Mining Act 1971

Subject to this Act, royalty is payable to the Crown on all minerals recovered from mineral land.

Royalty is not payable on extractive minerals recovered from mineral land—

where the terms and conditions of the mineral tenement—

make specific provision for the management and use of the extractive minerals as extractive minerals produced during the course of carrying out authorised operations under the tenement; and

make specific provision for the exemption of the extractive minerals from the payment of royalty; or

by the owner of the land under section 75(2).

Royalty is not payable on minerals recovered from mineral land that are removed from the area of a mineral tenement for the purpose of any testing of a kind approved by the Minister.

Royalty is only payable on precious stones if the precious stones are recovered under this Act.

Subject to this or any other relevant section, royalty will be equivalent to—

in the case of extractive minerals—55 cents per tonne, or such lesser amount as may be prescribed by the regulations;

in the case of minerals other than extractive minerals—

if the minerals are declared mineral ores or concentrates—5% of the value of the minerals, as assessed in accordance with this section;

if the minerals are declared refined mineral products—3.5% of the value of the refined mineral products, as assessed in accordance with this section;

if the minerals are declared industrial minerals or construction materials—3.5% of the value of the minerals, as assessed in accordance with this section;

in any other case—5% of the value of the minerals, as assessed in accordance with this section.

The value of minerals, for the purposes of determining royalty, will be the value that represents the market value (excluding GST) of the minerals on—

in the case of minerals sold pursuant to a contract with a genuine purchaser at arms length—the day on which ownership of the minerals is transferred to the purchaser; and

in any other case—the day on which—

the minerals—

leave the mineral tenement from which the minerals were recovered;

are used on the tenement; or

if the minerals have been transported to mineral land the subject of a miscellaneous purposes licence—the minerals leave that mineral land or are used on that mineral land, whichever occurs later.

For the purposes of subsection (5), the market value of minerals will be determined as follows:

subject to paragraph (b), if the minerals are sold pursuant to a contract with a genuine purchaser at arms length, the market value of the minerals will be the contract price (excluding GST) for the minerals;

if—

the Treasurer is not satisfied that the contract price for the minerals reflects the market pricing of the minerals; or

the minerals are not sold pursuant to a contract with a genuine purchaser at arms length, the market value of the minerals will be determined according to—

any price quoted or obtained on a market recognised by the

if subparagraph (iii) does not apply—

the price (if any) declared by the Treasurer, after consultation with the Minister, by notice in the Gazette as being an indicative price for the minerals; or

the method (if any) declared by the Treasurer, after consultation with the Minister, by notice in the Gazette that is to be used for determining an indicative price for the minerals; or

if subparagraphs (iii) and

do not apply—

any price obtained in relation to sales of minerals of the same kind where those sales were to genuine purchasers at arms length within the same period for which a return is required to be furnished under section 17CA; or

if no relevant transactions have occurred in that period—any price obtained by other parties within the industry in relation to sales of minerals of the same kind on the open market within the same period for which a return is required to be furnished under section 17CA; or

if subparagraphs (iii),

and

do not apply—the tenement holder's estimate of the reasonable value of the minerals (to be determined in accordance with any requirements, and accompanied by any information, prescribed by the regulations).

For the purposes of subsection (6)(a), contract price means—

the amount to be paid under the contract; plus

the value of any consideration, set-off, concession or other factor otherwise taken into account by the parties to the contract in determining the amount to be paid under the contract.

Costs of a prescribed kind incurred before minerals leave—

the mineral tenement from which the minerals were recovered;

if the minerals have been transported to mineral land, the subject of a miscellaneous purposes licence—that mineral land, are not to be included for the purposes of determining the market value of those minerals.

Costs of a prescribed kind incurred after minerals leave—

the mineral tenement from which the minerals were recovered;

if the minerals have been transported to mineral land, the subject of a miscellaneous purposes licence—that mineral land, are not to be included for the purposes of determining the market value of those minerals.

The Treasurer may, after consultation with the Minister and under an agreement between the Treasurer and the person liable to pay royalty on any minerals other than extractive minerals, determine that royalty will be payable according to the weight or volume of minerals recovered or will be payable at some other price or according to some other method, and royalty will be payable by the person in accordance with the determination.

The Treasurer may, after consultation with the Minister and on the application of a person liable to pay royalty under this section, having regard to the effect that payment of such royalty would be likely to have on the viability or profitability of authorised operations carried on by the person, waive payment of royalty wholly or in part, or reduce the rate at which royalty is payable, on minerals recovered in the course of those operations.

Royalty may be recovered by the Crown as a debt due to the Crown in any court of competent jurisdiction.

The tenement holder for the tenement from which minerals are recovered is liable to pay the royalty.

For the purposes of this section, the Treasurer may, after consultation with the Minister, from time to time—

by notice in the Gazette—

declare specified types of mineral ores or concentrates to be declared mineral ores and concentrates; and

declare specified types of refined mineral products to be declared refined mineral products; and

declare specified types of minerals to be declared industrial minerals or construction materials; and

by subsequent notice in the Gazette, vary or revoke a declaration under paragraph (a).

A notice under subsection (13) will have effect from a date specified in the notice by the Treasurer.