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Development of the Oaky Creek Coking coal project



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twa4». AUSTRALIA

TREASURER

EMBARGO

PRESS RELEASE ?ο/ψ(8

NO. 68

STATEMENT BY THE TREASURER, THE HON JOHN HOWARD, MP

DEVELOPMENT OF THE OAKY CREEK COKING COAL PROJECT

In my statements of 24 September and 5 December 19βΟ, I

indicated that the participants in the Oaky Creek project

had been advised that the Government would be prepared to give

consideration to approval for the project's development

if they provided suitable joint and unequivocal undertakings

that Australian equity would be introduced to a level of at

least 50 per cent by the time the first shipments of coal take

place. I also stated that it would be necessary for the parties

to inform the Government of how they would adjust their equity

shares to admit the necessary level of Australian, equity and

that the Government would wish to see the Australian equity in

place as soon as possible.

The participants in the project have now provided undertakings

that 50 per cent Australian equity will be introduced into the

project prior to the commencement of the first shipments of coal.

In addition, MIM has advised the Foreign Investment Review Board

that it accepts sole responsibility for taking the necessary

steps to increase Australian equity in the project to 50 per cent

and has undertaken to fulfil this commitment in a way acceptable

to the Government in terms of its foreign investment policy.

MIM has advised the Government of a number of alternative methods

it has under detailed consideration by which 50 per cent _

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Australian equity may be achieved.

The Government welcomes this commitment by the parties and, on.

this basis, has advised them that it has no objections to the

undertaking of construction of the mine facilities and infrastructure

commitments in order that coal production may be possible by mid

1983.

At the time, prior to first shipments, when the parties have met

their commitment and the Australian equity guidelines are

satisfied the Government would be in a position to grant final

approval to allow commercial production at Oaky Creek to commence.

CANBERRA ACT

A

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30 April 1981