Mineral Royalty Act 1982

(a) 20% of the net value from a production unit in a royalty year, less $10 000; and

(b) the percentage of the gross production revenue, from the production unit in a royalty year, that applies to the royalty year as follows:

(i) 1% for the royalty payer's first royalty year that begins on or after 1 July 2019;

(ii) 2% for the royalty year that follows the royalty year mentioned in subparagraph (i);

(iii) 2.5% for each royalty year that follows the royalty year mentioned in subparagraph (ii).

Examples for subsection (1)(b)

1 For a mine that commenced production in 2010 with a royalty year beginning every 1 July, the rate under subsection (1)(b) is 1% for the royalty year starting on 1 July 2019, 2% for the royalty year starting 1 July 2020 and 2.5% for each royalty year afterwards.

2 For a mine commencing production on 1 January 2020 with a royalty year beginning every 1 January, the rate under subsection (1)(b) is 1% for the royalty year starting on 1 January 2020, 2% for the royalty year starting 1 January 2021 and 2.5% for each royalty year afterwards.

(2) The royalty payable under section 9 in a royalty year is nil if the gross production revenue from the production unit in the royalty year is $500 000 or less.