Swan has little clue on iron ore

West Australian Premier Colin Barnett says federal Treasurer Wayne Swan has shown little understanding of the iron ore industry in his attack on the state’s budget.

The market news is quoted as saying,

The WA government’s decision to lift the royalties on iron ore fines, a crushed form of the mineral, from the current rate of 5.625 per cent to 7.5 per cent by 2014 has angered Mr Swan.

Under the proposed Minerals Resources Rent Tax (MRRT), the federal government will have to reimburse mining companies for the increase in royalties.

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