AMEC slams 33% increase in WA mine safety levy

PERTH (miningweekly.com) – The Association of Mining and Exploration Companies (AMEC) has lashed out at the Western Australian government, after Mines and Petroleum Minister Bill Johnston warned of an increase in levies to the Department of Mines and Petroleum's (DMP's) Mines Safety Branch (MSB).

The MSB is one of the branches within the DMP's resources safety division, and is tasked with enforcing industry compliance with the Mines Safety and Inspection Act and the Mines Safety and Inspection Regulations.

Amec CEO Simon Bennison said that Johnston had advised that the levy paid by the mining industry for the full costs attributed to the MSB would increase by 33% for the 2017/18 financial year.

“In managing a A$30-million annual operating budget, the government has now found that the trust fund is approximately A$10-million in deficit. Operating costs have increased over 50% in five years with no clear explanation.”

Bennison said that this was an “unbelievable and unsatisfactory” development, which would have major cost implications across the whole mining and mineral exploration industry.

“Amec has sought advice on how this could have happened, and what action the department had taken to ensure that its expenses were covered by the annual levy. There is a complete lack of transparency and accountability around the mines safety levy, and how it is calculated. This needs to be addressed immediately,” Bennison said.