According to an article published today in the Wall Street Journal:
"Gold producers in Australia's most resource-rich state have banded together to resist any increase in royalties on sales of the precious metal, fearing a further blow to an industry already battered by falling prices and rising costs.
The Western Australian government is reviewing royalty payments on a range of minerals produced in the state as it seeks to boost revenue in the face of weaker commodity prices, and to tackle ballooning debt that has knocked down its credit rating.
Gold miners have been concerned ever since the premier of the state, Colin Barnett, told the state legislature last week that the current royalty on sales of the metal—currently 2.5%—was "a little light" compared with those for other minerals.
Western Australia's Gold Royalties Response Group, which successfully lobbied against a previously mooted royalty increase three years ago, Friday said it had reformed.
The biggest 10 strong-group producers which include Gold Fields,Barrick, and Doray Minerals are also involved.
The group said it was preparing a submission to the government's review before the end of the month and would then seek meetings with Mr. Barnett, as well as the state's mines and petroleum minister".
"Anything that adds to the cost base has the potential to make some of these mines marginal,"
