^{Run by}

Dollar value (Au$m) of lead mining royalties collected

Year Ended 30-Jun-03

Year Ended 30-Jun-04

Year Ended 30-Jun-05

(base & precious minerals) $83.1m

(base & precious minerals) $93.5m

(lead) (estimate) $20.0m

$1.14m

$2.02m

N/avail.

(estimate) $0.60m

(estimate) $0.90m

N/avail.

$1.62m

$0.16m

N/avail

$0.0m

$0.0m

$0.0m

$0.0m

$0.0m

$0.0m

$0.0m

$0.0m

$0.0m

Legislation referencing mining royalties

• Mineral Resources Act 1989:
• Mining Act

www.nrm.qld.gov.au/mines/royalties/mining_royalties.html

• Aboriginal Land Rights Act 1983
• Mining Act

www.austlii.edu.au/cgibin/disp.pl/au/legis/nsw/consol%5fact/
alra1983201/s46.html?query=mining+royalty

• The Hellyer Mine in Tasmania pays royalties under a State Agreement Act (The Hellyer Mine Agreement Ratification 1987)

• Mineral Resources Development Act 1995

www.natural-resources.org/minerals/csr/docs/
guidelines/Australia state mining tax 1999.pdf

http://research.lawlex.com.au/index.asp?pact
=coredoc&nav=col&cid=32458

Western Australian Consolidated Acts

• Mining Act
• Aboriginal Land Rights (Northern Territory) Act 1976
• The Land Rights Act

www.austlii.edu.au/au/legis/wa/consol_act/ma197881/

Northern Territory Consolidated Acts -

• In 1952 the Northern Territory (Administration) Act 1910:
• Aboriginal Land Rights (Northern Territory) Act 1976
• The Land Rights Act

www.austlii.edu.au/cgi-bin/disp.pl/au/special/rsjproject
/rsjlibrary/rciadic/national/vol4/212.html?query=+%28%28+mining+ro
yalty%29+and+%28on%29%29

Australian States

How lead mining royalties are calculated

• The Mineral Resources Act 1989 requires that the holder of a mining lease or mining claim lodge a royalty return and any royalty payable at least annually for all leases and claims held, even if no production took place.

• Larger producers are required to pay royalty on a quarterly basis, while smaller producers generally pay royalty on an annual basis according to the Queensland Government of mining exploration and petroleum.

• NSW Department of Primary Industries website states:

"Ad valorem* royalties are levied on all other minerals as a percentage of the total value of minerals recovered, that is, at the rate of 4% of ‘ex-mine’ value^# of production".

• The Mineral Resources Development Act 1995 provides for payment of royalty to land owners where the land owner also owns the product being mined. Under the Act, the royalty payable to owners of private mineral rights is at the same rate that is payable to the Crown.

• The Mineral Resources Regulations 1996 prescribes the current royalty rates and the method by which 'ad valorem' and profit-based royalties for a number of products are calculated. The Act provides for collection of royalties by Mineral Resources Tasmania on behalf of the owners of some classes of minerals. The fee for this service is 5% of the royalty collected.

• Regulation 86 of the Mining Act 1978 states that 2.5% of the royalty value is collected.

• This system takes into account price fluctuations and grade of material. The different rates are intended to adjust for the change in the value as mined ore is processed and value is added

• The Mineral Royalty Act states that 18 per cent of the Net Value of mineral commodities sold or removed from a production unit, regardless of the type of mineral commodity or whether the mine is situated on Crown, freehold, leasehold or aboriginal land. Net Value is calculated as follows:
• Net Value = GR – (OC + CRD + EEE + AD) where – GR is the gross realisation from the production unit; OC represents the operating costs of the production unit for the royalty year; CRD is the Capital Recognition Deduction on eligible capital assets expenditure; EEE is any eligible exploration expenditure; and AD represents additional deduction as approved by the Minister. (Territory Revenue Management)

Australian States

How lead mining royalties are spent