Royalties

WA slashes iron ore royalties
Bs

The West Australian government will provide temporary assistance to junior iron ore miners hit by the commodity's ailing price, saying they'll be assessed on a case-by-case basis.

Premier Colin Barnett said the assistance would be in the form of a 50 per cent rebate on eligible haematite iron ore royalties for up to 12 months, subject to the iron ore price remaining below an average of $90 per tonne over the period.

Mr Barnett said it was a responsible and carefully considered move, with the iron ore industry accounting for 56 per cent of the state's exports and employing more than 61,000 people in 2013-14.

But the relief is only temporary: miners are required to pay back the rebate over a period of up to two years, although scheduled repayments can be negotiated.

Mines and Petroleum Minister Bill Marmion said each request would be assessed by the department on a case-by-case basis, through an extensive economic analysis overseen by an independent probity auditor.






The department will then make recommendations to the minister.

"This is not a handout, this is a deferral and is a good outcome for WA," Mr Marmion said.

The iron ore price recently hit a five-year low of $US68/t amid job cutting and mine closures in the sector.

In this week's Mid-Year Economic and Fiscal Outlook, the federal government downgraded its forecast for the iron ore price next year to $US60/t.