Government to examine need to support Argyle underground diamond mine

2/12/04
The Gallop Government fully supports the proposal by Argyle Diamond Mines to proceed with an underground operation and will provide financial support if it is independently verified that the project would not otherwise proceed.
The decision came following a request from Argyle which advised that the project would not go ahead unless it received State Government support to enable the project to meet Rio Tinto's internal requirements.
State Development Minister Clive Brown said the State Government would consider providing financial support if it was satisfied by an independent assessment of the Argyle underground feasibility study that the project would not proceed without State Government assistance.
Announcing the Government's decision in the Kimberley today, Mr Brown said the Gallop Government was committed to creating new jobs and opportunities in the Kimberley.
"The Gallop Government has a plan that is working to grow the economy, build stronger communities and protect our unique environment," he said.
"The Kimberley has played a vital role in Western Australia's economy and social development and the Government is working hard to grow this contribution.
"The Argyle diamond mine makes a strong contribution to the economy of WA and we are strongly supportive of the company's desire to proceed with its underground project.
"We will consider the provision of financial support if the independent assessment demonstrates that it would not go ahead without such support."
The Minister said any financial support offered to Argyle would be contingent upon both Argyle and Rio Tinto making binding commitment to maximising benefits to local communities from the project, including the continued implementation of local employment and local purchasing practices.
An appropriate monitoring regime would be developed jointly between the Department of Industry and Resources and the Kimberley Development Commission to ensure these objectives were met.
Minister's office: 9222 9699