Letter from Mineral Resources boss to Premier urging intervention in Pilbara port dispute re-emerges at trial

An “extraordinary” letter penned by Chris Ellison to Premier Roger Cook urging him to step into a multi-million dollar port levy dispute has re-emerged in court. The document was produced as a WA Supreme Court civil trial brought by Pilbara Ports Authority against Mineral Resources over a 90¢-per-tonne charge at the Port of Ashburton wrapped up on Thursday. MinRes has not paid dues the State Government entity says it owes for using a channel to transport iron ore from its new Onslow Iron operation out to sea — and argues it does not have to. But PPA’s barrister Bret Walker SC baulked at the suggestion there was “something improper” in charging for “use of a public asset for private profit”. Chevron built the port to export LNG from its massive Wheatstone project then handed it over to the then-Barnett Government, but bills the State when the channel is used, under a confidential agreement. It was not tabled in Parliament, unlike State Agreements for other big projects. Mr Walker tendered a letter from Mr Ellison to the Premier in June 2024 as evidence, describing it as a “grievance” that did not state “this was a make-or-break” charge. He strongly agreed when Justice Jenni Hill said the fee was “not a surprise” and MinRes “had the capacity” to take the fee “into account”. “They were informed of this before they made the decision,” she said. Mr Walker added: “It’s difficult to imagine the planning for this project was not highly deliberate and carefully considered choices”. “We charge no more than the expense caused by the use of the channel,” he further argued. But MinRes said in a statement that the fee bore “no relation to the value of services the PPA provides to MinRes at the port” and the total charges it paid there “exceed those the PPA levies on every other user of ports across the Pilbara”. “The PPA did not determine it in accordance with prudent commercial principles as it is required to do,” a spokesman said. The miner argues the PPA is “practically compelled to levy the charge” because of the confidential deal and could not lawfully exercise its statutory power to determine such a fee “where the outcome is dictated by a contractual obligation between the State and a third party”. MinRes also contends the charge constitutes an excise, which can only be imposed by the Commonwealth. Justice Hill has reserved her decision.