Hon Norman Moore BA DipEd JP MLC

Hon Norman Moore BA DipEd JP MLC

Former Minister for Mines and Petroleum; Fisheries; Electoral Affairs

    New royalty rates set to provide future economic benefits for WA

    20/07/2011 12:00 AM
     
    The State Government today announced the introduction of a set royalty rate of five per cent for magnetite concentrates.

    It is estimated the State will receive about $60million in 2011-12 from magnetite royalties, with expected increases to more than $160million a year by 2014-15.

    Mines and Petroleum Minister Norman Moore said the rate was consistent with the royalty rate that was already within the Mining Regulations 1981 for beneficiated iron ore.

    “Because magnetite is iron ore, there is no need for a new magnetite category under Regulation 86 and it is intended that the beneficiated iron ore royalty rate of five per cent will apply to magnetite concentrate,” Mr Moore said.

    “Some of the State’s proposed magnetite deposits include a significant vanadium resource, in such cases, if the project does not have a vanadium separation circuit installed, a royalty rate of five per cent of the vanadium pentoxide price will apply to the contained vanadium in the magnetite concentrate.”

    Western Australia’s first magnetite project is expected to be CITIC Pacific’s Sino Iron project south of Karratha, which is expected to commence production next year.

    The Minister said while some companies had suggested an initial relaxation or relief to help the industry get established, he believed a set rate contained in legislation was the best approach.
     
    “If companies have a business case they wish to present, the Government can consider on a case-by-case basis if a royalty moratorium is appropriate,” he said.

    The five per cent royalty rate will also apply to uranium oxide concentrates.

    “Uranium mining presents a significant opportunity to further diversify WA’s resources sector and also make a significant future contribution to the State’s economy,” Mr Moore said.

    “As this industry grows, so too will the economic benefits for WA.”

    It is estimated the State will receive about $10million in 2013-14 and $28million in 2014-15 from uranium royalties.

    The process to amend the Mining Regulations 1981 has been started by the State Government.

    Minister's office - 9422 3000