Overview
Note: The Act is currently cited as the Iron Ore (Robe River) Agreement Act 1964. The Track Law metadata uses the original name referencing the Cleveland Cliffs corporate parent.
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Western Australia act
This Act is a Western Australian state law that approves a legal agreement between the State Government and a mining company (originally Basic Materials Pty Ltd, now a joint venture called Robe River) for the development of iron ore deposits in the Robe River area (near Cape Lambert). The agreement gives the company the right to mine iron ore, build railways, ports, processing plants, and towns, and pay royalties to the state. It has been amended eight times over 60 years to expand operations, change royalty rates, allow blending of ore from different sources, and enable the company to use infrastructure shared with other miners. The Act also includes provisions for environmental protection, local employment, and community benefits. In practice, it locks in the terms of a long-term private contract, giving the company certainty but limiting the state's ability to change rules without the company's consent.
1,658 words · generated 05/05/2026
Note: The Act is currently cited as the Iron Ore (Robe River) Agreement Act 1964. The Track Law metadata uses the original name referencing the Cleveland Cliffs corporate parent.
The Iron Ore (Cleveland Cliffs) Agreement Act 1964 (WA) ratifies and gives the force of law to a 1964 agreement between the State of Western Australia and Basic Materials Pty Limited (then a subsidiary of The Cleveland-Cliffs Iron Company via Cliffs International Inc.) for the mining and development of iron ore deposits in Western Australia. The Act is a State Agreement Act: its primary function is to ratify a commercial agreement between the State and the project proponent, and to give that agreement and its subsequent variations the force of law.
The Act ratifies the original 1964 agreement (set out in Schedule 1, the First Schedule) and eight subsequent variation agreements set out in Schedules 2 through 9. The variation agreements modify royalty rates, infrastructure obligations, third-party access arrangements, and other commercial terms of the original deal.
The Act also addressed the succession of corporate parties over time. The original counterparty, Basic Materials Pty Limited, has since been succeeded by Dampier Mining Company Limited and then by the Robe River iron ore joint venture entities, reflecting the evolution of the project ownership structure.
Direct links to the current provisions in Iron Ore (Cleveland Cliffs) Agreement Act 1964.
The authorised version of this legislation is published by the jurisdiction's legislation service. Follow the link below to read or download it from the official source.
View on official registerSourced from the Western Australian Legislation website (legislation.wa.gov.au). Not the authorised version.
State Agreement Act: an Act that ratifies a commercial agreement between the State and a private developer for the development of natural resources. The agreement has the force of law by virtue of the Act. Terms of the agreement can only be varied by further Act of Parliament or by agreement between the parties under the variation mechanism in the agreement itself.
Agreement (s. 2): defined as the original agreement set out in the First Schedule, including the agreement as altered from time to time in accordance with its provisions or by any agreement between the parties approved by an Act.
Company (s. 2): has the same meaning as in the Agreement (originally Basic Materials Pty Limited and its successors and assigns).
Variation agreements: eight variation agreements (ss. 3A–4E, Schedules 2–9) progressively modify the terms of the original 1964 agreement. Key variations include increases to royalty rates (s. 4A), and structural amendments through the sixth, seventh, and eighth variation agreements.
Mining Areas: the areas defined in Clause 1 of the agreement, believed to contain large deposits of iron ore with an average iron content appreciably below 60%, which was considered unsaleable as direct shipping ore without beneficiation processing.
Royalty (Clause 9 of the Agreement): the State's primary financial return from the project. Royalty rates have been varied by multiple variation agreements over the life of the project, including increases approved under s. 4A of the Act.
Company (Project Developer):
State:
State (under the Agreement):
Company:
The Act itself contains no specific penalty provisions; enforcement of the agreement's obligations is through civil remedy in the courts. Key enforcement mechanisms in the agreement include:
Royalty payment (Clause 9):
Royalties are payable at the rate specified in clause 9 (as varied) on a periodic basis. Additional rental may be payable within three months after shipment, sale, or other triggering events as specified in clause 9(2)(j). The variation agreements (ss. 4A onwards) have progressively increased the royalty rates.
Variation of the agreement:
Assignment:
This is an Agreement Act, not a general regulatory regime:
The Act does not establish a regulatory framework that applies generally. Its operative content is the agreement and its variations. Understanding what the parties' rights and obligations are requires reading the agreement itself (in the Schedules), not just the short operative sections of the Act.
The Act's name has changed:
The Act was originally linked to the Cleveland Cliffs corporate parent but is now cited as the Iron Ore (Robe River) Agreement Act 1964, reflecting the evolution of project ownership. Track Law metadata retains the original name. Users searching for "Robe River" legislation should be directed to this Act.
Royalty rates have been varied multiple times:
The royalty rate applicable under clause 9 of the original agreement has been changed by subsequent variation agreements. The current applicable rate requires reference to the most recent variation agreement (the Eighth Variation Agreement in Schedule 9), not the original 1964 agreement text.
Third-party access rights are part of the regime:
Infrastructure developed under the State Agreement (particularly rail and port facilities) is subject to third-party access obligations. Users interested in access to Robe River project infrastructure need to consider the variation agreements and any applicable access undertakings.
Example 1: Royalty payment obligations
The Company ships a cargo of beneficiated iron ore from the Robe River mining areas. A royalty is payable to the State at the rate specified in clause 9 of the agreement as varied by the applicable variation agreement. Any additional rental payable under clause 9(2)(j) must be paid within three months of shipment.
Example 2: Assignment of interest
A corporate restructuring within the Robe River joint venture requires the transfer of an interest in the agreement to a new entity. The assignment must comply with clause 13 of the agreement. The assignee entity must execute a deed of covenant. The State must be notified, and in certain circumstances, State consent is required.
Example 3: Native title intersection
A native title holder claims rights over part of the Robe River mining areas covered by the agreement. The Federal Court considers the interaction between the State Agreement mining rights and native title. The case Robe River Kuruma Aboriginal Corporation RNTBC v State of Western Australia [2021] FCA 20 is a case in the Track Law corpus involving this agreement and native title claims in the relevant area.