Goldminers face royalty hike unless they rise up: Mike Nahan

WA Liberal leader Mike Nahan says it is up to the industry to make the case against the proposed royalty rise.

WA Liberal leader Mike Nahan.

The West Australian Liberal Party has warned goldminers it is likely to wave through the McGowan government’s ­planned 50 per cent royalty increase unless the industry ramps up its campaign to convince the public that the impost will destroy jobs and investment.

The fate of Labor’s controversial royalty plan rests with the Liberal opposition, which has the power to block the move in the upper house.

Mining industry leaders have been lobbying Liberal leader Mike Nahan to oppose the plan, which would raise almost $400 million over four years by raising the royalty rate from 2.5 per cent to 3.75 per cent an ounce from January next year.

Among those to have met Dr Nahan in Perth in recent days is Sandeep Biswas, the head of Newcrest Mining, Australia’s biggest goldminer.

Mr Biswas also met Treasurer Ben Wyatt to argue against the move, which the mining industry claims will lead to the loss of 3000 jobs.

Dr Nahan told The Australian yesterday he would not be rushed into a decision, but stressed he would be reluctant to oppose a money bill in the upper house.

“Our gut feel is not to support a higher royalty,” he said. “But it’s in the industry’s court — we are waiting to see if they win hearts and minds.

“I have a lot of gold employees and contractors in my electorate but not a single one has come to me on this issue yet. They haven’t been mobilised.

“If the industry does not have the mettle or the ability to defend itself, then basically it gets what it asked for.

“Industry has to make their case. If not, they are going to suffer the consequences.”

The government last week lodged a notice to gazette the royalty rate increase through a change to regulations rather than legislation. But gazetted items can be struck down by a disallowance motion in parliament, which is expected to occur next week.

Dr Nahan said he believed the Liberals would have until October 31 to make a decision.

“There’s no hurry for us to move before we have to,” he said. “We haven’t made up our minds yet.

“It will be a difficult decision, ­irrespective of the magnitude of the impact, for the Liberal Party to disallow a money bill in the upper house. We go to it very, very reluctantly.”

Dr Nahan’s comments came as the Mr Wyatt yesterday attacked the WA Chamber of Minerals and Energy over the release of its own modelling, which showed that more than 10 per cent of the 25,000 jobs in WA’s goldmining industry were at risk.

Mr Wyatt said he was yet to see any independent analysis that suggested the royalty increase would have a dramatic impact on the sector.

He said he did not expect any jobs would be lost as a result of the policy “Most people understand that this is a fair and reasonable decision,” he said.