Victoria’s reinvigorated gold mining industry looks set to pump dramatically more into the state’s depleted coffers than was expected when a new royalty scheme was imposed on the sector two years ago.

Premier Daniel Andrews’ Labor state government originally budgeted to receive a total of $56 million over the four years to December 2023 when it slugged miners with a royalty that takes 2.75 per cent of gold mining revenue minus certain deductions.