MEDIA RELEASE

6 September 2011

The Greens mining spokesperson, Jeremy Buckingham MLC, has called on the government to also lift the royalty rate on gold and other major minerals in NSW from its current measly rate of 4%, or else the royalty increase on coal will look like a cynical exercise in political distraction. 

“If the O’Farrell government is serious about ensuring NSW gets its fair share of the mining boom they will lift the royalty rate for gold, otherwise this royalty increase looks like a cynical political exercise,” said Greens MP Jeremy Buckingham.

“Gold, nickel, copper and other major minerals are left out of the federal Mineral Resource Rent Tax. The state government could raise gold royalties to help fund the NSW budget without creating a federal/state transfer and a stoush with the federal government.

“The current royalty rate for gold is only 4% minus allowable deductions.  The effective royalty rate is only around 2%.  $1.03 billion worth of gold was produced in NSW in 2009/10 yet only $22.8 million was paid in royalties that financial year.

“Escalating gold prices are creating a gold rush in NSW.  The government should make sure the people get their fair share of this new boom.

“In my home town of Orange, the massive Cadia gold mine has created a two speed economy.  Tourism is being squeezed out, rental prices are through the roof, and infrastructure is under pressure.  Yet the mine pays very little in royalties,” he said.

Contact: Max Phillips - 9230 2202  or  0419 444 916