Australian iron ore miner BHP Billiton has announced that it has finalized an agreement with the Western Australian government to increase the royalty rate payable to the state for its iron ore fines product.
Accordingly, the amendments to be made by the Western Australian government will include an increase in the royalty rate applicable to iron ore fines from 5.625 percent of sales revenue to 6.5 percent from July 1, 2012, and then to 7.5 percent from July 1, 2013. This will align the royalty rate for fines with the existing rate paid on lump ore.
The amendments in question are subject to the approval of the parliament of Western Australia.