The state government remains cautiously optimistic about its proposed sale of the Utah Point bulk handling facility in Port Hedland, following the introduction to parliament today of legislation to allow transition of the asset to the private sector.
Treasurer Mike Nahan said if the proposed sale of Utah Point was identified as being in the best interests of taxpayers, the sale could occur during the first half of next year.
“The impact of the recent subdued conditions in the iron ore industry will be assessed as part of the detailed due diligence process, but the state government remains confident that bidders will view the facility as an attractive long-term investment proposition,” he said.
Dr Nahan said the Pilbara Ports Assets Disposal Bill 2015 would provide the legal framework for the government’s plans to sell Utah Point to the private sector through a long-term lease.
“The sale of this asset will provide unique investment and innovation opportunities through private sector ownership, while also helping to reduce state debt,” he said.
If the asset is sold, the state government will still generate income from Utah Point through royalty payments on the commodities exported through the facility.
The bill also provides the ability for the government to make regulations on both access to, and pricing of, services provided at Utah Point.
Utah Point is one of several state government-owned assets put on the chopping block in August last year.
