Shires ‘grab’ sparks outrage

Recent moves by some Western Australian municipalities to tighten controls on mining operations have raised the ire of some of the State’s miners who claim the councils are profiteering and providing a disincentive to mining in WA.

The Shire of Coolgardie recently more than doubled its yearly mining tenement rates from about $150 to $315 as well as implementing a $60 general health rate for rubbish tip use, charged monthly to all mining tenement licences.

The shire also recently rejected nickel miner Mincor’s application for a residential facility at its mine site, 65km south of Kambalda, saying it contravened Coolgardie’s town planning scheme.

Heron Resources managing director Ian Buchhorn was angered by the Coolgardie shire’s rating hike.

He said it was an encouragement to drop ground which could delay exploration and, ultimately, discovery and development.

“There is certainly not going to be an ore body found on [the dropped tenements] and with Native Title that ground may not become available again for three or four years,” Mr Buchborn said.

He said Heron was forced to surrender three of its tenements because of the extra costs and it would cost some of the major miners, with big landholdings, “hundreds of thousands of dollars”.

Mr Buchhorn, who is also a City of Kalgoorlie-Boulder councillor, said WA was the only state that allowed its local governments to rate mining tenements, despite the fact they offered no service in return.

He said mining companies were angered by the changes and some were even acquiring projects in other states, where landholdings cost much less.

“You pay a similar amount for mining rents with the Mines Department [Department of Industry and Resources] but you are getting regional geo-scientific information, and environmental and safety advice, which assists in finding additional resources,” Mr Buchhorn said.

“The shire has invented this system where you’re paying them money and you are getting nothing in return for it.”

Heron currently pays about $100,000 a year in tenement rates.

Mr Buchhorn said some shires were increasingly looking to impose their will over mining companies through their town planning schemes.

“The way it’s being presented is we want to stop these mining camps being ghettos, being built on the edge of towns.

“When you speak to local government and ask for an example it just simply doesn’t happen.

“My suspicion [is the] local government wants to have an input in the planning process as a type of fee generation.”

“ It might be as simple as that.” Mr Buchborn said.

Chamber of Minerals and Energy chief executive Tim Shanahan, who was previously executive director of the WA Municipal Association, said there was increasing activism among local governments.

In terms of a local government’s authority over planning, Mr Shanahan said the Mining Act could over-ride the Town Planning Act.

However, Mr Shanahan warned that it was important to work through the issues rather than get into an adversarial situation with a local authority.