Iron ore set to deliver $1.5b bonus

Article by Josh Zimmerman courtesy of the West Australian

WA is on track to bank nearly $1.5 billion more in iron ore royalties than the McGowan Government predicted just weeks ago – a windfall that would nearly double the State’s forecast surplus to an incredible $3.7 billion.

The steel-making commodity has so far defied predictions and continued to soar in price, yesterday reaching $US169 a tonne, compared with December predictions of $US103.70.

Treasurer Ben Wyatt cautioned that the iron ore price was likely to moderate in coming months and indicated any royalties bonanza would be reinvested in infrastructure rather than used to pay down State debt, which is currently expected to peak at $42b in 2023.