Lead mining royalties by
state and territory
Collated by Shahilla
Balachandran, Eric Steinhaeuser &
Elizabeth OBrien,
Global Lead Advice & Support Service (GLASS)
Fact sheet created 24th October 2005
TABLE ONE |
Dollar value (Au$m)
of lead mining royalties collected |
Australian States |
Year Ended
30-Jun-03 |
Year Ended
30-Jun-04 |
Year Ended
30-Jun-05 |
Queensland |
(base & precious minerals) $83.1m |
(base & precious minerals) $93.5m |
(lead) (estimate) $20.0m |
New
South Wales |
$1.14m |
$2.02m |
N/avail. |
Tasmania |
(estimate) $0.60m |
(estimate) $0.90m |
N/avail. |
Western
Australia |
$1.62m |
$0.16m |
N/avail |
Northern
Territory |
$0.0m |
$0.0m |
$0.0m |
Victoria
[has no lead mines] |
$0.0m |
$0.0m |
$0.0m |
South
Australia [has no lead mines] |
$0.0m |
$0.0m |
$0.0m |
References:
-
Matt Fitzgerald, Manager Royalty, Finance and Administration, Mineral
Resources Tasmania, Department of Infrastructure, Energy & Resources, 30 Gordons Hill
Road, PO Box 56, Rosny Park Tasmania 7018, Phone: (03) 6233 8370, Fax: (03) 6233 8338,
email: mfitz@mrt.tas.gov.au, Web: www.mrt.tas.gov.au Personal communication 10th October 2005.
-
Matthew Gagan, Royalty Investigations & Systems, Mineral Resources
Division, NSW Primary Industries, Ph: (02) 4931 6435, email: Matthew.GAGAN@dpi.nsw.gov.au, Personal communication 10th October 2005
-
Western Australia, Department of Industry and Resources:
http://www.dmp.wa.gov.au/documents/StatsDigest2005.pdf, accessed 7th
October 2005
-
Queensland, Department of Natural Resources and Mines, Web:
https://www.osr.qld.gov.au/royalties/statistics.shtml
accessed 24th October 2005
-
Sarah Morgan, Communication Consultant for MRM [McArthur River Mine,
owned by Xstrata], Rowland Communication Group, GPO Box 1430, Brisbane Qld 4001, Australia
Phone: +61 7 3229 4499, Fax: +61 7 3229 2666
Website: www.rowlandgroup.com.au, Personal communication
-
Kim Ricketts, MINING REGISTRAR, Customer
Service Centre, Department of Sustainability and Environment, Email: MBC.Info@dpi.vic.gov.au, Personal communication 12th October 2005
-
Department of Primary Industries and Resources (PIR), South Australia,
MESA Journal vol 36 page 24 Table 1 www.pir.sa.gov.au/byteserve/minerals/references/mesa_journal/mj_36/mj36_industry.PDF (Accessed 24th
October 2005)
TABLE
THREE |
Australian States |
How lead mining royalties are calculated |
Queensland |
- 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.
|
New South Wales |
- 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".
|
Tasmania |
- 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.
|
Western Australia |
- 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
|
Northern Territory |
- 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)
|
*ad valorem (in proportion to the estimated value
of the goods taxed) "the goods were taxed ad valorem"
# Ex-mine value refers to the value of the mineral once it is mined and
brought to the surface. Where hard-rock ore is processed or treated to produce a saleable
product, the costs associated with the processing or treatment are allowable deductions
and should be taken into account when calculating ex-mine production value. However, the
costs associated with exploration, development and mining of the ore body and
rehabilitation of the site are not allowable deductions.
References
-
Queensland Government 17/10/2005, Mining,
exploration & petroleum, www.nrm.qld.gov.au/mines/royalties/mining_royalties.html
-
Territory Revenue Management, Northern Territory
Treasury, www.nt.gov.au/ntt/revenue/overmra.shtml
-
Department of lndustry and Resources, Minerals and
Petroleum, www.doir.wa.gov.au/mineralsandpetroleum/
C6127BDB955E4962B29FF40208ADC408.asp
-
NSW Department of Primary Industries, Minerals
www.minerals.nsw.gov.au/prodServices/publications/commodities/
mining/miningRoyalties_and_StatisticsNsw
-
Commonwealth Grant Commission, Discussion paper,
www.cgc.gov.au/State_Downloads/Discussion/
R2004/CGC_2002-15_Mining_Assessment.PDF
http://wordnet.princeton.edu/perl/webwn?s=ad%20valorem
TABLE FOUR |
Australian States |
How lead mining royalties are spent |
Queensland |
The
royalties are handed down to treasury department, and used for maintaining services. |
New
South Wales |
A
stable, equitable royalty system: the royalties are paid to the owner of minerals produced
in NSW (generally the "Crown" or people of NSW), are collected by the Department
of Mineral Resources under the provisions of the Mining Act. Royalties are a mixture of ad
valorem (generally 4%) for metals and gemstones, and quantum rates per tonne for lead. |
Tasmania |
The
revenue goes in to Consolidated Revenue. A small portion, $350,000 per annum is
hypothecated to a rehabilitation of abandoned mines trust fund, although this is a rare
example of hypothecation because, as a general rule the Tasmanian Treasury does not
hypothecate revenues to expenditures. |
Western
Australia |
All
royalties are paid into general revenue. |
Northern
Territory |
Royalties
are receipted into Central Holding Authority (i.e. general revenue and not hypothecated to
any specific cause). |
*Hypothecation:
Earmarking taxes for a specific purpose.
References:
-
Matt Fitzgerald, Manager Royalty, Finance and Administration,
Mineral Resources Tasmania, Department of Infrastructure, Energy & Resources,
30 Gordons Hill Road, PO Box 56, Rosny Park Tasmania 7018, Phone: (03) 6233 8370, Fax:
(03) 6233 8338, email: mfitz@mrt.tas.gov.au, Web:
www.mrt.tas.gov.au Personal communication 19th October 2005
-
Kim Bowra, Principal Royalties Officer,
Royalties Division, DEPARTMENT OF INDUSTRY AND RESOURCES
Postal Address: 100 Plain Street, East Perth, Western Australia 6004
Street Address: 100 Plain Street, East Perth, Western Australia 6004
Telephone: +61 8 9222 3251, Facsimile: +61 8 9222 3838, email:
kim.bowra@doir.wa.gov.au, www.doir.wa.gov.au
Personal
communication 11th October 2005
-
Queensland: Department of Natural
Resources and Mines, www.nrm.qld.gov.au/mines/royalties/mining_royalties.html, accessed 24th October 2005
-
Eddie The, Audit Manager, Territory Revenue
Management, Northern Territory Government of Australia, Ph: +61 (08) 8999 7229, Fax +61
(08) 8999 6395, email: eddie.the@nt.gov.au, web:
www.revenue.nt.gov.au, Personal communication 14th October 2005
-
NSW Department of Primary Industries, www.minerals.nsw.gov.au./__data/page/513/in5.PDF, accessed 24th October 2005
www.economist.com/research/Economics/alphabetic.cfm?LETTER=H
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