PERTH (miningweekly.com) – The Western Australian Chamber of Minerals and Energy (CME) has welcomed comments by federal Nationals leader Barnaby Joyce, who said that a new iron-ore tax on BHP Billiton and Rio Tinto was unwanted.

Joyce was responding to questions regarding Western Australian party leader Brendon Grylls’ proposal to impose a A$5/t iron-ore production levy on BHP Billiton and Rio Tinto.

“I don’t think the new tax is something we want,” Joyce was quoted as saying.

“We want to see the development of regional areas, and if the parties, that is the state government, the federal government and these major miners, get together and say well let's work towards a process of seeing further development of regional areas, moving people to regional areas, growing towns in regional areas, that’s the outcome we want.”

Joyce said a new tax on iron-ore production was unlikely to inspire that growth.

“If they don’t development the mines, then there is no development there,” Joyce said.

Both BHP and Rio have rejected the A$7.2-billion levy increase, warning that it would place jobs and competitiveness at risk.

CME deputy CEO Nicole Roocke said on Thursday that the comments by Joyce were a “breath of fresh air” and showed an understanding of the regional development and local jobs which the mining sector supported.

“Increasingly, people from all sides, including the Nationals themselves, are admitting the truth about the proposed new mining tax,” Roocke said.

“They are understanding that miners pay more than A$17/t to the state and federal governments, not the 25c/t lie that has been perpetuated.

“They are understanding that this tax would make Australia the highest taxing jurisdiction for iron-ore production in the world and that by creating that situation, investment would fall and thousands of regional and nonregional jobs would be lost.”

“Australia, and Western Australia in particular, has excellent world standing at the moment and to destroy that because of an ill-thought out tax plan that has no benefit and is based on mistruths is nonsensical, economic terrorism.”