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Mines (Aluminium Agreement) (Brown Coal
Royalties) Bill
Introduction Print
EXPLANATORY MEMORANDUM
General
The Bill amends the Mines (Aluminium Agreement) Act 1961 (the Act) to
make provision for royalties for lignite (otherwise known as brown coal).
Preamble
The preamble to the Bill sets out the background to the Act and the reasons
why the Act is now being amended. A preamble is required because this Bill
is amending a private Act, which ratifies an Agreement between Alcoa and
the State of Victoria.
Clause Notes
Clause 1 sets out the main purpose of the Bill, which is to specify a new
rate for royalties for lignite taken by Alcoa.
Clause 2 provides that the Bill will come into operation on a day to be
proclaimed. Alcoa and the State of Victoria, as the parties to the
Agreement, will agree the commencement date for this
legislation. Because the Bill affects the operation of the
Agreement it is not possible at this time to determine a
commencement date.
Clause 3 inserts two new sections into the Act, sections 11 and 12, that
introduce new arrangements for the calculation and setting of
coal royalties for Alcoa.
New section 11 states that Alcoa is required to pay royalties for
lignite in accordance with the prescribed rate. This section will
apply despite anything to the contrary in the Act or the
Agreement or any other Act.
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551384 BILL LA INTRODUCTION 4/10/2005
The prescribed rate is defined in new section 11 as having the
same meaning as in section 12A(3) of the Mineral Resources
Development Act 1990. The effect of this amendment is to
apply the method for calculating royalties for lignite under the
Mineral Resources Development Act 1990 to Alcoa.
New section 12 states that the amendments made by this Bill will
not apply to the rate at which royalties are paid for any lignite
produced before the commencement of the Bill. This transitional
provision ensures that there can be no retrospective application of
the rate to lignite produced before the commencement of the Bill
for which payment falls due following the commencement of the
Bill.
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