Creation of the new Department for Mines and Petroleum and the Department of State Development

 


    Key points:
  • The new Department of Mines and Petroleum commenced operation on 1 January 2009 and is responsible for the administration of mining and development proposals in Western Australia.
  • The new Department of State Development also commenced operation on 1 January 2009 and is responsible for coordinating major projects in Western Australia.
  • An industry working group has commenced inquiries into Western Australia’s exploration and development approvals process.

A new department, the Department of Mines and Petroleum (DMP) is responsible for the administration of mining and development proposals in Western Australia, and commenced operation on 1 January 2009. As a result of a restructuring of the responsibilities of the Department of Industry and Resources and the Department of Consumer and Employment Protection, the DMP is now the lead agency regulating mining, petroleum, geothermal and carbon capture and storage activities in Western Australia.

The Minister for Mines and Petroleum, Hon. Norman Moore, has advised that the DMP will be dedicated to serving mining and petroleum companies, and one of its first tasks will be a review of the approvals process to ensure that companies’ performances are not being unduly hindered. The minister has further advised that the DMP’s Director-General position is yet to be filled.

The Department of State Development (DSD) also commenced operation on 1 January 2009 and is responsible for coordinating major projects in Western Australia. The Minister for State Development, Premier Colin Barnett, has advised that the DSD will attract and ensure the success of wealth-generating, private sector projects, coordinate strategic public sector infrastructure projects and assist the development of economic strategies that promote development. Examples of major projects which the DSD is currently working on include:

  • The Ord River expansion: the DSD is co-coordinating the four-year, A$400 million East Kimberley Development Package which is co-funded by the Federal Government and expected to begin in early 2009. This includes building new roads and port facilities, irrigation channels and power supplies and an upgrade to the Kununurra airport, which will increase irrigable land from 14,000 to 28,000 hectares and attract new investment.
  • Oakajee Port Project and Industrial Estate: represents the creation of a world class strategic asset to facilitate the development of the Mid-West Region, and
  • Kimberley LNG Project: the DSD will coordinate the approvals processes for the project. The state government has declared James Price Point, 60 kilometres from Broome, as the most likely location to develop a LNG processing precinct.

Further to this, an industry working group has commenced inquiries into Western Australia’s exploration and development approvals process, and is expected to produce an interim report in February 2009. Tony van Merwyk is a member of the group and would welcome any suggestions for input into the working group. This is seen as an excellent opportunity for Western Australia to develop an approvals system that can learn from other states and become a world class system. It is anticipated that there will be strong engagement in the process by mining and petroleum industries.

More information

For information regarding possible implications for your business, contact

Image of Tony van Merwyk
Tony van Merwyk
Partner, Perth
Direct +61 8 9211 7660
tony.vanmerwyk@freehills.com
 
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