There will be no change in the division of royalty payments in Western Australia, despite the increase imposed on BHP Billiton and Rio Tinto.
The West Australian Government stated there will be no change in the proportion of royalties set aside for regional development.
The Royalties for Regions program will continue to receive a quarter of all royalties coming in, according to WA regional development minister Brendon Grylls.
This follows the announcement yesterday that BHP Billiton and Rio Tinto will see an increase in their royalty rates, jumping from 3.75 per cent to 5.6 per cent, as a precursor to approval of their Pilbara Iron Ore Joint Venture.
These increased royalty payments are expected to bring in approximately $1 billion over four years for Western Australia.
Grylls stated that an extra $85 million per year will be funnelled into the Royalties for Regions program.