CORONAVIRUS —
GOLD ROYALTY RATE
559. Hon ROBIN SCOTT to the minister representing the
Minister for Mines and Petroleum:
I refer to the minister's
announcement on 25 May 2020 that specific rate royalties applied to minerals
used by the state's building and construction sector will be frozen for
a period of five years.
(1) Does the
government plan to also freeze the rate royalties of gold, ensuring that there
is no increase in the gold royalty for the next five years to also support the
gold industry through the COVID-19 pandemic?
(2) If not, why
not?
Hon
ALANNAH MacTIERNAN replied:
I thank the member for the question.
The following information has been provided to me by the Minister for Mines and
Petroleum.
(1)–(2) Specific
rates of royalties for industrial and construction materials are applied at a flat
rate per tonne and are reviewed on a five-yearly basis, with regulation 86(2d)
not allowing a reduction once a rate is set. Gold
has an ad valorem royalty system that is applied as a percentage of value. This
dollar amount fluctuates according to market condition and demand for
commodities. The royalty rate is set at 2.5 per cent. Gold has experienced
significant demand during the COVID-19 pandemic, with prices attaining record
highs of $2 748 per ounce during this period. If the honourable member is
advocating for a five-yearly review of gold royalties, as is undertaken with
industrial and construction materials, to ensure that the people of Western Australia
receive the full value from the gold belonging to them, the government will
consider that suggestion.