The Musgrave in Western Australia is the missing link in regional development strategy and planning in Western Australia. The area has a number of significant, well-defined and explored high-grade mineral deposits including nickel, cobalt, copper, platinum, gold, iron ore, vanadium and titanium.

There is an opportunity for Industry and Government to develop an initiative, with ownership across the regions, which will unlock the vast potential of the Musgrave and act as an enabler for economic and social development in the State.

The Mid-West Musgrave Corridor – M-MC – has been proposed as an initiative to establish links, develop transport and infrastructure, and open up assets in this resource-rich area, and deliver economic and social benefits to communities in the Central Lands, Mid West and Goldfield-Esperance regions.

The Mid West Development Commission (MWDC) in partnership with the Goldfields-Esperance Development Commission (GEDC) are developing the M-MC initiative, with the support of the Department of Regional Development (DRD). This includes coordinating a working stakeholder alliance of Local, State and Regional Governments and Industry, who are collaborating on early feasibility of the M-MC concept, its strategic development and potential delivery of benefits, as well as coordinating and engaging with local communities along the corridor.

The M-MC is part of the Mid West and Goldfields-Esperance Regional Blueprints and will be aligned with other strategic initiatives and plans, including the State Planning Strategy 2050, the PortLink project and the Federal Government’s Outback Highway.

Improvements to the transport infrastructure, connectivity to the Geraldton port and associated energy and telecommunications services has the potential to significantly add to the viability of projects adjacent to the corridor and enhance the competitiveness of the Mid West and Goldfields-Esperance regions – for the resources as well as the tourism and agriculture sectors – and the increased usage that comes from these areas will reduce unit costs for import and export.

A proposal for a demand-driven transport, energy, utilities and communications infrastructure corridor from the Musgrave to the Mid West. The corridor envisions economic development opportunities and social benefits delivered to communities in the Central Lands and Goldfields-Esperance and Mid West regions of Western Australia.

M i d -W e s t M u s g r av e C o r r i d o r

What is the Mid West-Musgrave Corridor initiative?

The Mid West Musgrave Corridor (M-MC) proposes a long-term strategic initiative to increase accessibility to infrastructure that will unlock assets in the resource-rich Musgrave and along the length of the corridor, and deliver them via a Goldfields-Esperance and Mid West infrastructure solution to port. Its development will attract investment to a range of small and mid-sized companies.

The project promotes new cross-regional partnerships between the Mid West and Goldfields-Esperance regions. It is creating a collaboration framework of Government and Industry which will coordinate local decision-making and planning to connect businesses to communities along the corridor for local employment and training opportunities and improved local services.

What is the Corridor’s proposed purpose?

The purpose of the corridor is to deliver new and essential economic development opportunities and social benefits to communities in the Musgrave and Central Lands area and the Goldfields-Esperance and Mid West regions of Western Australia.

How will this vision be achieved?

The M-MC vision will be achieved by developing a common-use corridor that is aligned with demand for transport, energy, utilities and communications infrastructure. The corridor will aim to optimise accessibility and create cost-saving connectivity options to Industry and new opportunities to engage communities along the route.

An appropriate funding model for the entity could be a Public Private Partnership (PPP) for sustainable investment in infrastructure, delivery of integrated services and community development outcomes.

Contact

Jenni Collard, Executive Director, Aboriginal Business Development at jenni.collard@drd.wa.gov.au

Opportunities in the Musgrave

From a mining and resources perspective, the Musgrave is considered to be an area of national significance with the discovery of a number of high grade mineral deposits which include nickel, cobalt, copper, platinum, gold, iron ore, vanadium and titanium. It is one of the last under-explored frontiers in Australia in terms of mineral exploration and there is a need to develop infrastructure to attract investment and spur development in and out of the region that will deliver benefits across the State.

Context

The Western Australian resources sector is diverse and complex, covering exploration, processing, downstream value adding and refining of over 50 different types of mineral and energy resources.

In 2013-14 the value of Western Australia’s mineral and petroleum production was $121.6 billion, accounting for 91 per cent of the state’s total merchandise exports. Furthermore, the value of royalties received by the Western Australian government from the resources sector increased by 33 per cent from the 2012-13 financial year to reach a record $6.98 billion in 2013-14. In the Mid West region for example, the resources sector accounted for an estimated 44 per cent of regional product in 2010-11 and has been a critical driver of economic and population growth in the region in recent years. With recent changes in commodity prices, notably iron ore, the mining sector is seeing fewer people employed and the development of new, high-value minerals projects is becoming critical for future growth. The Chamber of Minerals and Energy (CME) WA Resource Sector Outlook for 2015-2025 forecasts a decline in the workforce from 105,200 in 2014 to 87,000 by 2025, however labour productivity in the production phase is expected to increase by 40% to 2017 and then plateau to 2025. The share of Aboriginal people in the resources sector workforce is forecast to increase by 2.3% by 2020. The opening up of stranded projects through the M-MC initiative has the potential to counter this decline with new production and employment opportunities, including contributing to further increases in Aboriginal employment, in the Mid West and Goldfields-Esperance regions.

The Western Australian Planning Commission’s (WAPC) Infrastructure Coordinating Committee (ICC) has highlighted the need to maximise and optimise the use of existing corridors and improve the coordination and planning of future corridors for economic growth (June 2014). While the WA Government’s framework for planning, delivering and managing infrastructure corridors has been relatively successful to date, corridor planning and delivery is complex and involves responsibility across multiple agencies; long-term planning and a coordinated approach across government is therefore critical.

The Chamber of Minerals and Energy (CME) reiterates the high importance of the clear definition, establishment and future protection of transport corridors and buffers that provide access to export and import facilities and support services to the long term, strategic development of the resources sector.

Potential benefits

The potential economic and social benefits of the M-MC as identified by Government and Industry stakeholders are:

• Thriving communities in the Central Lands and along the corridor with strong social and cultural outcomes for local Aboriginal communities and established Aboriginal economic participation in the regions through: » Well established community action plans » Improved health and improved life expectancy in the Aboriginal

communities in the regions » Successful Aboriginal businesses in the regions » Education pathways leading to employment » Employment and training for Aboriginal communities » A community foundation established and delivering benefits

• Economic opportunities through increased connectivity between regions with:

» Maximised opportunities for the Goldfields-Esperance and Mid-West regions from the development of a regional economy in Central Australia, including with the Northern Territory and South Australia

» Strongly developed inter-regional business to business activities » Diversification within the resources and other sectors » Access for stranded projects along the corridor » Central Lands opened up for mining opportunities » Other resource projects and economic opportunities enabled » Intra-region workforce development and servicing opportunities,

including Geraldton and Kalgoorlie-Boulder » Central Lands minerals projects recognised as world-leading

producers » Tourism opportunities realised through the regions including

Outback Highway developed as a significant tourist drive

• Critical infrastructure outcomes, specifivally:

» Sustained and coordinated private and public (all tiers of government) investment in infrastructure

» Road infrastructure in place » Water and power infrastructure to the communities » Inter-regional transport network established – road, rail, port » Coordinated, sustained effort for continuing to develop the

infrastructure corridor

Current activities

The M-MC initiative has very broad cross-regional support, and is being coordinated by the Mid West Development Commission (MWDC) and Goldfields-Esperance Development Commission (GEDC) and facilitated by the Department of Regional Development (DRD). An Interim Steering Committee of Regional Government and Industry stakeholders has been established to examine the feasibility of the concept and drive the M-MC strategy development.

Ongoing stakeholder consultation and a dedicated stakeholder workshop of Mid West and Goldfields-Esperance Industry and Government stakeholders held in October 2014 in Geraldton identified the M-MC as a critical and significant opportunity for economic and social development in the State.

The M-MC is being developed as an initiative under the Mid West and Goldfields-Esperance Regional Blueprints.

Future Activities

Critical milestones in the M-MC initiative’s development include the delivery of a Corridor Development Strategy in 2015-16, which will include implementation of a demand assessment, costs and benefits, stakeholder consultation and community engagement plan, infrastructure review, and branding and communications activities towards a staged infrastructure investment plan and funding model. The initiative will be delivered by a governance entity comprising of contributing Regional Government and Industry partners and other key stakeholders.

Specific stakeholder reference groups will be established to ensure Community, Local Government and Industry stakeholders are represented in each stage of the strategy development, notably determining the costs and benefits of participation.

Stakeholder Support

“The Chamber of Minerals and Energy of Western Australia (CME) is the peak resources sector representative body in Western Australia funded by its member companies, which generate 95 per cent of the value of all mineral and energy production. Of high importance to the long term, strategic development of the resources sector is the clear definition, establishment and future protection of transport corridors and buffers that provide access to export (and import) facilities which provide services to the sector.

The development of transport and energy infrastructure and associated corridor to the Central Lands will be a catalyst to attract private investment and development of these deposits. If developed, this will provide social and economic benefits to the region as well as the State, including potential business, training and employment opportunities for Aboriginal communities in the region. We welcome the potential economic and social benefits which could be delivered to communities in the Central Lands, Mid West and Goldfield-Esperance regions as a result of the proposal.” - Reg Howard-Smith, Chief Executive, Chamber of Minerals and Energy of Western Australia Western Australia (CMEWA)

“As the peak national industry body for hundreds of mining and mineral exploration companies, AMEC has a direct interest in the activities of the Mid-West Musgrave Corridor. AMEC has consistently stated that the provision of cost effective, efficient and an integrated infrastructure framework is critically important for future national growth and productivity, and should be afforded priority attention by respective State and Federal Governments. This is particularly important at the Regional level.” - Simon Bennison, Chief Executive Officer, Association of Mining and Exploration Companies (AMEC)

“The MWCCI represents 680 members with a broad business sector base, representative of the significant economic diversity and geographic spread of the Mid West region. We are strongly engaged with the industry, business, government and community stakeholders taking this proposal forward, as we recognise the wide-reaching economic and social benefits that will be achieved as the infrastructure and services that the M-MC development delivers are rolled out across the Mid West and Goldfields-Esperance regions. These two regions have enormous synergies and we commend the collaborative approach adopted by all parties. We strongly believe that these efforts shall create substantial outcomes for both regions’ communities, the Central Lands communities, and the inter-state communities linked by the Outback Way.” - Rob Jeffries, Chief Executive Officer, Mid West Chamber of Commerce & Industry (MWCCI)

“Phosphate Australia Ltd has been active in the Musgrave Region for a number of years…Any improvement to the current infrastructure in the region will be a most important in determining the future economics of any mineral discovery.” - Jim Richards, Chairman, Phosphate Australia Ltd

“The Shire of Leonora fully supports this project. The Shire recognises the enormous economic and social advantages that this valuable and worthwhile project will present across a substantial region of the State, and to communities in the Goldfields-Esperance, Mid-West and Central Lands regions into the future. In the long term, we believe this project will prove to be a very valuable asset for the State.” - Peter Craig, Shire President, Shire of Leonora

“Collectively the member companies that make up the GIOA are committed to establishing a substantial new iron ore export industry for the Mid West region, delivering significant economic benefits to both the region and the State. The proposed Mid West-Musgrave Corridor initiative strongly aligns with the Mid West Iron Ore Industry's approach to a demand driven, staged development of regional infrastructure and with its principles of enhancing local business and community outcomes as industry development occurs.With the downturn in resources demand and prices it is critical that internationally competitive supply chains, with the associated enabling infrastructure and services, are created within mining regions. This proposal based upon an inter-regional approach and collaboration is a credit to all involved.” - Phil Allsopp, Chairman, Geraldton Iron Ore Alliance

“The Central Lands is one of the last under-explored frontiers in Australia in terms of mineral exploration; it is considered to be an area of strategic importance with the discovery of a number of high grade mineral deposits. The M-MC vision foresees economic diversification within the resources sector and across other sectors including agriculture and tourism.” - Alan Bradley, Executive Officer, Regional Development Australia Mid-West Gascoyne

“RDA Goldfields Esperance supports further development of the Mid West Musgrave Corridor initiative, as an opportunity to establish links, developed a coordinated transport and infrastructure solution, and open up assets in the resource rich Musgrave Ranges and deliver economic and social benefits to communities in the Goldfields-Esperance, Central Lands and Mid West regions.” - Julia Shadlow-Bath, Chairperson, Regional Development Australia Goldfields Esperance

“The Musgrave region of WA has significant, well-defined mineralisation. Of high importance is the strategic development of transport corridors to provide access to port facilities. The development of transport and energy infrastructure and associated corridors to the Central Lands will be a catalyst for the development of the area. This will deliver social and economic benefits to the region as well as the State, including potential business, training and employment opportunities for Aboriginal communities.” - David Utting, Chief Executive Officer, Yilgarn Iron Ore Producers’ Association (YIPA)

“It is encouraging that industry proponents in the Musgrave are prepared, in fact committed to collaborate with the wider regional community to ensure the proposed development delivers maximum value. Having a formal structure, as proposed, to facilitate progress is strongly supported by the KBCCI. It would be reasonable to anticipate the strategy will be complimentary to the aspirations of the Mid West and Goldfields-Esperance Strategic Blueprints for the future, and for this reason the Chamber is a very enthusiastic supporter.” - Hugh Gallagher, Chief Executive Officer, Kalgoorlie-Boulder Chamber of Commerce & Industry (KBCCI)

“Metals X has been actively engaged in the Musgrave since 2005 and its $2.5b+ Wingellina Nickel/Cobalt Project is the most developed opportunity in the area. The project is estimated to provide over $1 billion in royalties and $6 billion in taxes and together with tourism, the resources sector is potentially the singular best opportunity for Aboriginal business and employment. We have built strong relationships with the local communities, land councils and other industry stakeholders with potential projects in the area, and would like to continue to be a part of bringing together all stakeholders for the future sustainability of the people who live there. There is a clear opportunity for Western Australia to benefit from an increased, organised and cohesive approach to identifying, assessing and understanding infrastructure needs in this remote and massive area, and the investment that will bring to these projects and their communities.” - Warren Hallam, Executive Director. Metals X Ltd