BHP Billiton executive Mike Henry has warned that a proposed increase in Western Australia’s iron ore levy would cost the resources giant about $A1.3bn in forgone capital expenditure and dividend payments. He adds that a significant fall in spending capacity would have implications beyond Western Australia. Amongst other things, increasing the levy may affect BHP’s plans for the South Flank iron ore project, which is slated to replace the Yandi mine when it is exhausted. Rio Tinto’s Tom Price project is also nearing the end of its mine life.
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