Photo by: Duane Daws
JOHANNESBURG (miningweekly.com) – It has been twice considered, and twice rejected. The Western Australian government’s second attempt at increasing the royalty rate for gold miners has failed to pass in Parliament.
On Tuesday night, the Mining Amendment Regulations (No 3) 2017, and the consequent increase in the gold royalty rate, were disallowed by the legislative council of the Parliament of Western Australia. The Members of the Liberal Party, The Nationals, One Nation, Shooters and Fishers, and the Liberal Democrats supported the motion.
Government’s initial attempt failed to pass in October, when opposition parties blocked the move.
Last week, Western Australian Treasurer Ben Wyatt outlined details of a revised royalty hike plan, which he said had taken into account the industry’s concerns about the jobs impact that a higher royalty rate would have. The gold miners, however, were quick to reject the proposal, which was aimed at raising A$332-million to plug the state’s budget.
The proposal entailed increasing the royalty rate from 2.5% to 3.7% when the gold price is above $1 400/oz, instead of the previously planned A$1 200/oz. The plan also included an assistance package for marginal gold miners.
Association of Mining and Exploration Companies (Amec) CEO Warren Pearce said that he hoped the state government would accept the decision of the Parliament and abandon its proposals to increase royalties for gold miners.
Amec has consistently opposed the proposed increase in the gold royalty rate, warning of the significant negative impacts that would occur in the gold industry and the associated exploration, drilling and mining service industries.
“The decision by the opposition parties and the crossbench to reject the changes to the gold royalty regime provides certainty for thousands of jobs in Western Australia’s gold mining, exploration and wider service industries.”
“This matter has now been twice considered by the Parliament and twice rejected. This should put an end to proposals to increase gold royalties once and for all,” said Pearce.
He added that the decision of Parliament should restore some much needed confidence back into the industry and the investment community.