THE West Australian government imposed a 5% royalty on magnetite iron ore, potentially blowing another hole in the federal budget and angering the emerging industry that had pleaded for a moratorium.
Premier Colin Barnett conceded some magnetite miners could be hurt by Julia Gillard's mineral resources rent tax as their production ramped up, and it would force the federal government to reimburse their royalties.
He denied the decision bore any similarity to the dramas in May when he blew a AUD 2 billion hole in the federal budget by lifting royalty concessions for iron ore "fines.
Mr Barnett said that "At no stage has the federal government ever suggested that we shouldn't have a royalty on magnetite.”
He denied trying to stir up trouble. He said that "The budget dramas were Wayne Swan's creation. The federal government knew full well that we were negotiating to remove that concession. There was no surprise there.”
He added that "The state will always preserve its right to set the price at which we sell minerals."
The royalties are expected to rake another AUD 160 million a year into state coffers by 2014, after collecting about AUD 60 million this financial year.
Mr Barnett said a 5% royalty would also apply to the emerging uranium industry, which has already been hit by delays, and denied it could provide a disincentive for the new mines to proceed. If an industry can't afford to pay 5% royalty, they shouldn't be in the industry.
Premier Colin Barnett conceded some magnetite miners could be hurt by Julia Gillard's mineral resources rent tax as their production ramped up, and it would force the federal government to reimburse their royalties.
He denied the decision bore any similarity to the dramas in May when he blew a AUD 2 billion hole in the federal budget by lifting royalty concessions for iron ore "fines.
Mr Barnett said that "At no stage has the federal government ever suggested that we shouldn't have a royalty on magnetite.”
He denied trying to stir up trouble. He said that "The budget dramas were Wayne Swan's creation. The federal government knew full well that we were negotiating to remove that concession. There was no surprise there.”
He added that "The state will always preserve its right to set the price at which we sell minerals."
The royalties are expected to rake another AUD 160 million a year into state coffers by 2014, after collecting about AUD 60 million this financial year.
Mr Barnett said a 5% royalty would also apply to the emerging uranium industry, which has already been hit by delays, and denied it could provide a disincentive for the new mines to proceed. If an industry can't afford to pay 5% royalty, they shouldn't be in the industry.
(sourced TheAustralian)
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