The document proposes the development of a transport, energy, utilities and communications infrastructure corridor called the Mid-West Musgrave Corridor (M-MC) that would connect the resource-rich Musgrave region to the Mid West region of Western Australia. The corridor aims to unlock economic development opportunities and deliver social benefits to communities in the Central Lands, Goldfields-Esperance and Mid West regions. It outlines the economic potential of the Musgrave region, as well as the activities currently underway and future plans to develop the corridor through stakeholder consultation and a corridor development strategy.
1. 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.
Mid-West Musgrave Corridor
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.
2. Contact
Jenni Collard, Executive Director, Aboriginal Business
Development at jenni.collard@drd.wa.gov.au
OpportunitiesintheMusgrave
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
totalmerchandiseexports.Furthermore,thevalueofroyaltiesreceivedby
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
2010-11andhasbeenacriticaldriverofeconomicandpopulationgrowth
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.
Potentialbenefits
The potential economic and social benefits of the M-MC as identified by
Government and Industry stakeholders are:
• ThrivingcommunitiesintheCentralLandsandalongthecorridorwith
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
Currentactivities
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.
Ongoingstakeholderconsultationandadedicatedstakeholderworkshop
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.
FutureActivities
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,
stakeholderconsultationandcommunityengagementplan,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.
3. 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
Corridorinitiative,asanopportunitytoestablish
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