Fortescue Metal's Group State Agreement signed

1/12/05
State Development Minister Alan Carpenter has welcomed the signing of the Fortescue Metals Group's (FMG) State Agreement today.
The Iron Ore (FMG Chichester Pty Ltd) Agreement relates to FMG's proposed iron ore mining operations in the vicinity of the Chichester Ranges of the eastern Pilbara.
The signing of the agreement triggers the Railway and Port (The Pilbara Infrastructure Pty Ltd) Agreement, which deals with the infrastructure aspects of FMG's iron ore project. The Railway and Port Agreement was signed and ratified by Parliament in 2004.
Mr Carpenter said the agreement required the development of a comprehensive Community Development Plan (CDP) by FMG Chichester, subject to Ministerial approval, before the company could submit project proposals.
The CDP must outline FMG Chichester's commitments in relation to training and guaranteed employment for people living in the region; regional development and local procurement of goods and services; contribution to community services and facilities; and a regionally based workforce.
"The CDP is designed to give effect to the Government's sustainability objectives by ensuring that development under the agreement delivers benefits to the local communities close to the project," the Minister said.
He said the agreement also included secondary processing obligations, standard for modern iron ore State Agreements, to promote industry diversity and add value to the State's mineral wealth.
"Secondary processing obligations require FMG Chichester to conduct ongoing investigations into the feasibility of further processing, and report on the outcome of those investigations," Mr Carpenter said.
"There is a 100 million tonne aggregate limit on the amount of iron ore which FMG Chichester can mine before its secondary processing obligations start to take effect."
The agreement has a 45million tonne annual limit on the amount of iron ore which can be produced and transported from the company's mining leases.
Minister's office: 9222 9699