Diamond miners Rio Tinto and BHP Billiton announced they have reached a royalties deal with the Australian government.



According to a Rio Tinto press release, the new agreement will enable greater flexibility and efficiency in managing their iron-ore mining operations and infrastructure in the Pilbara.



Both Rio Tinto and BHP Billiton agreed to pay iron-ore royalties at all their mines at a rate of 5.625% for fine ore and 7.5% for lump ore. The royalties' rate coincide with the rates currently specified in Australia's Mining Regulations of 1981.



The new agreement also affords Rio Tinto and BHP Billiton’s greater flexibility in sharing infrastructure across their networks. These amendments are not dependent on their proposed production joint venture proceeding.



Both diamond miners also agreed to a one-time, combined payment of $350 million to the State Government’s Consolidated Revenue Fund.