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WA launches infrastructure-specific initiative he Western Australian Government has launched the Resources Community Investment Initiative which will facilitate investment in iconic state infrastructure projects and community and social initiatives across WA. The initial commitments total $750 million, with $250 million from Rio Tinto, $250 million from BHP, $100 million from Hancock Prospecting, Roy Hill and Atlas Iron, $50 million from Woodside Energy, $50 million from Chevron Australia and $50 million from Mineral and Resources.

Mining billionaire Gina Rinehart’s Hancock Prospecting is understood to have written a cheque for IPO hopeful Brazilian Rare Earths’ $21 million private round. Investor sources said Hancock and another family office took up a big slice of the pre-IPO round in a raise wrapped up by Canaccord Genuity last week.

The Federal Government wants to pass legislation for the overhaul, including controversial measures increasing access to multi-employer bargaining, through the Parliament before Christmas. Mr Trott’s comments come a day after Gina Rinehart’s Hancock Prospecting warned forcing multi-employer bargaining on to the mining sector would jeopardise billions of dollars in future royalty and tax revenue for WA.Hancock Prospecting chief executive Garry Korte said a sixweek strike at Port Hedland would cost $9 billion in lost iron ore export revenue.

Western Australia’s pandemic defying resources boom will be immortalised for future generations through the establishment of a $750 million community investment fund backed entirely by some of the State’s biggest mining companies. Six industry giants have already committed substantial sums of cash to the Resources Community Investment Initiative: Rio Tinto and BHP ($250 million each), Hancock Prospecting ($100m), Woodside ($50m), Chevron ($50m) and Mineral Resources ($50m). Mr McGowan said the idea was sparked around the time of his Government’s $50m commitment to the Aboriginal Cultural Centre — a funding pledge later matched by the Albanese Government before May’s Federal election.

That this State has been blessed with a great bounty of natural resources is a wonderful gift. Through flukes of geology and the hard yakka of generations of miners, WA has established itself as one of the world’s strongest economies.
Now it looks like it will help us dodge the turmoil wreaking havoc in other major economies around the world. However, one of the shortcomings of a resources-dependent economy such as ours is its boombust nature. When times are good, money flows and everyone benefits. Hancock Prospecting has committed $100m while Woodside, Chevron and Mineral Resources have chipped in $50m apiece.

Western Australia’s Labor government has leant on mining and oil and gas companies to create a billion dollar-plus “community investment fund” with a big chunk of the funds earmarked for an Aboriginal cultural centre in the centre of Perth. The fund already has commitments of $750 million thanks to donors that include Gina Rinehart’s Hancock Prospecting, which is reported to have kicked in $100 million.

21 November 2022.