The state government will proceed with amendments to the State Agreement Acts covering operations managed by BHP Billiton Iron Ore.
These amendments will include an increase in the royalty rate applicable to iron ore fines from 5.625% of sales revenue to 6.5% from 1 July 2012, and then to 7.5% from 1 July 2013.
This will align the royalty rate for fines with the existing rate paid on lump ore, BHP Billiton said.
The state agreement amendments are subject to the approval of the Western Australian parliament.
BHP Billiton Iron Ore president Ian Ashby said the changes to the state agreements will give the company greater certainty in planning and executing its growth projects, particularly the proposed Outer Harbour Development.
