Roxby Rip-off - SA needs greater share of royalty wealth

27/04/09 9:40 am

Taxpayers should get a bigger royalty return from the Olympic Dam expansion, with half invested in a Future Fund to ensure South Australia has an ongoing source of wealth once mining at Roxby Downs ends, says Greens MLC Mark Parnell.

The call comes as the Olympic Dam Expansion Environmental Impact Statement (EIS) is set to be released this Friday, May 1.

“Mining royalties in SA are generally less than half other mining states like WA or Queensland,” said Mr Parnell.

“We’re allowing big companies to waltz in and extract our mineral wealth and pay us far less than they should in return.

“When it comes to Roxby, the world’s richest mining company reckons the mine will make $1 trillion dollars over its life. So, why is the Rann Government afraid to ask for our fair share?” he said.

According to SA Unions, SA mining royalties are less than half other mining states, with our State earning only 3.5% here compared with 7.5% in WA (for bauxite and iron ore), and 7-10% in Qld. The Greens are calling for the royalty rate for all mining in SA, including the Olympic Dam mine, to be doubled to 7.5%, with half the increase invested in a Future Fund.

“When using mining royalties we can spend it all at once, as we do now, or keep some for that inevitable time in the future when the minerals run out,” said Mr Parnell.

“We can learn a lot from what happened with the North Sea oil field. The UK chose to spend its royalty share on current expenses, and now with the oil coming to an end has very little to show for it. Norway on the other hand invested its share in a Future Fund that will provide ongoing income to the Norwegian people, forever.

“We have a huge responsibility to future generations to use the proceeds from non renewable resources wisely.

“Part of that responsibility is not blowing it all straight away or, even worse, giving it away at a bargain basement price,” he said.

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