South Australian Current Acts South Australian Current Acts (1) Subject to this
Act, royalty is payable to the Crown on all minerals recovered from
mineral land.
(1a) Royalty is not
payable on extractive minerals recovered from mineral land—
(a)
where the terms and conditions of the mineral tenement—
(i)
make specific provision for the management and use of the
extractive minerals as extractive minerals produced during the course of
carrying out authorised operations under the tenement; and
(ii)
make specific provision for the exemption of the
extractive minerals from the payment of royalty; or
(b) by
the owner of the land under section 75(2).
(2) Royalty is not
payable on minerals recovered from mineral land that are removed from the area
of a mineral tenement for the purpose of any testing of a kind approved by the
Minister.
(3) Royalty is only
payable on precious stones if the precious stones are recovered under this
Act.
(4) Subject to this or
any other relevant section, royalty will be equivalent to—
(a) in
the case of extractive minerals—55 cents per tonne, or such lesser
amount as may be prescribed by the regulations; or
(b) in
the case of minerals other than extractive minerals—
(i)
if the minerals are declared mineral ores or
concentrates—5% of the value of the minerals, as assessed in accordance
with this section;
(ii)
if the minerals are declared refined mineral
products—3.5% of the value of the refined mineral products, as assessed
in accordance with this section;
(iii)
if the minerals are declared industrial minerals or
construction materials—3.5% of the value of the minerals, as assessed in
accordance with this section;
(iv)
in any other case—5% of the value of the minerals,
as assessed in accordance with this section.
(5) If minerals are
sold pursuant to a contract with a genuine purchaser at arms length, the
market value (excluding GST) of the minerals, for the purposes of determining
royalty, will be the contract price obtained for the minerals on the day that
ownership of the minerals is transferred to the purchaser.
(6) If
subsection (5) does not apply to the sale of minerals because there is no
contract with a genuine purchaser at arms length, the following provisions
apply:
(a) the
value of the minerals for the purposes of determining royalty will be the
value that represents the market value (excluding GST) of the minerals on the
day on which—
(i)
the minerals—
(A) leave the mineral tenement from which
the minerals were recovered; or
(B) are used on the tenement; or
(ii)
if the minerals have been transported to mineral land the
subject of a miscellaneous purposes licence—the minerals leave that
mineral land or are used on that mineral land,
whichever occurs later;
(b) the
market value of the minerals will be determined according to—
(i)
any price quoted or obtained on a market recognised by
the Treasurer, after consultation with the Minister, by notice in the Gazette
as being a relevant industry market for the purposes of determining the market
value of minerals of that kind; or
(ii)
if subparagraph (i) does not apply—
(A) the price (if any) declared by the
Treasurer, after consultation with the Minister, by notice in the Gazette as
being an indicative price for the minerals; or
(B) the method (if any) declared by the
Treasurer, after consultation with the Minister, by notice in the Gazette that
is to be used for determining an indicative price for the minerals; or
(iii)
if subparagraphs (i) and (ii) do not apply—
(A) any price obtained in relation to sales
of minerals of the same kind where those sales were to genuine purchasers at
arms length within the same period for which a return is required to be
furnished under section 17CA; or
(B) if no relevant transactions have
occurred in that period—any price obtained by other parties within the
industry in relation to sales of minerals of the same kind on the open market
within the same period for which a return is required to be furnished under
section 17CA; or
(iv)
if subparagraphs (i), (ii) and (iii) do not
apply—the tenement holder's estimate of the reasonable value of the
minerals (to be determined in accordance with any requirements, and
accompanied by any information, prescribed by the regulations).
(7) For the purposes
of subsection (5), "contract price" means—
(a) the
amount to be paid under the contract; plus
(b) the
value of any consideration, set-off, concession or other factor otherwise
taken into account by the parties to the contract in determining the amount to
be paid under the contract.
(8) Costs of a
prescribed kind incurred before minerals leave—
(a) the
mineral tenement from which the minerals were recovered; or
(b) if
the minerals have been transported to mineral land, the subject of a
miscellaneous purposes licence—that mineral land,
are not to be included for the purposes of determining the market value of
those minerals.
(8a) Costs of a
prescribed kind incurred after minerals leave—
(a) the
mineral tenement from which the minerals were recovered; or
(b) if
the minerals have been transported to mineral land, the subject of a
miscellaneous purposes licence—that mineral land,
are not to be included for the purposes of determining the market value of
those minerals.
(9) The Treasurer may,
after consultation with the Minister and under an agreement between the
Treasurer and the person liable to pay royalty on any minerals other than
extractive minerals, determine that royalty will be payable according to the
weight or volume of minerals recovered or will be payable at some other price
or according to some other method, and royalty will be payable by the person
in accordance with the determination.
(10) The Treasurer
may, after consultation with the Minister and on the application of a person
liable to pay royalty under this section, having regard to the effect that
payment of such royalty would be likely to have on the viability or
profitability of authorised operations carried on by the person, waive payment
of royalty wholly or in part, or reduce the rate at which royalty is payable,
on minerals recovered in the course of those operations.
(11) Royalty may be
recovered by the Crown as a debt due to the Crown in any court of competent
jurisdiction.
(12) The
tenement holder for the tenement from which minerals are recovered is liable
to pay the royalty.
(13) For the purposes
of this section, the Treasurer may, after consultation with the Minister, from
time to time—
(i)
declare specified types of mineral ores or concentrates
to be declared mineral ores and concentrates; and
(ii)
declare specified types of refined mineral products to be
declared refined mineral products; and
(iii)
declare specified types of minerals to be declared
industrial minerals or construction materials; and
(b) by
subsequent notice in the Gazette, vary or revoke a declaration under
paragraph (a).
(14) A notice under
subsection (13) will have effect from a date specified in the notice by
the Treasurer.