West Australia To Receive Higher Iron Ore Royalties

Concessions "Outdated" Says Premier

Western Australia’s Premier Colin Barnett says he expects iron ore miners BHP Billiton and Rio Tinto to begin making full royalty payments to the state from 1 July.

The two iron ore companies have been receiving a concession on royalties under a State Agreement signed in the 1960's.

Mr Barnett told ABC that this agreement is out-dated and that BHP and Rio should be paying about $300 million more each year.

"The concessions that apply under the state agreements acts have run their course. I believe BHP and Rio should be paying the same royalties as any other miner pays under the mining act.

"BHP and Rio fully understand that."