West Australian Premier Colin Barnett wants iron ore miners BHP Billiton and Rio Tinto to start paying increased royalties from 1 July. The scrapping of a historic concessional royalty regime was a condition for the state to allow the two to merge their mining interests in the Pilbara region of the state. The merger was due to take effect from the first-half of this year, however this looks to have been deferred and no date has been set. Despite that Mr Barnett is insisting on an increased royalty rate from 1 July.
"What I have said to BHP and Rio is if you want the state to put effort into facilitating this, the first thing, the condition for a start, is to pay full royalties. That is the fire of the starting gun (and) the 1st of July is the date we have nominated." The miners currently pay a concessional royalty of 3.75 per cent of revenue for most of their iron ore fines production however the fines rate paid on newer operations approved under the current Mining Act is as much as 5.625 per cent.
The miners have yet to respond to Mr Barnett’s demand.
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