The West Australian gold sector fears it will be tapped for hundreds of millions of dollars in additional royalty revenue banked by the state government in its latest budget.
Revenue forward estimates show an additional $560 million over three years from 2015/16.
And while the WA government has not yet revealed any outcomes from a royalty review process, gold miners think they are the obvious target.
"Previous government statements have made it clear this additional money is expected to come predominantly from the gold sector," Doray Minerals managing director Allan Kelly said.
"This is both disappointing and concerning. Either government has given the gold sector false assurances, or the new budget is based on forecast revenue that won't be realised."
Mr Kelly, who is also the spokesman of the Gold Royalties Response Group, said margins for the precious metal's producers had been seriously eroded by rising production costs and an 11 per cent decrease in the gold price in the past year.
"Any increase in the gold royalty rate in Western Australia will be an extra impost the industry just couldn't bear."
The group said a rise in gold royalties would cause uncertainty and be a significant disincentive to future investment in the sector.
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