WA will benefit from more than $51 billion to be invested by CITIC in local goods and services in coming years, as part of the multi-billion-dollar Sino Iron project, according to Deloitte Access Economics.
The leading economics advisory firm has conducted an economic impact assessment over the life of CITIC Pacific Mining’s Sino Iron project, calculated to 2056.
In addition to significant expenditure during construction and commissioning over the past decade, billions more are due to be invested, with the lion’s share to be spent in WA, the report found.
On an annual basis, Sino Iron will support direct jobs for 3,123 workers in Western Australia. It will return wages worth $8.7 billion to the local economy, and more than 90 per cent of its workforce resides in WA. Each year, at least another 3000 local jobs will be supported outside the project, as a result of the massive investment.
CITIC Pacific Mining CEO Chen Zeng says the report outlines the enormous contribution the company is making to WA, made possible through a State Agreement in partnership with the WA Government.
“We believe in shared value and there is no doubt that this project adds value to Western Australia,” Mr Chen said.
“With co-operation between all parties, Sino Iron has a long and prosperous future.”
Deloitte was asked to consider possible scenarios for the project, calculating its economic impact under different business cases.
Royalty payments associated with the beneficiation of magnetite are worth more than
$5 billion to Western Australia — equivalent to the cost of two tertiary hospitals the size of Fiona Stanley Hospital, or more than 140 high schools.
The total value of iron ore to be exported is estimated at more than $100 billion, while the additional economic output for Western Australia calculated by Deloitte Access Economics for the project is nearly $30 billion.
Mr Zeng said CPM was strongly committed to working with the WA Government to maximise returns to Western Australia and the project’s local workforce.
“The resources for this project ultimately belong to the people of Western Australia,” he said.
“We’ve invested a significant amount building the project, creating a massive value-add to these in-situ resources, for the benefit of Western Australia.
“This project is the result of a partnership between Australia and China, and we’re proud to see significant value returned to WA in the form of jobs, investment, procurement and technology transfer.
“Our challenge is now to place Sino Iron on a sustainable footing, and ensure the project reaches its full potential for the benefit of all.”
- $51 billion will be spent in WA on goods and services over the life of the project, excluding the construction and commissioning period.
- The total value of iron ore exports will surpass $100 billion.
- Additional economic output for Western Australia is nearly $30 billion.
- $8.7 billion will be returned to WA workers, and more than 3,100 direct jobs are sustained on average over the life of the project.
- The royalty payments associated with the production of magnetite are worth more than $5 billion to Western Australia — equivalent to the cost of two tertiary hospitals the size of Fiona Stanley Hospital, or more than 140 high schools.