Mineral Resources Amendment Regulation (No. 10) 1995 (Qld)

Queensland Subordinate Legislation 1995 No. 377 Mineral Resources Act 1989 MINERAL RESOURCES AMENDMENT REGULATION (No. 10) 1995 TABLE OF PROVISIONS Section Page 1 Short title . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 2 Commencement . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 3 Regulation amended . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 4 Amendment of s 2 (Definition) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 5 Amendment of s 45 (Rate of royalty) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 6 Replacement of sch 1 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 SCHEDULE 1 RATE OF ROYALTIES PART 1—ROYALTIES FOR COPPER, GOLD, LEAD, SILVER AND ZINC Division 1—Application and choices about royalties 1 Application of part . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 2 Royalty rates and choices . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5 Division 2—Variable royalty rates 3 Royalty rates and royalty base rates . . . . . . . . . . . . . . . . . . . . . . . . . 5 4 Reference prices . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5 5 Royalty base rates . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6 6 Working out royalty rates . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6 Division 3—Other provisions about royalties 7 Basis for working out values . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7

2 Mineral Resources Amendment (No. 10) No. 377, 1995 8 General concessions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8 9 Royalty discounts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8 PART 2—ROYALTIES FOR OTHER MINERALS 10 Royalties on certain minerals . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8 11 Silica and mineral sands . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10 12 Mineral sands . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10 13 Coal . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10 14 Bauxite . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11 15 Corundum, gemstones and precious stones . . . . . . . . . . . . . . . . . . . . 12 16 Marble mined in the Mareeba Shire . . . . . . . . . . . . . . . . . . . . . . . . . 12 17 Phosphate . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13 18 Gaseous hydrocarbons . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13 19 Other minerals . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14 PART 3—TRANSITIONAL PROVISIONS 20 Transitional provisions for part 1 . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14 21 Transitional provisions for mining lease 8058 . . . . . . . . . . . . . . . . . . 15 22 Expiry of part . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16

s1 3 s4 Mineral Resources Amendment (No. 10) No. 377, 1995 ˙ Short title 1. This regulation may be cited as the Mineral Resources Amendment Regulation (No. 10) 1995 . ˙ Commencement 2. This regulation commences on 1 January 1996. ˙ Regulation amended 3. This regulation amends the Mineral Resources Regulation 1990 . ˙ Amendment of s 2 (Definition) 4.(1) Section 2, heading— omit, insert— ‘ Definitions ’. (2) Section 2— insert— ‘ “average LME price” , for a mineral, means the average of the 3 month London Metal Exchange price for the mineral over a royalty period. “reference price” , for copper, gold, lead, silver or zinc—see schedule 1, section 4. “reference price 1” —see schedule 1, section 4. “reference price 2” —see schedule 1, section 4. “reference price 3” —see schedule 1, section 4. “royalty base rate” , for copper, gold, lead, silver or zinc—see schedule 1, section 5. “royalty period” means— (a) the financial year covered by a royalty return; or (b) if the Minister has approved a different year for a royalty return—the year approved by the Minister.’.

s5 4 s6 Mineral Resources Amendment (No. 10) No. 377, 1995 ˙ Amendment of s 45 (Rate of royalty) 5. Section 45— insert— ‘ (2) Each provision of the schedule applies to mineral sold, disposed of or used in a royalty period.’. ˙ Replacement of sch 1 6. Schedule 1— omit, insert— ‘ SCHEDULE 1 ‘ RATE OF ROYALTIES section 45 ‘ PART 1—ROYALTIES FOR COPPER, GOLD, LEAD, SILVER AND ZINC ‘ Division 1—Application and choices about royalties ˙ ‘ Application of part ‘ 1. This part only applies to the following minerals— (a) copper; (b) gold; (c) lead; (d) silver; (e) zinc.

s6 5 s6 Mineral Resources Amendment (No. 10) No. 377, 1995 ˙ ‘ Royalty rates and choices ‘ 2.(1) The royalty rate for copper, gold, lead, silver and zinc is 2.7%. ‘ (2) However, a person paying royalty may, when first giving the chief executive a royalty return for mineral sold, disposed of or used after 31 December 1995 (other than as a bulk sample approved by the Minister), decide to pay royalty for a mineral at the rate worked out under division 2. ‘ (3) If the person decides to pay the royalty for a mineral under division 2, the person must pay royalty for the mineral under division 2 for all mineral sold, disposed of or used before 1 January 2001. ‘ Division 2—Variable royalty rates ˙ ‘ Royalty rates and royalty base rates ‘ 3.(1) This division sets royalty rates for copper, gold, lead, silver and zinc using reference prices and royalty base rates. ‘ (2) Reference prices and royalty base rates are used to work out royalty rates for minerals. ˙ ‘ Reference prices ‘ 4.(1) This section sets prices ( “reference prices” ) for copper, gold, lead, silver and zinc. 1 ‘ (2) Reference prices are in Australian dollars. ‘ (3) Reference prices for copper, lead and zinc are for a tonne of mineral. ‘ (4) Reference prices for silver and gold are for a troy ounce of mineral. ‘ (5) The first reference price ( “reference price 1” ) is as follows— (a) for copper—$2 640; (b) for gold—$430; (c) for lead—$740; (d) for silver—$5.00; 1 The reference prices for these minerals will be reviewed before 1 January 2001.

s6 6 s6 Mineral Resources Amendment (No. 10) No. 377, 1995 (e) for zinc—$1 455. ‘ (6) The second reference price ( “reference price 2” ) is as follows— (a) for copper—$3 300; (b) for gold—$540; (c) for lead—$925; (d) for silver—$7.00; (e) for zinc—$1 815. ‘ (7) The third reference price ( “reference price 3” ) is as follows— (a) for copper—$4 180; (b) for gold—$680; (c) for lead—$1 170; (d) for silver—$9.00; (e) for zinc—$2 300. ˙ ‘ Royalty base rates ‘ 5.(1) This section sets royalty rates ( “royalty base rate” ) for copper, gold, lead, silver and zinc (the “mineral” ) at reference prices. ‘ (2) The royalty base rate for the mineral is— (a) at reference price 1—1.5% of the value of the mineral; or (b) at reference price 2—2.5% of the value of the mineral; or (c) at reference price 3—4.5% of the value of the mineral. ˙ ‘ Working out royalty rates ‘ 6.(1) To work out the actual royalty rate for a mineral, work out the average LME price and compare it with the mineral’s reference price. ‘ (2) If the average LME price is lower than reference price 1, the royalty rate is the royalty base rate for reference price 1. ‘ (3) If the average LME price is higher than reference price 3, the royalty rate is the royalty base rate for reference price 3.

s6 7 s6 Mineral Resources Amendment (No. 10) No. 377, 1995 ‘ (4) If the average LME price is equal to or higher than reference price 1 but lower than reference price 2, the royalty rate payable is the total of the royalty base rate at reference price 1 and 1% of the relevant percentage, rounded down to 2 decimal places. ‘ (5) If the average LME price is equal to or higher than reference price 2 but not higher than reference price 3, the royalty rate payable is the total of the royalty base rate at reference price 2 and 2% of the relevant percentage, rounded down to 2 decimal places. ‘ (6) In this section— “relevant percentage” means— (a) for subsection (4)—the difference between reference price 1 and the average LME price expressed as a percentage of the difference between reference prices 1 and 2; or (b) for subsection (5)—the difference between reference price 2 and the average LME price expressed as a percentage of the difference between reference prices 2 and 3. Examples— 1. For subsection (2), if the average LME price is $2 200, the royalty payable for copper is 1.5%. 2. For subsection (3), if the average LME price is $4 200, the royalty payable for copper is 4.5%. 3. For subsection (4), if the average LME price is $3 000, the royalty payable for copper is 2.04% (1.5% plus .54%). 4. For subsection (5), if the average LME price is $3 700, the royalty payable for copper is 3.4% (2.5% plus 0.45% x 2). ‘ Division 3—Other provisions about royalties ˙ ‘ Basis for working out values ‘ 7 . For working out royalties payable for copper, gold, lead, silver and zinc, the value of the mineral is the value of payable metal before deducting land transport, smelting and refining charges, but after deducting sea transport costs to ports outside Queensland or any other costs that, in the Minister’s opinion, are reasonable.

s6 8 s6 Mineral Resources Amendment (No. 10) No. 377, 1995 ˙ ‘ General concessions ‘ 8.(1) For each mining project, no royalty is payable on the first $30 000 of the mineral’s value for a royalty period. ‘ (2) For each mining project’s production of copper, lead and zinc, only half royalty is payable on the next $4 million of the total value of the copper, lead and zinc for a royalty period. ‘ (3) If a mining project is not operational for a part of a royalty period, the amount mentioned in subsection (2) must be reduced by the percentage of the royalty period when the mining project was not operational. ˙ ‘ Royalty discounts ‘ 9.(1) This section applies to royalties payable for copper, lead and zinc ( “base metal” ) sold, disposed of or used after 31 December 1997 and smelted or refined in Queensland ( “processed mineral” ). ‘ (2) If there is at least 95% metal in processed mineral, the royalty payable for the processed mineral must be reduced by the following percentage— (a) for copper—20%; (b) for lead—25%; (c) for zinc—35%. ‘ PART 2—ROYALTIES FOR OTHER MINERALS ˙ ‘ Royalties on certain minerals ‘ 10.(1) The royalty payable on each tonne of a mineral specified in the following table is shown opposite the mineral— Table $ 1. Barytes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.35

s6 9 s6 Mineral Resources Amendment (No. 10) No. 377, 1995 2. Bentonite clay . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3. Building brick, roofing tile and glazed earthenware pipe clay . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4. Calcite . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5. Chromite . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6. Clay shale . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7. Diatomite . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8. Dolomite . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9. Felspar . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10. Fireclay . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11. Fluorspar . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12. Fullers Earth . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13. Graphite . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14. Gypsum . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15. Iron ore . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16. Kaolin . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17. Lime, earth . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18. Limestone (when used for its chemical properties) . . . . 19. Magnesite . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20. Marble . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21. Mica . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22. Mineral pigments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23. Oxide of iron . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24. Olivine . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25. Perlite . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 26. Pottery clay . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 27. Rock mined in block or slab for building or monumental purposes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1.00 0.25 0.25 0.50 0.25 0.50 0.25 0.50 0.25 0.35 0.50 1.00 0.25 0.35 0.50 0.25 0.30 0.50 0.50 1.00 0.35 0.50 0.25 0.25 0.50 0.50

s 6 10 s 6 Mineral Resources Amendment (No. 10) No. 377, 1995 28. Salt . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1.00 29. Sand, gravel and rock (other than rock mined in block or slab for building or monumental purposes) . . . . . . . . . . 0.50 30. Serpentine . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.25 31. Talc . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.50 32. Vermiculite . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.50 33. Wollastonite . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.50 ‘ (2) Subsection (1) does not apply to marble mined in the Mareeba Shire. ˙ ‘ Silica and mineral sands ‘ 11. The royalty payable on silica (as distinct from sand and silicates) is the higher of the following— (a) 5% of the silica’s value; (b) 50 cents per tonne of silica. ˙ ‘ Mineral sands ‘ 12. The royalty payable on rutile, monazite, zircon and ilmenite concentrates is 5% of the value of the concentrate. ˙ ‘ Coal ‘ 13.(1) In this section— “domestic coal” means coal mined other than export coal mined. “export coal” means coal exported to another State, a Territory or a foreign country. “open-cut coal mine” has the meaning given by the Coal Mining Act 1925 . “underground coal mine” has the meaning given by the Coal Mining Act1925 . “value” of coal means the value worked out by the Minister under section 52. ‘ (2) The royalty payable on export coal is 7% of the coal’s value.

s 6 11 s 6 Mineral Resources Amendment (No. 10) No. 377, 1995 ‘ (3) However, the royalty payable on export coal is that payable under subsection (4) if the coal is hauled— (a) under a written rail haulage arrangement for coal executed before 1 January 1991; or (b) under a written rail haulage arrangement for coal executed after 31 December 1990 that makes provision for a resource utilisation charge or coal price adjustment; or (c) under the terms of a written offer of a rail haulage arrangement made after 30 April 1992 that makes provision for a resource utilisation charge. ‘ (4) The royalty payable is— (a) if the coal is mined from an open-cut coal mine—5% of the coal’s value; or (b) if the coal is mined from an underground coal mine—4% of the coal’s value. ‘ (5) The royalty payable on domestic coal is— (a) for the calendar year— (i) 1994—1% of the coal’s value; and (ii) 1995—2% of the coal’s value; and (iii) 1996—3% of the coal’s value; and (iv) 1997—4% of the coal’s value; and (v) 1998—5% of the coal’s value; and (vi) 1999—6% of the coal’s value; and (b) after 1999—7% of the coal’s value. ˙ ‘ Bauxite ‘ 14.(1) The royalty payable on bauxite mined from Special Bauxite Mining Lease No. 1 for consumption outside the State is the higher of the following— (a) 10% of the net f.o.b. return per tonne taking into account income of any type arising directly from the sale, disposal or use of the

s 6 12 s 6 Mineral Resources Amendment (No. 10) No. 377, 1995 bauxite, but not a deduction for royalty; (b) $1 per tonne. ‘ (2) The royalty payable on bauxite mined from special bauxite mining lease no. 1 for consumption within the State is half the royalty worked out under subsection (1). ˙ ‘ Corundum, gemstones and precious stones ‘ 15.(1) This section applies only if the value of corundum, gemstones or precious stones sold, disposed of or used in a royalty period is more than $10 000. ‘ (2) The royalty payable on corundum, gemstones and precious stones, including agate, sapphire and opal, is 5% of the value of the corundum, gemstones or precious stones after deducting $10 000 from the value. ˙ ‘ Marble mined in the Mareeba Shire ‘ 16.(1) This section applies to marble mined in the Mareeba Shire. ‘ (2) In this section, the “first year of production” is the first year the marble is mined for sale in Queensland or elsewhere. ‘ (3) The royalty payable on marble sold to an entity outside the State or, in the Minister’s opinion, produced for sale to an entity outside the State is— (a) for the first year of production—5% of the net f.o.b. value of the marble; or (b) for the second year of production—7.5% of the net f.o.b. value of the marble; or (c) for the third and each subsequent year of production—10% of the net f.o.b. value of the marble. ‘ (4) If subsection (3) does not apply, the royalty payable on marble is 5% of the net f.o.b. value of the marble taking into account income of any type arising directly from the sale, disposal or use of the marble, but not a deduction for royalty.

s 6 13 s 6 Mineral Resources Amendment (No. 10) No. 377, 1995 ˙ ‘ Phosphate ‘ 17.(1) The royalty payable on phosphate won by Queensland Phosphate Limited from the Phosphate Hill project for use in phosphoric acid or high analysis fertilisers is the higher of the following— (a) 74 cents per dry tonne of phosphate; (b) the royalty worked out under subsection (2) (the “escalated royalty” ). ‘ (2) The escalated royalty is the base rate in May 1987 terms of 74 cents per dry tonne of phosphate rock from the treatment plant at Phosphate Hill, escalated quarterly by the percentage movement between— (a) the base triple superphosphate price at May 1987 of $200 per tonne; and (b) the average, for each month in the quarter, of the higher of the following— (i) the US Gulf export f.o.b. market price in US dollars for triple superphosphate, as published in Green Markets magazine, converted to Australian dollars at the exchange rate prevailing on the last day of the month; (ii) the price fixed by the Australian Customs Service as the normal (undumped) US Gulf export f.o.b. price for triple superphosphate, converted to Australian dollars at the exchange rate prevailing on the last day of the month. ‘ (3) If subsection (1) does not apply, the royalty payable on phosphate is 10% of the value of the phosphate. ˙ ‘ Gaseous hydrocarbons ‘ 18.(1) The royalty on gaseous hydrocarbons is payable at the rate applying to petroleum under the Petroleum Act 1923 , section 55(1). ‘ (2) However, royalty is not payable on gaseous hydrocarbons that the person paying the royalty flares, vents or uses for prospecting for, or recovering, gaseous hydrocarbons. ‘ (3) For subsection (1), the way for working out the value of gaseous hydrocarbons is the way stated in the Petroleum Act 1923 , section 57.

s 6 14 s 6 Mineral Resources Amendment (No. 10) No. 377, 1995 ˙ ‘ Other minerals ‘ 19.(1) This section applies to a mineral not already mentioned in this schedule. ‘ (2) The royalty payable on the mineral is the higher of the following— (a) 2% of the gross proceeds of the sale, disposal or use of the mineral for each year, after deducting $30 000 from the gross proceeds; (b) 5% of the profit within the meaning of part 9 for each year, after deducting $30 000 from the profit. ‘ PART 3—TRANSITIONAL PROVISIONS ˙ ‘ Transitional provisions for part 1 ‘ 20.(1) The amount of royalty payable for mineral sold, disposed of or used before 1 January 1996 must be worked out under the relevant provision. ‘ (2) For 1996, the amount of royalty payable is either— (a) if the amount worked out under the relevant provision is lower than the amount worked out under part 1—the lower amount plus one-third of the difference between the amounts; or (b) if the amount worked out under the relevant provision is higher than the amount worked out under part 1—the higher amount less one-third of the difference between the amounts. ‘ (3) For 1997, the amount of royalty payable is either— (a) if the amount worked out under the relevant provision is lower than the amount worked out under part 1—the lower amount plus two-thirds of the difference between the amounts; or (b) if the amount worked out under the relevant provision is higher than the amount worked out under part 1—the higher amount less two-thirds of the difference between the amounts.

s 6 15 s 6 Mineral Resources Amendment (No. 10) No. 377, 1995 ‘ (4) In this section— “relevant provision” means— (a) for copper, lead, silver and zinc derived from mining on mining lease 8058—section 21; or (b) for copper, gold, lead, silver and zinc derived from mining somewhere else—section 19. ˙ ‘ Transitional provisions for mining lease 8058 ‘ 21.(1) This section applies to— (a) copper, lead, silver and zinc derived from mining on mining lease 8058; and (b) royalty payable after 27 June 1993. ‘ (2) The royalty payable on copper is 4.5% of the copper sales revenue. ‘ (3) The royalty payable on lead, silver and zinc is 2.7% of the lead, silver and zinc sales revenue. ‘ (4) The sales revenue from copper, lead, silver or zinc is the gross sales revenue receivable for the sale of payable copper, lead, silver or zinc— (a) before deducting smelting, refining or transport costs; and (b) after deducting any allowance that, in the Minister’s opinion, is reasonable. ‘ (5) The sales revenue— (a) includes— (i) for a sale made and finalised in the royalty period—the proceeds of the sale; and (ii) for a sale not finalised in the royalty period—the proceeds of the sale worked out on a best estimate basis; and (iii) exchange gains and losses because of currency fluctuations between the day of sale and the day of payment; and (b) does not include sales revenue from the following— (i) copper derived when processing lead, silver or zinc;

s 6 16 s 6 Mineral Resources Amendment (No. 10) No. 377, 1995 (ii) lead, silver or zinc derived when processing copper; (iii) metals other than copper, lead, silver or zinc; (iv) the processing of stocks of apparently untreatable material held on 27 June 1993. ‘ (6) However, if the sales revenue for a particular royalty period includes an amount worked out on a best estimate basis, the sales revenue for the royalty period must be adjusted in the royalty return for the royalty period in which the actual proceeds of the sale become known, to take into account the difference between the estimate and the actual proceeds of the sale. ˙ ‘ Expiry of part ‘ 22. This part expires on 1 July 1998.’. ENDNOTES 1. Made by the Governor in Council on 14 December 1995. 2. Notified in the gazette on 15 December 1995. 3. Laid before the Legislative Assembly on . . . 4. The administering agency is the Department of Minerals and Energy. © State of Queensland 1995