WA Govt Rejects Fortescue Request To Postpone Payment of Royalties
The state government of West Australia has rejected requests by Fortescue Metals Group to delay the payment of some more than A$200 million in royalties as the iron ore miner pursues its ambitious expansion plans.
It was reported last week that the iron ore miner got in touch with the WA government, asking for a relief or postponement of royalty payments. Collected equivalent to 6.5 per cent of what Fortescue produces, the royalty payments were due Tuesday.
But the WA Mines and Petroleum Minister Norman Moore discarded Fortescue's appeal.
"Minister Moore's office has confirmed that no royalty relief has been offered to the company and the request has been declined," a spokeswoman said, according to The Australian Financial Review.
WA Premier Colin Barnett confirmed Fortescue's application, but said it was not out of the ordinary.
"If a company was to come to the government and seek some sort of relief, then the government would consider that on merit and it's not without precedence," Mr Barnett had told the Herald Sun.
Following the government's refusal of its request, it paid its "quarterly royalty in full compliance with its obligations," according to the Fortescue spokeswoman.