World\u2019s largest miner BHP (ASX:BHP) is facing accusations by the state of Western Australia of having underpaid iron ore royalties on shipments sold via its Singapore marketing hub, stretching back over more than a decade.<\/p>\n
The alleged discrepancy was discovered during an audit, the WA Government said in a statement, adding it was as negotiating with BHP to resolve the matter in the best interests of the state.<\/p>\n
Treasurer Ben Wyatt said the underpayments amounted to between A$200 million and A$300 million ($143m -$215m), dating back to the period between 2004 and 2016.<\/p>\n BHP said the government was questioning a “long-standing and historically accepted deduction of costs” related to iron ore sales.<\/p>\n “The long-standing deduction has been consistently audited and accepted by the Mines Department as part of BHP WA iron ore royalty calculations,” the company said in a statement.<\/p>\n “It is concerning that previously audited and accepted payments to the government are now being revisited.”<\/p>\n Wyatt noted since the audit in 2016, BHP had been paying what was believed to be the correct royalty amount.<\/p>\n In November,\u00a0BHP settled a dispute with the Australian Taxation Office<\/a> over its Singapore marketing hub, paying A$529 million and agreeing to change the hub’s ownership structure.<\/p>\n The Tax Office had initially claimed the company owed $1 billion.<\/p>\n The post BHP said to owe $215m in underpaid iron ore royalties to Western Australia<\/a> appeared first on MINING.com<\/a>.<\/p>\n","protected":false},"excerpt":{"rendered":" State claims BHP used its wholly-owned Singapore marketing hub subsidiary to understate the price of iron ore sold Japan and China buyers. <\/p>\n The post BHP said to owe $215m in underpaid iron ore royalties to Western Australia<\/a> appeared first on 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claims BHP used its wholly-owned Singapore marketing hub subsidiary to understate the price of iron ore sold Japan and China buyers.<\/q><\/p>\n