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BHP-Rio iron ore venture likely to proceed in 2010
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West Australian premier Colin Barnett said on Wednesday a proposed iron ore joint venture between BHP Billiton and Rio Tinto was likely to proceed in 2010.

The premier said the mining giants were determined to pursue the proposed tie-up in the state's Pilbara region.

Barnett revealed he and BHP Billiton chief executive Marius Kloppers had discussed stamp duty and the need to pay more royalties, but no agreement had been reached.

"From the state's point of view, we regard it as effectively change in ownership and in effect, would attract stamp duty," Barnett was quoted by the Australian Associated Press as saying.

"I also made it clear that the time for royalty concessions on iron ore has passed and we would want to see full royalty rates apply on all iron ore production from this joint venture," he said.

BHP Billiton and Rio Tinto have been operating under royalty concessions negotiated in the 1960s.

Barnett said job losses were expected at the middle management level at the companies' Perth offices, but he had been told there would ultimately be more permanent workers in the Pilbara.

"I was assured the industry would continue to grow and overall, total jobs would increase in the iron ore industry," he added.

(Xinhua News Agency June 17, 2009)

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