Balancing pain and gain

MAJOR projects based on heavy industry have always proved a sticking point within local communities, particularly when they are located in a sensitive environment.

It is a catch 22 for communities that are both reliant on the employment created by these projects, and also highly sensitive to the impacts they may have.

The resources sector has a chequered history with community relations following several controversial developments in recent years.

BHP Billiton Iron Ore in Port Hedland formalised its community consultation when its HBI Plant was built at Boodarie in the late 1990s.

Despite being a town that would not exist but for iron ore industry, Port Hedland was still heavily affected by the enormous labour demands of the construction phase of the project and was also laden with Native Title, environment and community concerns in its planning phase.

However, BHP Billiton Iron Ore community relations manager Richard O’Connell, who has lived in Port Hedland for the past two and half years, said the consultative process established during that time has continued. BHP Billiton has since undertaken community consultation for its PACE (Product and Capacity Expansion) project and has established a community consultative group (CCG) to assist the township of Port Hedland address community issues and concerns during the planned expansion of its iron ore operations.

“As the company is maturing, people want the peace of mind that we are acting in a responsible manner,” Mr O’Connell said.

He said the company’s Pilbara operations employed 80 per cent of its workforce from residents of either Port Hedland or Newman townships.

“The average tenure is 16 years, it is not uncommon for people to have worked with the company for 30 years in Port Hedland,” Mr O’Connell said.

He said the company had a target employment level of 12 per cent Indigenous employees by 2010 – a figure he said was indicative of the Indigenous population in Port Hedland and of the company’s commitment to the township.

However, BHP Billiton Iron Ore still has to deal with persistent rumours – which it denies – that it intends to flatten the central part of the town to make room for stockpiles of iron ore from its planned expansion and is moving towards a fly-in-fly-out workforce.

Members of the community surrounding Alcoa’s alumina refinery operations have also voiced concerns that their views may be ignored, despite lengthy community consultations.

Alcoa’s alumina refinery at Wagerup in the State’s South West was the subject of criticism from the residents of the nearby towns of Yarloop and Waroona, who claimed that health problems stemming from chemical sensitivity were due to emissions from the plant.

The company denied the health issues were due to its operations, but the controversial subject continues to linger.

The company is now the subject of fresh community concerns following the announcement last year that it is planning a $1 billion expansion of its Wagerup operations, pending approvals.

The company has also announced a $440 million expansion of its Pinjarra refinery, which would boost project capital by 18 per cent and employ 1,000 workers during construction.

Due for commissioning at the end of 2005, the Pinjarra expansion has drawn fierce criticism from environmental groups such as the Conservation Council.

However, Alcoa has established the stakeholder reference group (SRG), comprising community representatives in order to consult with local residents and stakeholders.

An Alcoa spokesman said the SRG played a significant role in the company’s business decisions.

Glenys Fawcett, who owns an Angus beef cattle farm that shares the south-west boundary of the refinery, is on the 10 member SRG established to consult with the company on community issues.

Ms Fawcett said the local community was worried about the dust and residue.

“The only thing that concerns me is whether they will actually take any notice of us. The question is, are they going to do what they say they will do?”