Arrium

In reply to Mr KNOLL (Schubert) (28 July 2016). (Estimates Committee A)

The Hon. A. KOUTSANTONIS (West Torrens—Treasurer, Minister for Finance, Minister for State Development, Minister for Mineral Resources and Energy): The Department of Treasury and Finance advises that Arrium has not been afforded any payroll tax relief or other state taxation relief except royalties as described below.

The Whyalla Steel Works Act 1958 governs Arrium's royalty fees payable.

The Variation of the Indenture under the Whyalla Steel Works Act 1958 dated 15 March 2013 (House of Assembly 9 April 2013) varied the royalty rates payable by Arrium for iron ore sold dependent on where the ore was sourced until 30 June 2016:

Iron Chieftain 1.5%

All other Middleback Ranges operations 3.5%.

After 30 June 2016 royalty rates payable on all iron ore sold by Arrium reverted to 5% which is consistent with the Mining Act 1971.

There are no royalties payable on iron ore used to feed the steel works for steel manufacturing until 30 June 2022.