Posted in | News | Iron Ore | Mining Business

Government Likened to African Dictatorship Over Pilbara Iron Ore Payment

Western Australia Premier Colin Barnett has come under criticism from the opposition for accepting the one off payment of $350 million from iron ore companies BHP Billiton and Rio Tinto. The state government had announced the deal with the companies earlier this week.

The joint venture of the companies planned in Pilbara was to go ahead as they would pay a lump sum to build a new children’s hospital in Perth. Opposition MP Mark McGowan mentioned that the agreement sends a bad message to the international business community.

According to Mark McGowan this sort of thing was to be expected from Venezuela or African dictatorships. This was not acceptable in Western Australia and the government also had to explain just how the three parties involved reached the figure of $350 million.

Under the agreement with the government, BHP and Rio's concessionary royalty rates were increased from 3.75 per cent to 5.6 per cent. This is in line with other mining companies.

Joel Scanlon

Written by

Joel Scanlon

Joel emigrated to Australia in 1995 and worked for five years in the mining industry as an exploration geotechnician, using GIS mapping and CAD software. Upon moving to the North Coast of NSW, Australia Joel worked as a graphic designer for a leading consultancy firm. After that, he ran a successful business providing web services to businesses along the eastern seaboard of Australia. During this time, he developed and launched News-Medical.Net. Joel has been working with AZoNetwork since the company was founded in 2000.

Citations

Please use one of the following formats to cite this article in your essay, paper or report:

  • APA

    BHP Billiton Plc. (2019, March 19). Government Likened to African Dictatorship Over Pilbara Iron Ore Payment. AZoMining. Retrieved on August 15, 2022 from https://www.azomining.com/News.aspx?newsID=55.

  • MLA

    BHP Billiton Plc. "Government Likened to African Dictatorship Over Pilbara Iron Ore Payment". AZoMining. 15 August 2022. <https://www.azomining.com/News.aspx?newsID=55>.

  • Chicago

    BHP Billiton Plc. "Government Likened to African Dictatorship Over Pilbara Iron Ore Payment". AZoMining. https://www.azomining.com/News.aspx?newsID=55. (accessed August 15, 2022).

  • Harvard

    BHP Billiton Plc. 2019. Government Likened to African Dictatorship Over Pilbara Iron Ore Payment. AZoMining, viewed 15 August 2022, https://www.azomining.com/News.aspx?newsID=55.

Tell Us What You Think

Do you have a review, update or anything you would like to add to this news story?

Leave your feedback
Your comment type
Submit