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Government Likened to African Dictatorship Over Pilbara Iron Ore Payment

By Joel ScanlonJun 23 2010

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.

Written by

Joel Scanlon

Joel relocated to Australia in 1995 from the United Kingdom and spent five years working in the mining industry as an exploration geotechnician. His role involved utilizing GIS mapping and CAD software. Upon transitioning to the North Coast of NSW, Australia, Joel embarked on a career as a graphic designer at a well-known consultancy firm. Subsequently, he established a successful web services business catering to companies across the eastern seaboard of Australia. It was during this time that he conceived and launched News-Medical.Net. Joel has been an integral part of AZoNetwork since its inception in 2000. Joel possesses a keen interest in exploring the boundaries of technology, comprehending its potential impact on society, and actively engaging with AI-driven solutions and advancements.

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BHP Billiton Plc. (2019, March 19). Government Likened to African Dictatorship Over Pilbara Iron Ore Payment. AZoMining. Retrieved on July 05, 2025 from https://www.azomining.com/News.aspx?newsID=55.
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