Western Australia miners welcome the government's royalty review

The Western Australian (WA) government has launched a review of its current royalty scheme, aiming to deliver "a reasonable return to the community without discouraging production or acting as a disincentive to new investment,” according to WA Premier and State Development Minister Colin Barnett.

Chief executive of WA's Chamber of Minerals and Energy, Reg Howard-Smith, welcomed the review, saying that his organization "looks forward to working with the State Government to ensure that industry’s views are taken into account and that WA’s resources sector remains internationally competitive, ensuring the continuing wealth of our state and the national economy."

The government claims that they are not looking to make major changes to the current royalty system, but rather would like to "identify anomalies in the current structure…to examine the efficacy and appropriateness of existing policy, and to consider the equity and efficiency implications of any proposed changes to the royalty rates."

WA miners have recently asked for gold mines to receive a "royalty holiday," "until the burgeoning costs come under control," Mining Australia reported Monday.