❓ A WA parliamentary question probes the rationale behind maintaining the 2,500-ounce royalty-free gold threshold for small producers, exploring its benefits and the challenges faced by the sector. The Minister's answer highlights the inherent risks in gold mining and the incentive provided by the threshold.
AnsweredQoN 478Legislative Council
QuestionView source ↗
I refer to the media statement, dated 7 September 2017 titled, "Changes to gold royalty arrangements part of budge repair task", and comments attributed to the Minister, and I ask:
(a) can the Minister explain how the Department of Mines, Industry Regulation and Safety (DMIRS) and Government understand the challenges that smaller producers and prospectors face within the industry to retain the 2,500 ounce royalty free threshold;
(b) if no to (a), why not;
(c) can the Minister state what the specific challenges are that both small producers and prospectors face within the mining industry as a whole, not necessarily related to the proposed gold royalty issue;
(d) if no to (c), why not;
(e) can the Minister explain why is it so important to protect small gold producers and prospectors with the retention of the 2,500 ounce royalty free threshold;
(f) if no to (e), why not;
(g) can the Minister explain how the retention of the 2,500 ounce royalty free threshold for smaller gold producers and prospectors helps the State of Western Australia; and
(h) if no to (g), why not?
(a) can the Minister explain how the Department of Mines, Industry Regulation and Safety (DMIRS) and Government understand the challenges that smaller producers and prospectors face within the industry to retain the 2,500 ounce royalty free threshold;
(b) if no to (a), why not;
(c) can the Minister state what the specific challenges are that both small producers and prospectors face within the mining industry as a whole, not necessarily related to the proposed gold royalty issue;
(d) if no to (c), why not;
(e) can the Minister explain why is it so important to protect small gold producers and prospectors with the retention of the 2,500 ounce royalty free threshold;
(f) if no to (e), why not;
(g) can the Minister explain how the retention of the 2,500 ounce royalty free threshold for smaller gold producers and prospectors helps the State of Western Australia; and
(h) if no to (g), why not?
AnswerView source ↗
Answered
5 December 2017
Responded by
Minister for Regional Development representing the Minister for Mines and Petroleum
Response time
9 days
(b) Not Applicable (c) There is the inherit uncertainty regarding the presence and extent of gold in the ground which is the property of the Western Australian community. The challenges for explorers, prospectors and miners are to discover where the gold is, and develop safe, cost-effective, and environmentally acceptable methods of collection and/or mining. (d) Not Applicable (e) Based upon current exchange and gold prices, the 2500 ounce royalty free threshold enables prospectors and small miners to sell approximately $4 000 000 worth of gold each year without having to pay any royalty to the State. At the proposed royalty rate of 3.75 per cent, the royalty payment for 2500 ounces would otherwise be approximately $150 000. This helps encourage small producers and prospectors. (f) Not Applicable (g) See answers to (c) and (e). (h) Not Applicable
(c) There is the inherit uncertainty regarding the presence and extent of gold in the ground which is the property of the Western Australian community. The challenges for explorers, prospectors and miners are to discover where the gold is, and develop safe, cost-effective, and environmentally acceptable methods of collection and/or mining. (d) Not Applicable (e) Based upon current exchange and gold prices, the 2500 ounce royalty free threshold enables prospectors and small miners to sell approximately $4 000 000 worth of gold each year without having to pay any royalty to the State. At the proposed royalty rate of 3.75 per cent, the royalty payment for 2500 ounces would otherwise be approximately $150 000. This helps encourage small producers and prospectors. (f) Not Applicable (g) See answers to (c) and (e). (h) Not Applicable
(d) Not Applicable (e) Based upon current exchange and gold prices, the 2500 ounce royalty free threshold enables prospectors and small miners to sell approximately $4 000 000 worth of gold each year without having to pay any royalty to the State. At the proposed royalty rate of 3.75 per cent, the royalty payment for 2500 ounces would otherwise be approximately $150 000. This helps encourage small producers and prospectors. (f) Not Applicable (g) See answers to (c) and (e). (h) Not Applicable
(e) Based upon current exchange and gold prices, the 2500 ounce royalty free threshold enables prospectors and small miners to sell approximately $4 000 000 worth of gold each year without having to pay any royalty to the State. At the proposed royalty rate of 3.75 per cent, the royalty payment for 2500 ounces would otherwise be approximately $150 000. This helps encourage small producers and prospectors. (f) Not Applicable (g) See answers to (c) and (e). (h) Not Applicable
(f) Not Applicable (g) See answers to (c) and (e). (h) Not Applicable
(g) See answers to (c) and (e). (h) Not Applicable
(h) Not Applicable
(c) There is the inherit uncertainty regarding the presence and extent of gold in the ground which is the property of the Western Australian community. The challenges for explorers, prospectors and miners are to discover where the gold is, and develop safe, cost-effective, and environmentally acceptable methods of collection and/or mining. (d) Not Applicable (e) Based upon current exchange and gold prices, the 2500 ounce royalty free threshold enables prospectors and small miners to sell approximately $4 000 000 worth of gold each year without having to pay any royalty to the State. At the proposed royalty rate of 3.75 per cent, the royalty payment for 2500 ounces would otherwise be approximately $150 000. This helps encourage small producers and prospectors. (f) Not Applicable (g) See answers to (c) and (e). (h) Not Applicable
(d) Not Applicable (e) Based upon current exchange and gold prices, the 2500 ounce royalty free threshold enables prospectors and small miners to sell approximately $4 000 000 worth of gold each year without having to pay any royalty to the State. At the proposed royalty rate of 3.75 per cent, the royalty payment for 2500 ounces would otherwise be approximately $150 000. This helps encourage small producers and prospectors. (f) Not Applicable (g) See answers to (c) and (e). (h) Not Applicable
(e) Based upon current exchange and gold prices, the 2500 ounce royalty free threshold enables prospectors and small miners to sell approximately $4 000 000 worth of gold each year without having to pay any royalty to the State. At the proposed royalty rate of 3.75 per cent, the royalty payment for 2500 ounces would otherwise be approximately $150 000. This helps encourage small producers and prospectors. (f) Not Applicable (g) See answers to (c) and (e). (h) Not Applicable
(f) Not Applicable (g) See answers to (c) and (e). (h) Not Applicable
(g) See answers to (c) and (e). (h) Not Applicable
(h) Not Applicable
Explore WA Government Data
Search the full archive in the free dashboard, or query programmatically via API.
Explore more
Government Gazette
Appointments, regulatory notices, planning changes.
Hansard
Debates, questions, speeches and sentiment.
Tabled Papers
Reports and documents tabled in Parliament.
Committees
Committee profiles and recent reports.
Regulations
Subsidiary legislation with filters and summaries.
Bills
Proposed laws and parliamentary progress.
Acts
Current WA legislation and summaries.
Explanatory Memoranda
Bills with EMs (text/PDF) available.
Members
MP profiles, party breakdown and rankings.
Pollie Rankings
Data-driven rankings across 19 categories.
Amendment Chains
Track how schemes and regulations evolve over time.