CALGARY — Despite Yukon miners earning more than $449 million in gold revenue last year, the territory’s government collected just over $33,300 in placer gold royalties — less than 1% of the total value produced.The CBC reports that the disparity is caused by a royalty rate that has remained unchanged for more than a century.In 1906, gold sold for roughly $15 an ounce and the Yukon government set placer royalties at 37.5 cents per ounce.While an ounce of gold in Canadian dollars is now worth $6,810 at the time of writing, the royalty rate has stayed at that same level.The Yukon government has long promised to overhaul the territory's mining laws, but it hasn't happened yet, and now even miners are saying changes need to be made.Neil Loveless, president of the Klondike Placer Miners' Association, says with gold prices so high, Yukon’s royalties have again drawn scrutiny.“The current regime, obviously it's been around and it's quite old. So we do understand that things will be changing, and we’re OK with that,” he said, adding that a lot of money gets “re-injected [into the community], regardless of a royalty or not.”Groups such as the Yukon Chamber of Mines also agree that the economic benefits of placer mining extend beyond direct royalties, pointing to money spent locally on fuel, contractors, equipment, and hospitality..Chinese Zijin Gold set to acquire Canadian Allied Gold for $5.5 billion.However, Reid Haines — who operates a placer mine near Dawson City, Yukon — is less convinced that those indirect benefits compensate for the lack of public revenue.“People do buy stuff here. They buy fuel,” Haines said.“But a lot of gold goes out. It’s not all spent here. If governments got more money through royalties, more of it would be spent here. That would help the economy quite a bit.”He suggests introducing a modest royalty — such as 1% on gross gold production by Canadian miners and 2% for non-Canadians — which he says could generate millions annually for the territorial government and the nearby Trʼondëk Hwëchʼin First Nation.That First Nation also says it currently sees little benefit from placer mining, despite the majority of Yukon’s gold coming from its traditional territory.Chief Darren Taylor said roughly 80% of the territory’s placer gold is extracted from Trʼondëk Hwëchʼin lands in the Klondike region, yet no meaningful royalty flows to the First Nation.“When people tell you there’s a royalty regime, they’re lying to you,” Taylor said.“It’s an export tax based on grossly outdated legislation.”Under current rules, Yukon’s placer royalty only applies to gold that leaves the territory.Gold that is stored, sold locally, or transferred to buyers within the Yukon is not subject to the levy — and Taylor says there is little oversight.“Nobody’s tracking the buyers,” Taylor said.“Nobody has any clue what’s actually leaving the territory.”.FLETCHER: BC gold mine sets path for independent nations.Yukon Mines Minister Ted Laking said he was not aware of concerns about unreported gold but acknowledged the need for reform.“The royalty regime in the territory is in need of updating and modernization,” Laking said.Yukon’s first mining legislation dates back to 1924.While amendments have been made over the decades, foundational elements such as the free-entry staking system remain intact.A 2017 independent report commissioned by the Yukon government found that combined placer and quartz royalties averaged less than $100,000 annually, despite mineral production worth more than $335 million per year.“The Yukon Government has managed to collect a mere 0.03% of the value of mineral production,” the report stated.The previous Liberal government released a draft framework for new mining legislation last year.However, the Yukon Party government, which was elected in November, has not said whether it will adopt that framework or restart the process.An update is expected in the coming months.
