Hon Bill Marmion BE MBA MLA

Hon Bill Marmion BE MBA MLA

Former Minister for State Development; Transport; Innovation

    First recipient of iron ore royalty relief package

    1/04/2015 12:00 AM
     
    • Rebate scheme for junior miners
    • Support backs jobs and industry 
    The State Government's temporary iron ore royalty assistance program has begun today, with the first mining company to qualify for relief as it restructures operations in challenging market conditions.
     
    Mines and Petroleum Minister Bill Marmion said BC Iron Ltd would receive support, in the form of a 50 per cent rebate on eligible hematite iron ore royalties for up to 12 months, subject to the ore price remaining below an average of $A90 per tonne over the period.
     
    "As I said when announcing this package, this is not a handout, it is temporary relief for mining companies which are actively adjusting their operations," Mr Marmion said.
     
    "Despite recent difficulties, the iron ore sector continues to produce more than 70 per cent of Western Australia's mineral exports by value and employs almost 60,000 people."
     
    At the conclusion of the assistance period, the rebates will be fully repayable within two years, with repayments to be made in accordance with a schedule negotiated between the producers and the Mines and Petroleum Minister.
     
    Requests for royalty relief are assessed by the Department of Mines and Petroleum on a case-by-case basis, through an extensive financial analysis overseen by an independent probity auditor.
     
           Fact File
    • The rebate takes effect from the December quarter 2014 royalty payment, with the first rebates available to eligible hematite miners in April 2015
    • Royalties for Regions program will fund 25% of the cost of the payments, with this amount to be re-appropriated to the Royalties for Regions program following repayment of the rebates 
    Minister's office - 6552 6800