If the States, particuluarly wont agree to sharing the increased royalties then there are many avenues available in the Federal Budget to "adjust" payments to the states under the current arrangements to compensate non mining states.
And if everything else fails, there's the National Security" section in the constitution which can be evoked in a similar way to how Garreth Evans evoked this clause to photograpy wilderness areas in Tasmania during the 1980s when the Tasmanian Government was in conflict with the Hawke.
I know that this would be the worst case scenario but if our good coommo Chinese friends regard Iron Ore marketing data as "State Secrets" then why can we not regard the equitable redistribution of iron ore & coal royalties as a National Security issue!