The West Australian government has raised $750 million from some of the state’s biggest resources companies to help pay for landmark projects such as the Perth Zoo refurbishment and the Aboriginal Cultural Centre on the Perth CBD foreshore.
The government has been tapping big resources players on the shoulder to pour cash into the fund.
Premier Mark McGowan announcing the funding. Credit: Nine News Perth
WA Premier Mark McGowan was joined by industry heavyweights including Rio Tinto’s Simon Trott, BHP iron ore asset president Brandon Craig and Woodside chief executive Meg O’Neill on the South Perth foreshore on Tuesday morning to announce the Resources Community Investment Initiative fund.
Rio Tinto and BHP have both committed $250 million while Hancock Prospecting committed $100 million.
Woodside, Chevron and Mineral Resources have each also committed $50 million.
The companies denied the fund was a public relations exercise to absolve them from any debate on increasing mining royalties or recent furores over company sponsorship and greenwashing.
The companies and McGowan also said the companies weren’t after anything in return for their money.
Chamber of Minerals and Energy chief executive Rebecca Tomkinson said the companies’ input was purely to see iconic projects come to life.
“The returns are the opportunity for West Australians to have intergenerational, long-term, beautiful assets that we’re incredibly proud of,” she said.
Companies may not even get their name on the plaque, so to speak, with Tomkinson saying the Resources Community Initiative investment fund would be the branding used for those projects.
McGowan said other resources companies were also invited to join.
“If they have ideas for projects, particularly in regional WA, that are iconic, long-lasting, make a significant difference, they’re the sorts of things we’ll also fund as part of this initiative,” he said.
“This is voluntary, it is up to the companies what they want to do, it’s just a great day for Western Australia and a very exciting initiative that will help us fund important things that will improve the state for generations to come.”
Andrew Forrest’s Fortescue Metals Group was a notable omission from the list of donors but McGowan said the government was hopeful they would come on board.
McGowan said the government was working with a range of other companies on the fund.
“I expect other companies will go on board come on board over time, but the initial group that have come on, I’d like to express my gratitude and thanks to,” he said,
In addition to the zoo and $400 million Aboriginal Cultural Centre the money will also be used to boost funding for remote Aboriginal housing, the Perth Concert Hall redevelopment and for additional contributions to Telethon.
Trott said the announcement was a great example of industry and government working together to bring forward projects that would touch the lives of generations of Western Australians.
Hancock Prospecting boss Barry Fitzgerald said the fund was a reminder that “when mining does well, Australia does well.”
Mining and pastoral region upper house MP Wilson Tucker tweeted the funding was a “drop in the pool” of the wealth earned by resources companies that should be returned to WA
“A once off payment is tokenistic and an attempt to suck the oxygen out of any calls for reform on royalties for WA resources,” he said.
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