Mineral Resources Regulations 2006 (TAS)

Mineral Resources Regulations 2006

I, the Governor in and over the State of Tasmania and its Dependencies in the Commonwealth of Australia, acting with the advice of the Executive Council, make the following regulations under the Mineral Resources Development Act 1995 .19 June 2006

W. J. E. COX

Governor

By His Excellency’s Command,

BRYAN GREEN

Minister for Economic Development and Resources

PART 1Preliminary1Short titleThese regulations may be cited as the Mineral Resources Regulations 2006 . 2CommencementThese regulations take effect on 28 June 2006. 3InterpretationIn these regulations – Act means the Mineral Resources Development Act 1995 ; AIFRS means the Australian International Financial Reporting Standards issued by the Australian Accounting Standards Board; amount received means the amount received from an arm’s length transaction based on a world price contract at the value of the Australian dollar at the time the amount was received, excluding any hedging gains or losses; building and dimension stone means stone used – (a) for ornamental purposes; or (b) in walls, floors or roofs of structures; or (c) as a paving stone; datum post means a post erected on the corner of land being marked out; gold dore means an alloy of gold and silver resulting from the treatment of gold-bearing minerals; GST has the same meaning as in the A New Tax System (Goods and Services Tax) Act 1999 of the Commonwealth; metal means a metallic mineral specified in Part 1 of Schedule 4 refined to an elemental state; mineral concentrate means the product of a chemical or physical process of extracting a metal or metallic mineral from a mineral ore that results in the enrichment of that metal or metallic mineral; mineral ore means the naturally occurring material from which one or more minerals of economic value can be extracted; net sales in relation to a mineral means the amount received from the sale of – (a) if a mineral concentrate has not been produced from the mineral, the mineral itself (less sale costs); or  (b) if a mineral concentrate has been produced from the mineral, the mineral concentrate (less sale costs); public notice means a notice published in a newspaper circulating in the area in which the land which is the subject of the notice is situated; quarter means – (a) a period of 3 months ending on 31 March, 30 June, 30 September or 31 December in any year; or (b) any other approved period; reference rate means the 30 Day Bank Bill Swap Reference Rate published daily by the Australian Financial Markets Association; sale costs means – (a) costs incurred by a lessee or licensee in transporting a mineral or mineral concentrate outside the site of production to the point of sale; and (b) costs incurred by a lessee or licensee in refining a mineral concentrate outside the site of its production; and (c) any other costs approved by the Minister; year means any 4 consecutive quarters used for accounting purposes. 4Application of ActFor the purpose of section 5(7) of the Act, the prescribed area of land is the area of land shown on Plans 3251 to 3260 (inclusive) in the Central Plan Register. PART 2Licences and Leases5Marking out (1)  A person is to mark out land in respect of an application for a lease by – (a) erecting on one of the corners of the land a post that – (i) is not less than 100 millimetres across each way; and (ii) projects not less than one metre from the ground; and (b) affixing to the post a legible and durable notice stating the following: (i) the purpose of the lease; (ii) any category or type of mineral to be covered by the lease; (iii) the area of the land; (iv) the position of the notice in relation to the land; (v) the date of the marking out; (vi) the name and address of the applicant for the lease; (vii) the name and address of the person marking out the land. (2)  Instead of erecting a new post for marking out, a person may use an existing tree or an existing post that – (a) is not less than 100 millimetres across each way; and (b) projects not less than one metre from the ground. (3)  An applicant for a lease is to lodge with the Registrar – (a) a notice, in an approved form, of the marking out; and (b) a plan, in duplicate, showing the position of the datum post and approximate boundaries of the land. (4)  A notice is to be lodged with the Registrar within – (a) 7 days after the marking out; or (b) 7 days after giving public notice of the application in accordance with any conditions the Director determines under section 72(4) of the Act; or (c) any further period the Registrar may allow. (5)  The area and boundaries of the land are to be calculated from the datum post. 6Prescribed areaFor the purpose of section 75(4) of the Act, the prescribed area of land is the area of land shown on Plan 3261 in the Central Plan Register. PART 3Royalty7Prescribed rates of royalty (1) For the purpose of section 102(1) of the Act, the prescribed rate of royalty payable by a lessee in respect of a mineral specified in Schedule 1 is the rate specified in that Schedule. (2) For the purpose of section 102(1A) of the Act, the prescribed rate of royalty payable by a licensee in respect of a mineral specified in Schedule 1 is the rate specified in that Schedule. (3)  For the purpose of sections 102(1) and (1A) of the Act, the prescribed rate of royalty payable by a lessee or a licensee in respect of a mineral not specified in Schedule 1 is that produced by: where – R is the royalty; N is the yearly net sales of the mineral for the immediately preceding year; P is the yearly profit as defined in regulation 8 , if any, for the immediately preceding year. (4) For the purpose of section 102(1C) of the Act, the prescribed maximum rate of royalty payable for a mineral not specified in Schedule 1 is equivalent to 5% of net sales. (5)  If the value of the net sales of a mineral not specified in Schedule 1 is less than $100 000 for a year, the prescribed rate of royalty is 1.6% of net sales. (6)  If the value of the net sales of a mineral not specified in Schedule 1 is at least $100 000 and less than $600 000 for a year – (a) net sales royalty is to be assessed and paid on a quarterly basis; and (b) profit royalty is to be assessed and paid on an annual basis. (7)  For the purpose of subregulation (6)  – net sales royalty means the component of the formula in subregulation (3) represented by: profit royalty means the component of the formula in subregulation (3) represented by: 8Meaning of "yearly profit" (1)  For the purpose of regulation 7(3) , yearly profit is the prescribed yearly profit for the lessee’s or licensee’s mine from which the mineral referred to in that subregulation is obtained, adjusted – (a) to exclude – (i) interest; and (ii) hedging gains and losses; and (iii) exploration expenditure; and (iv) financing costs; and (b) to include – (i) delineation drilling costs; and (ii) head office expenses; and (iii) mine rehabilitation interest expense. (2)  In this regulation – delineation drilling costs means the lessee’s or licensee’s costs of drilling for specified resources in the lease area or licence area and the costs of developing access routes for such drilling; exploration expenditure means non-capitalised expenditure incurred by the lessee or licensee in prospecting or searching for minerals – (a) inside or outside the lease area or licence area; and (b) outside an area of specified resources; head office expenses means the approved costs incurred by the lessee or licensee in the administration and management of the mine referred to in subregulation (1) from that lessee’s or licensee’s head office, whether located in the State, in Australia or overseas, in so far as those costs – (a) relate to the mining and sale of minerals from that mine; and (b) have not already been included in the calculation of the lessee’s or licensee’s yearly profit for that mine; and (c) do not include interest, financing costs, hedging gains or losses or exploration expenditure; JORC Code means the code for reporting of mineral resources and ore reserves, published by the Australasian Joint Ore Reserves Committee, as updated from time to time; mine rehabilitation interest expense means the lessee’s or licensee’s interest expense associated with a discounted rehabilitation provision within the meaning of the AIFRS for the mine; prescribed yearly profit means the yearly earnings before interest and taxation as shown in an income statement prepared in accordance with the AIFRS; specified resources means – (a) measured or indicated resources; or (b) ore reserves – as defined in the JORC Code. 9Rebate on royalty payable (1) For the purpose of section 102A(2) of the Act, a rebate on royalty payable is 20% for a metal, other than gold dore, produced in Tasmania from a mineral mined in Tasmania. (2)  Subregulation (1) does not apply to the primary treatment of a mineral to produce a mineral concentrate for sale or transportation. (3) For the purpose of section 102A(2) of the Act, a rebate on royalty payable is 10% for gold dore produced in Tasmania from a mineral mined in Tasmania. (4)  The Minister, after consultation with the Treasurer, may increase a rebate under subregulation (3) to 20% having regard to the following: (a) the size of a new investment and additional employment arising from the production of gold dore; (b) any benefit to the Tasmanian economy from the new investment producing gold dore. 10Estimation of yearly profitFor the purpose of enabling royalty to be paid as required by regulation 11 , the Director may allow the holder of a mineral tenement to estimate yearly profit if – (a) the Director is satisfied that insufficient data is available to enable the holder to determine yearly profit; and (b) the holder supplies the Director within 30 days after the end of the holder’s financial year with – (i) a reconciled statement of accounts relating to the operation of the tenement; and (ii) the full balance of any royalty payable based upon that statement. 11Royalty payableFor the purpose of section 102(2)(b) of the Act, royalty is payable – (a) in respect of each quarter; and (b) by the 30th day after the end of that quarter. 12Payment by instalmentsIf the Director so determines, a lessee may pay royalty in respect of a mineral in instalments of any amount the Director determines, having regard to – (a) the net sales of that mineral in the quarter to which royalty is payable; and (b) any profit or loss in respect of that mineral for that quarter and any previous quarter or quarters of the year to which that quarter relates; and (c) the amount of any instalment of royalty paid in that year. 13Interest payableInterest on any royalty not paid by the due date is payable at twice the reference rate as published on the due date. 14Records (1)  The holder of a mineral tenement is to keep a record of the following: (a) the quantity of minerals obtained during mining under the mineral tenement; (b) the quantity of mineral products produced from the treatment of ores; (c) the quantity of mineral products sold; (d) the amount received from the sale of mineral products; (e) any details, calculations or information used to determine yearly profits. (2)  The holder of a mineral tenement is to retain a record kept under subregulation (1) in good condition for at least 7 years. (3)  The Director may require the holder of a mineral tenement to supply – (a) copies of all records kept under subregulation (1) ; and (b) any other information necessary to enable the amount of royalty payable by that person to be assessed. (4)  The Director, or any other person authorised in writing by the Director, may examine – (a) the records kept under subregulation (1) ; and (b) any information requested under subregulation (3)(b) . 15Production and sales report (1)  A lessee, irrespective of whether or not minerals have been produced or sold during a quarter, is to submit to the Director within 30 days after the end of each quarter a report containing details of the production and sales of minerals for that quarter. (2)  A licensee who has sold minerals during a quarter is to submit to the Director within 30 days after the end of each quarter a report containing details of the production and sales of minerals for that quarter. (3)  A report is to be in an approved form. 16Royalty return (1)  The holder of a mineral tenement required to pay royalty who has sold minerals during a quarter is to submit a royalty return to the Director within 30 days after the end of that quarter. (2)  A royalty return is to – (a) be in a form approved by the Minister; and (b) contain any details, calculations or information the Minister determines are appropriate. (3)  An approval under subregulation (2)(a) and a determination under subregulation (2)(b) may be made generally or for the purpose of a particular case. (4)  If a mineral not specified in Schedule 1 is sold at a price less than the market price, the Minister may determine the amount of yearly profit in respect of that mineral up to an amount not exceeding the amount of yearly profit that would have been likely if the mineral had been sold at the market price. 17Audit report (1)  The holder of a mineral tenement for a mineral not specified in Schedule 1 is, within 120 days after the end of the mineral tenement holder’s financial year, to submit to the Director – (a) a certificate from the mineral tenement holder’s auditor certifying that the income statement used as the basis to complete the mineral tenement holder’s royalty returns for that financial year has been prepared in accordance with the AIFRS; and (b) a copy of the mineral tenement holder’s annual financial statements for that financial year. (2)  In subregulation (1)  – financial statements means the financial statements for the mine from which a mineral referred to in the subregulation is obtained; income statement means the mineral tenement holder’s income statement for the mine from which a mineral referred to in the subregulation is obtained. PART 4Fees and Rent18Fees and rent (1)  The fees specified in Schedule 2 are payable in respect of licences, leases and other matters. (2)  The fees specified in Schedule 3 are payable in respect of rent for land over which licences and leases are granted. (3)  The fees specified in Schedule 3 are GST inclusive. 19Payment of rentThe holder of an exploration licence or a retention licence is to pay the rent in respect of the licence on or before the anniversary of the date on which the licence was issued. PART 5Miscellaneous20Prescribed mineralsThe minerals specified in Schedule 4 are prescribed as metallic minerals, industrial minerals, semi-precious stones and precious stones. Schedule 1Royalties

Regulation 7(1) and (2)

1.	Lease for petroleum, for each $100 of the gross value of petroleum at well head.	$12.00
2.	Lease for coal seam gas, for each $100 of the gross value of coal seam gas at well head.	$12.00
3.	Lease –
(a) clay –
a tonne	$1.20
a cubic metre	$2.40
(b) kaolin –
a tonne	$1.20
a cubic metre	$2.40
(c) dolomite for metallurgical and chemical use –
a tonne	$1.20
a cubic metre	$2.40
(d) dolomite for other uses –
a tonne	$0.60
a cubic metre	$1.20
(e) limestone for chemical and metallurgical use –
a tonne	$1.20
a cubic metre	$2.40
(f) limestone for other uses –
a tonne	$0.60
a cubic metre	$1.20
(g) silica for metallurgical use –
a tonne	$1.20 or 5% of sales value, whichever is the greater
a cubic metre	$2.40 or 5% of sales value, whichever is the greater
(h) silica for other uses (excluding silica flour) –
a tonne	$0.60
a cubic metre	$1.20
(i) sand –
a tonne	$0.60
a cubic metre	$1.20
(j) gravel –
a tonne	$0.60
a cubic metre	$1.20
(k) pebbles –
a tonne	$2.40
a cubic metre	$4.80
(l) building and dimension stone, a cubic metre	$5.00
(m) crushed and broken stone –
a tonne	$0.60
a cubic metre	$1.20
(n) magnesite for chemical and metallurgical use –
a tonne	$1.20 or 5% of sales value, whichever is the greater
a cubic metre	$2.40 or 5% of sales value, whichever is the greater
(o) magnesite for other uses –
a tonne	$0.60
a cubic metre	$1.20
(p) geothermal substance –	2.5% of the value of sale at the well head

Schedule 2Fees

Regulation 18(1)

PART 1Licences and leases

Item No.	Type of fee	Amount Fee units
1.	Applications for licences and leases
(a) exploration licence (petroleum, coal seam gas or geothermal substance)	1 200
(b) exploration licence (minerals other than petroleum, coal seam gas or geothermal substance)	600
(c) special exploration licence (petroleum, coal seam gas or geothermal substance)	2 400
(d) special exploration licence (minerals other than petroleum, coal seam gas or geothermal substance)	1 200
(e) retention licence (mineral other than coal or oil) a square kilometre	600
(f) mining lease	400
(g) prospecting licence	10
2.	Objections
(a) exploration licence	20
(b) special exploration licence	20
(c) retention licence	20
(d) mining lease	20
3.	Applications for extensions
(a) exploration licence (petroleum, coal seam gas or geothermal substance)	600
(b) exploration licence (minerals other than petroleum, coal seam gas or geothermal substance)	300
(c) retention licence	300
4.	Applications for exemptions from conditions
(a) exploration licence	100
(b) retention licence	100
(c) mining lease	100
5.	Transfers
(a) exploration licence	100
(b) retention licence	100
(c) application for retention licence	100
(d) mining lease (private land)	150
(e) mining lease (Crown land)	300
6.	Renewal of mining lease	300
7.	Surrender
(a) exploration licence	50
(b) retention licence	50
8.	Consolidation of exploration licences	100
9.	Sublease of mining lease	100

PART 2Miscellaneous

Item No.	Type of fee	Fee units
1.	Inspection of register kept by Mining Tribunal	5
2.	Approval of instrument of legal or equitable interest in mineral tenement	100
3.	Lodgment of caveat	50
4.	Inspection of register kept by Registrar	5
5.	Collection of royalty on behalf of private owners	5% of royalty

Schedule 3Rent

Regulation 18(2) and (3)

Item No.	Type of fee	Amount Fee units
1.	Exploration licence (petroleum, coal seam gas or geothermal substance) –
(a) each of first 2 periods of 12 months, a square kilometre	1.1
(b) each subsequent period of 12 months, a square kilometre	1.65
2.	Exploration licence (minerals other than petroleum, coal seam gas or geothermal substance) –
(a) each of first 2 periods of 12 months, a square kilometre	16.5
(b) each subsequent period of 12 months, a square kilometre	33
3.	Retention licence –
(a) coal, petroleum, coal seam gas or geothermal substance, a square kilometre for each period of 12 months	550
(b) minerals other than coal, petroleum, coal seam gas or geothermal substance, a square kilometre for each period of 12 months	1 100
4.	Mining lease, a hectare for each calendar year –
(a) paid on or before 30 September	13.75 with minimum 275
(b) paid on or after 1 October	16.5 with minimum 330

Schedule 4Prescribed minerals

Regulation 20

PART 1Metallic minerals

1.	aluminium
2.	antimony
3.	arsenic
4.	beryllium
5.	bismuth
6.	cadmium
7.	cesium
8.	cobalt
9.	copper
10.	gallium
11.	germanium
12.	gold
13.	hafnium
14.	indium
15.	iridium
16.	iron
17.	lead
18.	lithium
19.	magnesium
20.	manganese
21.	mercury
22.	molybdenum
23.	monazite
24.	nickel
25.	niobium
26.	osmium
27.	palladium
28.	platinoid minerals
29.	platinum
30.	rare earth metals
31.	rhobium
32.	rubidium
33.	ruthenium
34.	selenium
35.	silver
36.	tantalum
37.	tellurium
38.	tin
39.	titanium
40.	tungsten (including scheelite and wolframite)
41.	vanadium
42.	zinc
43.	zirconium
44.	ores of any of the above minerals

PART 2Industrial Minerals

1.	alum
2.	alunite
3.	apatite
4.	asbestos
5.	attapulgite
6.	barite
7.	bentonite
8.	beryl
9.	borates
10.	calcite
11.	chromite
12.	corundum (for industrial use)
13.	diamond
14.	diatomaceous earth
15.	dolomite for metallurgical use
16.	feldspar
17.	fluorite
18.	garnet
19.	graphite
20.	gypsum
21.	halite (including solar salt)
22.	halloysite
23.	ilmenite
24.	iron oxide (used as a mineral for industrial purposes)
25.	kaolinite
26.	leucoxene
27.	limestone
28.	magnesite (used as a mineral for industrial purposes)
29.	magnetite (used as a mineral for industrial purposes)
30.	marble
31.	mica
32.	mineral pigments
33.	monazite
34.	montmorillonite
35.	olivine
36.	perlite
37.	phosphates
38.	pyrophyllite
39.	quartz
40.	rare earth minerals
41.	rutile
42.	silica
43.	sulfur
44.	syenite
45.	talc
46.	vermiculite
47.	wollastonite
48.	zeolites
49.	zircon

PART 3Semi-precious stones

1.	agate
2.	beryl
3.	chalcedony
4.	chrysoberyl
5.	crocoite
6.	crystal
7.	petrified wood
8.	quartz
9.	stichtite
10.	topaz
11.	tourmaline
12.	turquoise
13.	zircon (as a gemstone)

PART 4Precious stones

1.	corundum (as a gemstone including ruby and sapphire)
2.	diamond
3.	peridot

Displayed and numbered in accordance with the Rules Publication Act 1953.

Notified in the Gazette on 28 June 2006

These regulations are administered in the Department of Infrastructure, Energy and Resources.

EXPLANATORY NOTE

(This note is not part of the regulation) These regulations –

(a) provide for various matters under the Mineral Resources Development Act 1995 including the marking out of land and the payment of royalties, fees and rents; and (b) are made consequentially on the repeal of the Mineral Resources Regulations 1996 under section 11 of the Subordinate Legislation Act 1992 .