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BHP-Rio Pilbara Iron Ore JV stalls
The joint venture between BHP Billiton and Rio Tinto has hit another speed bump with WA premier Colin Barnett accusing the miners of ignoring the State’s demands. Barnett claimed the miners are “getting away with murder” through paying lower royalty rates as the premier continues to force Rio and BHP to pay additional royalties worth around $300 million per year. Relations between the sides have reached a low as neither companies have met regarding the iron ore joint venture since early November last year, despite agreements to meet every 8 weeks. The $131 billion dollar project is already tense as Barnett said “to both BHP and Rio, that while you may eventually get the regulatory approval, you have to deal with the state of Western Australia because the state of Western Australia owns the iron ore”.
