13/12/2019

Gold Royalty update

From 1 January 2020, gold produced in Victoria will no longer be exempt from royalties. This change brings the state’s gold producers in line with other resources operators in Australia, and ensures all Victorians benefit from the development of the state’s resources.

From 1 January 2020, gold produced in Victoria will no longer be exempt from royalties. This change brings the state’s gold producers in line with other resources operators in Australia , and ensures all Victorians benefit from the development of the state’s resources.

The 1 January change will not affect prospecting licences, retention licences, miner’s rights or exploration licences, and the royalty will not apply to the first 2,500 ounces of gold produced under a mining licence each year.

The future of the gold sector in Victoria is bright with the Geological Survey of Victoria estimating that only half the gold that may exist in the state has been found over the past 170 years.

Strong results from Kirkland Lake Gold’s Fosterville Mine, recording Australia’s third biggest gold output for the quarter to September, has sparked international interest in the minerals sector.

The latest Australian Bureau of Statistics (ABS) figures show Victorian mining employment rose 41 per cent last financial year, supporting an average of 16,000 jobs across the state.

ABS data also shows that expenditure in minerals exploration, the precursor to mining development and investment, has grown more than fourfold since the beginning of 2015.

The latest Earth Resources Sector Indicators Report shows gold  production increasing by 16.7 per cent in the 2017-18 financial year alongside a 136 per cent rise in new licences for minerals exploration.

Contact: Mark Farrugia

Phone: (03) 8392 6913