MINING LEASES – WESTERN AUSTRALIA

Gold royalty rise to cost 3000 jobs: lobby

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Original article by Andrew Burrell
The Australian – Page: 6 : 3-Oct-17

Economic modelling by the Chamber of Minerals & Energy of Western Australia highlights the potential impact of the State Government’s proposal to increase the gold royalty from 2.5 per cent to 3.75 per cent. The modelling, which is based on 27 gold mines, suggests that the royalty hike would reduce the gold sector’s cash flow by about $A125m a year and cost up to 3,000 jobs. Saracen Mineral Holdings Raleigh Finlayson notes that a further 2,000 direct jobs would be lost if the gold price fell to $A1,400 per tonne.

CORPORATES
THE CHAMBER OF MINERALS AND ENERGY OF WESTERN AUSTRALIA INCORPORATED, SARACEN MINERAL HOLDINGS LIMITED – ASX SAR, WESTERN AUSTRALIA. DEPT OF TREASURY AND FINANCE, MACQUARIE RESEARCH EQUITIES, SILVER LAKE RESOURCES LIMITED – ASX SLR, BLACKHAM RESOURCES LIMITED – ASX BLK, WESTGOLD RESOURCES LIMITED – ASX WGX

Tax hike widens split over Kalgoorlie Super-Pit value

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Original article by Danielle Bochove
The Australian Financial Review – Page: 18 : 27-Sep-17

Newmont Mining CEO Gary Goldberg has warned that an increase in Western Australia’s gold royalty would reduce the value of the Super Pit gold mine. Lack of consensus over the valuation of the mine has stalled negotiations for Newmont to buy Barrick Gold’s 50 per cent stake in the mine. Barrick president Kelvin Dushnisky says his company is willing to sell its stake at the right price. Newmont estimates that the royalty increase could increase its operating costs by about $US15m a year.

CORPORATES
NEWMONT MINING CORPORATION, BARRICK GOLD CORPORATION, NEWCREST MINING LIMITED – ASX NCM, GOLD FIELDS LIMITED, SHANDONG TYAN HOME COMPANY LIMITED, DENVER GOLD FORUM

Gold industry rallies against WA royalty hike

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Original article by Tess Ingram
The Australian Financial Review – Page: 16 : 19-Sep-17

The Chamber of Minerals & Energy of Western Australia has launched a "grassroots" campaign against the State Government’s proposed increase in the gold royalty rate. Social media will be the initial focus of the campaign, although the CME has not ruled out extending it to include radio advertising. As part of the campaign, about 1,500 employers of gold mining companies have held a rally in Kalgoorlie. Meanwhile, Treasurer Ben Wyatt has downplayed the gold industry’s concerns about the potential impact of the royalty increase on the sector.

CORPORATES
THE CHAMBER OF MINERALS AND ENERGY OF WESTERN AUSTRALIA INCORPORATED, WESTERN AUSTRALIA. DEPT OF TREASURY AND FINANCE, NORTHERN STAR RESOURCES LIMITED – ASX NST, NEWMONT MINING CORPORATION, NEWCREST MINING LIMITED – ASX NCM, SARACEN MINERAL HOLDINGS LIMITED – ASX SAR, GOLD FIELDS LIMITED, ANGLOGOLD ASHANTI LIMITED – ASX AGG, SILVER LAKE RESOURCES LIMITED – ASX SLR, AUSDRILL LIMITED – ASX ASL, MACMAHON HOLDINGS LIMITED – ASX MAH, DDH1 DRILLING PTY LTD, BYRNECUT AUSTRALIA PTY LTD, ASSOCIATION OF MINING AND EXPLORATION COMPANIES, LIBERAL PARTY OF WESTERN AUSTRALIA, WESTERN AUSTRALIA. DEPT OF THE PREMIER AND CABINET, AUSTRALIAN LABOR PARTY

WA Budget 2017: 50 gold producers hit with royalties double whammy

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Original article by Neale Prior
Herald Sun – Page: Online : 8-Sep-17

The Western Australian Government’s 2017 Budget includes an increase in the gold royalty rate from 2.5 per cent to 3.75 per cent when the spot gold price trades above $A1,200 ($US959) an ounce. In addition, gold miners whose annual output exceeds the 2,500oz threshold for a royalty exemption will no longer be entitled to it. The Association of Mining & Exploration Companies has described the measures as a "tax grab" that will result in job cuts in the sector. Large mining companies also face an 0.5 per cent increase in the payroll tax rate, although this will be temporary.

CORPORATES
ASSOCIATION OF MINING AND EXPLORATION COMPANIES, WESTERN AUSTRALIA. DEPT OF THE PREMIER AND CABINET, AUSTRALIAN LABOR PARTY, THE CHAMBER OF MINERALS AND ENERGY OF WESTERN AUSTRALIA INCORPORATED

Twiggy’s court win backfires on Fortescue

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Original article by Tess Ingram
The Australian Financial Review – Page: 3 : 6-Sep-17

Andrew Forrest was recently successful in obtaining a ruling from the High Court to prevent two firms from lodging mining applications over his Minderoo cattle station in Western Australia. The ruling caused concern that other mining applications previously made in WA may not be valid, including those made by Fortescue Metals Group, which was founded by Forrest. Records show that Fortescue has made applications for 16 mining leases since the High Court ruled in Forrest’s favour, with some applications appearing to be for existing Fortescue leases.

CORPORATES
FORTESCUE METALS GROUP LIMITED – ASX FMG, HIGH COURT OF AUSTRALIA, YARRI MINING PTY LTD, WESTERN AUSTRALIA. DEPT OF MINES, INDUSTRY REGULATION AND SAFETY, ONSLOW RESOURCES LIMITED

Forrest wins fight to keep miners off his land

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Original article by Paul Garvey
The Australian – Page: 17 & 21 : 18-Aug-17

The High Court has upheld Andrew Forrest’s challenge to the validity of licences that were issued to Yarri Mining and ­Onslow Resources to mine sand on his Minderoo cattle station in Western Australia. The court ruled that the private companies’ mining proposals and mineralisation reports had been lodged after their mining lease applications, in breach of the Mining Act. The ruling could have implications for other mining licences in WA, and Gilbert + Tobin partner Marshall McKenna estimates that around five per cent of mining leases in the state could now be invalid.

CORPORATES
YARRI MINING PTY LTD, ONSLOW RESOURCES LIMITED, HIGH COURT OF AUSTRALIA, GILBERT AND TOBIN LAWYERS, WESTERN AUSTRALIA. DEPT OF MINES, INDUSTRY REGULATION AND SAFETY, FORTESCUE METALS GROUP LIMITED – ASX FMG, CAULDRON ENERGY LIMITED – ASX CXU, PERTH GLORY SOCCER CLUB PTY LTD

McGowan’s pokies plan to increase WA share of GST

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Original article by Andrew Burrell, Paul Garvey
The Australian – Page: 2 : 8-Jun-17

Western Australian Premier Mark McGowan will use the upcoming Council of Australian Governments meeting to put forward a new proposal for the distribution of goods and services tax revenue. He wants state gambling taxes to be included in GST revenue, which would benefit WA as it does not permit pubs and clubs to operate poker machines. He will also press for 25 per cent of WA’s iron ore royalties to be exempt from being redistributed to other states via the GST system.

CORPORATES
WESTERN AUSTRALIA. DEPT OF THE PREMIER AND CABINET, COUNCIL OF AUSTRALIAN GOVERNMENTS, AUSTRALIA. DEPT OF INDUSTRY, INNOVATION AND SCIENCE

LNG giants face bill for underpaid royalties

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Original article by Paul Garvey
The Australian – Page: 19 & 22 : 29-Nov-16

The royalty regime for the North West Shelf LNG project is under scrutiny following a review by the Australian National Audit Office. Amongst other things, the ANAO concluded that there are deficiencies in the way royalty payments are calculated, while the project’s partners may not be entitled to all of the deductions which they have claimed. A spokeswoman for Woodside Petroleum says the company has strict compliance procedures regarding royalty payments, and any underpayment is unlikely to exceed $A11.6m.

CORPORATES
WOODSIDE PETROLEUM LIMITED – ASX WPL, NORTH WEST SHELF LNG PTY LTD, AUSTRALIAN NATIONAL AUDIT OFFICE, AUSTRALIA. DEPT OF INDUSTRY, INNOVATION AND SCIENCE, WESTERN AUSTRALIA. DEPT OF MINES AND PETROLEUM, BHP BILLITON LIMITED – ASX BHP, BP PLC, CHEVRON CORPORATION, ROYAL DUTCH SHELL PLC, JAPAN AUSTRALIA LNG PTY LTD, MITSUBISHI CORPORATION, MITSUI AND COMPANY LIMITED

Fortescue unplugs lithium from battery of resources

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Original article by Barry FitzGerald
The Australian – Page: 22 : 21-Jul-16

Australian-listed Fortescue Metals Group has revealed plans to sell the lithium exploration rights at its iron ore leases in Western Australia’s Pilbara region. CEO Nev Power says iron ore remains the company’s priority. Lithium miners such as Pilbara Minerals and Orocobre have benefited from growing global demand for lithium-ion batteries, with strong gains in their share prices and market capitalisation.

CORPORATES
FORTESCUE METALS GROUP LIMITED – ASX FMG, PILBARA MINERALS LIMITED – ASX PLS, OROCOBRE LIMITED – ASX ORE

Rinehart, Wright win legal battle against Rio Tinto

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Original article by Jonathan Barrett, Marianna Papadakis
The Australian Financial Review – Page: 10 : 15-Oct-15

The High Court of Australia has ruled in favour of Hancock Prospecting and Wright Prospecting in a case against Rio Tinto over some $A130 million in royalties. Lawyers for the litigants argued successfully that Rio Tinto owed royalties to Hancock Prospecting and Wright Prospecting, as the mining giant still controlled the mineral tenements and exploration licences in Western Australia’s Pilbara region.

CORPORATES
HANCOCK PROSPECTING PTY LTD, WRIGHT PROSPECTING PTY LTD, RIO TINTO LIMITED – ASX RIO, SUPREME COURT OF WESTERN AUSTRALIA