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BIL
BIBLT
BIL - BHP Billiton Plc - BHP Billiton announces agreement with the government of
Western Australia to amend royalties and state agreements
BHP Billiton Plc
Share code: BIL
ISIN: GB0000566504
News Release
21 June 2010
BHP BILLITON ANNOUNCES AGREEMENT WITH THE GOVERNMENT OF WESTERN AUSTRALIA TO
AMEND ROYALTIES AND STATE AGREEMENTS
BHP Billiton today announced that it had signed a non-binding Heads of Agreement
with the Government of Western Australia to amend Iron Ore royalty rates payable
to the State effective 1 July 2010.
Based on this agreement, the State will proceed with amendments to the State
Agreement Acts covering operations managed by BHP Billiton, to require payment
of royalties on iron ore shipments at the rates specified in the WA Mining
Regulations. Royalty rates will increase from 3.75 per cent of sales revenue to
5.625 per cent for Fines and from 3.25 per cent to 5.0 per cent for Beneficiated
Ore. The Lump royalty will be 7.5 per cent, which is already the prevailing rate
for most of the Lump ore produced from projects managed by BHP Billiton. The
rates as amended will apply to all existing operations and future projects
covered by the State Agreements.
Additionally, BHP Billiton and the Government of Western Australia have agreed
to make amendments to various State Agreements to:
* permit sharing of infrastructure and blending of products across the
networks operated by BHP Billiton and Rio Tinto; and
* modernise other provisions of the State Agreements.
These changes to the State Agreements will enable BHP Billiton`s existing iron
ore operations to operate more efficiently. They will also help facilitate the
proposed West Australian Iron Ore Production Joint Venture between BHP Billiton
and Rio Tinto, which is still subject to approval from regulators and
shareholders.
While the State Agreement modifications relating to infrastructure and
modernisation are not conditional upon the finalisation of the Production Joint
Venture, the resulting flexibility to blend product and share infrastructure
would facilitate the capture of synergies which are the main driver for the
Production Joint Venture proposal.
The proposed removal of historical royalty concessions has been subject to
discussions with the State Government for some time. In recognition of this, and
as a way of sharing the value that the variations to the State Agreements are
expected to generate, the parties to the relevant State Agreements will make a
contribution totalling A$350 million to the consolidated revenue of the State.
Marcus Randolph, Chief Executive Ferrous and Coal, BHP Billiton, said: "The
ability to blend iron ore from any of our mines, and the flexibility in the use
of all rail and port infrastructure, will be major enablers for our operations.
This will improve our operating efficiency and we are pleased to be able to
share the gains from this enhancement with the people of Western Australia."
The Premier of Western Australia, The Honourable Colin Barnett MP, said: "This
outcome is the result of long and detailed negotiations conducted in good spirit
over the past year. It is important for a number of reasons: it provides the
people of Western Australia with increased value from this State`s resources and
it creates a level playing field for all iron ore producers in Western
Australia."
The State Agreement modifications relating to infrastructure sharing and
modernisation are subject to the approval of co-venturers under BHP Billiton`s
existing joint venture arrangements, and the passage of ratifying legislation by
the Western Australian Parliament.
Further information on BHP Billiton can be found on our Internet site:
www.bhpbilliton.com
Australia United Kingdom & South Africa
Amanda Buckley, Media Andre Liebenberg, Investor
Relations Relations
Tel: +61 3 9609 2209 Mobile: Tel: +44 20 7802 4131
+61 419 801 349 Mobile: +44 7920 236 974
email: email:
Amanda.Buckley@bhpbilliton.co Andre.Liebenberg@bhpbilliton.
m com
Fiona Martin, Media Relations Illtud Harri, Media Relations
Tel: +61 3 9609 2211 Mobile: Tel: +44 20 7802 4195
+61 427 777 908 Mobile: +44 7920 237 246
email: email:
Fiona.Martin2@bhpbilliton.com Illtud.Harri@bhpbilliton.com
Leng Lau, Investor Relations Americas
Tel: +61 3 9609 4202 Mobile: Scott Espenshade, Investor
+61 403 533 706 Relations
email: Tel: +1 713 599 6431
Leng.Y.Lau@bhpbilliton.com Mobile: +1 713 208 8565
email:
Scott.Espenshade@bhpbilliton.
com
Ruban Yogarajah, Media
Relations
Tel: US +1 713 966 2907 or UK
+44 20 7802 4033Mobile: UK
+44 7827 082 022
email:
Ruban.Yogarajah@bhpbilliton.c
om
BHP Billiton Limited ABN 49 BHP Billiton Plc Registration
004 028 077 number 3196209
Registered in Australia Registered in England and
Registered Office: 180 Wales
Lonsdale Street Registered Office: Neathouse
Melbourne Victoria 3000 Place
Australia London SW1V 1BH United
Tel +61 1300 55 4757 Fax +61 Kingdom
3 9609 3015 Tel +44 20 7802 4000 Fax +44
20 7802 4111
Members of the BHP Billiton group which is headquartered in
Australia
Date: 21/06/2010 08:43:01 Produced by the JSE SENS Department.
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