Mining (Royalties) Regulations 2025

For the purposes of section 120C(e) of the Act, the Minister may decide the value (including the royalty value) of a mineral to be used to calculate the royalty payable for the mineral in the circumstances specified in subregulation (2).

The circumstances are that the Minister is satisfied that the value used to calculate the royalty paid for the mineral was not a true or fair value because —

the value does not reflect the market value of the mineral on the day on which the mineral was sold; or

the allowable deductions, or in the case of iron ore the shipping costs, used to calculate the value are excessive having regard to the type of sale; or

the Minister is not satisfied, based on information given by the royalty payer within the time specified by the Minister, that the first sale of the mineral —

was a genuine commercial transaction; or

was not made principally for the purpose of minimising the royalty payable.

In deciding the value of the mineral, the Minister must consider the market value for the type of mineral as if the mineral were sold —

on an arm’s length basis; and

on the day on which the mineral was first sold; and

in a sale of the same type.

If the Minister decides the value of the mineral under subregulation (3) —

the royalty must be assessed at the relevant rate under Division 2; and

the Minister must give the royalty payer a written notice that states —

the decision; and

the amount of the royalty that is payable as a result of the assessment, taking into account the amount of the royalty already paid; and

the day by which the amount of the royalty must be paid.

The royalty payer must pay the royalty assessed to be payable to the Commissioner within 14 days after the day on which the notice is given.