3
PRIME MINISTER
STATEMENT FROM THE PRIME MINISTER, THE HON P J KEATING, MP
MCARTHUR RIVER PROJECT MOVES AHEAD
. Mount 1I9a Mines' ( MIM) and its joint venturers' decision to
sei7 cooidinated board level approval for the huge
McArthur River Zinc ProJect was today welcomed by the Prime
MiniterMr Keating.
The Prime Minister's comments coincided with the
introduction into the Northern Territory House of Assembly
of the McArthur River Project Agreement Ratification Act.
This Act will provide a legislative basis for the Franchise
Agreement negotiated between HIM and the Northern Territory
Government. Introduction of the Act represents a milestone for the
McArthur River Project as all government requirements f or
i-ts commencement have now been fulfilled.
First discovered in 1955, the McArthur River
Zinc/ Lead/ Silver Deposit is one of the world's largest, yet
most remote mineral reserves. Its development will involve
capital expenditure of $ 290 million and at today's zinc
prices will generate annual export earnings for Australia of
$ 230 million.
Associated infrastructure development will provide a fillip
to the neighbouring township of Borroloola while a
Commonwealth Government training and employment strategy
will aim to ensure that local aboriginals benefit from new
job opportunities.
The mine's prospects were enhanced by initiatives announced
in the February " One'Nation" Statement. It is the first
major project to benefit from the " fast tracking"
arrangements announced in One Nation and will be one of the
first to receive the Federal Government's 10 per cent
special development allowance.
Under the One Nation Facilitation Arrangements Commonwealth
environment an oeg netietapoaswere obtained a
mere six months after MIM's initial approach to the
Government, through the Parliamentary Secretary to the Prime
Minister.
Obtaining all approvals for the project so quickly would not
have been possible without the total coordination of.
Commonwealth and Territory processes. It is testimony to
what intergovernment collaboration on projects of substance,
projects of real benefit to Australia, can achieve.
Indeed McArthur River has the potential to become a model of
cooperation under the One Nation framework.
There has been cooperation between governments on all
environmental and related approvals, cooperation between
governments and the project proponents, and cooperation
between an Australian company, MIM, and its foreign joint
venture partners in developing Australia's resources and
infrastructure. The foreign joint venturers, Nippon Mining, Mitsubishi
materials Corporation, Mitsui and Co and Marubeni hold
interests totalling 28 per cent in the feasibility study and
have options to acquire the same levels of participation in
the project.
The involvement in the project of these four Japanese mining
giants represents a significant vote of confidence in
Australia's future, and builds upon MIM's earlier commitment
to participate in the development of a new zinc smelter in
Japan. It represents another expansion of the mutually beneficial
economic relationship Australia and Japan have developed in
the post war period, a relationship I sought to further
encourage with my recent visit.
CANBERRA 1 October 1992