PERTH (miningweekly.com) – The Association of Mining and Exploration Companies (Amec) has blasted the Western Australian state government’s decision to introduce fees for assessing programme of work (PoW) and mining proposal applications, saying it could cause investors to review their decisions.

“Exploration and mining companies have already seen increases of up to 800% in one year in their shire rate notices, increasing tenement fees and rising costs of Aboriginal Heritage Surveys. There is also the threat of an increase to royalty rates in Western Australia,” Amec CEO Simon Bennison said on Thursday.

“With escalating costs in Western Australia, investors will be reviewing their investment decisions and potentially looking at more competitive jurisdictions within Australia and overseas.

“These new fees for mining proposals and PoWs will be yet another financial impost on industry and a potential deterrent to investment in Western Australia,” said Bennison.

The state government this week announced plans to set fees at A$6 950 a mining proposal application, which could be valid for the life of a mine, and A$590 for a four-year PoW. Activities which disturbed less than 0.25 ha, and which did not take place on land classified as reserve, would be exempt from a fee.

However, Bennison said that the "low impact" threshold of 0.25 ha was "ridiculously small and inadequate" for exploration activity.

“These fees are apparently required to fund a shortfall of A$2.7-million in the Department of Mines and Petroleum’s Reforming Environmental Regulation budget.

“This is encouraging poor business practice and sets a precedent on how the agency will finance future shortfalls in its budget,” Bennison added.

“The RER programme should increase efficiency through the department; however, industry is yet to see any evidence of this.”

Furthermore, he said that the department’s claims of saving A$30-million was based on "guesses of unsubstantiated and perceived" savings to industry.

“Industry has been cutting costs and increasing productivity wherever possible and the agency must be seeking to do the same. Amec is requesting efficiency gains within the agency and alternatives to be investigated to fund the shortfall."