A gold mine is a $4.4 billion investment, but you can get a 10 per cent discount on the cost by getting a mine permit.
Read more The Government has promised to cap permits at 10 per of the total cost, but the prospect of the Government’s mining moratorium in place for another three years means it will have to make those cuts as well.
The mining industry is expecting a surge in applications for mining permits in the next few months as mining companies look to secure a large chunk of the gold mining market.
It will be a big hit for mining companies because of the number of permits they will need to secure.
Gold miners need permits to access a significant amount of ore from the world’s largest reserves of gold and silver, known as the gold fields, and copper.
In 2015, the Government said it would cap the number a mine can mine at five per cent of the mine’s cost, and it will now have to decide whether to keep that cap or increase the cap.
A recent report by the Minerals Council of Australia found the number is already at more than 10 per per cent.
This means a miner can pay more than $2,000 a year to mine gold at the same site and will have an increased risk of losing the mine permit in the event of a mining moratorium.
There is a chance the Government will be forced to increase the number it can mine permits to 20 per cent if it wants to continue mining the world famous mines in the future.
“Gold is a very complex mineral,” said Andrew Taylor, senior economist at the Gold Coast-based Minerals Industry Association.
When you think about the world we live in, it is a bit of a shock to us to find out we are going to need more than a 10-per-cent cap, especially because there are so many more projects out there, he said.
We are in a world of scarcity, and so there is a huge demand out there for commodities.
But what we do know is there is still a lot of supply of these commodities, and we are just going to have to be more flexible in our mining policies, he added.
What are your mining plans?
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