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Battling juniors receive help

Karara chief operating officer Zhaoyuan Zhang, Resources Minister Bill Marmion and Karara chief executive Dale Harris at the Karara minesite.

The WA Government has injected first financial aid for the State's embattled iron ore juniors, with the Chinese-controlled magnetite producer Karara Mining receiving almost $2 million in royalty rebates.

It comes as the Government considers whether to defer the royalty payments due from small hematite miners, such as the embattled Atlas Iron and BC Iron.

The royalty rebate and deferral offers are part of the Government's attempt to try to ensure the survival of WA's smaller iron ore producers, which face a shaky financial future because of the collapse in the metal's price over the past year.

The rebate, the first to be dished out to WA's fledgling magnetite producers, was paid this week, effectively refunding about half of the royalties Karara paid on its iron ore production in the December quarter.

Magnetite miners are eligible for four quarterly royalty rebates once they reach commercial production levels.

Mines Minister Bill Marmion, who visited the Karara operation east of Morawa yesterday, said despite the depressed market conditions the mine "was a boon for the Mid West" that had generated long-term work for 500. "Karara has helped diversify local job options and has backed numerous significant community projects," Mr Marmion said.