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.
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