Gold miners rejoice as WA gold royalty amendment fails to pass

PERTH (miningweekly.com) – The Western Australian gold sector is rejoicing after a controversial amendment to the gold royalty failed to pass through Parliament this week.

The Mark McGowan government failed to pass its proposed 50% increase in the gold royalty after opposition parties blocked the move in the Upper House of Parliament.

The gold sector has been lobbying for the abolishment of the proposed increase in gold royalties, which would have taken effect from January 1, warning that it will cost an estimated 3 000 jobs and will result in the closure of a number of gold mines.

The Western Australian Chamber of Minerals and Energy said that the passing of the disallowance motion in the Upper House was a great outcome for the region, with CEO Reg Howard-Smith saying the gold sector was looking forward to working proactively with the government towards the common goal of making sure the state’s economy was strong and growing.

Gold miner AngloGold Ashanti senior VP Mike Erickson said this week that the proposed gold royalty increase had been ill-advised, and would have led to job losses as marginal mines closed, and operations at other mines were curtailed, along with exploration.

The Association of Mining and Exploration Companies has also welcomed the tanking of the proposed royalty hike, with acting CEO Graham Short saying the swift action to disallow the proposed increase provided certainty and restored some confidence to the industry.

“The action of the Liberals, Nationals, One Nation, Shooters and Fishers and the Liberal Democrats supports thousands of jobs in Western Australia’s gold mining, mineral exploration and wider service industries.”

“The government should now be focusing on maximising the state’s resource potential to create new revenue streams and job opportunities as a budget repair measure, rather than any further short-sighted cash grab,” said Short.