Fortescue Metals Group’s request that it delay royalty payments to the West Australian government has been rebuffed.
The royalty payments, levied at 6.5 per cent of what Fortescue produces, were due yesterday and were estimated at $200 million-plus.
“Minister Moore's office has confirmed that no royalty relief has been offered to the company and the request has been declined,” a spokeswoman for FMG told The Australian Financial Review of the request to WA Mines and Petroleum Minister Norman Moore.
Fortescue’s application was confirmed in WA’s parliament last week, and Premier Colin Barnett suggested it was not out of the ordinary.
“If a company were 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,” he told the Herald Sun.
Fortescue said that following the government’s decision, it paid its “quarterly royalty in full compliance with its obligations.”