MINING REGULATIONS 1981

Western Australian Consolidated Regulations

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MINING REGULATIONS 1981 - REG 86

86 . Rates of royalty

(1) When any of the minerals prescribed in this regulation are obtained from a mining tenement, or from land the subject of an application for a mining tenement, royalties shall be paid by the holder of, or applicant for, the mining tenement.

(2) The rate of royalty payable for a mineral referred to in the Table to this regulation is as set out opposite the mineral in column 1, 2 or 3 of that Table, unless otherwise provided in these regulations.

(2a) In the Table to this regulation —

Amount A means —

(a) for the year 1 July 2005 to 30 June 2006, 34 cents;

(b) for the year 1 July 2006 to 30 June 2007, 38 cents;

(d) for the year 1 July 2008 to 30 June 2009, 46 cents;

(e) for the year 1 July 2009 to 30 June 2010, 50 cents;

(f) for the 5 year period beginning on 1 July 2010 and ending on 30 June 2015 and for each succeeding 5 year period (the relevant period ), the amount calculated under subregulation (2b) or provided for in subregulation (2d), as the case requires;

Amount B means —

(a) for the year 1 July 2005 to 30 June 2006, 56 cents;

(b) for the year 1 July 2006 to 30 June 2007, 62 cents;

(d) for the year 1 July 2008 to 30 June 2009, 74 cents;

(e) for the year 1 July 2009 to 30 June 2010, 80 cents;

(2b) Subject to subregulations (2c) and (2d), the amount for the relevant period is the amount calculated using the formula —

where —

R is the amount;

C is —

(a) for the purposes of Amount A, 50 cents;

(b) for the purposes of Amount B, 80 cents;

PPI is the Non‑Metallic Mineral Products Price Index number, for the quarter ending on the last 31 March before the beginning of the relevant period, published by the Australian Bureau of Statistics in Catalogue 6427.0 Producer Price Indexes, Australia.

(2c) If the calculation provided for in subregulation (2b) does not result in an amount of whole cents the amount is to be rounded down to the nearest whole cent and the rounded amount is to be regarded as the amount calculated under that subregulation.

(2d) If the amount calculated under subregulation (2b) is less than the amount that applied immediately before the beginning of the relevant period (the existing amount ), the amount for the relevant period is the existing amount.

(3) This regulation does not apply to diamond obtained from the Ellendale mining lease as defined in the Mining (Ellendale Diamond Royalties) Regulations 2002 .

Table

Column 1

Column 2

Column 3

Mineral

Amount per
tonne according
to quantity
produced or
obtained

Percentage of
the royalty
value

The rate as
specified hereunder

Aggregate

Amount A

Attapulgite

5%

Bauxite

7½%

Building Stone

Amount B

Chromite

5%

Clays

Amount A

Coal
(including lignite)
— not exported

$1 per tonne, to be adjusted each year at 30 June in accordance with the percentage increase in the average ex‑mine value of Collie coal for the year ending on that date when compared with the corresponding value of Collie coal for the year ending on 30 June 1981.

— exported

7½%

Cobalt

The rate is —

(a) if sold as a concentrate, 5% of the royalty value; or

(b) if sold in metallic form, 2½% of the royalty value; or

(c) if sold as a nickel by‑product —

(i) in the period beginning on 1 July 2000 and ending on 30 June 2005 —

(I) 2½% of the royalty value; or

(II) if an election is made under regulation 86AB(2), the rate calculated in accordance with the formula set out in subparagraph (ii);

(ii) after 30 June 2005, the rate calculated in accordance with the following formula —

Where —

P = the gross cobalt metal price per tonne f.o.b. in Australian currency or its computed equivalent used for the purpose of calculating the actual sale price of cobalt metal in the nickel by‑product (under usual conditions of sale, without special discounts);

U = the number of units per hundred of cobalt metal in the nickel by‑product sold;

R = the royalty.

Copper

The rate is —

(a) if sold as a concentrate, 5% of the royalty value; or

(b) if sold in metallic form, 2½% of the royalty value; or

(c) if sold as a nickel by‑product after 30 June 2005, the rate calculated in accordance with the following formula —

Where —

P = the gross copper metal price per tonne f.o.b. in Australian currency or its computed equivalent used for the purpose of calculating the actual sale price of copper metal in the nickel by‑product (under usual conditions of sale, without special discounts);

U = the number of units per hundred of copper metal in the nickel by‑product sold;

R = the royalty.

Diamond

7½%

Dolomite

Amount A

Feldspar

5%

Garnet

The rate shall be —

(a) 5% for the usual grades of garnet including that used for sand blasting and filtration;

(b) 2½% for higher technology grades including that used for garnet paper and polishing purposes,

of the royalty value, calculated on the basis of the nearest available port if exported.

Gems and
Precious Stones

7½%

Gravel

Amount A

Gypsum

Amount A

Ilmenite (other than ilmenite feedstock as defined in regulation 86AC)

5%

Iron Ore (including magnetite) —

beneficiated ore (iron ore that has been concentrated or upgraded otherwise than by crushing, screening, separating by hydrocycloning or a similar technology, washing, scrubbing, trommelling or drying, or by a combination of 2 or more of those processes)

5%

fine ore (iron ore, excluding beneficiated ore, that will pass through a 6 mm mesh screen)

The rate is —

(a) if the shipment date is before 1 July 2012 — 5.625% of the royalty value;

(b) if the shipment date is on or after 1 July 2012 and before 1 July 2013 — 6.5% of the royalty value;

(c) if the shipment date is on or after 1 July 2013 — 7.5% of the royalty value.

lump ore (iron ore, excluding beneficiated ore, that will not pass through a 6 mm mesh screen)

7.5%

Kaolin

5%

Lead

The rate is —

(a) if sold as a concentrate, 5% of the royalty value; or

(b) if sold in metallic form, 2½% of the royalty value.

Leucoxene

5%

Limestone
(including
limesands and
shellsands) —

used for agricultural or construction purposes or as a neutralising agent

Amount A

used for metallurgical purposes

Amount B

Lithium Minerals

5%

Manganese

7½%

Manganese
(beneficiated by the producer in Western Australia otherwise than by crushing, screening, washing, scrubbing, trommelling or drying, or by a combination of 2 or more of those processes)

5%

Nickel

In accordance with the following formula:

Where P = the gross nickel metal price per tonne f.o.b. in Australian currency or its computed equivalent used for the purpose of calculating the actual sale price of the nickel containing product (under usual conditions of sale, without special discounts).

Where U = the number of units per hundred of nickel metal in the nickel‑containing products sold.

Where R = the royalty.

Ochre

5%

Platinoids

2½%

Rare earth elements

In accordance with the following formula:

Where P = a representative market value of rare earth oxides (REO), as determined from time to time by the Minister.

Where U = the number of units per hundred of REO in the rare earth elements‑containing products sold.

Where R = the royalty.

Rock

Amount A

Rutile

5%

Salt

Amount A

Sand

Amount A

Semi‑precious stones (including specimen stones)

7½%

Silica

Amount B

Silver

2½%

Spongolite

5%

Talc

Amount B

Tantalum

The rate is —

(a) in the period beginning on 1 January 2003 and ending on 30 June 2003 —

(i) 3.3% of the royalty value if sold as concentrate;

(ii) 3.3% of the value in concentrate form if processed further before sale;

and

(b) in the period beginning on 1 July 2003 and ending on 30 June 2004 —

(i) 4.1% of the royalty value if sold as concentrate;

(ii) 4.1% of the value in concentrate form if processed further before sale;

and

(c) on or after 1 July 2004 —

(i) 5% of the royalty value if sold as concentrate;

(ii) 5% of the value in concentrate form if processed further before sale.

Tin

2½% of the royalty value of tin metal when sold in that form; or, when sold in any other form, 2½% of the value of the contained tin calculated at the ruling price of tin metal used for the purpose of the sale.

Uranium

The rate is 5% of the royalty value if sold as a uranium oxide concentrate.

Vanadium

The rate is —

(a) if sold as a concentrate (vanadium oxide), 5% of the vanadium pentoxide price; or

(b) if sold in metallic form (ferrovanadium), 2½% of the ferrovanadium price; or

(c) for vanadium not realised on contained vanadium from a product (such as magnetite) where the average grades of vanadium are over 0.275% V ₂O ₅in the ore and a vanadium circuit is not installed — 5% of the vanadium pentoxide price.

Zinc

The rate is —

(a) if sold as a concentrate, 5% of the royalty value; or

(b) if sold in metallic form, 2½% of the royalty value.

Zircon

5%

Any other mineral not specifically listed in this Table, excluding gold metal as defined in regulation 86AA and ilmenite feedstock as defined in regulation 86AC

The rate is —

(a) if sold as crushed or screened material, 7.5% of the royalty value; or

(b) if sold as a concentrate, 5% of the royalty value.

[Regulation 86 amended in Gazette 6 Aug 1982 p. 3099; 21 Aug 1987 p. 3268; 20 May 1988 p. 1706; 22 Jun 1990 p. 3073; 18 Dec 1992 p. 6127; 19 May 1995 p. 1881; 15 Dec 1995 p. 6115; 3 Oct 1997 p. 5531; 17 Mar 1998 p. 1434‑5; 19 Nov 1999 p. 5791‑2; 16 Jun 2000 p. 2954‑6; 30 Jun 2000 p. 3473‑4; 5 Jan 2001 p. 125; 27 Apr 2001 p. 2202; 17 Aug 2001 p. 4347; 14 Dec 2001 p. 6405; 8 Feb 2002 p. 607; 23 Jul 2002 p. 3425; 27 Aug 2002 p. 4356‑7; 13 Dec 2002 p. 5805; 20 Aug 2004 p. 3619-21; 28 Jan 2005 p. 360; 7 Feb 2006 p. 622‑3; 4 Apr 2006 p. 1409; 11 Oct 2011 p. 4315-16; 20 Dec 2011 p. 5402; 24 Feb 2012 p. 813.]

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	Column 1	Column 2	Column 3
Mineral	Amount per tonne according to quantity produced or obtained	Percentage of the royalty value	The rate as specified hereunder
Aggregate	Amount A
Attapulgite		5%
Bauxite		7½%
Building Stone	Amount B
Chromite		5%
Clays	Amount A
Coal (including lignite) — not exported			$1 per tonne, to be adjusted each year at 30 June in accordance with the percentage increase in the average ex‑mine value of Collie coal for the year ending on that date when compared with the corresponding value of Collie coal for the year ending on 30 June 1981.
— exported		7½%
Cobalt			The rate is — (a) if sold as a concentrate, 5% of the royalty value; or (b) if sold in metallic form, 2½% of the royalty value; or (c) if sold as a nickel by‑product — (i) in the period beginning on 1 July 2000 and ending on 30 June 2005 — (I) 2½% of the royalty value; or (II) if an election is made under regulation 86AB(2), the rate calculated in accordance with the formula set out in subparagraph (ii); (ii) after 30 June 2005, the rate calculated in accordance with the following formula —
			Where — P = the gross cobalt metal price per tonne f.o.b. in Australian currency or its computed equivalent used for the purpose of calculating the actual sale price of cobalt metal in the nickel by‑product (under usual conditions of sale, without special discounts); U = the number of units per hundred of cobalt metal in the nickel by‑product sold; R = the royalty.
Copper			The rate is — (a) if sold as a concentrate, 5% of the royalty value; or (b) if sold in metallic form, 2½% of the royalty value; or (c) if sold as a nickel by‑product after 30 June 2005, the rate calculated in accordance with the following formula —
			Where — P = the gross copper metal price per tonne f.o.b. in Australian currency or its computed equivalent used for the purpose of calculating the actual sale price of copper metal in the nickel by‑product (under usual conditions of sale, without special discounts); U = the number of units per hundred of copper metal in the nickel by‑product sold; R = the royalty.
Diamond		7½%
Dolomite	Amount A
Feldspar		5%
Garnet			The rate shall be —
			(a) 5% for the usual grades of garnet including that used for sand blasting and filtration;
			(b) 2½% for higher technology grades including that used for garnet paper and polishing purposes,
			of the royalty value, calculated on the basis of the nearest available port if exported.
Gems and Precious Stones		7½%
Gravel	Amount A
Gypsum	Amount A
Ilmenite (other than ilmenite feedstock as defined in regulation 86AC)		5%
Iron Ore (including magnetite) —
beneficiated ore (iron ore that has been concentrated or upgraded otherwise than by crushing, screening, separating by hydrocycloning or a similar technology, washing, scrubbing, trommelling or drying, or by a combination of 2 or more of those processes)		5%
fine ore (iron ore, excluding beneficiated ore, that will pass through a 6 mm mesh screen)			The rate is — (a) if the shipment date is before 1 July 2012 — 5.625% of the royalty value; (b) if the shipment date is on or after 1 July 2012 and before 1 July 2013 — 6.5% of the royalty value; (c) if the shipment date is on or after 1 July 2013 — 7.5% of the royalty value.
lump ore (iron ore, excluding beneficiated ore, that will not pass through a 6 mm mesh screen)		7.5%
Kaolin		5%
Lead			The rate is — (a) if sold as a concentrate, 5% of the royalty value; or (b) if sold in metallic form, 2½% of the royalty value.
Leucoxene		5%
Limestone (including limesands and shellsands) —
used for agricultural or construction purposes or as a neutralising agent	Amount A
used for metallurgical purposes	Amount B
Lithium Minerals		5%
Manganese		7½%
Manganese (beneficiated by the producer in Western Australia otherwise than by crushing, screening, washing, scrubbing, trommelling or drying, or by a combination of 2 or more of those processes)		5%
Nickel			In accordance with the following formula:

			Where P = the gross nickel metal price per tonne f.o.b. in Australian currency or its computed equivalent used for the purpose of calculating the actual sale price of the nickel containing product (under usual conditions of sale, without special discounts).
			Where U = the number of units per hundred of nickel metal in the nickel‑containing products sold.
			Where R = the royalty.
Ochre		5%
Platinoids		2½%
Rare earth elements			In accordance with the following formula:

			Where P = a representative market value of rare earth oxides (REO), as determined from time to time by the Minister.
			Where U = the number of units per hundred of REO in the rare earth elements‑containing products sold.
			Where R = the royalty.
Rock	Amount A
Rutile		5%
Salt	Amount A
Sand	Amount A
Semi‑precious stones (including specimen stones)		7½%
Silica	Amount B
Silver		2½%
Spongolite		5%
Talc	Amount B
Tantalum			The rate is — (a) in the period beginning on 1 January 2003 and ending on 30 June 2003 — (i) 3.3% of the royalty value if sold as concentrate; (ii) 3.3% of the value in concentrate form if processed further before sale; and
			(b) in the period beginning on 1 July 2003 and ending on 30 June 2004 — (i) 4.1% of the royalty value if sold as concentrate; (ii) 4.1% of the value in concentrate form if processed further before sale; and
			(c) on or after 1 July 2004 — (i) 5% of the royalty value if sold as concentrate; (ii) 5% of the value in concentrate form if processed further before sale.
Tin			2½% of the royalty value of tin metal when sold in that form; or, when sold in any other form, 2½% of the value of the contained tin calculated at the ruling price of tin metal used for the purpose of the sale.
Uranium			The rate is 5% of the royalty value if sold as a uranium oxide concentrate.
Vanadium			The rate is — (a) if sold as a concentrate (vanadium oxide), 5% of the vanadium pentoxide price; or (b) if sold in metallic form (ferrovanadium), 2½% of the ferrovanadium price; or (c) for vanadium not realised on contained vanadium from a product (such as magnetite) where the average grades of vanadium are over 0.275% V ₂O ₅in the ore and a vanadium circuit is not installed — 5% of the vanadium pentoxide price.
Zinc			The rate is — (a) if sold as a concentrate, 5% of the royalty value; or (b) if sold in metallic form, 2½% of the royalty value.
Zircon		5%
Any other mineral not specifically listed in this Table, excluding gold metal as defined in regulation 86AA and ilmenite feedstock as defined in regulation 86AC			The rate is — (a) if sold as crushed or screened material, 7.5% of the royalty value; or (b) if sold as a concentrate, 5% of the royalty value.