West Australian premier Colin Barnett has pleaded with the Federal Government to exclude magnetite iron ore from the Mineral Resources Rent Tax (MRRT).
Since the issue was raised with Minerals Minister Martin Ferguson during a Perth conference with miners earlier in the month, Fortescue Metals and Gindalbie Metals have also called on the Government to exclude magnetite.
The two miners said that magnetite was too costly to produce and required intensive processing, whereas hematite iron ore requires much less labour to produce.
West Australia’s mid west region alone has 16 magnetite projects that are concerned about the potential effect the MRRT will have on their mines.
“If you exclude magnetite, you’ll get more revenue by stimulating the sector,” Barnett said.
“I expect that this is an oversight and another example of how the Federal Government don’t understand the mining sector.”