The Western Australian government has been warned to "put on ice" any pre-budget aspirations to impose higher royalties on the state's massive resources sector, or put at risk the industry's post GFC resurgence.
The Western Australian government has been warned to "put on ice" any pre-budget aspirations to impose higher royalties on the state's massive resources sector, or put at risk the industry's post GFC resurgence.
The Western Australian government has been warned to "put on ice" any pre-budget aspirations to impose higher royalties on the state's massive resources sector, or put at risk the industry's post GFC resurgence.
Addressing the first day in Perth today of the Paydirt 2010 Australian Gold Conference, Chamber of Minerals and Energy of Western Australia, Chief Executive, Mr Reg Howard-Smith, said there was on a conservative basis, some A$135 billion worth of resource projects currently committed or under consideration in WA
"The implications in Western Australia of any mooted higher local state taxes on mining, are severe - and have their own impacts quite separate from any national rise under reports the Henry Tax Review will further tax resources," Mr Howard-Smith said.
"The WA resources sector pays some three billion dollars in royalties per annum - a 137% increase in royalties over past five years - and it comes from gold and all other minerals sectors in WA.
"While there are areas of WA mining that have been doing very well, the resources sector is not homogenous - and the WA Government should be engaging with the mining and exploration industry if a State mining tax hike is being mooted," he said.
"To increase royalties across the board would be folly to long-term success of existing and start-up mining projects, particularly as we are also have to guard against a repeat of the skills and materials shortages of not so long ago that plagued mining costs.
"If the sector has to succumb to a higher state and Federal tax impost, not only will the industry be paying more but it is also hardly the much touted simplification of Australia's taxes on mining."
Mr Howard-Smith said the Chamber would continue to oppose any push to have the approvals process for mining infrastructure in Western Australia, handed over to Canberra.
"The WA Government has been largely responsible for multi-user mining infrastructure and there is also undoubtedly a lot of private infrastructure developed - and it has been a good mix of private and public infrastructure, even though some bottlenecks are looming.
"If however, you take away the revenue stream from a State Government, and the link between approvals and project income stream, then the provision of infrastructure will not happen."