Parliament starts debate on BHP Olympic Dam indenture bill

indenture arrangement bill, a prerequisite to start the expansion plans of its $30 billion Olympic Dam copper and uranium mine project, has received ample backing from the Liberal MPs, guaranteeing its likely passage before Christmas. Parliament resumes today with debate on the indenture arrangement bill on top priority. Despite resistance from the Greens MPs in the upper house, legislation expects to pass the controversial bill by the end of the week.

On Monday, members of South Australia's Liberal Party gathered in a closed-door meeting to discuss the merits of the indenture arrangement bill that BHP Billiton signed with former South Australian Premier Mike Rann in October. The Liberal MPs voted to support the indenture arrangement bill which fixes BHP Billiton's royalties for the first 45 years at 5 per cent and 3.5 per cent, respectively, for uranium and for other minerals. "The Liberal Opposition has voted to unanimously support the passing of the Olympic Dam legislation without amendment or delay," the Sydney Morning Herald quoted a party spokesman as telling AAP. The bill was introduced to South Australia's parliament on October 18. Liberal leader Isobel Redmond says their support for the bill will give BHP Billiton certainty as well as almost conclusive guarantee to the fate of the Olympic Dam copper and uranium mine project. "There are things that maybe could have been better for the state but with the economic circumstances, with the massive debt, we felt that economically we could not afford for this project not to go ahead," she said in ABC Newcastle News.

Kym Winter-Dewhirst, BHP Billiton's external affairs spokesman, said the company did not comment on outcomes of party room meetings. "However, we do appreciate a bipartisan approach to our issues and we look forward to seeing the passage of the Bill through Parliament," he said in Adelaide Now News. The Greens are likely to stall the passage of the indenture arrangement bill. The Greens had earlier contested the indenture arrangement bill, claiming it was too much of an exemption offer for global miner BHP Billiton. They also wanted the Olympic Dam copper and uranium mine project submitted to a thorough analysis by a select committee composed of scientific experts and BHP Billiton executives, noting potential environmental risks and hazards imposed by the development. "The Greens will not be rubber stamping this legislation, we will insist on proper scrutiny," Greens MLC Mark Parnell said in Adelaide Now News. "I'm sure that the Greens and others will do what they can to stop this, but now that the two major parties have looked at this in detail this should be a very steady passage of this legislation through the Parliament and that's a great symbol for South Australian business all around the world," Mineral Resources Minister Tom Koutsantonis said in ABC Newcastle News. The Minister noted Parliament has an option to sit an extra week if needed to get the bill through. BHP Billiton had earmarked $1.2 billion in pre-commitment capital for the first phase of the project as soon as the bill secures passage through the Parliament. Located north of Adelaide, the Olympic Dam copper and uranium mine project is the world's fourth-largest copper and gold deposit and the largest known uranium deposit. It expected to yield copper and uranium oxide production by more than quadruple to about 750,000 tonnes and about 19,000 tonnes, respectively, every year. Thousands of jobs are seen to be generated once works begin - at least 6,000 new jobs during construction, a further 4,000 full-time po-sitions at the open-pit mine and an estimated 15,000 new indirect jobs, according to data by Adelaide Now News. This could include about 6,500 jobs in Whyalla, Port Augusta, Port Pirie and Roxby Downs. The Olympic Dam copper and uranium mine project is expected to contribute to Austra-lia's coffers an estimated $63 billion annually over the next 40 years.