Mining Amendment Regulations (No. 4) 2000 (WA)

2952 GOVERNMENT GAZETTE, WA 116 June 2000

Regulations (No. 4) 2000.

MN302*

Mining Act 1978

Mining Amendment Regulations (No. 4) 2000

Made by the Administrator in Executive Council.

1.            Citation

These regulations may be cited as the Mining Amendment

16 June 20001 GOVERNMENT GAZETTE, WA 2953

2.            Commencement

These regulations come into operation on 1 July 2000.

3.            The regulations amended

The amendments in these regulations are to the Mining
Regulations 1981*.

[* Reprinted as at 18 March 1996.

For amendments to 1 June 2000 see 1999 Index to

Legislation of Western Australia, Table 4, pp. 190-1, and

Gazette 21 January, 8 February and 14 April 2000.]

4.            Regulation 85 replaced by regulations 85 and 85AA

Regulation 85 is repealed and the following regulations are inserted instead -

"

85.          Interpretation of Division

(1) In this Division, unless the contrary intention

appears -

"concentrate" means the product of a process of

extraction of metal or a metallic mineral from
mineral ore that results in substantial enrichment

of the metal or metallic mineral concerned;

"nickel by-product" means a by-product or

co-product of nickel mining or processing;

"quarter" means any one of the 3 monthly periods of

any year ending on 31 March, 30 June,

30 September or 31 December;

"realised value", in relation to a mineral other than

gold, means -

(a)	if exported, the realised value of the mineral
f.o.b.; or
(b)	if not exported, the realised value of the mineral less any cost incurred by the person liable to pay the royalty in transporting the mineral, in the form in which it was sold, to the purchaser;

"related corporation" means a corporation that is,

under section 50 of the Corporations Law, said to

be related for the purposes of that Law.

(2) In this Division a reference to a mineral includes a

reference to a material containing that mineral.

85AA. Effect of GST etc. on royalties

(1) For the purposes of this Division, a reference to a

realised value, or a price, of a mineral is to be treated as a reference to that value or price, reduced by an amount

2954 GOVERNMENT GAZETTE, WA [16 June 2000

equal to the net GST (if any) payable on the supply to

which the value or price relates.

(2) For the purposes of this Division, a reference to the

value of a mineral at a particular point in its production
(other than its supply), or in a particular form, is to be
treated as a reference to that value, reduced by an
amount equal to the amount of GST that would be
payable if the mineral were supplied at that point, or in

that form.

(3) If, when determining a value or price of a mineral (for

the purposes of this Division), an amount (an
"expense") that relates to obtaining that mineral may
be deducted from another amount, the amount that may
be deducted is reduced by an amount equal to the net
input tax credit (if any) that arises in relation to the

expense.

(4) The "net input tax credit" that arises in relation to an

expense is -

(a)	the input tax credit that arises in relation to that expense; plus
(b)	the sum of any decreasing adjustments in relation to that expense; minus
(c)	the sum of any increasing adjustments in relation to that expense.

(5) In this regulation, "decreasing adjustment", "GST",
"increasing adjustment", "input tax credit", "net
GST" and "supply" have the respective meanings
given by section 195-1 of the A New Tax System
(Goods and Services Tax) Act 1999 of the
Commonwealth.

5.            Regulation 86 amended

The Table to regulation 86 is amended as follows:

(a) in the item relating to coal, in column 3 -

(1) by deleting "1981;" and inserting instead -

" 1981. ";

(ii) by deleting the passage beginning "except that

the rate for coal" and ending "under this

formula.";

(b) in the item relating to cobalt -

(i)     in column 2, by deleting "2Y2%";

(ii)     in column 3, by inserting -

The rate is -

(a) if sold as a concentrate, 5% of the realised value;

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(b)	if sold in metallic form, 2Y2% of the realised value; or
(c)	if sold as a nickel by-product -

(i) in the period beginning on 1 July 2000

and ending on 30 June 2005 -

(I)	2Y2% of the realised value; or
(II)	if an election is made under regulation 86AB(2), the rate calculated in accordance with
the formula set out in subparagraph (ii);

(ii) after 30 June 2005, the rate calculated in accordance with the following formula -

U 2.5

P x x— = $R per tonne 100 100

Where -

P = the gross cobalt metal price per

tonne f.o.b. or its computed
equivalent used for the purpose of
calculating the actual sale price of
cobalt metal in the nickel
by-product (under usual conditions

of sale, without special discounts);

U = the number of units per hundred of

cobalt metal in the nickel

by-product sold;

R = the royalty.

(c) in the item relating to copper -

(1) in column 2, by deleting "5%";

(ii) in column 3, by inserting -

IE

The rate is -

(a)	if sold as a concentrate, 5% of the realised value;
(b)	if sold in metallic form, 2Y2% of the realised
value; or
(c)	if sold as a nickel by-product after 30 June 2005, the rate calculated in accordance with the following formula -

U 2.5

P x x— = $R per tonne

100 100

Where -

P = the gross copper metal price per

tonne f.o.b. or its computed
equivalent used for the purpose of
calculating the actual sale price of
copper metal in the nickel
by-product (under usual conditions

of sale, without special discounts);

U = the number of units per hundred of

copper metal in the nickel

by-product sold;

R = the royalty.

2956 GOVERNMENT GAZETTE, WA [16 June 2000

(d) in the item relating to lead -

(i)      in column 2, by deleting "5%";

(ii)     in column 3, by inserting -

The rate is -

(a)	if sold as a concentrate, 5% of the realised value; or
(b)	if sold in metallic form, 2Y2% of the realised value.

(e) in the item relating to zinc -

(i)      in column 2, by deleting "5%";

(ii)     in column 3, by inserting -

The rate is

(a)	if sold as a concentrate, 5% of the realised value; or
(b)	if sold in metallic form, 2Y2% of the realised value.

6. Regulation 86AB inserted
After Regulation 86AA the following regulation is inserted

86AB. Optional royalty rate for cobalt sold as a

nickel by-product

(1) In this regulation -

"optional royalty period" means the period beginning
on 1 July 2000 and ending on 30 June 2005;

"optional royalty rate" means the rate of royalty

calculated in accordance with the formula set Out

in paragraph (c)(ii) of the item relating to cobalt in

column 3 of the Table to regulation 86.

(2) A person liable to pay royalties for cobalt during the

optional royalty period may elect, in writing, to pay the
optional royalty rate in respect of all cobalt sold as a

nickel by-product by that person.

(3) An election under subregulation (2) is to be made -

(a)	in the manner and form approved by the Director General of Mines; and
(b)	before the end of the first quarter in respect of which the optional royalty rate is to apply.

(4) An election under subregulation (2) cannot be revoked.

(5) Despite anything in regulation 86, if a person makes an

election under subregulation (2), no royalty is payable

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in respect of the first 300 tonnes of cobalt sold as a

nickel by-product by that person during —

(a)	the period beginning on the first day of the first quarter in respect of which the optional royalty rate applies and ending on the next 30 June; or
(b)	any subsequent financial year in the optional royalty period.

(6) If an election is made under subregulation (2) by 2 or

more persons who are —

(a) the holders of, or applicants for, the same

mining tenement; or

(b) related corporations,

then those persons are taken to be the same person for
the purposes of subregulation (5).

7.            Regulation 86A amended

Regulation 86A is amended as follows:

(a)	after paragraph (a) by deleting "or";
(b)	by deleting the full stop at the end of paragraph (b) and inserting instead a semicolon;
(c)	after paragraph (b) by inserting

or

(c) the quarter during which, in the case of nickel or a nickel by-product the royalty for which is not based on realised value, the mineral was

sold. 51

By Command of the Administrator,

M. C. WAUCHOPE, Clerk of the Executive Council.