

"It is nothing but a dusty, run down track that is highly dangerous to travel, very costly to maintain and subject to flooding and closure in the wet.  Mining companies operating in the region spend significant amounts of money on transport simply because of the condition of the road, and that is an impediment to mineral development.

"The new road, known as the Ripon Hills route, will replace the Woodie Woodie Road, shortening the haul between Woodie Woodie and the Marble Bar Road and providing a more direct route, beginning south of Marble Bar and heading east to link up with the old Woodie Woodie Road, 51 kilometres north of the Valiant gold mine."

Portman Mining, Valiant Consolidated, Newcrest Mining and Western Mining Corporation have proposed contributing a total of $15 million over five years to help build and seal the road and then meet the full cost of maintaining the road for the first five years.

The remaining $17 million will be provided by the State Government through the Main Roads' Current and Additional Funding Program for roads.

Depending on the outcome of negotiations over funding, it is hoped a design and construct contract can be awarded in April, next year, with works to be completed within four years of commencement.

Mr Charlton said it was disappointing that the Federal Government had rejected several approaches for assistance to fund the upgrading of the Woodie Woodie Road link.

"Collectively, the four companies pay more than $25 million in Commonwealth taxes and charges each year, but still the Federal Government cannot see fit to contribute financially to this important road project," he said.

"The mining companies say that up to 40 per cent of their total operating costs are attributable to the high cost of transport, and that a major improvement to the route would save them up to 33 per cent on transport.

"That means the savings can be directed into capital investment at the mine site, creating more jobs, greater productivity and increased profits - all of which will see the Federal Government increase its revenue base.

"The flow of money to the Commonwealth will increase also as other gold and manganese deposits are developed in the East Pilbara.

"It is unfortunate that in light of all these benefits, the Federal Government steadfastly refuses to share in the capital cost of helping to establish infrastructure for these mining operations which contribute so significantly to the national economy."

Media contact:  Ian Hasleby - 321 7333 or 222 9595