NSW miners deliver record royalties

Mining News - PERTH (miningweekly.com) – The resource sector delivered a record A$1.8-billion in royalties to the New South Wales budget in the last year, and was expected to contribute a further A$7.4-billion over the next four years to 2021/22.
The New South Wales government this week predicted a surplus of A$3.9-billion for 2017-18, with average surpluses of $1.6-billion over the four years to 2021/22.

Federal Resources Minister Matt Canavan said that the record contributions from mining royalties highlighted the importance of the industry to both state and national economies.
“The jump from A$1.6-billion last year to A$1.8-billion this year in mining royalties for the New South Wales government comes on the back of bigger export volumes and better prices for coal,” Canavan said.

“With demand and prices expected to remain strong, the Budget is forecasting an extra A$800-million over the next four years to take total mining royalties in that period to A$7.4-billion.”
Canavan said mining royalties played a vital role in helping states meet growing demands for infrastructure and services.
“Just last week, the Queensland Budget revealed that coal royalties alone have contributed A$1.3-billion in extra income for the state government and mining royalties in total topped A$4-billion.
“The royalties paid by mining companies, along with their spending on infrastructure, services and wages, are vital contributors to regional, state and national economies.”
The Association of Mining and Exploration Companies (Amec) said that the state budget reinforced the notion that mining was a pillar of the New South Wales economy.
“It is positive that the government has not changed the royalty regime, as investors need transparency and certainty to invest,” Amec CEO Warren Pearce said.
“Each new mine creates jobs, revenues for local businesses and government. Mining underpins the technologies that we count on every single day. For example, there are over 62 different metals and minerals in the average mobile phone. Locally mining those metals and minerals will ensure they are ethically and responsibly mined.”
Pearce noted that the Budget also had positives for the mining and mineral exploration industry with the ‘resources for regions’ programme, a part of the A$1-billion Regional Growth Fund, returning further benefits to the regional areas that are home to many mines.
The mineral exploration industry and emerging mining companies will also benefit from the proposed increase in payroll tax thresholds, which will rise from A$750 000 to A$1-million over the coming four years.