The premier told ABC Radio yesterday that any increases to royalty rates recommended by the Minerals Royalty Review would be phased in over time.

“As I said to some of the sectors, if there is change, it won’t be a shock. It won’t be large changes overnight. And if changes are necessary, they’ll be phased in,” he said.

But the Gold Royalties Response Group said the means of implementation would not ease the pain of a rates increase.

“We’re very concerned by the Premier’s reference to potential increases in rates being phased in over time,” GRRG spokesman and Doray Minerals managing director Allan Kelly said.

“WA gold miners continue to face tough operating conditions. Any increases in royalties would see mines close and jobs lost.

“More than 4000 direct jobs in gold were lost last year as a result of miners being forced to downsize and the reality is that any additional costs will result in more job losses and seriously damage our industry.”

Kelly rejected the idea that a gradual increase to rates over a number of years would be acceptable for the gold industry.

“This would simply mean death by a thousand cuts for gold miners,” he said.

“Such a move would damage investor confidence and erode any positive sentiment in this sector.”

A proposed state royalty formula seeks to achieve a notional 10% royalty rate across all minerals, which gold miners argue is not appropriate to their industry.

“We have briefed all levels of government to ensure the facts are clearly understood that when it comes to royalty rates, one size does not fit all,” Kelly said.

“The cost structures of these industries are very different and the current mineral royalty system doesn’t adequately take into consideration all costs incurred in producing gold.”

The GRRG consists of a large group of miners, including Doray, Gold Fields, Gold Road Resources, Northern Star Resources, Phoenix Gold, Norton Gold Fields, Ramelius Resources, Regis Resources, Saracen Mineral Holdings, Silver Lake Resources and St Barbara.

The GRRG has been actively campaigning against royalty rate increases in the gold industry since 2010. The group launched its #heartofgold public awareness campaign last August in an effort to drum up support for its cause.

Last month, it commissioned a study by Deloitte Access Economics which demonstrated the impact a royalty rate increase would have on the state’s gold miners and was presented to parliament.