Thursday 04 Aug, 2011 |By Ninemsn
The Australian federal government will credit state royalties on magnetite iron ore to miners profitable enough to be subject to the Mineral Resource Rent Tax.
Mining industry lobby groups expressed disappointment after the West Australian government imposed a royalty on magnetite iron ore, saying it may discourage investment in the fledgling, capital-intensive sector.
A five per cent royalty will be payable on both magnetite iron ore, a low grade form of the steel making commodity that requires processing, and uranium, which is not subject to the MRRT.
Both commodities are not yet produced in WA, but activity in the sectors is heating up.
A spokeswoman for federal Resources Minister Martin Ferguson told AAP that "The government will credit magnetite royalties against any potential Mineral Resource Rent Tax liability.”
WA Premier Colin Barnett said the federal government would not have been surprised the magnetite royalty had been imposed. He told that "The commonwealth government will collect company tax and income tax, so they will be net beneficiaries of the magnetite industry, far more than the state would.”
H added that "The state will always reserve its right to set the price at which we sell minerals. If we didn't have that royalty, we'd be giving away that iron ore to Australian and overseas companies."
The Australian federal government will credit state royalties on magnetite iron ore to miners profitable enough to be subject to the Mineral Resource Rent Tax.
Mining industry lobby groups expressed disappointment after the West Australian government imposed a royalty on magnetite iron ore, saying it may discourage investment in the fledgling, capital-intensive sector.
A five per cent royalty will be payable on both magnetite iron ore, a low grade form of the steel making commodity that requires processing, and uranium, which is not subject to the MRRT.
Both commodities are not yet produced in WA, but activity in the sectors is heating up.
A spokeswoman for federal Resources Minister Martin Ferguson told AAP that "The government will credit magnetite royalties against any potential Mineral Resource Rent Tax liability.”
WA Premier Colin Barnett said the federal government would not have been surprised the magnetite royalty had been imposed. He told that "The commonwealth government will collect company tax and income tax, so they will be net beneficiaries of the magnetite industry, far more than the state would.”
H added that "The state will always reserve its right to set the price at which we sell minerals. If we didn't have that royalty, we'd be giving away that iron ore to Australian and overseas companies."
Posts
No comments:
Post a Comment