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MINING ACT 1971 - SECT 56M

56M—Rental

        (1)         This section applies in relation to—

            (a)         a mining lease; and

            (b)         a retention lease; and

            (c)         a miscellaneous purposes licence.

        (2)         A mineral tenement to which this section applies must provide for the payment, by way of rental, of such sum as may be prescribed by the regulations (and different sums may be prescribed according to different classes of tenement).

        (3)         Subject to this section, the amount by way of rental is payable to the Minister.

        (4)         If a mineral tenement to which this section applies is granted over land consisting of, or including, land subject to an estate in fee simple (with the interest of any registered proprietor of such an estate being referred to as a "relevant interest ) then, except to the extent that subsection (5) applies, the amount paid to the Minister under this section in relation to the tenement must, after deduction of 5% (with the net amount remaining after the 5% deduction being referred to as the "net amount available for distribution ) be dealt with in accordance with the following principles:

            (a)         the proportionate entitlement of each holder of a relevant interest in the land must be worked out by determining what proportion of the total area of the land subject to the tenement is represented by land in relation to which a relevant interest exists (with an appropriate allocation between entitlements if there is more than 1 registered proprietor in relation to any particular piece of land);

            (b)         a proportion of the net amount available for distribution, equivalent to the registered proprietor's proportionate entitlement, must be paid to each holder of a relevant interest in land subject to the tenement;

            (c)         if a balance remains after distribution under paragraph (b), the balance is to be retained by the Minister.

        (5)         Despite subsection (4), if a tenement holder or any related body corporate is also a registered proprietor of an estate in fee simple of land, the scheme under subsection (4) will not apply in relation to the holder.

        (6)         If a mineral tenement to which this section applies is granted over land consisting of, or including, land subject to native title conferring a right to exclusive possession of the land (with the interest of any holder of such native title being referred to as a "relevant interest") then the amount paid to the Minister under this section in relation to the tenement must, after deduction of 5% (with the net amount remaining after the 5% deduction being referred to as the "net amount available for distribution") be dealt with in accordance with the following principles:

            (a)         the proportionate entitlement of each holder of a relevant interest in the land must be worked out by determining what proportion of the total area of the land subject to the tenement is represented by land in relation to which a relevant interest exists (with an appropriate allocation between entitlements if there is more than 1 holder of native title in relation to any particular piece of land);

            (b)         a proportion of the net amount available for distribution, equivalent to each person's proportionate entitlement, must be paid to each holder of a relevant interest in land subject to the tenement;

            (c)         if a balance remains after distribution under paragraph (b), the balance is to be retained by the Minister.

        (7)         In addition, if—

            (a)         the Minister retains an amount paid by way of rental in relation to any land that is not subject to the operation of subsection (4) or (6); and

            (b)         a valid claim for native title conferring a right to exclusive possession is subsequently made in relation to the land,

then any such amount that is attributable to rental paid to the Minister in relation to the prescribed period is, after deduction of 5%, payable to the person or persons to whom native title is granted (and if there is more than 1 such person then their respective shares will be determined by applying the principles set out in subsection (6)).

        (8)         For the purposes of subsection (7), the "prescribed period" is the period of 5 years immediately preceding the registration of native title under the law of the State or the Commonwealth (as the case may be).

        (9)         Subsections (4) to (8) do not apply in relation to land owned by—

            (a)         a Minister; or

            (b)         the Commissioner for Highways; or

            (c)         any other agency or instrumentality of the Crown prescribed by the regulations.

        (10)         An amount paid to the holder of a relevant interest in land under this section will not be taken to be compensation for the purposes of any other section.



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