Northern Territory Numbered Acts Northern Territory Numbered Acts(1) The royalty amount for a mineral is the value of the mineral, minus any deduction allowed under section 16 for shipping costs for the mineral, multiplied by the royalty rate for the mineral as it existed on the royalty determination date.
Example for subsection (1)
Alumina is extracted but is not transferred while in the Territory in a genuine sale on arm's length terms and is not given further treatment. After leaving the Territory it is sold in a genuine sale on arm's length terms. The value under section 15 would be the sale price. The royalty rate is the rate applicable to the alumina as it existed on the day the mineral left the mining operation. The royalty rate would be 3.5%.
(2) No deduction greater than the value of the mineral is allowed in a royalty year.
A deduction under section 16 cannot be used to reduce the royalty amount to an amount less than zero.