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Parliamentary Questions

Question Without Notice No. 559 asked in the Legislative Council on 10 June 2020 by Hon Robin Scott

Minister responding: Hon W.J. Johnston
Parliament: 40 Session: 1

Answered on

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.