1 00:00:00,120 --> 00:00:02,759 Speaker 1: The Energy Minister, Tom kots and Toni's part of, of course, 2 00:00:02,800 --> 00:00:05,960 Speaker 1: the cabinet meeting being held in Wyala. He joins me. Now, Minister, 3 00:00:06,040 --> 00:00:09,959 Speaker 1: good morning, morning match. What do you hope today achieves ultimately, 4 00:00:10,000 --> 00:00:13,119 Speaker 1: apart from peace of mind for people involved in the 5 00:00:13,160 --> 00:00:15,680 Speaker 1: whole town because obviously it flows through to the local economy, 6 00:00:16,000 --> 00:00:18,000 Speaker 1: keeping the steel works going, which is fundamental. 7 00:00:19,040 --> 00:00:21,280 Speaker 2: Well, there's a couple of things. The entire cabinet's up 8 00:00:21,280 --> 00:00:23,200 Speaker 2: here today, so it's a whole series of meetings going 9 00:00:23,200 --> 00:00:25,640 Speaker 2: on across Wyala. We just want to reassure people that 10 00:00:25,880 --> 00:00:29,040 Speaker 2: we've got Wyala's back. You know, we know how strategically 11 00:00:29,080 --> 00:00:31,040 Speaker 2: important this city is for the country, not just for 12 00:00:31,080 --> 00:00:34,640 Speaker 2: the state. We're having a cabinet meeting. We're meeting with creditors, 13 00:00:34,640 --> 00:00:38,000 Speaker 2: We're meeting with people who owed money by GfG. We're 14 00:00:38,040 --> 00:00:42,280 Speaker 2: meeting with contractors. We're meeting with the union who represent 15 00:00:42,320 --> 00:00:44,800 Speaker 2: the workers who work at the steel works, and a 16 00:00:44,840 --> 00:00:47,959 Speaker 2: lot of the unions who represent the contractors who work 17 00:00:47,960 --> 00:00:50,960 Speaker 2: at the steel works. And we're going through with the 18 00:00:50,960 --> 00:00:53,880 Speaker 2: management of the steel works. They're back in black plan 19 00:00:53,960 --> 00:00:56,680 Speaker 2: to make sure that if there's something we can do 20 00:00:56,720 --> 00:00:59,520 Speaker 2: to assist and of course I want some first hand 21 00:00:59,600 --> 00:01:02,080 Speaker 2: updates what's going on with the blasts. 22 00:01:02,240 --> 00:01:04,880 Speaker 1: Yeah, which is still out as I understand, it's getting better. 23 00:01:05,200 --> 00:01:09,760 Speaker 2: Obviously it's not pouring liquid still yet, but it's on 24 00:01:09,800 --> 00:01:10,720 Speaker 2: the path of recovery. 25 00:01:11,040 --> 00:01:13,240 Speaker 1: And workers are turning up. I hear this from the 26 00:01:13,280 --> 00:01:16,200 Speaker 1: cold face or the still works. Workers are turning up 27 00:01:16,640 --> 00:01:18,880 Speaker 1: nothing to do. They can't do maintenance because there's no 28 00:01:18,959 --> 00:01:22,000 Speaker 1: money for it. There's no job to do. They're getting 29 00:01:22,040 --> 00:01:26,240 Speaker 1: paid by a company that we read about is restructuring finance. 30 00:01:26,319 --> 00:01:29,679 Speaker 1: And while they're getting paid, contractors are still owned millions 31 00:01:29,720 --> 00:01:30,480 Speaker 1: of dollars. 32 00:01:31,160 --> 00:01:34,240 Speaker 2: Yeah, I have heard some of those contractors have had 33 00:01:34,280 --> 00:01:37,400 Speaker 2: a lot of payments made in recent times, so that's 34 00:01:37,440 --> 00:01:41,160 Speaker 2: a good sign. But we'll see how far that's gone. Yeah, 35 00:01:41,200 --> 00:01:43,039 Speaker 2: I'm concerned about it as all. Mate. That's while we're 36 00:01:43,080 --> 00:01:45,600 Speaker 2: up here. We want to make sure that the student's 37 00:01:45,600 --> 00:01:47,520 Speaker 2: got a long and prosperous future because it is so 38 00:01:47,560 --> 00:01:49,200 Speaker 2: critically important in the state's future. 39 00:01:49,480 --> 00:01:51,440 Speaker 1: Even if they restructure and get back on their feet 40 00:01:51,440 --> 00:01:54,040 Speaker 1: and enjoy to the world, what if this happens again 41 00:01:54,080 --> 00:01:56,600 Speaker 1: in two or three years time. Because there's almost a 42 00:01:56,720 --> 00:01:59,000 Speaker 1: sense of what's the word that This is not going 43 00:01:59,080 --> 00:02:02,960 Speaker 1: to be a consistent progress for the still works moving forward. 44 00:02:03,080 --> 00:02:06,080 Speaker 1: It almost feels like and looking at how Sande Gutta's 45 00:02:06,160 --> 00:02:10,280 Speaker 1: worldwide operations work, there's a sense of crisis that seems 46 00:02:10,320 --> 00:02:13,400 Speaker 1: to engulf each one periodically, each different inside. 47 00:02:13,960 --> 00:02:16,840 Speaker 2: That's right, status quo can't continue. There needs to be 48 00:02:16,880 --> 00:02:19,400 Speaker 2: a reinvestment, and a dramatic reinvestment. There needs to be 49 00:02:19,440 --> 00:02:21,720 Speaker 2: a direct iron reduction facility put in place. There needs 50 00:02:21,760 --> 00:02:23,600 Speaker 2: to be a new gas line upgrade to get more 51 00:02:23,639 --> 00:02:25,800 Speaker 2: gas to the plant to get them off coking coal 52 00:02:26,160 --> 00:02:28,120 Speaker 2: and operate direct iron reduction. There needs to be an 53 00:02:28,120 --> 00:02:30,760 Speaker 2: electric art furnace put in place. There needs to be 54 00:02:30,800 --> 00:02:34,840 Speaker 2: an upgrade of the mines, which is well underway, to 55 00:02:35,000 --> 00:02:38,440 Speaker 2: get through the last stage of the hemoplane onto the 56 00:02:38,680 --> 00:02:42,960 Speaker 2: really big magnetite reserves. It's a stage process. We're very 57 00:02:43,040 --> 00:02:45,320 Speaker 2: keen to try and make sure that we can help, 58 00:02:45,360 --> 00:02:47,880 Speaker 2: and we've got our fifty million dollars on the table 59 00:02:48,120 --> 00:02:51,000 Speaker 2: to assist. But you're right, Matthew, it can't keep on 60 00:02:51,080 --> 00:02:52,960 Speaker 2: going the way it's going. There needs to be a 61 00:02:53,040 --> 00:02:56,360 Speaker 2: dramatic upgrade of the way other still works, and that 62 00:02:56,480 --> 00:03:01,000 Speaker 2: upgrade needs to be sequential thought through business cases and 63 00:03:01,040 --> 00:03:04,960 Speaker 2: business plans put in place. We benefit cost ratios calculator 64 00:03:05,000 --> 00:03:07,480 Speaker 2: and the commonwealths government and the state government and the 65 00:03:07,520 --> 00:03:09,760 Speaker 2: company sitting down and working out exactly how we get 66 00:03:09,760 --> 00:03:12,880 Speaker 2: it done. And we're up for that. What we need 67 00:03:12,919 --> 00:03:15,640 Speaker 2: of course as a partner, and that partner needs to 68 00:03:15,639 --> 00:03:19,200 Speaker 2: be the still Works. And I was very disappointed when 69 00:03:19,280 --> 00:03:21,519 Speaker 2: the plans for the direct lin reduction to selling the 70 00:03:21,720 --> 00:03:23,799 Speaker 2: regard burners were put on hold that that was very, 71 00:03:23,880 --> 00:03:27,200 Speaker 2: very painful for the town. But we've got to get 72 00:03:27,240 --> 00:03:29,200 Speaker 2: through this period to make sure we can get to 73 00:03:29,240 --> 00:03:32,640 Speaker 2: the next month. So we're basically without We wanted to 74 00:03:32,720 --> 00:03:35,440 Speaker 2: use too many sporting analogies. We've had this one day 75 00:03:35,440 --> 00:03:38,080 Speaker 2: at a time and we would get to the future. 76 00:03:38,080 --> 00:03:40,520 Speaker 2: We've got to be supportive and that's what we're trying 77 00:03:40,560 --> 00:03:40,720 Speaker 2: to do. 78 00:03:40,960 --> 00:03:44,960 Speaker 1: Okay, the plans to switch on hydrogen in the future 79 00:03:45,200 --> 00:03:46,960 Speaker 1: with this, I mean, it's all very reliant, isn't it. 80 00:03:47,360 --> 00:03:49,680 Speaker 1: They're in the dependent almost Getting the hydrogen plan up 81 00:03:49,680 --> 00:03:53,120 Speaker 1: and running requires the still Works to keep operating. Is 82 00:03:53,160 --> 00:03:55,560 Speaker 1: the government likely to put money on the table for 83 00:03:55,640 --> 00:03:57,240 Speaker 1: SANDI to keep operating? 84 00:03:57,800 --> 00:04:01,360 Speaker 2: It depends on the circumstances. Leave the blast furnace in 85 00:04:01,400 --> 00:04:03,840 Speaker 2: our opinion, must be maintained and tools. That's a transition 86 00:04:04,720 --> 00:04:08,280 Speaker 2: that's very very important, and toil that transition is invested in. 87 00:04:08,760 --> 00:04:10,920 Speaker 2: We've got to keep the blast furnace open. That's six 88 00:04:11,040 --> 00:04:14,360 Speaker 2: hundred jobs minimum here in Wala. That's a big, big 89 00:04:14,480 --> 00:04:18,400 Speaker 2: part of their employment base. So we're very very key 90 00:04:18,480 --> 00:04:20,680 Speaker 2: to keep that operation or tool. That's a reinvestment in 91 00:04:20,760 --> 00:04:25,159 Speaker 2: a direct iron reduction facility to manufacture oprocredittored iron which 92 00:04:25,160 --> 00:04:29,200 Speaker 2: can be used to make steel and long products. So 93 00:04:29,800 --> 00:04:34,680 Speaker 2: there's lots we can do up here. But hydrogen, gas 94 00:04:34,839 --> 00:04:38,560 Speaker 2: and coal are the steps. So the first step is 95 00:04:40,080 --> 00:04:43,080 Speaker 2: you use coking coil to make to make iron that 96 00:04:43,360 --> 00:04:46,200 Speaker 2: releases about two tons of carbon for every ton of 97 00:04:46,240 --> 00:04:49,760 Speaker 2: iron you make. If you move to gas as a 98 00:04:49,839 --> 00:04:53,680 Speaker 2: dramatic step down to about six hundred kilograms of carbon 99 00:04:53,720 --> 00:04:57,479 Speaker 2: dioxide released for every ton of iron you make. And 100 00:04:57,520 --> 00:05:00,240 Speaker 2: when you move down to hydrogen you release no and 101 00:05:00,279 --> 00:05:02,440 Speaker 2: dark side at all. So the step down is what 102 00:05:02,440 --> 00:05:05,400 Speaker 2: we're interested in. So the next step is gas and 103 00:05:05,760 --> 00:05:08,400 Speaker 2: after that the next step is hydrogen, which is why 104 00:05:08,440 --> 00:05:10,560 Speaker 2: we're building our hydrogen and electoralizer in YR. 105 00:05:10,720 --> 00:05:12,680 Speaker 1: All right, the opposition claiming you're going to have to 106 00:05:12,720 --> 00:05:15,719 Speaker 1: truck gas in though that was in the mail yesterday, 107 00:05:15,800 --> 00:05:17,640 Speaker 1: is that correct position? 108 00:05:18,920 --> 00:05:21,080 Speaker 2: We're always we're going to need to do this because 109 00:05:21,320 --> 00:05:24,040 Speaker 2: what we want to do is have a gas storage 110 00:05:24,040 --> 00:05:27,160 Speaker 2: facility there as well. Because you might remember, Matthew after 111 00:05:27,200 --> 00:05:30,039 Speaker 2: the last state wide blackout, the then state government bought 112 00:05:30,440 --> 00:05:33,560 Speaker 2: two hundred and seventy megawats of backup emergency generation that 113 00:05:33,560 --> 00:05:39,280 Speaker 2: could be used for emergency reserves, and then Marshall government 114 00:05:39,360 --> 00:05:43,600 Speaker 2: sold that, so we don't have any backup generation. So 115 00:05:43,640 --> 00:05:46,159 Speaker 2: what we've decided is that one you need the gas 116 00:05:46,200 --> 00:05:50,719 Speaker 2: obviously for the startup and shut down processes of any generator, 117 00:05:51,240 --> 00:05:53,400 Speaker 2: so that's why we need the gas. But if there's 118 00:05:53,400 --> 00:05:56,800 Speaker 2: a renewable route and there's a statewide emergency, we'll have 119 00:05:56,839 --> 00:05:59,680 Speaker 2: the gas as a backup. Now, I make no apologies 120 00:05:59,720 --> 00:06:03,559 Speaker 2: for you gas. This government knows that gas is part 121 00:06:03,760 --> 00:06:06,839 Speaker 2: of the transition to net zero, and I've got to 122 00:06:06,920 --> 00:06:10,159 Speaker 2: say what's wrong with gas? What's wrong with using gas 123 00:06:10,160 --> 00:06:13,160 Speaker 2: in a gas via generator? And I think the opposition 124 00:06:13,240 --> 00:06:16,280 Speaker 2: need to get their attack lines a bit better thought through, 125 00:06:16,720 --> 00:06:20,160 Speaker 2: because I'm not apologizing to anyone for having back up 126 00:06:20,320 --> 00:06:22,680 Speaker 2: emergency gas via generation of Baila balls. 127 00:06:22,720 --> 00:06:25,560 Speaker 1: I think their argument is you've got a truck it there, 128 00:06:25,640 --> 00:06:29,600 Speaker 1: so it's it's supplied by diesel. Ultimately, well, there it is. 129 00:06:29,839 --> 00:06:32,839 Speaker 2: That's just the dumbest thing I've heard anyone say. It 130 00:06:32,920 --> 00:06:33,760 Speaker 2: really is silly. 131 00:06:33,920 --> 00:06:35,440 Speaker 1: So you're trucking it there. 132 00:06:36,120 --> 00:06:38,360 Speaker 2: Of course we're trusting it there. But I mean, we 133 00:06:38,480 --> 00:06:42,360 Speaker 2: use diesel in our ambulance fleet, we use we use 134 00:06:42,400 --> 00:06:45,600 Speaker 2: diesel in our fire engines. But this is this is 135 00:06:45,640 --> 00:06:48,680 Speaker 2: not getting ridiculous. It really is a ridiculous attack by 136 00:06:48,720 --> 00:06:49,280 Speaker 2: the opposition. 137 00:06:49,480 --> 00:06:55,160 Speaker 1: So there's nothing odd about trucking gas using diesel things 138 00:06:55,200 --> 00:06:57,400 Speaker 1: to negate the point of having gas, doesn't it. And 139 00:06:57,480 --> 00:06:59,360 Speaker 1: I'm with you on gas. We need gas for energy. 140 00:06:59,440 --> 00:07:00,839 Speaker 1: There's no doubt about that. 141 00:07:00,960 --> 00:07:05,680 Speaker 2: The pipeline to Wyala can be used as well. This 142 00:07:05,839 --> 00:07:09,200 Speaker 2: is about making sure that we have sufficient backup reserves 143 00:07:09,440 --> 00:07:12,440 Speaker 2: in case of an emergency to fill a storage facility. 144 00:07:13,440 --> 00:07:15,120 Speaker 2: They are just being silly back Dawail. 145 00:07:15,160 --> 00:07:16,720 Speaker 1: A lot are people there on the ground telling you 146 00:07:16,760 --> 00:07:19,120 Speaker 1: about their concerns. You must have heard some stories already. 147 00:07:19,800 --> 00:07:22,440 Speaker 2: Yes, you know. The best place to hear concerned is 148 00:07:22,440 --> 00:07:26,080 Speaker 2: to go to the Westlands. And I went and I 149 00:07:26,080 --> 00:07:27,600 Speaker 2: don't want your listeners to get upset. But I say 150 00:07:27,640 --> 00:07:28,920 Speaker 2: in the front bar for a while to chat a 151 00:07:28,920 --> 00:07:31,080 Speaker 2: few locals and chat to the owner of the pub. 152 00:07:31,120 --> 00:07:33,760 Speaker 2: And I met with a mayor and we had a 153 00:07:33,800 --> 00:07:36,280 Speaker 2: chat about what's going on. And there's a lot of 154 00:07:36,280 --> 00:07:38,640 Speaker 2: anxiety in the town, a lot of anxiety, and the 155 00:07:38,640 --> 00:07:42,080 Speaker 2: anxiety is real, it's affecting people. A lot of the 156 00:07:42,120 --> 00:07:46,880 Speaker 2: concerns are that there's a lot of anticipation about what's 157 00:07:46,960 --> 00:07:49,680 Speaker 2: occurring in Wyalem. They know that they've got the raw 158 00:07:49,720 --> 00:07:52,920 Speaker 2: products and the foundations for a really bright future, but 159 00:07:52,920 --> 00:07:56,040 Speaker 2: we're just sort of stuck here waiting for the big 160 00:07:56,080 --> 00:07:58,560 Speaker 2: reveals to be actually being implemented that mister Cook has 161 00:07:58,560 --> 00:08:02,000 Speaker 2: talked about. There's a lot of anxiety about that. And 162 00:08:02,040 --> 00:08:05,440 Speaker 2: I think what I found interesting there was almost a 163 00:08:05,480 --> 00:08:08,240 Speaker 2: little bit more anxiety than there's been previously with the 164 00:08:08,280 --> 00:08:12,040 Speaker 2: Arian administration. There's a bit more. Well, we've been through 165 00:08:12,080 --> 00:08:13,520 Speaker 2: this once, why do we have to go through a 166 00:08:13,520 --> 00:08:17,200 Speaker 2: weekends a lot of feeling And I understand that, and 167 00:08:17,400 --> 00:08:19,640 Speaker 2: that's why we're up here to reassure people that the 168 00:08:19,640 --> 00:08:21,840 Speaker 2: state government's got their pack and we want to make 169 00:08:21,840 --> 00:08:23,480 Speaker 2: sure that there's a long future for the Storks. 170 00:08:23,520 --> 00:08:25,320 Speaker 1: All right, just before I let you go yesterday, big 171 00:08:25,360 --> 00:08:30,160 Speaker 1: announcement on some road funding for the Mount Barker region. 172 00:08:31,040 --> 00:08:33,720 Speaker 2: Mount Barker and Verdance getting two brand new interchanges, were 173 00:08:33,800 --> 00:08:38,040 Speaker 2: duplicating the bridge at Mount Barker. We're building a massive 174 00:08:38,080 --> 00:08:41,160 Speaker 2: round about end of Adelaide Road to try and decongest 175 00:08:41,200 --> 00:08:43,800 Speaker 2: Mount Barker and get that interchange operating properly because it 176 00:08:43,840 --> 00:08:45,680 Speaker 2: can get very, very busy in the mornings. And they've 177 00:08:45,760 --> 00:08:48,079 Speaker 2: done interchange is about a full interchange there as well, 178 00:08:48,640 --> 00:08:51,000 Speaker 2: which will leave out a lot of traffic in handles 179 00:08:51,760 --> 00:08:53,760 Speaker 2: and get a lot of people onto the freeway fast. 180 00:08:53,800 --> 00:08:56,440 Speaker 2: We're having to use back roads through main streets and 181 00:08:56,800 --> 00:08:59,360 Speaker 2: through small country town so it's a good way of 182 00:08:59,360 --> 00:09:02,520 Speaker 2: decongesting a eight hills and taking full years of the freeway. 183 00:09:02,559 --> 00:09:05,640 Speaker 1: All right. And for Harndorf, okay, done will help, But 184 00:09:06,000 --> 00:09:09,080 Speaker 1: in terms of what they've been calling for and getting 185 00:09:09,280 --> 00:09:11,600 Speaker 1: ramps build and all the rest, any announcement on that. 186 00:09:11,640 --> 00:09:17,040 Speaker 2: Suit no, Matthew. Look, in the short term, we've taken 187 00:09:17,080 --> 00:09:19,320 Speaker 2: the trucks off the main street of Harndorff and it's worked. 188 00:09:19,720 --> 00:09:23,040 Speaker 2: River Road is working exceptionally well. We're not seeing the 189 00:09:23,080 --> 00:09:25,840 Speaker 2: big livestock trucks through the main street. I was in 190 00:09:25,880 --> 00:09:29,520 Speaker 2: Handorf on Sunday and it was a very pleasant, very 191 00:09:29,520 --> 00:09:32,679 Speaker 2: pleasant morning walk with no big trucks going through the 192 00:09:32,720 --> 00:09:34,679 Speaker 2: main street. And I think the solution's worked, and it's 193 00:09:34,679 --> 00:09:35,200 Speaker 2: worked well. 194 00:09:35,240 --> 00:09:37,480 Speaker 1: It's still very busy though. You go through that even 195 00:09:37,480 --> 00:09:39,880 Speaker 1: a week day is jam packed with cars. 196 00:09:40,360 --> 00:09:42,360 Speaker 2: And this is the point, right, The point is is 197 00:09:42,360 --> 00:09:46,559 Speaker 2: that Harndorf is a destination, not just a drive through city. 198 00:09:46,640 --> 00:09:48,120 Speaker 2: I mean, there are a million people are years to 199 00:09:48,240 --> 00:09:52,240 Speaker 2: visit Harndorf. Harndorf's never going to be a quiet, sleepy town. 200 00:09:52,720 --> 00:09:54,880 Speaker 2: It's always going to be a very very busy, important 201 00:09:54,920 --> 00:09:57,680 Speaker 2: touristic action for the state. The question for us is 202 00:09:58,200 --> 00:10:00,559 Speaker 2: do livestock trucks belong in the main streat of Harndorff. 203 00:10:00,600 --> 00:10:02,640 Speaker 2: And the answer to that question is no, they don't. 204 00:10:02,720 --> 00:10:07,280 Speaker 2: We've gotten them off it. But the people of Harndorff, 205 00:10:07,280 --> 00:10:08,920 Speaker 2: I think I've seen the real benefits of what the 206 00:10:08,920 --> 00:10:11,600 Speaker 2: government's done, and I think by and large, the people 207 00:10:11,679 --> 00:10:14,200 Speaker 2: of Harndorf are very very happy with a solution. I 208 00:10:14,240 --> 00:10:16,840 Speaker 2: think the people who are still unhappy are the people 209 00:10:16,840 --> 00:10:19,320 Speaker 2: live on River Road. But there's always going to be 210 00:10:20,160 --> 00:10:23,040 Speaker 2: a diversion when you take these trucks off. And what 211 00:10:23,080 --> 00:10:25,760 Speaker 2: we found is there are thirteen extra trucks a day 212 00:10:25,800 --> 00:10:29,400 Speaker 2: on River Road and that's been the impact, and those 213 00:10:29,440 --> 00:10:30,839 Speaker 2: residents are still aren't happy with that. 214 00:10:31,720 --> 00:10:36,079 Speaker 1: Right, thirteen trucks a day more only yes, okay, well 215 00:10:36,240 --> 00:10:38,080 Speaker 1: how many would that going up and down the main street. 216 00:10:38,080 --> 00:10:39,679 Speaker 1: It would have been more than that per day. 217 00:10:40,040 --> 00:10:42,520 Speaker 2: That's right, but there weren't. But these trucks have found 218 00:10:42,640 --> 00:10:45,200 Speaker 2: alternative ways to get where they're going because they're banned. 219 00:10:45,200 --> 00:10:48,920 Speaker 2: They can't use the main street anymore. So the diversion 220 00:10:49,080 --> 00:10:54,280 Speaker 2: has worked. The ban on big trucks has worked, and 221 00:10:53,480 --> 00:10:56,960 Speaker 2: it has helped get those big livestock trucks, those big 222 00:10:57,000 --> 00:11:01,040 Speaker 2: logging trucks off the main street of handles, and that's 223 00:11:01,080 --> 00:11:01,920 Speaker 2: what the aim was. 224 00:11:02,120 --> 00:11:04,240 Speaker 1: Tom Kutz and tonis appreciate your time today. Good luck 225 00:11:04,320 --> 00:11:06,360 Speaker 1: up in Wayla. I hope the people up there get 226 00:11:06,559 --> 00:11:09,280 Speaker 1: some sense of peace, I suppose as to what the 227 00:11:09,320 --> 00:11:13,000 Speaker 1: future holds for them. Thank you, thank you for your time, 228 00:11:13,000 --> 00:11:14,840 Speaker 1: the Energy Minister, Tom Kutz and Toni's