WA Mining Royalties

MagNet’s members are embarking on extremely capital-intensive, long-term projects that promise significant export revenue for Australia and major development and employment prospects for regional communities.

Investment support is crucial in getting these projects underway and driving the infrastructure development necessary to serve regional communities for the long-term. It is reasonable for government to encourage investment in the emerging magnetite industry by providing some start-up phase concessions on mining royalty imposts. Collectively, MagNet’s members represent nearly $400 million in estimated annual royalty revenue to WA alone, should all projects proceed to bankable feasibility and production phases.

The announcement by Premier Barnett in April 2013  to introduce a royalty rebate for a limited time for  start-up magnetite projects has been welcomed by MagNet’s five member companies.  As well as benefitting the Gindalbie – AnSteel Joint Venture Karara project and the CITIC Pacific Mining Sino Iron project, the decision to reduce royalty rates for  start-up projects demonstrates the West Australian Government’s support for the emerging magnetite industry.  It also sends a strong message to potential investors that the WA Government is serious about attracting new large scale investment to this State.

An extract from the WA Government State Budget Papers 2013 – 14:

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An amount of $15.9 million will be spent in 2013-14 to provide assistance to eligible companies in the start-up phase on new magnetite iron ore projects.

Eligible companies can apply for a rebate of up to 50% of actual royalties paid for the first 12 months of magnetite production, before returning to the full royalty rate.

Assistance can apply from the first shipment of magnetite after 8 April 2013, or from the point the project reaches commercial production.

In recognition of the challenges faced by the magnetite sector, MagNet made various submissions to the State Government’s earlier review of royalties relating to magnetite (see below). MagNet continues to support the positions of extending the concession period for start up projects from three years to five.

Detail of the rebate is available online at

December 2010 Submission to Department of Mines and Petroleum