Home›Questions on Notice›QoN 3850

❓ A WA parliamentary question probes the Department of Mines and Petroleum (DMP) regarding unpaid royalties from Carnegie Gold/Swan Gold, potential data errors, and calls for a Royal Commission. The Minister defends the DMP and provides specific details on the debt and actions taken.

AnsweredQoN 3850Legislative Council

Asked

24 February 2016

Member

Hon Stephen Dawson

Portfolio

Mines and Petroleum

QuestionView source ↗

I refer to the article in the Kalgoorlie Miner titled “DMP Royal Commission warranted” on 4 November 2015, and I ask: (a) how does the Minister respond to calls for a Royal Commission into the Department of Mines and Petroleum due to, and I quote from the article, “The DMP is not acting in the best interests of the public of Western Australia in managing the resources of the State”; (b) in regard to the historical relationship with Carnegie Gold and the parent company Swan Gold, I ask: (i) what is the total amount currently owing to the department in royalties and, if interest is accruing what is the total value of the interest and the rate applied; (ii) why did the department not accept the offer of $113,910 from Swan Gold negotiated through a deed of company arrangement when the company went into administration; (iii) what legal action, both internal and external, has already been executed and what has been the cost of this action; (iv) has the State Solicitors Office been engaged to assist in the debt recovery and, if so, how many hours have been assigned; (v) was any environmental rehabilitation required on the tenement and, if yes, was it undertaken; (vi) has a caveat been placed on the tenement and, if yes: (A) what are the details of the caveat; (B) what date was the caveat lodged; and (C) what was the cost to apply the caveat; (vii) what is the timeline of key dates from the commencement of the original Carnegie Gold tenements to date; (c) in the past five years have any other “data transfer errors” resulted in debts to the department not being paid and, if yes, what are the details; and (d) for any royalty compliance notices currently outstanding, can the Miniser please advise the value and the duration the notice has been outstanding?

AnswerView source ↗

Answered

5 April 2016

Responded by

Minister for Mines and Petroleum

Response time

41 days

(a) Royalty payments are a fundamental aspect of the State’s policy setting for resource projects, as they provide compensation to the community for the use of its resources. The Department of Mines and Petroleum is acting in the best interests of the Western Australian community in pursuing unpaid royalties that are owed to the State. There is no reason for a Royal Commission.
(b)(i) The total amount currently owing is $124 998.20. No interest is applicable.
(ii) The department has no authority to accept part payment of royalties outstanding.
(iii) None.
(iv) No.
(v) No, not applicable. Rehabilitation planning and commitments will be required as part of a future mine closure plan.
(vi) Yes, caveats were placed on mining tenements 30/91 (M30/91) and 30/99 (M30/99).
(vii)
(c) The Department of Mines and Petroleum is not aware of data transfer errors that have resulted in debts to the department not being paid.
(d) The Royalty Compliance Notices remain in place and were lodged on the tenements on 27 September 2013 due to outstanding royalty of $124 998.20.

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