Richard Hayes: Gold Industry Group
ONE OFF THE WOOD: Gold Industry Group Chairman Richard Hayes called in to fill us in on what the group has planned for Diggers & Dealers.
Hi Richard, could you provide us with a quick insight into the Gold Industry Group – what it is and what it does?
The Gold Industry Group was formed out of the Gold Royalties Response Group (GRRG) – remember when the State Government of Western Australia wanted to increase royalties and the gold industry voiced its opposition.
The GRRG worked to raise awareness of the gold mining industry, the value it brings and what the impact of increasing the royalty would do.
That was a very successful campaign. Research conducted showed there was very little awareness of the industry prior to the campaign being run. After only a few months, 80% of people in Perth learnt something new about the gold industry or changed their perceptions.
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We have increased our membership to include others involved in the gold value chain beyond the inaugural gold miners.
The GRRG still remains, but they effectively achieved their original aim with the royalty increase not going ahead.
By working together on the community ‘Heart of Gold’ campaign, our founding members realised what can be achieved when an industry comes together with a common set of goals. It is important that we now continue the work that has been undertaken.
That royalty increase proposal is still lurking somewhere within the halls of government and while it still exists – and although we are not a lobby group per se – all of the good work that created awareness of the industry and its value to Western Australia would be lost.
It makes sense then for the Group to be having a visible presence at Diggers & Dealers again this year?
Of course. Diggers & Dealers is an iconic event for the entire mining industry, but in particular the gold mining sector, due to its location in Kalgoorlie.
Because the Gold Industry Group really is ‘by the industry – for the industry’ it makes a lot of sense for us to be involved at Diggers.
You’re hosting a breakfast on the second morning of the conference, what are you hoping to achieve then?
It will really be about reinforcing our role within the industry and what we do. Although the Group was launched at Diggers last year, the Board was only appointed in November.
Our focus is to become a strong voice for the industry into the wider community, which is why it’s important we are at Diggers & Dealers. By being involved in this forum we can let as many people as we can know what it is we do, and be seen to be a part of the industry.
Gold is enjoying some very good times at the moment, hovering around the top of the US$1,700 range with a few external forces contributing to its allure for investors?
It is an uncertain world. The recent Brexit referendum result combined with the spectre of either President Trump or Hillary. Add to that the uncertainty of what’s happening in the Middle East and Europe.
People turning to gold is just that historic insurance policy. If everything else is turning bad then at least the gold holdings one might have will be worth more.
It certainly is an alternate asset class. When stocks and shares are going gangbusters your gold probably won’t be worth as much, however when the market is in the doldrums gold is worth much more money.
