The West Australian Parliament has passed a new legislation to raise royalty rates for the iron ore miners, BHP Billiton and Rio Tinto.
The ABC reports theywill now pay 5.6% instead of 3.75% of sales revenue.
The increase is expected to generate $A340 million in revenue to the state government this financial year.
The companies have been paying a concessional rate since the industry was established in the 1960s.
