Australian gold miners join forces to stop royalty hike
Gold producers in Western Australia, the country’s most resource-rich state, have joined forces to fight the government’s planned royalty hike on sales of the precious metal.
Miners, banded together in the Gold Royalty Response Group (GRRG), fear the tax increase would be a further blow to WA’s battered gold sector, already suffering from the effects of falling prices and rising costs.
According to Bullion Street, GRRG spokesman Allan Kelly said the group was preparing a submission to the government's review of mineral royalty rates due at the end of the month.
WA’s reviewing will look at whether gold miners are contributing enough. Currently, the levy is designed to reflect 10% of the mine head value of the mineral.
Kelly added they would seek meetings with Premier Colin Barnett, as well as the state's mines and petroleum minister.
He also warned that an increase in the royalty rate for the precious metal could destroy Western Australia’s gold industry.
The GRRG represents the main gold miners in the area, including Doray Minerals, Evolution Mining, Gold Fields, Newmont Asia Pacific, Northern Star Resources, Norton Gold Fields, Ramelius Resources, Regis Resources, Silver Lake Resources, and St Barbara.
Royalties from the mining industry already account for 20% the state's revenue.