Mineral Resources Development (Brown Coal Royalties) Act 2005 (Vic)

Mineral Resources Development (Brown Coal Royalties) Act 2005

Act No. 89/2005

table of provisions

Section  Page

1.Purpose

2.Commencement

3.Royalties

4.New section 12A inserted

12A.Royalties for lignite

5.Grant of licence

6.New section 132 inserted

132.Transitional provision—2005 amendments

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Endnotes

Mineral Resources Development (Brown Coal Royalties) Act 2005

[Assented to 29 November 2005]

The Parliament of Victoria enacts as follows:

1.Purpose

The purpose of this Act is to amend the Mineral Resources Development Act 1990 to make provision with respect to royalties for lignite (otherwise known as brown coal).

2.Commencement

This Act comes into operation on 1 January 2006.

3.Royalties

In section 12(1) of the Mineral Resources Development Act 1990, for "The holder" substitute "Subject to section 12A, the holder".

4.New section 12A inserted

After section 12 of the Mineral Resources Development Act 1990 insert—

'12A.Royalties for lignite

(1)This section applies to the holder of a mining licence if the holder mines lignite in accordance with the licence and has effect despite anything to the contrary specified in the licence or the regulations (other than regulations made for the purposes of sub-section (2)).

(2)The holder of the mining licence must pay royalties for the lignite in accordance with the prescribed rate.

(3)For the purposes of sub-section (2), the "prescribed rate" is—

(a)the base amount per gigajoule unit of lignite produced; or

(b)if a different rate is prescribed in the regulations, that rate.

(4)Without limiting sub-section (2), the holder of a mining licence must, unless the Minister decides otherwise, pay royalties in respect of the disposal under section 14(2)(b) of tailings resulting from work under a licence over Crown land in accordance with the rate or method of assessment and at the times prescribed.

(5)In this section—

"base amount" means—

(a)for the financial year ending on 30 June 2006, $0.0588; and

(b)for each subsequent financial year, the amount determined in accordance with the following formula—

where—

Ais the consumer price index number for the quarter ending on 30 June immediately preceding the financial year for which the determined amount is being calculated;

Bis the consumer price index number for the financial year ending on 30 June 2005;

"consumer price index number" means the all groups consumer price index number for Melbourne published by the Commonwealth Statistician in respect of the relevant period;

"gigajoule unit of lignite" means a quantity of lignite which, when mined, has a net wet specific energy content of 1 gigajoule.'.

5.Grant of licence

For section 26(2)(i) of the Mineral Resources Development Act 1990 substitute—

"(i)payment of royalties, other than royalties in respect of lignite;".

6.New section 132 inserted

After section 131 of the Mineral Resources Development Act 1990 insert—

"132.Transitional provision—2005 amendments

The amendments made to this Act by the Mineral Resources Development (Brown Coal Royalties) Act 2005 do not affect the rate at which royalties are payable in respect of any lignite produced before the commencement of that Act.".

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Endnotes

Minister's second reading speech—

Legislative Assembly: 5 October 2005

Legislative Council: 25 October 2005

The long title for the Bill for this Act was "to amend the Mineral Resources Development Act 1990 to make provision with respect to royalties for lignite and for other purposes."