Mining Amendment Regulations (No. 4) 2014 (WA)

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28 November 2014 GOVERNMENT GAZETTE, WA 4415
MP301*

Mining Act 1978

Mining Amendment Regulations (No. 4) 2014
Made by the Governor in Executive Council.
1. Citation

These regulations are the Mining Amendment Regulations
(No. 4) 2014.
2. Commencement
These regulations come into operation as follows —

(a)

regulations 1 and 2— on the day on which these regulations are published in the Gazette;
(b) the rest of the regulations — on the day after that day.

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GOVERNMENT GAZETTE, WA

28 November 2014

3. Regulations amended
These regulations amend the 34ining Regulations 1981.
4. Regulation 85 amended

(1) In regulation 85(1) delete the definition of royalty value.
(2) In regulation 85(1) insert in alphabetical order:
royalty value, in relation to -

(a)

a mineral other than gold or iron ore, means the gross invoice value of the mineral less any allowable deductions for the mineral; or

(b)

gold, means the royalty value of gold metal produced calculated in accordance with regulation 86AA(7); or

(c)

iron ore, has the meaning given in regulation 86AD(2);
shipping costs has the meaning given in
regulation 86AD( 1);

5. Regulation 85B amended
In regulation 85B(1):

(a) in paragraph (c) delete "value" (2 nd occurrence) and insert:
value,

(b)

delete paragraph (d) and insert: (d) the gross invoice value of the mineral and when

it was paid;

(daa) any allowable deductions for the mineral; (dab) in the case of iron ore, any shipping costs;

6. Regulation 86 amended
In regulation 86 in the Table in the item for Iron Ore (including magnetite):
(a) delete:

fine ore (iron ore, The rate is -
excluding

beneficiated ore, (a) if the shipment date is before
that will pass 1 July 2012— 5.625% of the
through a 6 mm royalty value;

mesh screen)

(b)

if the shipment date is on or after 1 July 2012 and before 1 July 2013— 6.5% of the royalty value;

28 November 2() 14 GOVERNMENT GAZETTE, WA 4417

(c)

if the shipment date is on or after 1 July 2013— 7.5% of the royalty value.

(b) delete "lump ore (iron ore, excluding beneficiated ore, that will not pass through

a 6 mm mesh screen) and insert.
iron ore other than beneficiated ore

7. Regulation 86AD inserted
After regulation 86AC insert:
86AD. Royalty value of iron ore
(1) In this regulation -
grade, of iron ore, means the iron content of the ore
expressed as the percentage of iron per dry metric
tonne of ore;
Platts freight rate means -

(a) the freight rate for capesize vessels on the Australia route published in the Platts index on the day the iron ore for which royalty is payable is first sold; or
(b) if there is no freight rate as described in paragraph (a), the freight rate for capesize vessels on the Australia route last published in the Platts index before the day referred to in that paragraph;
Platts index means the table headed "Platts Daily Iron Ore Price Assessments" set Out in the publication titled "SBB Steel Markets Daily" published by Plans (a

division of McGraw Hill Financial);
Platts midpoint price means -

(a) the daily iron ore midpoint price published in the Plans index on the day the iron ore for which royalty is payable is first sold; or
(b) if there is no daily iron ore midpoint price as described in paragraph (a), the daily iron ore midpoint price last published in the Plans index
before the day referred to in that paragraph;

shipping costs, for iron ore, means the amount, in Australian currency, of any of the following costs reasonably incurred after the shipment date by the person liable to pay the royalty for the ore in relation to
shipping the ore -
(a) freight costs adjusted for the following -
(i) address commission;

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28 November 2014

(ii) despatch or demurrage at the port of
discharge;
(b) dead freight costs;

(c) marine and cargo insurance costs;
(d) bunkerage costs.

(2) The royalty value of iron ore is -

(a)

if the first sale of the ore is effected by delivery onto or from a ship exporting the ore from Australia (as evidenced by a bill of lading) - the gross invoice value of the ore less shipping costs for the ore; or

(b)

in any other case - the reference amount for the ore.

(3) The reference amount for iron ore is -

(a) the amount, in Australian currency, obtained by multiplying the quantity (in dry metric tonnes) of the ore in the form in which it is first sold (as set Out in invoices relating to the sale) by the index price for the ore; less
(b) the amount, in Australian currency, obtained by multiplying the quantity (in wet metric tonnes) of the ore in the form in which it is first sold (as
set Out in invoices relating to the sale) by the
index freight component for the ore.

(4) For the purposes of subregulation (3)(a), but subject to subregulations (5) and (6), the index price for iron ore (the royalty ore) is -

(a)

the Platts midpoint price for iron ore of the same grade as the royalty ore; or
(b) if there is no Platts midpoint price for iron ore

of the same grade as the royalty ore - the price
calculated in accordance with the following
formula —
IP = MP x --
RG
where -
IP is the index price;
MP is the Platts midpoint price for iron ore of the closest grade (the reference grade) to the grade of the royalty ore;

G is the percentage number of the grade of
the royalty ore;
RG is the percentage number of the reference
grade.

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(5) If the grade of the royalty ore, or the closest grade to
the grade of the royalty ore, is 58%, the Platts midpoint
price is the Platts midpoint price described as "58% Fe
low Al CFR North China".
(6) If the grade of the royalty ore is halfway between
2 grades of iron ore listed in the Platts index, the lower
of the 2 grades is to be taken to be the closest grade to
the grade of the royalty ore.
(7) For the purposes of subregulation (3)(b), the index
freight component for iron ore is the Platts freight rate
multiplied by 2.
8. Regulation 86A amended

(1) After regulation 86A(5B) insert:
(SC) In the case of iron ore -

(a)

if the royalty value of the ore is as described in regulation 86AD(2)(a) - royalties are, subject to subregulation (6), to be paid within 30 days after the end of the quarter during which the
gross invoice value of the ore (or any part of
that value) was paid by the purchaser of the ore;
or

(b)

if the royalty value of the ore is as described in regulation 86AD(2)(b) - royalties are to be paid within 30 days after the end of the quarter during which the ore was sold.

(2) In regulation 86A(5) delete "a mineral" and insert:

a mineral, other than gold or iron ore,

(3) Delete regulation 86A(6) and insert:
(6) In the case of a mineral, other than gold or iron ore to
which subregulation (5C)(b) applies, the royalty for
which is based on royalty value, royalties may be paid
in part-payments in accordance with subregulation (7)
if the gross invoice value of the mineral is paid in
part-payments.

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28 November 2014

(4) In regulation 86A(8) delete "value or allowable deductions" and
insert:
value, allowable deductions or, in the case of iron ore, shipping
costs
9. Regulation 87 amended
In regulation 87(1)(b) after "allowable deductions" insert:
or, in the case of iron ore, the shipping costs
R. KENNEDY, Clerk of the Executive Council.

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(a)	regulations 1 and 2— on the day on which these regulations are published in the Gazette;
(b)	the rest of the regulations — on the day after that day.

(1)	In regulation 85(1) delete the definition of royalty value.
(2)	In regulation 85(1) insert in alphabetical order:

(a)	a mineral other than gold or iron ore, means the gross invoice value of the mineral less any allowable deductions for the mineral; or
(b)	gold, means the royalty value of gold metal produced calculated in accordance with regulation 86AA(7); or
(c)	iron ore, has the meaning given in regulation 86AD(2);

beneficiated ore,	(a)	if the shipment date is before
that will pass	1 July 2012— 5.625% of the
through a 6 mm	royalty value;
mesh screen)	(b)	if the shipment date is on or after 1 July 2012 and before 1 July 2013— 6.5% of the royalty value;

(a)	the freight rate for capesize vessels on the Australia route published in the Platts index on the day the iron ore for which royalty is payable is first sold; or
(b)	if there is no freight rate as described in paragraph (a), the freight rate for capesize vessels on the Australia route last published in the Platts index before the day referred to in that paragraph;

division of McGraw Hill Financial);
*Platts midpoint price* means -
(a)	the daily iron ore midpoint price published in the Plans index on the day the iron ore for which royalty is payable is first sold; or
(b)	if there is no daily iron ore midpoint price as described in paragraph (a), the daily iron ore midpoint price last published in the Plans index

(a)	if the first sale of the ore is effected by delivery onto or from a ship exporting the ore from Australia (as evidenced by a bill of lading) - the gross invoice value of the ore less shipping costs for the ore; or
(b)	in any other case - the reference amount for the ore.

(a)	the amount, in Australian currency, obtained by multiplying the quantity (in dry metric tonnes) of the ore in the form in which it is first sold (as set Out in invoices relating to the sale) by the index price for the ore; less
(b)	the amount, in Australian currency, obtained by multiplying the quantity (in wet metric tonnes) of the ore in the form in which it is first sold (as
set Out in invoices relating to the sale) by the index freight component for the ore.

(a)	the Platts midpoint price for iron ore of the same grade as the royalty ore; or
(b)	if there is no Platts midpoint price for iron ore

(5)	If the grade of the royalty ore, or the closest grade to the grade of the royalty ore, is 58%, the Platts midpoint price is the Platts midpoint price described as "58% Fe low Al CFR North China".
(6)	If the grade of the royalty ore is halfway between 2 grades of iron ore listed in the Platts index, the lower of the 2 grades is to be taken to be the closest grade to the grade of the royalty ore.
(7)	For the purposes of subregulation (3)(b), the index freight component for iron ore is the Platts freight rate multiplied by 2.

(a)	if the royalty value of the ore is as described in regulation 86AD(2)(a) - royalties are, subject to subregulation (6), to be paid within 30 days after the end of the quarter during which the
gross invoice value of the ore (or any part of that value) was paid by the purchaser of the ore; or
(b)	if the royalty value of the ore is as described in regulation 86AD(2)(b) - royalties are to be paid within 30 days after the end of the quarter during which the ore was sold.