After extensive review of the State’s Budget, Western Australia’s Mines and Petroleum Minister Bill Marmion confirmed there will be no changes to mineral royalty rates this year.
"The State Government notes the review's endorsement of the ad valorem system and the 10 per cent benchmark of mine-head value as an appropriate gauge for royalty returns to the community," Marmion said.
Recommendations from the review included increasing the rate imposed on gold miners from 2.5 percent to 3.75 percent.
"I can confirm that there will be no changes to royalty rates in this year's budget," Marmion said.
"I can also assure Western Australian industries and communities that, should there be any future discussion of mining royalties, the Liberal National Government remains totally committed to consultation over the issue."
Gold Royalties Response Group (GRRG) spokesman and Doray Minerals managing director, Allan Kelly, celebrated the announcement.
“On behalf of the 20,000 men and women who work in the gold industry, we say thank you,” said Kelly.
“For more than a year our industry has been speaking up on behalf of our members, our passionate workers and our supporters and we are delighted that the Barnett Government has listened.
“Today’s decision demonstrates the Government understands that the gold industry plays a critical role in keeping our economy and our community strong.
“It is also clear the Government knows that our industry is doing it tough in a highly competitive global market.”
Despite the high praise from gold miners, the Chamber of Minerals and Energy’s Nicole Rooke insisted the Government provide some clarity.
"It's a mixed bag of tricks, there are some winners and losers in the recommendations," Rooke said.
"What we'd like to see is surety provided to the sector that increases won't be included going forward."