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Govt to end doubt on gold royalties

Mines Minister Bill Marmion has conceded the WA Government's drawn-out royalty review has thrown uncertainty over the mining sector, saying it should be made public as soon as possible.

Mr Marmion said yesterday he had read the draft review, prepared jointly by the Department of Mines and Petroleum and State Development, and would take it to Premier Colin Barnett for discussion this week.

He would not be drawn on its content but Mr Marmion hinted he may push for a staggered start to any recommended royalty changes, given price falls for many major commodities.

"The review had a number of terms of reference, one of which was to take into account the condition of commodity prices at the time," he said. "That will obviously be a factor in the discussion we have later this week."

The State Government announced it would review WA's royalty regime in the May 2012 budget, targeting changes to structural "anomalies" to ensure miners pay a rate equivalent to 10 per cent of the mine-head value of resources. The rate paid varies by commodity, depending on the degree of processing involved in the production. Rates range from 7.5 per cent for iron ore to 2.5 per cent for gold and nickel metal.

The 2012 budget included an extra $180 million revenue in its 2015-16 financial projections as a result of the review, sparking a vociferous campaign from the gold industry, thought to be the likely target of rate increases.

The review was flagged in 2012 but terms of reference were not launched until August 2013 and Mr Mr Marmion conceded the length of the process had weighed on industry.

"I would like to clear that up as soon as possible," he said. "My discussions with the Premier later this week will be about getting some certainty."

Mr Barnett said he was yet to see the report and could not comment on its content.

"But we are not increasing royalties under any scenario other than to make sure that every sector of the mining industry is paying the equivalent of a 10 per cent royalty," he said.