LEVIES – WESTERN AUSTRALIA

Barnett: secret Chevron deal never meant to cover iron ore

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Original article by Brad Thompson
The Australian – Page: 13 & 16 : 15-Apr-25

US energy giant Chevron could potentially gain up to $1bn from an infrastructure levy via a confidential deal with the Western Australian government. Mineral Resources is challenging a decision to impose the levy for exporting iron ore via the Chevron-built Port of Ashburton and a shipping channel that was dredged as part of its Wheatstone LNG project. Chevron subsequently transferred ownership of the port and shipping channel to the government, but retained the right to receive a levy for their use. Former WA premier Colin Barnett says Chevron is entitled to such revenue, but he contends that the figures being mooted are excessive because nobody had expected iron ore to be shipped from Ashburton.

CORPORATES
MINERAL RESOURCES LIMITED – ASX MIN, CHEVRON CORPORATION

Shipping industry baulks at extra fees at Port Hedland for iron ore – Australia’s most important export

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Original article by Karen Michelmore
abc.net.au – Page: Online : 12-Jan-21

The Pilbara Ports Authority will introduce a $13,450 levy on all large iron ore shipments from Port Hedland, beginning on 1 March. The Western Australian government will use the levy to finance a buyback of up to 400 dust-affected homes in Port Hedland. The levy has been criticised by Shipping Australia CEO Melwyn Noronha, who says it is inappropriate for ship operators to be required to pay to address the dust problem. Ports Minister Alannah MacTiernan contends that similar levies have been used to recover costs in the past.

CORPORATES
PILBARA PORTS AUTHORITY, SHIPPING AUSTRALIA LIMITED, WESTERN AUSTRALIA. DEPT OF TRANSPORT

BHP, Rio face fresh tax threat

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Original article by Tess Ingram, Peter Ker
The Australian Financial Review – Page: 1 & 10 : 29-May-17

The Western Australian Government may seek to have BHP Billiton and Rio Tinto pay their iron ore production levies upfront for a number of years, as part of its strategy to address the state’s rising debt and Budget deficit. Premier Mark McGowan says buying out the lease rental fee of $A0.25 per tonne is one of the options under consideration. Peter Strachan of StockAnalysis questions whether BHP and Rio Tinto would agree to such a deal, given the difficulty of forecasting their annual production rates over the long-term.

CORPORATES
BHP BILLITON LIMITED – ASX BHP, RIO TINTO LIMITED – ASX RIO, WESTERN AUSTRALIA. DEPT OF THE PREMIER AND CABINET, WESTERN AUSTRALIA. DEPT OF TREASURY AND FINANCE, NATIONAL PARTY OF AUSTRALIA, STOCK ANALYSIS AUSTRALASIA PTY LTD, FORTESCUE METALS GROUP LIMITED – ASX FMG, ROY HILL HOLDINGS PTY LTD, THE CHAMBER OF MINERALS AND ENERGY OF WESTERN AUSTRALIA INCORPORATED, AUSTRALIAN LABOR PARTY

WA minister slams gas pipeline

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Original article by Paul Garvey
The Australian – Page: 17 & 20 : 26-Apr-17

Prime Minister Malcolm Turnbull recently signalled that the Federal Government is considering a proposal to build a gas pipeline linking Western Australia to the east coast. The transcontinental gas pipeline was mooted by former state premier Colin Barnett, but WA Mines Minister Bill Johnston says it would require other states to introduction policies requiring a certain proportion of gas to be reserved for domestic use. Johnston also says the State Government is open to discussions with the mining sector regarding the iron ore levy, although he has ruled out abolishing it.

CORPORATES
AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET, WESTERN AUSTRALIA. DEPT OF MINES AND PETROLEUM, BHP BILLITON LIMITED – ASX BHP, RIO TINTO LIMITED – ASX RIO, NATIONAL PARTY OF AUSTRALIA, ASSOCIATION OF MINING AND EXPLORATION COMPANIES, HIGH COURT OF AUSTRALIA, VIMY RESOURCES LIMITED – ASX VMY, TORO ENERGY LIMITED – ASX TOE, CAMECO CORPORATION, CREDIT SUISSE (AUSTRALIA) LIMITED, AUSTRALIAN LABOR PARTY

BHP, Rio go on mine tax attack

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Original article by Paige Taylor
The Australian – Page: 5 : 3-Feb-17

The Chamber of Minerals & Energy of Western Australia has defended the mining industry’s advertising campaign targeting the proposed increase in the state’s iron ore levy. A spokesman says the proposal by WA National Party leader Brendan Grylls will reduce investment in the state and cost nearly 3,000 jobs in the Pilbara. Premier Colin Barnett has criticised the advertising campaign, but stresses that the levy will not be increased if the Coalition wins the election on 11 March.

CORPORATES
THE CHAMBER OF MINERALS AND ENERGY OF WESTERN AUSTRALIA INCORPORATED, BHP BILLITON LIMITED – ASX BHP, RIO TINTO LIMITED – ASX RIO, NATIONAL PARTY OF AUSTRALIA, WESTERN AUSTRALIA. DEPT OF THE PREMIER AND CABINET

Ralph slams iron ore tax hike

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Original article by Paul Garvey
The Australian – Page: 13 & 18 : 12-Jan-17

Former mining industry executive John Ralph says Western Australia’s reputation as an investment destination would be severely damaged if an increase in the iron ore levy were to proceed. WA National Party leader Brendan Grylls has proposed to increase the levy paid by BHP Billiton and Rio Tinto from $A0.25 per tonne to $A5, although it is opposed by both the Liberal and Labor parties. Ralph is a former CEO and MD of CRA, which subsequently became Rio Tinto. He was working for CRA when the iron ore production levy was introduced in the 1960s.

CORPORATES
RIO TINTO LIMITED – ASX RIO, BHP BILLITON LIMITED – ASX BHP, CRA LIMITED, NATIONAL PARTY OF AUSTRALIA, LIBERAL PARTY OF WESTERN AUSTRALIA, AUSTRALIAN LABOR PARTY, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, TELSTRA CORPORATION LIMITED – ASX TLS, FOSTER’S GROUP LIMITED

Thank me for miners’ GST push: Grylls

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Original article by Paul Garvey
The Australian – Page: 13 & 14 : 10-Jan-17

Minerals Council of Australia CEO Brendan Pearson has rejected suggestions that its proposal for changes to the system for distributing GST revenue was influenced by Western Australian National Party leader Brendon Grylls. The MCA’s submission to the Productivity Commission argues that the system disadvantages states that encourage the development of resources projects. Grylls urged the mining sector to lobby for GST reform in 2016, when he proposed to increase the state’s iron ore levy from $A0.25 per tonne to $A5.

CORPORATES
MINERALS COUNCIL OF AUSTRALIA, NATIONAL PARTY OF AUSTRALIA, AUSTRALIA. PRODUCTIVITY COMMISSION, BHP BILLITON LIMITED – ASX BHP, RIO TINTO LIMITED – ASX RIO

PM’s GST floor to stem mine tax leakage: Grylls

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Original article by Andrew Burrell
The Australian – Page: 6 : 14-Dec-16

The Minerals Council of Australia has released a report which suggests that Western Australia would lose $A2.02bn worth of GST revenue if it increased the iron ore levy. However, WA National Party leader Brendon Grylls argues that this analysis excluded the impact of the Federal Government’s proposed "floor" for the distribution of GST revenue. The state would be likely to retain most of the proceeds of the levy, as its share of GST revenue has fallen well below the proposed floor of about $A0.70 in the dollar.

CORPORATES
MINERALS COUNCIL OF AUSTRALIA, NATIONAL PARTY OF AUSTRALIA, AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET, LIBERAL PARTY OF WESTERN AUSTRALIA, BHP BILLITON LIMITED – ASX BHP, RIO TINTO LIMITED – ASX RIO

A fair return on WA’s iron ore would help our GST injustice

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Original article by Brendon Grylls
The Australian Financial Review – Page: 47 : 24-Nov-16

Western Australia now receives just $A0.30 of every dollar of goods and services tax revenue that is generated in the state. The proposed increase in the iron ore levy from $A0.25 per tonne to $A5 is intended to redress this imbalance and help reduce the state’s budget deficit. It should be noticed that the levy does not constitute a new tax on BHP Billiton and Rio Tinto. It has been in place for five decades and has remained unchanged since. The Samarco tailings dam disaster and the Simandou bribery scandal constitute greater sovereign risks.

CORPORATES
NATIONAL PARTY OF AUSTRALIA, BHP BILLITON LIMITED – ASX BHP, RIO TINTO LIMITED – ASX RIO, AUSTRALIA. COMMONWEALTH GRANTS COMMISSION, VALE SA, SAMARCO MINERACAO SA, AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET, LIBERAL PARTY OF WESTERN AUSTRALIA

Newman takes aim at Grylls tax proposal

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Original article by Peter Ker
The Australian Financial Review – Page: 13 & 18 : 23-Nov-16

Former Queensland premier Campbell Newman has expressed concern about a proposed rise in Western Australia’s iron ore levy. He rates the sovereign risk level of the proposal by WA National Party leader Brendon Grylls as being "eight out of 10". In contrast, Campbell considers his government’s changes to coal royalty rates in 2012 as a four out of 10 in terms of sovereign risk. Coal producers will pay the highest coal royalty rate under Newman’s three-tier system for the first time, following the rally in coal prices.

CORPORATES
NATIONAL PARTY OF AUSTRALIA, AUSTRALIAN LABOR PARTY, BHP BILLITON LIMITED – ASX BHP, RIO TINTO LIMITED – ASX RIO