BC Iron has been announced as the first iron ore miner to benefit from the Western Australian government’s temporary iron ore assistance program.
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.
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