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Cost-recovery fees on hold ahead of new WA mining reforms

Western Australia Mines and Petroleum Minister Bill Marmion

Western Australia Mines and Petroleum Minister Bill Marmion

26th June 2015

By: Ilan Solomons

Creamer Media Staff Writer

  

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JOHANNESBURG (miningweekly.com) – The introduction of any cost-recovery fees for processing mining, exploration and prospecting applications will be deferred to complement the passage of major reform legislation, set to benefit the industry through simpler, more streamlined approvals, Western Australia Mines and Petroleum Minister Bill Marmion announced on Friday.

Further consideration of cost-recovery fees has been deferred until after the Mining Act Amendment Bill 2015 is passed by Parliament. The Bill entered the state Parliament on April 22 and is expected to be debated later in the year.

Marmion said that the government of Western Australia had listened to constructive industry input.

The Minister also paid special tribute to Eyre’s Graham Jacobs, Kalgoorlie’s Wendy Duncan and mining and pastoral region member of the Western Australian Legislative Council Mark Lewis for their advocacy.

“Thanks to their work, other funding options have come forward and are now under consideration by my department,” said Marmion.

He added that he was confident this approach would help reduce confusion and concern.

Association of Mining and Exploration Companies (Amec) CEO Simon Bennison on Friday said that the deferral of new fees for programmes of work and mining licences had been well received by industry.

“It is extremely positive that the Minister has listened to feedback from industry and common sense has prevailed. Other funding options should have been the first consideration, not cost recovery of key departmental services,” he stated.

Concurring with the sentiments expressed by Amec, the Chamber of Minerals and Energy of Western Australia (CME) also issued a statement welcoming Marmion’s announcement.

“With new fees due to start on July 1, this is a sensible decision by the Minister,” said CME CE Reg Howard-Smith.

He added that the CME was hopeful that the introduction of cost-recovery mechanisms could be permanently deferred.

“The resources sector is grappling with volatile global market dynamics, increasing input costs and other complex policy and regulatory settings. The introduction of cost-recovery risked compounding this situation even further,” Howard-Smith warned.

Edited by Mariaan Webb
Creamer Media Senior Deputy Editor Online

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