Article by Adrian Rauso, courtesy of The West Australian
27.05.2025
The likes of Rio Tinto, Mineral Resources and Gold Fields have joined a chorus of junior explorers condemning a Goldfields council’s plan to double mining rates, with a warning the issue is festering throughout WA.
The scandal-plagued Shire of Coolgardie earlier this month proposed a 119 per cent increase of mining rates for the 2026 financial year.
Soon after, more than 20 miners and explorers fired off submissions to the shire urging a rethink of the move.
MinRes, which in the region notably owns the operational Mt Marion lithium mine and mothballed Bald Hill lithium mine, said there was a “lack of transparency and inadequate justification” behind the proposed increase.
On top of the mining rate hike, the company is in line to cop a 91 per cent rate rise on its workforce accommodation facilities.
“For MinRes, it has been calculated the proposed change to these categories would result in an increase of over $400,000 in rates payable year-on-year.”
Gold Fields and Rio Tinto were among some of the other mining majors to express their sharp disapproval. Rio, which owns the shuttered Mt Cattlin lithium mine, said the hefty increase was particularly unfair to lithium and nickel players.
“With depressed spodumene prices continuing for the foreseeable future, allocation of funds to continue exploration activities is becoming increasingly difficult,” it stated.
“The proposed significant increases to tenement rates will only further reduce available funds for on-ground exploration activity.
“More broadly, these substantial rate increases will deter investment . . . it is in no one’s interest for mines to close or exploration to slow because of exorbitant rates.”
Following industry backlash, the shire this week decided to reduce the proposed mining rate increase — from 119 per cent to 98 per cent.
“There’s no scenario where a 98 per cent increase in rates is reasonable, there needs to be a complete reset,” Association of Mining and Exploration Companies chief executive Warren Pearce told The West Australian.
“The industry is sick of being taken for a ride to underwrite financially unsustainable regional councils.”
Mr Pearce said the Coolgardie situation was not an outlier.
“For example, Halls Creek lifted rates by 75 per cent for explorers last year,” he said.
“This is what happens when the State Government doesn’t step in to deal with major local government issues.”
The Shire of Coolgardie’s trimmed rate hike will net the floundering council an extra $6.5 million a year. The shire needs the extra mining money to dig itself out of a deep financial hole.
Two months ago, the closing budget deficit for the 2025 financial year was revealed to be almost $6.64m — a blowout of more than $6m from the original deficit forecast.
This budget shock sparked protests from locals, who have urged the State Government to intervene.
A sprawling FIFO worker accommodation camp in Kambalda the shire controversially built in 2022 has been credited as a major factor behind the dire financial predicament.
The shire last month restructured its loans while borrowing an extra $4m to pay creditors.
Five days later, the shire’s chief executive, James Trail, resigned amid a long-running investigation into unspecified “allegations” against him.
Mr Trail served in the chief executive role for nine years and came to Coolgardie after being dismissed as the Shire of Kalamunda’s chief executive for misconduct.