An extensive review of Western Australia’s mineral royalty system has been released today by Mines and Petroleum Minister Bill Marmion.
“This is a technical, yet highly accessible study that will be a valuable resource for both industry and government, and I encourage feedback,” he said.
The Minister thanked the review team for its work and the Association of Mining and Exploration Companies and the Chamber of Minerals and Energy for their constructive contributions.
“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,” he said.
“The review’s 18 recommendations are also noted. However, I can confirm that there will be no changes to royalty rates in this year’s Budget.
“I can also assure Western Australian industries and communities that, should there be any future discussion of mineral royalties, the Liberal National Government remains totally committed to consultation over the issue.”
The MRRA is the third royalty review since the existing regime was put in place in 1981.
Previous reviews were conducted in 1984-86 and in 1994, neither of which resulted in changes to the system.