‘Outrageous’: Shire of Coolgardie more than doubles mining rates to dig itself out of budget black hole

A scandal-plagued Goldfields council facing financial ruin is raring to jack up its annual mining rates by 119 per cent in a gut punch to local mineral explorers. The Shire of Coolgardie hopes the extraordinary proposed increase on rates payable for the 2026 financial year will inject an extra $9 million into its coffers. A total rate yield of $21.4m has been budgeted for next financial year with about $17.5m to come from the pockets of mine operators and prospectors — equating to 82 per cent of the total rate payments the shire expects to reap. The likes of Westgold Resources and Gold Fields run gold mines within the shire’s boundaries that are currently spitting out cash amid the precious metal’s price boom. But a bevy of capital-starved explorers also populate the 30,400sqkm shire area and they are expected to bare the brunt of the ratepayer pain. A number of juniors dotted across the region, including Win Metals, Lunnon Metals and Future Battery Minerals, are nickel exploration castaways trying to find their feet as gold hunters. Rates paid by miners and explorers vary based on factors like landholding size. One industry source estimates some explorers now stand to fork out more than $100,000 a year in rates to the shire. Association of Mining and Exploration Companies chief executive Warren Pearce labelled the situation as “outrageous”. “The Shire of Coolgardie’s proposed 119 per cent rates rise is outrageous,” he said. “How can anyone think this is reasonable? “If that’s what’s required to keep the shire in the black, then there are quite clearly much bigger problems in local government. “Companies don’t mind paying their fair share, but apparently we’re now expected to pay everyone else’s as well.” A spokeswoman for the shire said the final rate adopted “may be lower” following a public consultation process, but defended the significant rate rise. “The shire’s rates have increased by just 8 per cent over the past five years, despite rising costs,” she said. “The shire acknowledges that past rating strategies did not adequately reflect the level of infrastructure investment required to support the mining industry and its growth.” 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. The 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, which now sits mostly empty following the nickel industry’s implosion, has been credited as a major factor behind the dire financial straits the council finds itself in. But the shire spokeswoman denied financial mismanagement induced the need for the looming 119 per cent rate jump. “The proposal is not due to financial mismanagement, but rather to align services—particularly road maintenance—with the needs of the community and service needs of key stakeholders, particularly in relation to road maintenance and infrastructure,” she said. “Over $10m has been allocated to the shire’s road program this year, which largely benefits and is driven by mining activity. “The differential rate ensures that the sector contributing significantly to the wear and tear on infrastructure also contributes fairly to its upkeep, avoiding unsustainable increases for general ratepayers.” The shire last month restructured its loans to free up cash while borrowing an extra $4m from ANZ to pay creditors. Five days later, the shire’s chief executive, James Trail, resigned amid a long-running investigation into unspecified “allegations” against him. “This outcome marks a turning point . . . (it provides) the opportunity to move forward and give our full attention to the shire’s recovery plan,” shire president Mal Cullen said after Mr Trail’s resignation was announced. Mr Trail had 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. His dismissal resulted in a Corruption and Crime Commission probe, which recommended prosecution for receiving gifts and benefits to influence the award of computer software contracts from the shire.

‘Outrageous’: Shire of Coolgardie more than doubles mining rates to dig itself out of budget black hole

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