Miner’s right hike: prospectors face a 234 per cent increase in licence fees

Victoria’s 80,000 prospectors face a 234 per cent hike in their miner’s right fees on October 1.

Prospectors say the fee hikes are “crazy and will push investment out of Victoria and drive up illegal prospecting”.

The Allan Government is preparing to slug Victoria’s 80,000 prospectors with a 234 per cent hike in their miner’s right fees.

The hike forms part of the government’s regulatory impact statement on changes to its proposed changes to the Mineral Resources (Sustainable Development) Amendment Regulations, which recommends a 234 per cent hike across all 80 mining, quarrying approval and licencing fees.

A tourist fossicking authority license application will go from $104.50 to $349.50, while anyone wanting to apply for a mining license faces their fee jumping from $4283.40 to $14,306.70.

But those fees are just the tip of the iceberg, given anyone wanting to start a mine must also pay a native title assessment fee – up from $1200.30 to $4009, an application fee for work authority up from $1445.20 to $4827.10, plus 234 per cent hikes in rent to the state government and a myriad of other work plan and access fees.

The Department of Energy, Environment and Climate Action’s RIS states the fees increase was necessary, given the government was spending $21.3m administering the mining and quarry industries’ licencing and approvals regime, but only recovering $7.5m annually in fees.

“The consequences of under-recovery of costs are that taxpayers fund the bulk of the services that are provided for the benefit of resources companies,” DEECA’s RIS states.

However the RIS does not consider the $133.2m DEECA earned in royalties from mining and quarrying last financial year, plus the interest earned on $896.2m in rehabilitation bonds that miners must set aside in the government’s account.

Prospectors and Miners Association of Victoria president Jason Cornish said the government

hike was “crazy and would push investment out of Victoria and drive up illegal prospecting”.

“There are 80,000 prospectors in Victoria who hold a miner’s right licence and will be directly affected by this increase,” Mr Cornish said.

“Add to this, the many small-scale miners, often generational families, who will go to the wall with a 234 per cent hike.”

He said many miners had already left the state after recent increases in mining bonds.

“This government clearly does not want mining to prosper in Victoria, a state built on the back of gold prospectors and mining,” he said.

“Increased fees on mining will not help grow our state, but lead to illegal mining and prospecting, the costs to police and prosecute illegal operators will go up ten-fold.

“If this government brings in these increases the first thing I will be informing the prospecting community to do is an act of civil disobedience and burn their miner’s right on the steps of parliament.

“A similar event in the 1800s led onto the Eureka Stockade and that didn’t end well for the government of the time.”

The public has until June 23 to complete a survey on the regulations, with the government stating it intends to introduce the new fees on October 1.