Date: 28 June 2019 , 20:07
News ID: 4923
NEWS SERVICE: MINES and MINERALS

BHP settles dispute over iron ore royalties with Western Australia in $175m deal

World’s largest miner BHP (ASX:BHP) has settled a A$250 million ($175m) dispute over allegedly underpaid royalties on iron ore shipments sold through its Singapore marketing hub with the state of Western Australia.
BHP settles dispute over iron ore royalties with Western Australia in $175m deal

The claimed discrepancy was discovered during a government audit in January. At the time, authorities said the payments stretched back over more than a decade.

BHP settled last year a similar dispute with the Australian Taxation Office (ATO) regarding taxes owed by its Singapore hub over a 15-year period.

“This settlement resolves the dispute with BHP, and I’m pleased we’ve been able to negotiate a very positive outcome for WA taxpayers,” Western Australia Premier Mark McGowan said in a statement.

The state will use A$230 million of the payment towards building a new women’s and maternity hospital that will replace the King Edward Memorial Hospital.

A further A$15 million will be allocated for improvements at Hedland Senior High School, and the final A$5 million will be spent on upgrades for Newman Hospital, including extra beds and an expanded procedure room.

In November, BHP settled a dispute with the Australian Taxation Office, also related to the miner’s Singapore marketing hub, paying A$529 million and agreeing to change the division’s ownership structure. The Tax Office had initially claimed the company owed $1 billion.

source: MINING.COM
BHP Iron ore Australia miner ATO
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