A 2.75 per cent royalty on gold extracted in the state officially kicked in on January 1, 2020.
Today, the state government voted to stay firm with the tax after Shadow Treasurer Louise Staley put forward a “disallowance motion” in the Legislative Council to put the buffers on the tax.
Ballarat Gold Mine sent a group of staff to Parliament today to present their case and to hear the decision on the controversial gold royalty. They joined fellow gold miners from across the state.
Ballarat Gold Mine’s Bill Reid said, “He was extremely disappointed with the government’s decision.’’
The mine produces about 40,000 ounces of gold per year, putting it far above the 2,500 ounce production at which the new royalty kicks in. Mr Reid added, “We do not oppose a royalty in principle, but have pushed strongly for measures to soften the impact, including allowing exploration costs to be offset.”
It is estimated the royalty will cost the Ballarat mine around $ 2million each year. The mine employs around 160 direct employees as well as a large number of contract workers and over 100 local suppliers. If impacts from the tax have a negative effect on the business, it has the potential to have a big impact on all of us.
Mr Reid said, ‘’Ballarat Gold Mine will continue to work towards a viable mining operation that will prevent the loss of well paid, highly skilled jobs in the area.”