Australian iron ore miner Atlas Iron Limited has welcomed the announcement by the Western Australia state government that it will provide royalty relief in the form of a 50 percent rebate on eligible hematite iron ore royalties for up to 12 months, subject to the iron ore price remaining below an average of $A90/mt over the period.
Atlas managing director Ken Brinsden confirmed that while more detail was expected to be made available shortly, Atlas would progress discussions with the government to achieve the rebate within the current quarter.
"The savings that may stem from this proposed initiative would help to ensure Atlas remains competitive during this iron ore price downturn and can therefore continue to create jobs and generate royalty revenue for the government for many years to come" Mr Brinsden said.
Atlas has paid more than $200 million in royalties since it commenced mining in 2008 and approximately 650 people are currently employed operating and supporting its three Pilbara mine sites and port operations.