Barnett rules out gold royalty increase
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Western Australian Premier Colin Barnett has ruled out any increase in the state gold royalty rate for at least 12 months.
Speaking in parliament this afternoon, Mr Barnett said the government would not be considering any increase in the gold royalty rate in the coming state budget, due to be handed down next month.
The premier's decision comes after weeks of strident lobbying by gold miners and representative mining bodies which argued that the mooted doubling of the gold royalty to 5 per cent of revenue would have a debilitating impact on the WA industry, particularly smaller gold miners with generally higher operating costs and relatively slim margins.
Miners also pointed to the fact that the existing royalty regime had already delivered a 137 per cent increase in the state's take from gold royalties since 2004 as prices had increased.
The Gold Royalties Response Group today welcomed the premier's decision with spokesperson, Warrick Hazeldine, saying the decision was a win for common sense that would safeguard the sustainability of the state's junior gold sector and the regional communities in which they operate.
"We look forward to engaging with the premier on future royalty decisions that will impact on GRRG's members," Mr Hazeldine said.
The Chamber of Minerals and Energy also welcomed the decision, saying the announcement ended a period of uncertainty for the sector.
"The Premier's decision delivers certainty to investors and operators and comfort to workers at mines where margins are tight," CME chief executive Reg Howard-Smith said.
"Currently, resources directly pumps $3.2 billion in royalties into the WA economy this year...and this annual figure will only rise in the years to come.
"It is important the government consults with the industry on any proposed future Mining Act royalty rises."
Mr Howard-Smith added that in terms of other royalty anomalies that had been identified by the state government, the CME looked forward to continued dialogue with government.