JOHANNESBURG (miningweekly.com) – A group of Western Australian (WA) business and resources industry bodies have called on the state government to oppose the WA Nationals’ proposed increase in the iron-ore production levy, which the group says will destroy jobs and investment.

This comes five days before the WA state election.

The proposed increase in the charge for extracting iron-ore in the region from 25c/t to A$5/t, is expected to generate an estimated A$7.2-billion for the WA government over four years.

In an open letter to the West Australian newspaper, the heads of the Chamber of Minerals and Energy of Western Australia (CME), Minerals Council of Australia, Business Council of Australia, Association of Mining & Exploration Companies and Chamber of Commerce & Industry WA, called on voters to carefully consider the “damaging implications” of the policy and the “threat” it poses to the economic welfare of the state. 

CME CEO Reg Howard-Smith said the increase in the iron-ore tax would destroy confidence in investment in the region, cost 3 400 jobs – with almost 3 000 of those in the Pilbara alone – and make the region less competitive against international rivals, such as Brazil, resulting in even more of WA’s goods and services tax (GST) share heading to the eastern states.

“There is no doubt that the WA Nationals’ [proposed tax] will cost jobs, drive away investment and result in our paltry GST share becoming even worse,” Howard-Smith added.

“That is why you see these peak business and resources industry bodies joining together to oppose this tax.

“At a time when WA’s economy is starting to show green shoots, the WA Nationals, through their mining tax scheme, are asking WA communities to suffer job losses and economic pain for no benefit.

“The notion that damaging BHP Billiton and Rio Tinto is good for investment and jobs in WA, especially in regional communities facing economic uncertainty, is deeply flawed,” said Howard-Smith.