From The Australian:
Atlas Iron has welcomed a move by the West Australian government to extend a discount on port costs to besieged junior iron ore miners.
The state government first announced a discount on Utah Point port costs in May 2015, with the plan slated to conclude on June 30 this year.
The government said the $2.50 a tonne discount at Stockyard 1 and $1.73 a tonne discount at Stockyard 2 would remain in place until at least June 30, 2017.
The discount is conditional on prices staying below $US80 a tonne, which analysts believe is likely for at least the next couple of years.
These are purely political giveaways based upon economic ignorance. The state of WA would benefit more if it accelerated the exit of iron ore juniors because it means the price of iron ore will bottom out and rise all the quicker. By sustaining junior volumes it is only ensuring lower prices across its entire royalty take, costing the tax-payer more than it would otherwise.
But then, we all know that Australian government would rather ship dirt than make money from it.
