Premier Colin Barnett still plans to raise royalty rates paid by BHP and Rio Tinto despite the federal government's proposed new super tax on miners.
His plans to ditch concessional rates for the two mining giants were made well before news of the proposed super tax stemming from the Henry tax review.
The federal government has proposed a 40 per cent tax on mining company profits, which will be used to pay for a cut in company tax and a range of superannuation measures.
The tax has prompted howls of protest from the mining industry.
Mr Barnett has also criticised the proposed tax, saying it would jeopardise future projects in Australia, cost jobs and pose a real threat to the mining industry.
But on Monday he said he still intended to raise royalty rates for BHP and Rio Tinto, saying the proposed super tax and state royalties were two different things.
"The two are not related, strange as that may sound," he told ABC Radio.
"What we are saying to BHP and Rio Tinto is that you have had concessions on state royalties for over 50 years. Time has now moved on."
The concession rate for the two mining giants was granted under a 1970s scheme.
South Australian Treasurer Kevin Foley said on Monday his state would look at increasing royalties from mining companies up from the current rate of 3.5 per cent.
He said he had been encouraged by actions in WA which had a royalty rate of seven per cent, which had not deterred mining investment there.
