South Australian Consolidated Acts South Australian Consolidated Acts (1) Subject to this
Act, royalty is payable to the Minister on all minerals recovered from
mineral land and—
(a) sold
or intended for sale; or
(b)
utilised, or to be utilised, for any commercial or industrial purpose.
(2) Royalty is not
payable on minerals recovered from mineral land that are removed from the area
of a mining 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—35 cents per tonne, or such lesser
amount as may be prescribed by the regulations, as assessed at the mine gate;
or
(b) in
the case of minerals other than extractive minerals—
(i)
in the case of declared mineral ores and
concentrates—5% of the value of the minerals, as assessed in accordance
with subsection (5) (the
"royalty assessment principles");
(ii)
in the case of declared refined mineral
products—3.5% of the value of the refined mineral products, as assessed
in accordance with the royalty assessment principles;
(iii)
in the case of declared industrial minerals or
construction materials—3.5% of the value of the minerals, as assessed in
accordance with the royalty assessment principles;
(iv)
in any other case—5% of the value of the minerals,
as assessed in accordance with the royalty assessment principles.
(5) For the purposes
of subsection (4)(b) (and any other relevant section), the value of
minerals will be the value (the "ex-mine gate value") that fairly represents
the market value (excluding GST) of the minerals at the time that the minerals
leave the area of—
(a)
unless paragraph (b) applies, the mining 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.
(6) Without limiting
any other relevant matter, the market value of particular minerals will be
determined according to—
(a) any
contract price obtained for the minerals if the sale is to a genuine purchaser
at arms length and taking into account the point of sale; or
(b) if
there is not a contract with a genuine purchaser at arms length as
contemplated by paragraph (a) in a particular case—
(i)
any price quoted or obtained on any market recognised by
the Minister (by notice published 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 in a particular
case—the price (if any) declared by the Minister by notice in the
Gazette as being an indicative price for the minerals; or
(c) if
neither paragraph (a) nor (b) applies in a particular case, any price
obtained by other parties within the industry in relation to similar sales on
the open market within a period determined by the Minister.
(7) For the purposes
of subsection (6)(a), "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) Any costs of a
prescribed kind are not to be included in the market value of particular
minerals at the gate of the relevant tenement.
(9) The Minister may,
under an agreement between the Minister 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 some other
basis, and royalty will be payable by the person in accordance with the
determination.
(10) The Minister may,
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 mining 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 holder of a
tenement from which minerals are recovered is liable to pay the royalty.
(13) For the purposes
of this section, the Minister may, 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 Minister.
Note—
For private mines see section 73E.