Association of Mining & Exploration Companies (AMEC)
WA Labor rules out Gold Royalty Increase
Today’s announcement that a re-elected Labor Government will not pursue an increase in the royalty on gold is welcome assurance for Western Australia’s gold mining industry. The gold royalty will remain at 2.5%.
“Today’s election commitment relieves community and industry concerns that a new Parliament could pass an increase in the gold royalty,” said Warren Pearce, Chief Executive Officer of the Association of Mining and Exploration Companies (AMEC).
AMEC and its member companies had sought this commitment from all political parties.
“With today’s commitment, all three major parties, Labor, Liberal and National, support no change in the gold royalty, this means that regardless of the election outcome the gold royalty will not change.”
“This provides gold companies the certainty they need to attract further investment and to push the button on the development of new mines.”
“The gold industry continues to make a remarkable economic contribution to WA. It has led the recovery in exploration and investment in 2019 and 2020, with major gold exploration activity taking place across the Goldfields and the Pilbara.”
The number of gold projects increased from 47 in 2018–19 to 52 in 2019–20.
“In the last two years, on the back of a strong gold price, five new gold mines have opened.”
“Gold paid $388 million in royalties in 2019-20 and is expected to give back even more in the next State Budget after record prices in 2020.”
The Department of Mines, Industry Regulation and Safety estimates that approximately $679 million of gold projects are currently under development, and a further $1.7 billion proposed and in planning.
“It is likely WA will see another 5 or 6 gold mines go into development in the next 18 months.”
“Providing certainty on the gold royalty is good economic leadership that will help the gold industry grow and create more jobs and opportunities for Western Australians,” said Mr Pearce.
Source: https://secureservercdn.net/198.71.233.51/0h5.0cf.myftpupload.com/wp-content/uploads/2021/02/06-Gold-Royalty-.pdf?time=1616552061
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