Western Australia Hikes Iron Ore Royalty

22 August 2010 (Last Updated August 22nd, 2010 18:30)

The Parliament of Western Australia has approved legislation to raise royalty rates for iron ore miners including BHP Billiton and Rio Tinto. According to the law, the companies will have to pay 5.6% instead of 3.75% of sales revenue. The royalty increase is expected to contribute

The Parliament of Western Australia has approved legislation to raise royalty rates for iron ore miners including BHP Billiton and Rio Tinto.

According to the law, the companies will have to pay 5.6% instead of 3.75% of sales revenue.

The royalty increase is expected to contribute $340m in revenue to the government this financial year, reports ABC News.

The companies had been paying a concessional rate since the 1960s when the industry was established.