Mining Industry contributes to budget repair

Mining Industry contributes to budget repair

AMEC 10 May 2018

Budget papers confirms that the mining industry and mining royalties are holding up the State Budget, contributing $5b, or 17% of total revenue – and will continue to do so over the Forward Estimates. The mining industry employs 110,000 people, and makes a wide range of social and economic contributions to local and regional communities.

“We are pleased to see that there are no proposed changes to the royalty regime, which provides much needed certainty for industry,” said Warren Pearce, Chief Executive Officer, Association of Mining and Exploration Companies.

“This reflects responsible financial management by the State Government. In a volatile global market, companies need certainty in the future of the royalty regime to make long term investment and business decisions.”

“However, it is disappointing that the highly successful Exploration Incentive Scheme will now become fully cost recovered through increases to the Mining Tenement rentals.”

The structuring of the increase (6% in 2018/19 and 6% in 2019/20) for existing and older mining tenements fees will minimise the flow on effect to property valuations for shire rating purposes, and mitigate the impact for exploration companies with newer exploration leases.

The EIS is a highly successful program. A Government funded ACIL Tasman study into the effectiveness of the EIS found that every $1m invested stimulates exploration activity generating $10.3m in direct benefits for Western Australia. The study found that every $1 million spent under the EIS generated 12.5 full-time jobs in minerals exploration for three years.

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