At the behest of AMEC, the National Party moved that the Pilbara Port privatisation bill be sent to a Parliamentary committee for further scrutiny. 

The motion passed the senate unanimously.

AMEC said that scant detail provided by the state government about the sale had caused uncertainty for mining juniors already suffering from a downturn in iron ore prices.

The Utah Point port facility in Port Hedland is used by mining juniors including Atlas Iron and Mineral Resources.

According to AMEC, the companies supply $A1 billion to the WA economy per year, generating $5 billion in activity and roughly $100 million from payment of royalties.

The sale of the Pilbara port has been on the cards since 2012.

AMEC has criticised the government’s lack of consultation with industry and said that the juniors had made significant capital contributions to fund the original construction costs of Utah.

It suggested that safeguards be put in place to ensure that junior miners maintained exclusive access to the port.

There are 47 export facilities around WA, however only the facilities at Utah Point were built exclusively for use by the region’s iron ore producers.

AMEC said the government had clearly planned to allow non-junior miners access to the Pilbara facility and that the junior mining industry in the Pilbara would collapse as the only port in the region would be inaccessible.

The Pilbara Ports Authority increased its fees, rents and charges in 2012 as well as a new charge for users who increased their export rates. 

AMEC said that users of the Port Hedland facility had to pay a higher rate per tonne to increase their throughput despite it reducing the overall costs of operating Utah Point on a per tonne basis.

The PPA generates a more than 30% return on investment, at current throughput rates, from fees charged to companies who use the port facility. The federal government recommends that a return of investment for similar authorities should be no more than 8-15%.

AMEC hopes that the parliamentary review will result in a new pricing system for Utah Point and for operations and payment increases to come under stricter guidelines.

A temporary relief package for iron ore producers was introduced by the government last July, when the iron ore price fell below $US90 per tonne. 

AMEC and industry recommended that the temporary package become permanent and not expire as planned in June.

The committee will allow current users the chance to convey their concerns with the sale process on the record and ensure that benefits to junior miners will be preserved into the future.

AMEC said it was looking forward to working with the government on behalf of the junior mining industry.

Current users of the port facilities say they welcome the opportunity the parliamentary committee will bring to review and propose sale amendments, and ensure that their economic benefits to WA are maintained.