Western Australia Miners Join Forces Against Aggression To Gold

Recently big names in the gold mining sector united their voices to defend the wounded industry. The Gold Industry Group is now a result of the sector preoccupation about Government’s financial interests and future decisions. In the meanwhile, low prices keep hurting the sector but the precious metal is starting to recover.

Despite this, WA domestic producers are taking great advantage of the weaker currency in front of the US Dollar. That suppose now a window to make interesting investments to improve the means of production. Also, the surplus will be useful to boost exploration, which has been tough lately.

Ups And Downs

A1 Consolidated Gold suffered a severe drop in stock value that dragged the S&P/ASX 200 Gold Index down recently in June. Despite this crash, the company recovered the loss value during the first week of August. On their favor, Fortescue Metals Group’s CEO, Mr. Andrew Forrest showed real interest in A1, tipping AUD 2 million by the way of a convertible note, through his private investment firm, Squadron Resources.

The Golden League

Back to the Gold Industry Group, statements against Government’s intentions to increase the gold sector’s royalties were made. Mr. Norman Moore, former Mines and Petroleum minister, now chairman of the Group, stated that the recent organization “(…) was initiated as a result of the work done by Gold Royalty Response Group when there was a suggestion that the Government might increase the royalty on gold.”

The Group, born during the Diggers and Dealers mining event, already suggested that they will do everything on hand to refuse Government’s policies and decisions that could affect the already wounded industry. It is clear that a royalties’ increase with the actual circumstances could drive bankruptcy several companies going through harsh times.

The clear conversion rate advantage mentioned above can be a good excuse for the WA Government to execute their plans related to royalties. But now, with a defined organization defending the private interest, the politicians will have a lot of homework to do if those are their intentions.

Meanwhile, Mr. Ian Murray, Gold Road Resources’ chairman (one of the Group’s founding members), stated that for gold mining operations, specifically in WA, is getting harder with time, because relevant discoveries are scarce lately. “Companies have to be out there for five or ten years before they make a discovery,” he said.

Education For The Long-Term

Gold Industry Group is also interested in improving education in Western Australia, related to the gold sector and the mining industry. Mr. Murray thinks that mining-related education since early levels of education can help the industry at the long-term.

This can be an optimistic assumption which suppose an important number of new graduates in the future that can be helpful to the gold industry to get going and developing further. Also, Mr. Murray said that the educated next generations will show real interest in the industry and would make investments, besides of choosing a related career and participate in a directly.

Also, part of the education that the Group will promote is about teaching the gold’s properties as a financial unit and asset class, promoting the investment in the precious metal as a convenient way to store wealth and make long-term profit.

In defiance of all the actual hardships that we can all the in the mining industry, especially in the gold one, this kind of corporative movements is proof of improving in times of need. While there are severe financial problems on sight, further investments and more exploration are on the table.

Taking care of the industry’s health is not only about businessmen saving their growing wealth. The Government must not forget the 20.000 workers in the sector only in Western Australia.

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