The WA State Budget has some mixed news for hundreds of mining and mineral exploration companies, according to Association of Mining and Exploration Companies CEO Simon Bennison.
“The Government should be congratulated for not being tempted to extract new and additional significant revenue streams from the mining industry, given the financial and economic pressures under which the Budget has been drafted,” he said.
“It is therefore particularly pleasing to note that any reference to increases in royalty rates has been removed from the Budget and the Forward Estimates.
“This is a sensible and welcome outcome and will provide the industry with some critical certainty for business and investment planning purposes.”
He said additional funding of $2.6 million for an extension of the Perth Core library will also be welcomed by explorers.
“We applaud the allocation of $11.6 million to the Government’s co-funded drilling program to 2016/17, and will be promoting continued funding of this very successful program beyond that date,” Mr Bennison said.
“The drive to reduce salaries expenses and increase efficiency throughout the public sector is also supported and reflective of good business practice.
“There are however unsustainable increases in water, energy and motor vehicle licensing costs which will affect the bottom line of all companies.
“The proposed cost recovery of $2.7 million to meet a shortfall in the Department of Mines and Petroleum’s Reforming Environment Regulation Initiative is extremely disappointing.”
Mr Bennison said AMEC is “concerned” about the increase in the cost, from $39.5 million to $52 million, to operate the Department’s Resources Safety Division in 2015/16.
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