Barnett's miner subsidy comment challenged

A lawyer has taken umbrage at the West Australian premier urging African ministers not to be bullied into giving resources companies subsidies, saying he only last year offered magnetite miners a generous rebate.

Colin Barnett told the Paydirt Africa DownUnder conference in Perth, attended by a record 20 African ministers, that subsidies were not a good idea, especially for developing African nations that could not afford it.

"Don't get spooked by the companies: if the resources are there, they will come," Mr Barnett said.

But fellow conference speaker Michael Blakiston, partner with Gilbert + Tobin Lawyers, said the premier's argument didn't stack up.

The state's magnetite miners were last year invited to apply for a 50 per cent rebate on royalty payments for the first 12 months of production, he noted.

"The WA government has given substantial concessions and royalty deals to industry to develop the state's mining sector over a long period of time," Mr Blakiston said.

"Last year, the magnetite industry in WA was under significant economic strain and called for the government to come up with the magnetite assistance program, which Premier Barnett did ... much the same type of requests now facing African governments in the face of disillusioned equity market interest."