That's the news1 Mar 2015 22:53
WEST Australian Premier Colin Barnett risks killing off the goldmining sector if he follows through with a threat to slap an increased state royalty on production, the $14 billion WA-dominated industry has warned.
A decision on a royalty rate increase is imminent after the final report from the long-running inquiry into WA’s royalty rates was recently handed to the Barnett government.
Any increase in the royalty — the gold industry fears a decision for staged increases in the 2.5 per cent gold royalty rate — is set to prompt an industry backlash, including a likely advertising campaign like the one launched by the broader industry in its bitter battle against the Rudd government’s mining tax.
Allan Kelly, chief executive of WA goldminer Doray and spokesman for the Gold Royalty Response Group, told The Australian that “any further increases in royalties and taxes will be a death sentence for the gold industry”.