State stacks miners' money
The WA Government is setting up a high-value community investment trust funded by the booming mining sector.
The state government wants miners to help pay for critical infrastructure in remote communities and a range of “legacy” projects.
The fund has been established with an initial commitment of $750 million from Rio Tinto and BHP ($250 million each), Hancock Prospecting ($100 million), Woodside ($50 million), Chevron ($50 million) and Mineral Resources ($50 million).
The state hopes the fund will ultimately top $1 billion, with other miners to be asked to contribute.
Premier Mark McGowan says the fund will help cover “major legacy projects”, pushing mining companies to give back to the community “considering the very good times we've had over the course of the last few years, and the very strong results that they've achieved”.
Planned projects include an Aboriginal Cultural Centre for Perth's CBD - a $400 million project on the banks of the Swan River or Derbarl Yerrigan, in Perth’s CBD, which is due to be completed by 2028. It has already been backed with $50 million in state government funding and $52 million from the federal government.
Mining companies are allowed to nominate projects they want to fund, especially in the remote areas in which they operate.
A board of governance with an independent chair is to be appointed to oversee the fund, including representatives from government and the Chamber of Minerals and Industry.
Mr McGowan said remote Aboriginal communities, which no longer receive any federal government funding, have a significant backlog of work that needs doing.
The latest audit of WA's finances shows it has an extra $344 million in operating surplus, taking the total surplus to $6 billion for the last financial year, an Australian record.