Mine rebate worry
WA Treasury officials are worried that public assistance to embattled mid-tier miners might not be repaid if the iron ore price keeps falling.
BC Iron and Atlas Iron are expected to owe the State $38 million before December 2017 under the royalty rebate scheme announced in December to keep small producers afloat.
In its list of risks to the State Budget, Treasury this month warned "if the current trend in the iron ore price continues, there is a risk that assisted miners may not be in a position to meet required repayments".
BC and Atlas are the only beneficiaries so far of the scheme, which provides a 50 per cent rebate on eligible royalties for up to 12 months, subject to the iron ore price staying less than $90 a tonne. BC chairman Tony Kiernan said there was "no doubt" his company would be able to pay when required.
Daniel Emerson
