BHP Billion
(ASX:BHP) and Rio Tinto's
(ASX:RIO) planned Pilbara iron ore joint venture is once again attracting attention from several angles.
The $131 billion joint venture has come under fire from the West Australian government with the Australian newspaper reporting that the state’s premier Colin Barnett has accused the miners of "getting away with murder" over royalty payments for the Pilbara project.
The West Australian government hopes to increase royalties from the miners by around $300 million per year from July 1, 2010.
Despite announcing an agreement to meet with the miners every eight weeks, The Australian reports that Mr Barnett says he hasn’t met with them since November, 2009 and they haven’t got back to him over the July 1 date.
Meanwhile, the European Union regulator and a Japanese steel industry body also have expressed concerns about the joint venture.
In particular, the Australian Financial Review newspaper reports the European Commission, which has the power to block the miners' venture, sent out the 86-question survey covering impacts on prices, competition, cost savings and information-sharing on January 22.
However a spokesperson for BHP told the AFR the questionnaire was a standard part of the process.
BHP Billiton’s 2009 net profit was $7.2 billion.
