MINING REGULATIONS 1979
R. E. CAMM
41. Objection or representation with respect to granting of licence
( 1) A person who desires to object to or to make representations with respect to the granting of a licence to construct drives, pursuant to the provisions of section 42 of this Act shall lodge at the Wardens Office a Notice of Objection or Representation in the prescribed form.
(2) A copy of such notice in the prescribed form as aforesaid shall be given by such objector or person making representations to the applicant at least three (3) days before the date fixed by the Warden for the hearing of such application.
42. Hearing of application. An application for a licence to construct drives and all objections thereagainst and representations thereon (if any) shall be heard by the Warden. If the hearing of such application and of objections thereagainst or representations thereon (if any) is not completed within two (2) months after the date on which such application was lodged at the Wardens Office, the Warden shall notify the Minister thereof and shall advise him as to why such hearing has not been completed.
43. Warden to report on application for licence. (1) When the hearing of an application for a licence to construct drives and objections thereagainst or representations thereon (if any) has been completed by the Warden he shall forward to the Minister such application and any objection thereagainst or representations thereon (if any) together with the evidence tendered by and on behalf of the applicant and of the objectors thereagainst or persons making representations thereon (if any). The Warden shall also forward to the Minister his recommendation as to whether such application should be granted or rejected.
(2) When the Warden recommends that such application be rejected he shall inform the Minister of the reason for his recommendation.
44. Form of licence. A licence granted for the construction of drives through alien land shall be in the prescribed form, and shall be registered.
45. Tenure of licence. A licence to construct drives granted pursuant to this Act shall enure for the benefit of the mining tenement or mining tenements owned by the applicant for such licence and for the effectual working and mining thereof. Such licence shall not be capable of being transferred or otherwise dealt with separately from such mining tenement or mining tenements.
Division II-Licence to Carry Any Thing Across Alien Land 46. Application for licence to carry. A person who is conducting mining operations on a mining tenement and who desires to obtain a licence to carry any thing across alien land under the provisions of section 4 7 of this Act shall make application to the Warden in the prescribed form.
Such application shall be lodged at the Wardens Office and shall be accompanied by the prescribed fee.
60687-6
162 Regs. 47-50 REGULATIONS
47. Form of objection. A person who desires to object to the grant of a licence with respect to an application made. under the provisions of section 47 of this Act shall lodge a Notice of Objection at the Wardens Office in the prescribed form.
48. Hearing of application to carry. An application for a licence to carry any thing across alien land and objections thereagainst (if any) shall be heard by the Warden. If the hearing of such application and objections (if any) is not completed within six (6) months after the date on which such application was lodged at the Wardens Office, the Warden shall notify the Minister thereof and shall advise him as to why such hearing has not been completed.
49. Form of licence. A licence to carry any thing across alien land granted pursuant to the provisions of section 49 of this Act shall be in the prescribed form and shall be registered.
PART VI-ROYALTIES
50. Rates of Royalty. (1) In calculating the amount of royalty payable to the Crown pursuant to the provisions of section 70 ( 1) of this Act and of the provisions of the Mining Royalties Act 1974 on all mine.rals won or mineral-bearing ore removed from any land under this Act or payable howsoever under any other Act relating to mining the following provisions of this regulation shall be applicable.
(2) The rates of royalty and manner and basis of calculation thereof payable by the owner of a mining tenement in respect of any minerals won or mineral-bearing ore removed from such mining tenement shall be as set forth in paragraphs (a), (b) and (c) hereof:-
( a) For each of the minerals set out in Column 1 of the following Table, the amount per tonne set out opposite each such mineral in Column 2 of such Table:-
TABLE
Column 1 Name of Mineral
Column 2 Amount of royalty per tonne according
to quantity sold, disposed of or used
$
Barytes . . 0.35
Bentonite clay . . . . 1.00
Building brick, roofing tile, and glazed 0.25 earthenware pipe clay
Calcite . . 0.25
Chromite 0. 50
Clay shale 0.25
Diatomite 0. 50
Dolomite 0·25
Felspar . . 0. 50
Fireclay . . 0. 25
Fluorspar 0. 35
Fuller's earth . . 0. 50
REGULATIONS
TABLE--continued
Column 1 Name of Mineral
Graphite Gypsum Iron Ore Kaolin ..
Lime, earth Limestone Magnesite Marble ..
Mica
Mineral pigments Oxide of Iron Olivine ..
Perlite ..
Pottery clay Salt Serpentine Talc Vermiculite Wollastonite
In prescribed circumstances, basalt In prescribed circumstances, gravel ..
Reg. 50
Column2 Amount of royalty per tonne according
to quantity sold, disposed of or used
$ 1.00 0.25 0.35 0.50 0.25 0.30 0.50 0.50 1.00 0.35 0.50 0.25 0.25 0.50 1.00 0.25 0.50 0.50 0.50 0.50 0.50
163
(b) For the minerals silica (as distinct from sand and silicates), rutile concentrates, zircon concentrates and ilmenite con- centrates set out in Column 1 of the following Table in accordance with quantities sold, disposed of or used either an amount equivalent to two per centum (2%) of the value of such mineral or the amount per tonne set opposite each such mineral in Column 2 of such Table in accordance with quantities thereof sold, disposed of or used whichever is the greater.
Silica Rutile
Column 1 Name of Mineral
Zircon concentrates Ilmenite concentrates
TABLE
.. i
I I
Column 2 Amount of royalty per tonne according
to quantity sold, disposed of or used
$ 0.25 3.00 1 .50 0.25
164 Reg. 50 REGULATIONS (c)-
(i) Except as in hereinafter provided in subparagraph (ii) of this paragraph, for any mineral not specified in paragraphs (a) or (b) hereof ten per centum ( 10% ) of the value of such mineral;
(ii) As specified in the following table in respect of the matters set forth therein.
Column 1 Name of Mineral 1. Coal-
(a) won by opencut mining methods for purposes other than for con- sumption within the State;
(b) won by underground mining methods for purposes other than for consumption within the State;
(c) won by any mining method for consump- tion within the State 2. Bauxite won from Special
Bauxite Mining Lease No.1-
(a) for purposes other than for consumption within the State
TABLE
Column 2
Rate or manner or basis of calculation of royalty according to quantity sold,
disposed of or used 5% of value
4% of value
5 cents per tonne
(i) A rate per tonne being 10% of the net F.O.B. return per tonne taking into account any and all income of any type arising directly from the sale, disposal or use as certified by the Auditor- General
The net F.O.B. return shall not take into account any deduction for royalty or any other component; or (ii) A rate determined by the following
formula-
where-
$1 X Pl R = - - -
P2
R is the rate of royalty expressed in dollars per tonne;
Pl is the weighted average of the Alcan World value per lb. of the metal aluminium on the basis of 99·5% ingot C.I.F. Main World Ports for the ten calendar years immediately preceding the date on which the bauxite was shipped from the State, or was sold, disposed of or used.
P2 is the weighted average of the Alcan World valt!e per lb. of the metal aluminium on the basis of 99·5% ingot C.I.F. Main World Ports for the ten calendar years ended on 31st December, 1978; or
REGULATIONS Reg. 50 165
TABLE-continued
Column 1 Name of Mineral
(b) for consumption within the State
3. Copper ore won by Mount lsa Mines Ltd.
4.0re containing any of the metals silver, lead and zinc won by Mount lsa Mines Ltd.
Column 2
Rate or manner or basis of calculation of royalty according to quantity sold,
disposed of or used (iii) $1 per tonne,
whichever shall be the greatest;
One-half of the rate operative for the relevam period in respect of bauxite won for pur- poses other than for consumption within the State as determined under paragraph (a) hereof.
A rate determined by the following formula-
R=2X where-
Pl P2
R is the rate of royalty expressed in dollars per tonne;
Pl is determined by the following formula-
e Pc
Pl = -
n
Where Pc is the average realizable value per tonne as determined by the Minister of the metal copper contained in such ore won during the period for which the royalty return is lodged; and
e is the tonnes as determined by the Minister of pure copper contained in such ore won during the period for which the royalty return is lodged; and
n is the tonnes for copper ore won during the period for which the royalty return is lodged; and
P2 is determined by the following formula-
f Cp P 2 = -
k
and where Cp is the average realizable value per tonne as determined by the Minister of the metal copper contained in such ore won during the year commencing 1st July, 1973;
and
f is the tonnes as determined by the Minister of pure copper contained in such ore won during the year commencing 1st July, 1973;
and
k is the tonnes of copper ore won during the year commencing 1st July, 1973:
Provided that such rate shall be not less than
$1 per tonne
A rate determined by the following formula-
R=2X Pl P2
166 Reg. 50 REGULATIONS
TABLE-continued
Column 1 Name of Mineral
Column 2
Rate or manner or basis of calculation of
• royalty according to quantity sold, disposed of or used where-
R is the rate of royalty expressed in dollars per tonne;
PI is determined by the following formula-
xPs + yPL + zPz Pl
=
0
Where Ps, PL and Pz are respectively the average realizable values per tonne as determined by the Minister of the metals silver, lead and zinc during the period for which the royalty return is lodged; and x, y and z are respectively the tonnes as determined by the Minister of pure silver, lead and zinc contained in such ore won during the period for which the royalty return is lodged; and
o is the tonnes of ore containing any of the metals silver, lead and zinc won during the period for which the royalty return is lodged; and
P2 is determined by the following formula-
aSp + bLp + cZp P2 = - - - -
w
Where Sp, Lp and Zp are respectively the average realizable values per tonne as determined by the Minister of the metals silver, lead and zinc during the year commencing 1st July, 1973; and
a, b and c are respectively the tonnes as determined by the Minister of pure silver, lead and zinc contained in such ore won during the year commencing 1st July, 1973;
and
w is the tonnes of ore containing any of the metals silver, lead and zinc won during the year commencing 1st July, 1973:
Provided that such rate shall be not less than
$1 per tonne
5. Corumdum, gemstones and 5% of value of any such mineral as exceeds precious stones (including $10,000.00
agate, sapphire and opal)
6. Nickel ore won by Metals 10 cents per tonne Exploration Queensland
Pty. Ltd. and Freeport Queensland Nickel, Incor- porated
REGULATIONS Reg. 50 167
TABLE--continued
Column 1 Name of Mineral
7. All other minerals but not including phosphate
Column2
Rate or manner or basis of calculation of royalty according to quantity sold,
disposed of or used
(a) a rate of two per centum (2%) of the gross proceeds from the sale or disposal of such mineral for each year after deducting the sum of $30,000.00 from such gross
proceeds; or ·
(b) a rate of five per centum (5 %) of such part of the profits (as that term is hereinafter in this regulation defined) for each year as exceeds in value $30,000.00, whichever is the greater
(d) A variation of a rate of royalty or manner or basis of calculation prescribed by this paragraph (c) may be made in respect of an owner of a mining tenement having regard to the following principles:-
(i) A higher rate may be prescribed if consequent upon negotiations being had with the owner the Minister considers such higher rate is warranted;
(ii) A rate of five per centum (5%) of the value of any such mineral may be prescribed if the State of Queensland is in the opinion of the Minister in receipt of an adequate rail freight profit on the carriage of the particular mineral;
(iii) A rate of five per centum (5%) of the value of any such mineral, if the particular mineral is used to supply a major industry specifically sponsored by the State of Queensland for the purpose of development of the State.
(iv) A deduction of twenty per centum (20%) may be allowed against the royalty payable if the particular mineral is extracted by underground mining methods and is sold in market competition with open cut mines.
(v) The rate may be varied if the royalty payable affects substantially the price of an essential commodity within the State;
(vi) The rate may be varied for such period as the Minister considers necessary to assist in establishing a particular mining development on a sound financial basis;
(vii) A rate of-
( a) Two per centum ( 2% ) of the gross proceeds from the sale or disposal of such mineral for each year after deducting the sum of $30,000.00 from such gross proceeds; or
168 Reg. 50 REGULATIONS
(b) Five per centum (5%) of such part of the profits (as that term is hereinafter in this regulation defined) as exceeds in value $30,000.00.
whichever is the greater, may be prescribed.
(viii) The rate or manner or basis of calculation thereof may be varied for any other cause which in the opinion of the Governor in Council is considered reasonable.
(3) For the purposes of this regulation the term "Profits" for any year shall mean the gross proceeds arising from the sale or disposal by him of a mineral or of minerals during such year, including any bounty, grant, subsidy or other income received by him in connection with the production of such mineral or minerals less the amounts:-
( a) expended by such owner during such year in- (i) prospecting for any mineral in the State;
(ii) administration expenses, except to the extent (if any) that the Minister disallows any particular item or items thereof as not being reasonable and necessary for the purpose either directly or indirectly of mining, treating or realising such mineral or for prospecting for any mineral in the State provided that any such administration expenses by way of interest or other charges payable on moneys bor- rowed shall only be allowed to the extent that such
expenses are in excess of any interest, dividends or other like income received during such year; and
(iii) such other expenditure as may be approved by the Minister;
and
(b) expended with the consent of the Minister by such owner in respect of the minerals from which such gross proceeds are received (whether the amounts were expended during the same year or otherwise) in:-
(i) Mining and treating the ores of any such mineral; and (ii) Selling any such mineral.
(c) In the case of a mineral or minerals produced and/ or sold or disposed of in any year other than the year for which a royalty return is made, stocks of such mineral or minerals on hand and unsold at the beginning and/ or end of the royalty period shall be taken into account at the cost of production thereof by adding to sales the value of unsold stocks at the end of such royalty period and subtracting therefrom the value of stocks on hand at the beginning of
such royalty period.
( 4) In depreciating the value of the plant, machinery, buildings, structures, or other assets within the State which are the property of such owner and which are used or required directly or indirectly in the mining, treating or sale of the mineral or minerals upon which royalty is payable pursuant to the provisions of this Act or in prospecting for any mineral in the State or developing the mine from which such mineral is won, a
REGULATIONS Reg. 51 169
rate of depreciation not exceeding the rate of depreciation which may be allowed as a deduction for income tax purposes may be used provided that the Minister in his discretion may approve of a different rate of depreciation.
If such owner of such plant, machinery, buildings, structures or other assets disposes of any item thereof, the following provisions shall apply:-
(i) If there is no sale value of such item, the unrecouped value (if any) thereof may be claimed as expenditure;
(ii) If such value exceeds the unrecouped value the difference in such values shall be regarded as income;
(iii) If such value is less than the unrecouped value the difference in such values shall be treated as expenditure;
(iv) If such sale value exceeds the cost value the difference in such values shall be treated as capital gain and shall not be subject to the payment of royalty.
( 5) For the purposes of this regulation the value of any mineral won is such amount as is determined by the Minister from time to time as being that value.
(6) On and from the twenty-second day of September, 1974, the royalty payable by a person who wins from any land coal that is not the property of the Crown to the owner of that coal in respect of that coal shall be calculated at the rates, in such manner and on such basis as follows:-
COAL-
Rate of Royalty according to quantity sold, disposed
of or used
(a) Won by open cut mining methods for purposes other 5% of value than for consumption within the State;
(b) Won by underground mining methods for purposes 4% of value other than for consumption within the State;
(c) Won by any mining method for consumption within 5 cents per tonne the State
As amended by regulations published Gazette 12 September 1981, p. 155;
25 September 1982, pp. 333-343; 27 August 1983, pp. 2307-2311; 24 December 1983, p. 1848.
51. Lodgment of Royalty Returns. (1) An owner of a mmmg tenement who in any year (as such term is defined in Regulation 55) produces, or allows to be produced, any mineral or any mineral-bearing ore which is subsequently sold, disposed of, or used, shall lodge or cause to be lodged a royalty return in the prescribed form applicable to that mineral or mineral bearing ore, at the Office of the Director-General, Department of Mines, Brisbane in respect of mining tenements which are situated in more than one Mining District, or with the Warden
170 Reg. 51 REGULATIONS
when all such mining tenements are situated in the same Mining District not later than the thirtieth day of September next ensuing after the termination of such year.
The owner of a mining tenement shall lodge or cause to be lodged a royalty return in the prescribed form within three months of his
cessation of all mining operations within the State.
The holder of a mining tenement or mining tenements who does not win any mineral or mineral-bearing ore in any year (as defined in Regulation 55) shall nevertheless lodge or cause to be lodged a royalty return in the prescribed form verifying that fact and whether or not the tenement was worked by any other person and, if so, the name and address of that person:
Provided that-
(i) With the written approval of the Minister, such owner may for the purpose of the lodgment of such royalty return adopt a period of twelve ( 12) months ending on some date other than the thirtieth day of June and lodge such royalty return within three ( 3) months of the date of expiry of such adopted period;
(ii) Upon the application of the owner of a mining tenement or mining tenements the Minister may, for good cause shown, extend the time for lodgment of a royalty return.
( 2) Notwithstanding the provisions of subregulation (1) of this regulation the Minister may direct the owner of a milling tenement or mining tenements to lodge a royalty return at such times and in :such manner as he thinks fit.
( 3) Such royalty return shall be in the prescribed form as •the circumstances require and shall be supplemented by such documentary evidence as may be necessary to substantiate t:he information supplied and shall incorporate a statutory declara~ion made under the provisions of the Oaths Acts 1867 to 1960, by such owner or his agent verifying the information contained ·therein or appended thereto.
( 4) The Minister may require such owner to furnish such additional information and documents in regard to such royalty return as he may determine.
(5) An owner of a mining tenement or mining tenements who in any month produces coal ·that is not the property of the Crown from such mining tenement or mining tenements shall within twenty-eight (28) days subsequent to the termination of such month lodge a return in respect of the coal won during such month at the Office of the Director-General, Department of Mines, Brisbane, in the case of ·an owner of mining tenements which are situated in more than one Mining District or with the Warden when a11 such mining tenements are situated in vhe same Mining District.
Such return shaU contain the following information:-
(i) •the total weight of coal won, sold, disposed of or used;