WA projects `may need foreign workers`

Western Australia's premier Colin Barnett may ask the federal government to relax
foreign worker allowances to prevent labour shortages at major projects planned for
the state.
WA faces severe shortages of skilled workers in 2011, when there is expected to be
peak activity in WA's resources sector, Mr Barnett told reporters on Monday.
The premier's comments come as a large Chinese steel maker, Ansteel, considers
developing WA's first steel mill, to be fed with ore from the Karara iron ore
project planned by Ansteel's 36.28 per cent held-Gindalbie Metals Ltd in the state's
midwest region.
Other massive projects planned for the state include Woodside Petroleum Ltd's Pluto
liquefied natural gas (LNG) project, Chevron's Gorgon LNG project, a new deep water
port at Oakajee and CITIC Pacific's Sino Iron project.
"I expect we will face serious skills shortages if these projects go together at the
same time," Mr Barnett said.
"Hopefully we can build these projects with Australian labour but I expect there
will be skill shortages in particular trades areas.
"If we're going to involve our Chinese friends and partners (in the projects), we
need to be prepared to bring in some of their workers."
He said he intended to raise the issue of relaxing foreign worker visas with the
federal government.
"I hope, particularly if unemployment is higher in the other states, that Australian
tradespeople will come across and work on these projects.
"If not, we need to be more flexible in allowing overseas workers to come in."
Mr Barnett conceded that Australia's high labour costs would be an issue for Ansteel.
The premier signed an agreement with Ansteel last week in China to conduct a
feasibility study into an integrated iron and steel plant and rolling mill at the
Oakajee industrial estate near Geraldton.
But there is trepidation towards downstream processing of iron ore in WA following
the high profile failure of BHP Billiton Ltd's hot briquetted iron plant near Port
Hedland, which was mothballed and written off in 2005 after being deemed not
economically viable.
"What has happened is we have tried to turn iron ore miners into steel makers," Mr
Barnett said.
"That hasn't worked.
"If we can attract the steel companies here, they have the expertise, particularly
in dealing with low-grade magnetite ores."
Mr Barnett said he was "optimistic" the Ansteel proposal would proceed "but don't
regard it as a certainty at all".
"If they see an interest in coming here ... it is far more likely to happen than it
ever was ... trying to persuade iron ore miners to turn themselves into
manufacturers and steel makers."