As gold prices soar, some Yukon miners call territory's low royalty rate 'a bit ridiculous'

In 2025, yukon river placer miners gathered sir thomas more than $449 billion in atomic number 79 revenue, while the Yukon government collected less than 1 per cent of that — or just over $33,300 — in gold royalties.  

That’s because the territory's mining royalty rate was set over a century ago. In 1906, when an ounce of gold was worth $15, Yukon placer royalties were set at 37.5 cents per ounce.

It's been the same ever since, even as gold prices have climbed over the past 120 years. In December, an ounce of gold was worth nearly $6,200 in Canada. 

Now, even some placer miners are saying something’s got to give. The Yukon government has long promised to overhaul the territory's mining laws, but it hasn't happened yet.

“The royalties are pretty peanuts,” said Reid Haines, who operates a placer mine near Dawson City, Yukon. “It’s a bit ridiculous. Most places you need to pay some kind of royalty or tax for resources. So why not here?” 

Neil Loveless, president of the Klondike Placer Miners' Association, says with gold prices so high, Yukon's royalties have "drawn a lot of attention.”

“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."

Still, Loveless says that Yukon is not entirely missing out on those revenues collected by miners.

“A lot of the dollars get reinjected [into the community], regardless of a royalty or not,” Loveless said. It's a perspective shared by the Yukon Chamber of Mines, which points to trickle-down benefits of placer mining to local contractors, bars and restaurants. 

Haines is more skeptical. 

“People do buy stuff here… they buy fuel,” said Haines. “But a lot of gold goes out, it’s not all spent here. And if governments got a bit more money with the royalties, guess what? More of it would be spent here. It would help the economy quite a bit, I believe.” 

Haines said it’s important that local resources like gold benefit local people. He suggested that even a 1 per cent tax on gross placer gold mined by Canadians – and a 2 per cent tax for other nationalities – would mean millions of dollars for the territorial government, and the Trʼondëk Hwëchʼin First Nation. 

Trʼondëk Hwëchʼin Hähkè (Chief) Darren Taylor says that right now 80 per cent of the territory’s placer gold comes out of his First Nation’s traditional territory in the Klondike area, with no direct benefit to the Trʼondëk Hwëchʼin.

“When people tell you there’s a royalty regime, they’re lying to you,” said Taylor, who leads the First Nation. “It’s an export tax based on grossly outdated legislation."

In other words, placer royalties the Yukon charges only apply to gold that leaves the territory – so gold that is kept or sold locally is not subject to the royalty. 

“People sit on gold, they sell it to buyers,” said Taylor. “Nobody’s tracking the buyers. Nobody has any clue or idea what’s actually leaving the territory. So things need to substantially change.” 

Yukon's Mines Minister Ted Laking said he’s not familiar with the concern that gold is going unreported, but he recognizes “the royalty regime in the territory is in need of updating and modernization.” 

The Yukon’s first piece of mining legislation was enacted in 1924, and despite amendments and updates, key elements such as the free entry staking system remain. 

“It’s not reflective of our modern-day treaties, not our rights, titles and interests,” said Taylor. “It doesn’t take much regard to protection of the environment, water bodies, fish and wildlife populations.”

Placer mining involves digging into stream and river beds for minerals, where hardrock or quartz mining digs into earth and rock. Across the country, mining royalties are required as compensation for the removal of non-renewable resources like gold. 

In 2017, a independent report commissioned by the Yukon Government found combined placer and quartz royalty revenues collected by the territory average less than $100,000 per year, with mineral production valued at an average of $335,399,000 per year.

“The Yukon Government has managed to collect a mere 0.03 per cent of the value of mineral production on behalf of the people of the Yukon as payment for use of the Yukon’s mineral resources,” the report stated. 

Taylor said the territory is giving up public resources "for less than pennies on the dollar."

“I think collectively we could do a lot better than that, to ensure we retain more benefits,” he said.

The previous Liberal government had been working for years to update the territory's mining laws and released a draft framework last year for new legislation.

It’s a promise Tr'ondëk Hwëch'in has heard more than once since the late 1890s, when the Klondike Gold Rush first displaced the First Nation. 

Taylor feels change is long overdue, considering how much has been mined over the years.

“A substantive area within our traditional territory has already been staked by quartz or placer activities. For us here in Tr'ondëk Hwëch'in, if we drag this on any longer, by the time we get legislation in place it’s a little too late,” he said.

"Everyone will have extracted the resources they require, and we still won't have any tangible, meaningful benefits."

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