The state government has over-ruled the Esperance Port Authority, ordering it to continue bulk nickel concentrate shipments next year, while also approving the export of lead stockpiled at the port.
The state government has over-ruled the Esperance Port Authority, ordering it to continue bulk nickel concentrate shipments next year, while also approving the export of lead stockpiled at the port.
Premier Colin Barnett today said he had signed off on the necessary environmental conditions that applied to the port authority that will allow for the safe removal of the lead.
The owner of the lead stockpile, Magellan Metals, welcomed the move, saying it is now working to an agreed timeline to start removing the metal next month.
Magellan said it will take around three months to remove the stockpile.
The stockpile has been held in a storage shed at the port since the exports were still in March 2007, prompting Magellan to place its Wiluna mine on care and maintenance.
Magellan is now applying to have lead exported through the Fremantle Port in future.
Additionally, the Esperance Port Authority today confirmed that it will continue to handle bulk nickel concentrate next year following a direction from the Minister for Transport Simon O'Brien.
In a doorstop media conference today, Mr Barnett accused the port authority of panic when it decided in September to ban bulk nickel concentrate exports from the start of next year.
"In my view the decision of the port was premature," Mr Barnett told reporters.
"There was an element of panic about the way in which that decision was made."
Mr Barnett also confirmed there would be an upgrade of port facilities for bulk nickel concentrate exports.
"There will need to be improvements made immediately to the port, and in the longer term significant upgrade to the facilities and that is being looked at now."
The port authority has previously stated that it would need to spend "well over $100 million" to reach world's best practice standards, and said it could not afford to spend that much.
Statements from the Premier, Esperance Port Authority and Magellan Metals are pasted below:
Premier's office
After just two months, the State Government has opened the way for the safe removal of 9,000 tonnes of lead remaining at Esperance Port.
Premier Colin Barnett today said the Government had signed off on the necessary environmental conditions that will be applied to an Esperance Port Authority plan to export the lead in sealed bags inside shipping containers.
It is also expected that negotiations surrounding the physical removal of the lead will be finalised within days. The stranded lead is then expected to start being removed in January 2009 with all lead gone by the end of March.
The 9,000 tonne stockpile has been held in a secure storage shed at the port since the export of bulk lead carbonate was stopped in March 2007.
"The Esperance lead situation is a significant environmental issue for Western Australia and my Government has made it a high priority to safely remove the lead as part of our comprehensive recovery plan for the town," Mr Barnett said.
"Any cleanup would be ineffective until that lead is removed.
"I am proud that in only two months, the Liberal-National Government has organised for the safe removal of this lead.
"The Esperance community has waited too long for real progress on this issue after suffering through 18 months of inaction by the previous government.
"Since taking office, I and senior members of my Government have met with community leaders, arranged for reverse-osmosis water purifiers to be installed at contaminated homes, welcomed the appointment a Department of Environment and Conservation (DEC) compliance officer in Esperance and now, have organised and approved a plan to safely remove the remaining lead.
DEC has imposed a stringent set of conditions on the Esperance Port Authority's lead removal plan, which was released for public comment in September.
The conditions are contained in a new environmental notice that applies strict air quality monitoring standards and reporting requirements. In addition:
results of air monitoring will have to be reported regularly to DEC and the community.
if lead dust levels exceed set targets, handling operations will have to cease immediately.
DEC officers will also audit operations during the start-up phase and periodically during the removal process.
Esperance Port Authority
The Esperance Port Authority Board today confirmed that it will continue to handle bulk nickel concentrate at the Esperance Port next year following a direction from the Minister for Transport, Simon O'Brien, today.
Mr O'Brien has directed the Board to continue to accept bulk nickel concentrates after January 1, 2009, and facilitate its storage and shiploading.
In September 2008, the Board reluctantly resolved to discontinue the handling of nickel concentrate as a bulk product from January 1, 2009 because of the conditions imposed by Department of Health (DOH) and Department of Environment and Conservation (DEC) in relation to emission levels and because the cost of upgrading or installing a new concentrate circuit was prohibitive.
The Board also took into account a current DEC prosecution for nickel odour.
Board Chairman Jim Matijasevich said that in meeting the requirements of the Minister's direction, the Board was acutely aware of its responsibilities in relation to meeting nickel dust and odour emission targets set by the DOH and the DEC that were reflected in the Port's Environmental License, and would continue to work within these guidelines.
He said the Board would continue to have as its primary focus the health and safety of its workforce, their families and the Esperance community.
"We all look forward to working with the State Government and the nickel companies on a stage one remediation and upgrade of the existing concentrate infrastructure, and a stage two construction of a state-of-the-art, purpose-built bulk handling circuit at the Esperance Port within 24 months," Mr Matijasevich said.
The Port Board requires that DEC and DOH urgently start a comprehensive community consultation program to explain their current position on the export of bulk nickel through Esperance.
Magellan Metals
Magellan Metals welcomes a decision by the Western Australian Government which will allow the export of the Company's 8,000 dry metric tonne lead carbonate concentrate stockpile at the Port of Esperance.
Magellan is working to a timeline which has now been agreed with the Esperance Port Authority (EsPA) and the State Government to implement the Lead Removal Plan in early January and complete removal of the stockpiled lead from Esperance in approximately three months. The stockpile has been sealed in a storage shed within the Port since lead carbonate concentrate exports were suspended in early 2007.
As announced in Parliament today by the Premier of Western Australia, Hon. Colin Barnett, the State Government approval of the Lead Removal Plan is a significant step forward in resolving the outstanding lead issues at Esperance. Once the stockpile is removed, the existing old inner storage shed, currently containing the lead stockpile, will be cleaned, demolished and disposed of, allowing a final clean-up of the port and town to commence.
The Government's approval authorizes the EsPA to allow Magellan to export its stockpile under strict conditions. The process for exporting the stockpile is detailed in the Lead Removal Plan available at www.magellanmetals.com.au or www.esperanceport.com.au. It involves loading concentrate into two tonne bags, sealing them, and vacuum cleaning the outside of the bags before locking them in steel containers, which will then be loaded on to ships at the Port. It is essentially the same process as Magellan's proposal for sealed shipment exports via Fremantle.
Work has already commenced on implementing the Lead Removal Plan with the bagging equipment prepared at Wiluna for temporary relocation to Esperance, improvements to the Esperance lead shed are completed to ensure the Company and the EsPA meet the strict environmental and health and safety monitoring requirements and logistics arrangements are well advanced for delivery of empty containers and shipping from Esperance of the approximately 330 containers which will contain the bagged lead. Necessary arrangements to get containers to and from Esperance have been complex and challenging, as commercial container cargo is not regularly handled at the Port of Esperance.
Once the bagging and containerisation of the lead carbonate is complete the bagging facility will be dismantled and returned to Wiluna. After the stockpile and bagging plant are removed, the shed will be cleaned, demolished and safely removed from the Port as soon as possible.
Dr John Yeates, Magellan's General Manager Corporate Social Responsibility, said "We will continue working very closely with the Department of Environment and Conservation and regulators and the EsPA to ensure that the export process runs safely and smoothly. We will also be helping to ensure the community is kept informed of our progress throughout this operation. Exporting the stockpile is the first stage of Magellan's commitment to helping resolve lead issues in Esperance and demonstrate the high environmental and health and safety standards of our sealed shipment process."
As indicated by the Premier in his media conference today, Magellan is working closely with the State Government to reach agreement on a financial contribution to past, current and future clean-up activities, as well as a contribution to community projects in Esperance.
