The Gold Royalties Response Group
We represent the interests of Western Australian gold producers in response to the State Government’s mineral royalty review.
The GRRG offers its members a platform to address the gold royalties issue with a united voice.
The West Australian Government opened a consultation period for the review of the State’s mineral royalty system in 2013. The State Government is working on the principle that royalties should reflect about 10% of the commodity’s in-ground value. A final decision is expected to be made by mid 2015.
The Terms of Reference and a stakeholder consultation paper confirm the only exemptions are magnetite and petroleum royalties. Given a majority (80%) of the State’s resources sector is protected from random tax increases through State Agreements, the gold industry is likely to be targeted.
We have seen the industry under significant pressure following last year’s gold price slump, which led to mine closures, cutbacks in exploration and widespread job losses. Independent research indicates any increase in gold royalty rates will see this pattern continue and will have a negative flow-on effect for the State’s economy.
Our Vision: To communicate the considerable socio-economic value GRRG members’ gold mining operations bring to regional WA and to protect GRRG member companies, their employees and the communities in which they operate from the financial risk of being subject to additional or increased royalties.
“Any increase in WA’s gold royalty rate will cost jobs, have a negative impact on the economy, seriously threaten the state’s reputation as a stable investment destination and severely damage many regional communities dependant on the industry.”