trending Market Intelligence /marketintelligence/en/news-insights/trending/k0hiIMW0UM_O3_U0LTCqng2 content
Log in to other products

Login to Market Intelligence Platform

 /


Looking for more?

Contact Us

Request a Demo

You're one step closer to unlocking our suite of comprehensive and robust tools.

Fill out the form so we can connect you to the right person.

If your company has a current subscription with S&P Global Market Intelligence, you can register as a new user for access to the platform(s) covered by your license at Market Intelligence platform or S&P Capital IQ.

  • First Name*
  • Last Name*
  • Business Email *
  • Phone *
  • Company Name *
  • City *
  • We generated a verification code for you

  • Enter verification Code here*

* Required

Thank you for your interest in S&P Global Market Intelligence! We noticed you've identified yourself as a student. Through existing partnerships with academic institutions around the globe, it's likely you already have access to our resources. Please contact your professors, library, or administrative staff to receive your student login.

At this time we are unable to offer free trials or product demonstrations directly to students. If you discover that our solutions are not available to you, we encourage you to advocate at your university for a best-in-class learning experience that will help you long after you've completed your degree. We apologize for any inconvenience this may cause.

In This List

Western Australian government to ask BHP, Rio Tinto to 'buy out' iron ore levy

Essential Metals & Mining Insights - August 2020

State of the Market: Mining Q2-2020

Report Outlooks of Lithium and Cobalt

Essential Metals & Mining Insights July 2020


Western Australian government to ask BHP, Rio Tinto to 'buy out' iron ore levy

The Western Australian government will propose to BHP Billiton Group and Rio Tinto to "buy out" the lease rental fee the companies pay on iron ore, as the state government is seeking ways to infuse cash into its coffers, The Australian Financial Review reported May 28.

Western Australian Premier Mark McGowan said that the state government would request both companies to pay a lump sum in lieu of the current lease rental fee under the state's Regulation 28A. The regulation stipulates that the state will charge a rental of 25 Australian cents per tonne of iron ore produced from a mining lease in operation for 15 years.

At current production rates, BHP and Rio Tinto will collectively pay the Western Australian government around A$150 million in lease rental fees this year. The number of years that the government will seek for the two companies to pay upfront is not yet clear, but if 30 years' worth of fees would be paid in a lump sum, the bill will be A$4.5 billion.

The proposal will require approval from the state government, the Commonwealth government and the mining majors.

Previously, the National Party proposed to raise the lease rental fee levied on BHP and Rio Tinto from the current 25 Australian cents per tonne to A$5 per tonne in December 2016, which the McGowan-led Labor party opposed months prior to the state elections.

The Western Australian government is in the midst of a budget crisis, with the state treasury forecasting that it will completely run out of money by July should a proposed A$11 billion loan legislation not pass before Parliament.