❓ A parliamentary question seeks data on iron ore exports and royalties paid by Mineral Resources Limited, including details of any royalty relief. The answer clarifies that Mineral Resources receives payments via a Government Support Package, not royalty relief, and provides details of the package.
AnsweredQoN 6188Legislative Assembly
QuestionView source ↗
(1) For the past four quarters, can the Minister provide the iron ore tonnages exported and the royalties received by the State from Mineral Resources Limited? (2) Does Mineral Resources Limited receive royalty relief for their iron ore exports, and if so: (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 in total has Mineral Resources saved in royalty payments to the State since the start of the royalty relief; (d) Is there a cut off date when royalty relief expires; (e) Do any other mining companies currently receive royalty relief; and (f) Have other iron ore companies received royalty relief in the past, and if so, which companies and what was the rate per tonne?
AnswerView source ↗
Answered
11 August 2020
Responded by
Minister for Mines and Petroleum; Energy; Industrial Relations
Response time
8 days
(1) In accordance with Regulation 95A and Regulation 96(2) of the Mining Regulations 1981, the Department of Mines, Industry Regulation and Safety does not release statistics such that information in respect of a particular person or mining operation can be ascertained.
(2) Mineral Resources Limited does not receive royalty relief for their iron ore exports. It does receive payments via a Government Support Package for iron ore exports from its Koolyanobbing project.
(a) The Government Support Package is a 100 per cent rebate of iron ore royalties paid by Mineral Resources Limited on its Koolyanobbing project.
(b) No
(c) Based on the 2019/20 Budget Papers, Mineral Resources Limited is estimated to receive $48.9 million in rebates of royalty payments via the Government Support Package for the 2018/19 and 2019/20 financial years. The actual amounts paid are expected to be released in the 2020/21 Budget Papers.
(d) The Government Support Package relates to either the first 30 million tonnes shipped by Mineral Resources Limited from the Koolyanobbing project or five years from first date of export, whichever comes first.
(e) No
(f) Iron ore companies have not received royalty relief in the past. Royalty relief requires an amendment to legislation to remove the requirement for the payment of royalties. Financial assistance programs have been provided to iron ore companies where royalties are paid and then royalty rebate payments are made. Under an Iron Ore Financial Assistance Program offered to junior iron ore companies in 2014, up to 50 per cent of royalties that were paid were rebated to Atlas Iron Ltd and BC Iron Ltd. Also, under a Magnetite Financial Assistance Program, since 2014/15, Karara Mining Ltd and CITIC Pacific Mining received a rebate for a percentage of royalties that were paid. Both these programs no longer apply.
(2) Mineral Resources Limited does not receive royalty relief for their iron ore exports. It does receive payments via a Government Support Package for iron ore exports from its Koolyanobbing project.
(a) The Government Support Package is a 100 per cent rebate of iron ore royalties paid by Mineral Resources Limited on its Koolyanobbing project.
(b) No
(c) Based on the 2019/20 Budget Papers, Mineral Resources Limited is estimated to receive $48.9 million in rebates of royalty payments via the Government Support Package for the 2018/19 and 2019/20 financial years. The actual amounts paid are expected to be released in the 2020/21 Budget Papers.
(d) The Government Support Package relates to either the first 30 million tonnes shipped by Mineral Resources Limited from the Koolyanobbing project or five years from first date of export, whichever comes first.
(e) No
(f) Iron ore companies have not received royalty relief in the past. Royalty relief requires an amendment to legislation to remove the requirement for the payment of royalties. Financial assistance programs have been provided to iron ore companies where royalties are paid and then royalty rebate payments are made. Under an Iron Ore Financial Assistance Program offered to junior iron ore companies in 2014, up to 50 per cent of royalties that were paid were rebated to Atlas Iron Ltd and BC Iron Ltd. Also, under a Magnetite Financial Assistance Program, since 2014/15, Karara Mining Ltd and CITIC Pacific Mining received a rebate for a percentage of royalties that were paid. Both these programs no longer apply.
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