The state government collected $55m in mining royalties in 2022/23

Mining royalties to the Tasmanian Government declined in 2022/23, following a record high.

Nyrstar Hobart is a zinc smelter in Hobart, Tasmania. Pic supplied, October 2022.

Mineral royalties paid to the state government took a hit last financial year amid easing commodity prices.

During 2022/23 Tasmania received almost $55 million in mineral royalties and more than $2 million in rentals and other fees.

In 2021/22 the state government collected record royalties of almost $84m thanks to high commodity prices.

The revenue section of the 2022/23 state budget said declining royalties reflected a number of factors including the easing of commodity prices from recent highs, ore grades and levels of production.

In 2020/21 the state collected $60.8m, following $31.9m in 2019/20 and $34m in 2018/19.

According to the Department of Treasury and Finance's latest report export report, exports of Tasmanian metallic ores and metal scraps decreased in value by 33.5 per cent or $450m in the year to June 2023.

The export value of non-ferrous metals increased by 7.7 per cent or $136m.

The Avebury Nickel mine underground and from the sky.

Tasmanian Minerals, Manufacturing and Energy Council CEO Ray Mostogl said the reduced royalties and export values were a reflection of lower prices.

“From a tonnes point of view we have been up or the same as previous years,” Mr Mostogl said.

Mr Mostogl said the reopening of the Avebury nickel mine would increase the state’s overall production.

Resources Minister Felix Ellis. Picture: Nikki Davis-Jones

Resources Minister Felix Ellis said royalties collected in 2022/23 were well above the 10 year average.

“These payments benefit the broader Tasmanian community, helping provide essential services like health, housing and public safety while also supporting more than 5800 jobs, which in turn are the lifeblood of regional communities,” Mr Ellis said.

“The sector contributes the lion’s share of our exports by value, generating products worth $2.8 billion in the 12 months to May 2023, or around 62 per cent of the state’s mercantile export value.

“Increasing electrification and use of advanced battery technology means greater demand for minerals found in Tasmania, like tin for solder, nickel for batteries, zinc for anodising and also tungsten in defence manufacturing.”

As part of the 2023 Bush Summit series, the Mercury has called on the state government to review royalties distributions back to the regions to ensure a more equitable flow of funding to communities where mines are located.

Originally published as The state government collected $55m in mining royalties in 2022/23