State agreements have been regularly used by successive Western Australian governments to promote the development of resources, such as the extraction of minerals, oil or timber and related downstream processing projects, as well as significant investments in related infrastructure. The VA government also took the opportunity to amend existing state agreements to improve local content obligations. Since 2011, local content provisions have been increasingly incorporated into new state agreements and incorporated into existing agreements to ensure that local businesses can make the most of these important projects. After the conclusion of a state agreement, the developer must submit a development proposal for his project. The North West Shelf (Woodside) Agreement and the Railway and Port (The Pilbara Infrastructure Pty Ltd) are just two examples of agreements that have introduced local content obligations. The last state agreement to be amended by Parliament, the North-West Gas Agreement, dates back 40 years when it was amended in 2019. The main objective of this amendment was to extend the duration of the agreement, which allowed the continuation of the operation until 2071. However, the VA government took advantage of this opportunity to impose new obligations on the company by inserting clauses into “modern government agreements” requiring the implementation of community development plans and local participation plans for the project. We facilitated and managed the coordination of the development proposal approval process by working closely with key regulators and ensuring that significant administrative approvals were obtained. We note that this theme with the introduction of iron ore processing (Mineralogy Pty. Ltd.) of particular topical interest. Agreement Amendment Bill 2020 in Parliament this week. Allens will continue to follow the evolution of this first legislative proposal of this kind.
State agreements define the rights, obligations, conditions and conditions for the development of the project and establish a framework for the ongoing relations and cooperation between the State and the promoter. For more information on state agreements, please consult the Department of State Development. Our mining team is involved in some of the largest and most important projects and agreements in the Australian mining sector..