A parliamentary question seeks details on royalty subsidies provided to Mineral Resources, including rates, cut-off prices, and savings. The answer clarifies the subsidy mechanism and provides specific financial figures.

AnsweredQoN 234Legislative Assembly
Asked
19 August 2021
Portfolio
Mines and Petroleum; Energy; Corrective Services

QuestionView source ↗

I refer to the five year royalty subsidy agreement granted to Mineral Resources since 2018 and I ask: (a) What is the rate per tonne paid; (b) Is there a cut off price for iron ore whereby royalty relief is no longer received; (c) How much has Mineral Resources saved in royalty payments to the State since the start of the royalty relief in the following financial years: (i) 2018-19; (ii) 2019-20; and (iii) 2020-21; and (d) How much is forecast to be paid to Mineral Resources for royalty subsidies in the financial years: (i) 2021-2022; and (ii) 2022-2023?

AnswerView source ↗

Answered
12 October 2021
Responded by
Minister for Mines and Petroleum; Energy; Corrective Services
Response time
10 days
(a) The royalty rebate is not based on a rate per tonne. The royalty rebate is a 100 per cent rebate of royalties paid.
(b) No.
(c) The question misunderstands the assistance. Without the assistance, the mine would have closed and all workers, including port workers resident in Esperance, would have been made redundant. If the mine had closed at that time, it may never have reopened. Therefore, the cost to budget of the assistance package for royalties was zero. Noting that, the rebate made in each year is:
(i)  $11.6m
(ii) $44.7m
(iii) $94.2m
(d) (i)  $47.29m
(ii) $13.97m

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