❓ Ms. Davies questions the legality of BHP's royalty deductions, specifically regarding sales commissions, under both legacy state agreements and the Mining Act 1978. The Minister asserts the deductions are not permitted under either.
AnsweredQoN 7Legislative Assembly
QuestionView source ↗
BHP — IRON ORE ROYALTY
PAYMENTS
7. Ms M.J. DAVIES to the Minister for Mines and Petroleum:
My question, of which some notice
has been given, is about the state government's dispute over a sales
commission deducted from BHP's royalty payments to the state of Western
Australia.
(1) Was this
deduction possible only due to the special arrangement afforded to BHP under
legacy state agreements?
(2) Would BHP have been allowed to claim the same
deduction if it were operating under the Mining Act 1978?
PAYMENTS
7. Ms M.J. DAVIES to the Minister for Mines and Petroleum:
My question, of which some notice
has been given, is about the state government's dispute over a sales
commission deducted from BHP's royalty payments to the state of Western
Australia.
(1) Was this
deduction possible only due to the special arrangement afforded to BHP under
legacy state agreements?
(2) Would BHP have been allowed to claim the same
deduction if it were operating under the Mining Act 1978?
AnswerView source ↗
I thank the member for some notice
of the question. I also just note that I have not answered Hon Jacqui Boydell's
nine-part question today because it is not possible to do so, but I will do so
tomorrow.
(1) No.
(2) It is the
government's view that certain deductions to the value of iron ore on
which the state's royalty is calculated, referred to in recent media
coverage, are not permitted by the state agreement under which BHP operates,
nor under the Mining Act.
of the question. I also just note that I have not answered Hon Jacqui Boydell's
nine-part question today because it is not possible to do so, but I will do so
tomorrow.
(1) No.
(2) It is the
government's view that certain deductions to the value of iron ore on
which the state's royalty is calculated, referred to in recent media
coverage, are not permitted by the state agreement under which BHP operates,
nor under the Mining Act.
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