It is understood the first of the rebates have all but been agreed between the Government and the miners. Atlas Iron, Mineral Resources, BC Iron and Mount Gibson Iron are understood to have applied, under which they can receive a rebate on half the royalties they pay, but will have to repay the rebate amount two years later.
Combined, the four miners produce about 10 million tonnes a quarter, worth about $600 million based on a prevailing Australian-dollar iron ore price of $72 a tonne. The royalty on the production is $45 million, of which half would be returned to the miners to provide a cash injection.
The rebate will keep AGO alive until the IO price pick up... The future Fe62 pricing does not look encouraging at this stage..
AGO Price at posting:
13.7¢ Sentiment: None Disclosure: Not Held
