A special sitting of the Legislative Council has passed the state government's royalties deal with Rio Tinto and BHP Billiton and has also passed a bill allowing Fortescue Metals Group to expand its export facilities at Port Hedland.
In June, Premier Colin Barnett announced he had reached a deal with the two mining companies, which would see them pay iron ore royalties at all their Pilbara mines at a rate of 5.625 per cent for fines and 7.5 per cent for lump.
The new rates have applied from July and are expected to add about $340 million to state revenue in 2010-11 and $1.06 billion over the next four years.
BHP and Rio also agreed to a one off payment of $350 million, which the state government has committed to partially fund the new children's hospital.
Mr Barnett said the changes to the BHP Billiton and Rio State Agreements removed current restrictions on the companies integrating their operations and building shared infrastructure such as electricity generation or rail lines.
The Premier said variations to the agreement with The Pilbara Infrastructure, and its owner FMG, provided a framework for expanding the company's rail and port infrastructure to accommodate new mining projects.
"Development of the Solomon project Stage 1 and associated infrastructure, will require investment of at least $4 billion," he said.
"This will generate more than 1,000 construction jobs and up to 1,000 permanent positions, and, with an annual capacity of up to 60 million tonnes of iron ore, at current prices it will add $300 million to the State's annual royalty income.
"Also, as the agreement provides for third party access to TPI's rail and port facilities, these changes create new opportunities for junior miners in the Pilbara."
