PERTH (miningweekly.com) – The Gold Royalty Response Group (GRRG) has welcomed Prime Minister Tony Abbott’s support of the Western Australian gold industry, which is facing the threat of increased royalties.

“We want taxes to go down, not up,” Abbott was quoted as telling ABC Kalgoorlie.

“The mining industry pays company tax, its workforce obviously pays pay-as-you-go tax and, of course, there are royalties on top of that.”

GRRG spokesperson and Doray Minerals MD Allan Kelly said the Prime Minister’s support for the gold industry was very welcome.

“At a time when our industry continues to face tough operating conditions and great uncertainty as a result of the minerals royalty review, the Prime Minister has shown he understands that Western Australian gold miners are already paying their fair share of taxes and royalties,” Kelly said.

“Abbott understands that our industry supports thousands of jobs in Western Australia, particularly in regional towns such as Kalgoorlie. 

“We are very heartened by his support and hope the state government will likewise throw its support behind the more than 20 000 men and women employed in our industry,” he added.

The state government was currently undertaking a royalty review, which had initially been expected to be completed by the end of 2014, but was still dragging.

The GRRG has consistently pointed out that Western Australian gold miners contribute more than A$300-million in state royalties and taxes and more than A$8-billion to the state’s economy each year.

In 2013/14, more than 4 000 direct jobs in gold were lost as a result of tough operating conditions, which forced some mines to close or downsize.

“Our industry needs stability and certainty if we are to remain competitive and protect the jobs of our workers. The reality is that any increase in royalties would result in more mine closures and more job losses and that would be bad news for Western Australian workers and our state economy,” Kelly warned.