Atlantic confirms discussions over royalties

Embattled miner Atlantic has confirmed it is in discussions with the state government regarding a deferred payment of royalties for its Windimurra vanadium project in the Mid West.

But Atlantic said today, in response to media speculation, that the discussions were nothing new, and had been ongoing since late 2010.

Production royalties at Windimurra, 80 kilometres from Mount Magnet, are set at 2.5 per cent of the value of the end products produced at the mine.

Atlantic said it had argued that the long-term success of the project would benefit the state government, through full utilisation of the Mid West gas pipeline.

It also said ramp-up at Windimurra to full capacity would likely take until the end of the year.

The state government has not made a decision at this stage.