Brazil will be the big winner when Australia raises iron ore royalties, says BHP
MELBOURNE — Iron ore exporters in Brazil may benefit from a proposal to raise iron-ore royalty charges in Western Australia, a move that could jeopardise investments in the state, says BHP Billiton, which is also locked in dispute with federal tax authorities.Higher royalty, or tax costs, would mean producers face more difficult decisions on approving new mines, opening a path for competitors in Brazil to increase market share, chief financial officer Peter Beaven told reporters in Melbourne.The company was also continuing to negotiate with the Australian Tax Office over a higher A$1.02bn ($770m) bill for pricing of sales of commodities, including iron ore, to its Singapore marketing unit, he said.READ THIS: Miners uncertain on how to read Beijing demandRaising royalties costs "would most definitely not be good for Australia", Beaven said. "Those tons would be replaced in the market, but of course they would be replaced from Brazil and other competitors."He cited Vale’s S11D expans...
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