❓ A member of parliament questions the Minister for Mines and Petroleum about the impact of a royalty review on gold exploration investment in Western Australia, citing a significant drop in exploration expenditure. The Minister acknowledges industry concerns but attributes the decline primarily to lower gold prices and highlights government support initiatives.
AnsweredQoN 605Legislative Assembly
QuestionView source ↗
ROYALTY
REVIEW — GOLD ROYALTIES
605. Mr W.J. JOHNSTON to the
Minister for Mines and Petroleum:
I refer to the Barnett government's decision to book
almost $600 million in additional royalty revenue from the current royalty review.
(1) Have
industry representatives warned the minister that the decision to include this
revenue is discouraging investment in Western Australia?
(2) Does the
minister think that this decision has contributed to the 50 per cent reduction
in gold exploration expenditure from $111.9 million in March 2013 to only $56.2 million in March 2014?
REVIEW — GOLD ROYALTIES
605. Mr W.J. JOHNSTON to the
Minister for Mines and Petroleum:
I refer to the Barnett government's decision to book
almost $600 million in additional royalty revenue from the current royalty review.
(1) Have
industry representatives warned the minister that the decision to include this
revenue is discouraging investment in Western Australia?
(2) Does the
minister think that this decision has contributed to the 50 per cent reduction
in gold exploration expenditure from $111.9 million in March 2013 to only $56.2 million in March 2014?
AnswerView source ↗
I thank the member for Cannington for the question.
(1) Industry
has raised myriad issues and concerns with me about its desire for gold
royalties not to change. It is the same in other areas, so not only gold but also other mining commodities.
(2) Exploration
has dropped by 50 per cent right across the board and not only in the commodity of gold. Exploration for gold has
dropped because of the lower gold price. It was once $1 600 an ounce. It has
been hovering around $1 300 an ounce for the past year or so. That is probably
the main reason. Through the government's exploration incentive scheme,
we are on the front foot and we have made sure that we are providing finance and direct funding for exploration to
mining companies, which includes gold companies. Along with our mining
rehabilitation fund, the government is doing the right thing to support mining,
which is a key economic driver in Western Australia and indeed Australia.
(1) Industry
has raised myriad issues and concerns with me about its desire for gold
royalties not to change. It is the same in other areas, so not only gold but also other mining commodities.
(2) Exploration
has dropped by 50 per cent right across the board and not only in the commodity of gold. Exploration for gold has
dropped because of the lower gold price. It was once $1 600 an ounce. It has
been hovering around $1 300 an ounce for the past year or so. That is probably
the main reason. Through the government's exploration incentive scheme,
we are on the front foot and we have made sure that we are providing finance and direct funding for exploration to
mining companies, which includes gold companies. Along with our mining
rehabilitation fund, the government is doing the right thing to support mining,
which is a key economic driver in Western Australia and indeed Australia.
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