The Association of Mining and Exploration Companies (AMEC) says the mining industry is being treated like a “cash cow”, following the Supreme Court of WA’s decision to uphold the appeal in the Shire of Mount Magnet v Atlantic Vanadium.
As a result of the Supreme Court’s decision, the Shire of Mount Magnet can levy rates on land covered by Atlantic Vanadium’s miscellaneous licences.
A miscellaneous licence is for purposes such as a railway, roads and pipelines, or other purposes prescribed in Regulation 42B of the Mining Act 1978. The infrastructure does not place any demand on local government services as all activities are self-contained on the licence.
AMEC says this now paves the way for councils to lift rates in an area they were previously unable to.
CEO Warren Pearce says if implemented across Western Australia, it is conservatively estimated this legal re-interpretation will cost the mining and exploration sector over $50 million per year.
“And with local governments having the ability to seek rates back five years, the resources sector could be facing an extraordinary $250 million additional rate bill this year,” Pearce says.
“This decision by the Supreme Court to recast miscellaneous licences as an area that can be rated will badly hurt the resources sector in WA. This is completely unjustified.”
Pearce urges the state government to step in and legislate to preserve the principal that miscellaneous licences are not, and should not, be rated.
This year, when the Shire of Coolgardie increased rates by 120%, the Western Australia Minister for Local Government rightly stepped in to block the increase, stating that “the Shire needs to treat its ratepayers with respect and not as a cash cow”.
AMEC is a national association representing more than 575 member companies from around Australia. Its members are explorers, emerging miners, producers, and a wide range of businesses and service providers working in and for the industry.
Mining.com.au is an associate member of AMEC.
Write to Aaliyah Rogan at Mining.com.au
Images: AMEC
