Minerals Council director Bob Vassie wants Victoria to expand exemptions to its new gold royalty and consider reducing the rate, and expressed confidence the new government in Papua New Guinea will behave rationally despite the latest political instability.

Speaking in Melbourne days after the Victorian government announced a 2.75 per cent royalty on gold production, Mr Vassie said the lesson from Queensland voters' role in the federal election was that politicians should not prioritise the needs of urban voters over those in regional areas.