What it does
The Iron Ore (Mount Newman) Agreement Act 1964 (the Act) is a State Agreement statute that ratifies and gives effect to a comprehensive contract between the State of Western Australia and the Company (as defined in s. 2, originally Mt. Newman Iron Ore Company Limited, now BHP Billiton Minerals Pty Ltd and joint venturers Mitsui-Itochu and Itochu Minerals & Energy). The principal agreement is set out in the First Schedule, with seven variation agreements in Schedules 2-8 incorporated by reference (s. 2). Its primary function is to authorise and regulate the exploration, mining, beneficiation, transport by railway, and export of iron ore from deposits near Mount Newman in the Pilbara, while providing a framework for infrastructure development, royalties, environmental management, and socio-economic benefits.
At its core, the Act overrides inconsistent provisions of other laws to grant the Company exclusive rights of occupancy (clause 2 of the Agreement), a 21-year renewable mineral lease (clause 8(1)(a), up to 300 square miles initially, now expandable under clause 9B to 1,000 km²), and authority to construct railways, wharves, townsites, water/power supplies, and other works (clauses 5, 8, 9). Operations are structured in phases: Phase 1 (investigations until commencement date, clause 1), Phase 2 (mining/export at minimum 1Mtpa, clause 9(1)), and optional Phases 3-4 for secondary processing (beneficiation under clause 1 definition, now including plants approved under Integration Agreements per clause 9(2)(j)) or integrated iron/steel production (clauses 11-12, largely varied away by 1994 and 2010 amendments).
Royalties are a central revenue mechanism for the State: clause 9(2)(j) imposes 7.5% of f.o.b. value on lump ore (with minimum 6s/ton, averaging in (vi)), 5.625-7.5% on fine ore (updated by s. 4A and 2010 variations), 3.25% on beneficiated ore, and 1s6d/ton on fines/locally used ore, with adjustments for pig iron prices (viii). f.o.b. value is strictly defined (clause 1, as amended 1990/2010) to include deductions for freight/insurance/handling, with arm's-length market assessments if needed, GST adjustments via reg 85AA (applied mutatis mutandis), and special rules for cost-sales to arm's-length purchasers (proviso to clause 9(2)(e)(B)). Payments are quarterly with returns detailing quantities, values, and adjustments (clause 9(2)(k)), backed by inspection rights (clause 9(2)(n)) and books production obligations (clause 9(2)(o)).