{"id":"mineral-royalties-act-2024","name":"Mineral Royalties Act 2024","slug":"mineral-royalties-act-2024","collection":"act","jurisdiction":"nt","status":"in_force","isInForce":true,"actNumber":null,"makingDate":null,"administeringDepartment":null,"currentVersion":{"id":30367,"registerId":"nt-mineral-royalties-act-2024-current","compilationNumber":null,"startDate":"2026-04-01","status":"InForce","reasons":null,"registeredAt":null},"sections":[{"sectionNumber":"1","sectionType":"section","heading":"Mineral Royalties Act 2024","content":"NORTHERN TERRITORY OF AUSTRALIA\nMINERAL ROYALTIES ACT 2024\nAs in force at 2 July 2024\nTable of provisions\nPart 1 Preliminary matters\n1 Short title ......................................................................................... 1\n2 Commencement .............................................................................. 1\n3 Definitions ........................................................................................ 1\n4 Meaning of arm's length terms ........................................................ 3\n5 Meaning of Australian Dollar Equivalent and exchange rate ........... 3\n6 Meaning of genuine sale ................................................................. 4\n7 Meaning of mineral .......................................................................... 4\n8 Royalty determination date .............................................................. 4\n9 Categories of mineral ...................................................................... 5\n10 Application of Act ............................................................................. 5\n11 Application of Taxation Administration Act 2007.............................. 7\nPart 2 Mineral royalties\n12 Liability for royalty ............................................................................ 7\n13 Royalty rate ..................................................................................... 8\n14 Calculation of royalty amount .......................................................... 8\n15 Calculation of value ......................................................................... 8\n16 Deduction for shipping costs for transport in Territory ................... 10\n17 Royalty instalments ....................................................................... 11\n18 Amount of quarterly instalments .................................................... 11\n19 Annual adjustment of royalty paid.................................................. 11\nPart 3 Miscellaneous matters\n20 Registration by holder of mining tenements .................................. 12\n21 Notification of events ..................................................................... 12\n22 Lodgement of returns .................................................................... 12\n23 Powers of Commissioner of Territory Revenue ............................. 13\n24 Regulations.................................................................................... 14\nSchedule 1 Royalty rates\nSchedule 2 Royalty rates for categories of minerals\nENDNOTES\n\n\n\nNORTHERN TERRITORY OF AUSTRALIA\n____________________\nAs in force at 2 July 2024\n____________________\nMINERAL ROYALTIES ACT 2024\nAn Act to impose a royalty on minerals extracted in the Territory after\n1 July 2024, to make consequential amendments to the Mineral Royalty\nAct 1982 and the Taxation Administration Act 2007 and for related\npurposes\nPart 1 Preliminary matters\n1 Short title\nThis Act may be cited as the Mineral Royalties Act 2024.\n2 Commencement\nThis Act commences on 1 July 2024.\n3 Definitions\nIn this Act:\narm's length terms, see section 4.\nAustralian Dollar Equivalent, see section 5(1).\ncategory, in relation to a mineral, means a category specified in\nsection 9.\nCommissioner of Territory Revenue means the person holding or\nacting in the office of Commissioner of Territory Revenue under the\nTaxation Administration Act 2007.\nexchange rate, see section 5(2).\nextract, in relation to a mineral, means:\n(a) to mine, remove or obtain the mineral from the earth, including\nearth under water; or\n(b) to recover or obtain the mineral from tailings or mine waste\npreviously mined, removed or obtained.\n\nPart 1 Preliminary matters\nMineral Royalties Act 2024 2\nextractive mineral exploration licence, see section 46(1) of the\nMineral Titles Act 2010.\nextractive mineral lease, see section 54(1) of the Mineral Titles\nAct 2010.\nextractive mineral permit, see section 50(1) of the Mineral Titles\nAct 2010.\ngenuine sale, see section 6.\nmineral, see section 7.\nmineral authority, see section 118(2) of the Mineral Titles\nAct 2010.\nmineral exploration licence, see section 26(1) of the Mineral\nTitles Act 2010.\nmineral exploration licence in retention, see section 34(3) of the\nMineral Titles Act 2010.\nmining operation means:\n(a) a mining tenement; or\n(b) 2 or more mining tenements operated as part of an integrated\noperation.\nmining tenement means a right, by whatever name known, to\nobtain minerals from land, granted or continued in force by or under\na law in force in the Territory, whether granted before or after the\ncommencement of this Act, and includes the land to which the right\nrelates, but does not include any of the following:\n(a) a mineral exploration licence;\n(b) a mineral exploration licence in retention;\n(c) an extractive mineral exploration licence;\n(d) a mineral authority that corresponds to a licence mentioned in\nparagraphs (a) to (c);\n(e) a non-compliant existing interest, as defined in section 204(1)\nof the Mineral Titles Act 2010, the sole purpose of which is to\nauthorise an activity that may be conducted under a licence\nmentioned in paragraphs (a) to (c).\nquarter means the 3-month period ending on the last day of March,\nJune, September or December in any royalty year.\n\nPart 1 Preliminary matters\nMineral Royalties Act 2024 3\nroyalty means the royalty payable on a mineral under this Act.\nroyalty determination date, see section 8.\nroyalty rate, see section 13.\nroyalty year, in relation to a holder of a mining tenement, means\nthe 12-month period for which the accounts of the holder are\nordinarily made up.\nsale, in relation to a mineral, includes a transfer of ownership of the\nmineral in exchange for consideration other than money.\nshipping costs, in relation to a mineral, are freight charges, dead\nfreight costs or insurance costs incurred in transporting the mineral\nto the purchaser of the mineral.\ntreatment, in relation to a mineral, means primary, secondary or\nfinal treatment as referred to in the categories specified in section 9.\nvalue, see section 15.\nNote for section 3\nThe Interpretation Act 1978 contains definitions and other provisions that may be\nrelevant to this Act.\n4 Meaning of arm's length terms\nA transaction entered into by a party is on arm's length terms if\nthe terms of the transaction are no less favourable to the party than\nthose that would be agreed to by a third party in an arm's length\ntransaction under similar circumstances.\n5 Meaning of Australian Dollar Equivalent and exchange rate\n(1) The Australian Dollar Equivalent, in relation to an amount of\nmoney that is stated in a foreign currency, means the amount\ndetermined by converting the foreign currency amount into\nAustralian dollars at the exchange rate applying at the time the\nforeign currency amount was earned, receivable or incurred.\n(2) The exchange rate, in relation to an amount of money that is\nstated in a foreign currency, means one of the following rates\nselected by the holder of the mining tenement in good faith and on\na consistent basis:\n(a) the closing daily representative rate for the relevant day, as\npublished by the Reserve Bank of Australia;\n\nPart 1 Preliminary matters\nMineral Royalties Act 2024 4\n(b) the buy rate for the foreign currency, as quoted by a major\nAustralian trading bank;\n(c) another rate determined by the Commissioner of Territory\nRevenue.\n6 Meaning of genuine sale\nGenuine sale, in relation to the sale of a mineral, service or item,\nmeans:\n(a) the mineral, service or item is sold by one party and\npurchased by another party; and\n(b) each party is knowledgeable and willing; and\n(c) each party is acting severally, independently, prudently and\nwithout compulsion.\n7 Meaning of mineral\nA mineral means any of the following:\n(a) a naturally occurring inorganic element or compound\n(including an inorganic carbonate compound) or organic\ncarbonate compound that is extracted or extractable from land\nby mining, whether carried out under or on the surface of the\nland;\n(b) coal and lignite;\n(c) a mineral prescribed by regulation.\n8 Royalty determination date\nThe royalty determination date for determining the royalty rate\napplicable to a mineral is:\n(a) the day ownership in the mineral is first transferred while in\nthe Territory in a genuine sale on arm's length terms; or\n(b) if ownership in the mineral is not transferred while in the\nTerritory in a genuine sale on arm's length terms – the later of\nthe following:\n(i) the day the mineral leaves the mining operation from\nwhich the mineral was extracted;\n\nPart 1 Preliminary matters\nMineral Royalties Act 2024 5\n(ii) the day the mineral receives its last treatment in the\nTerritory.\nExample for section 8(b)(ii)\nCopper ore is extracted but is not transferred while in the Territory in a genuine\nsale on arm's length terms. It is given secondary treatment in the Territory. As a\nresult, the royalty determination date is the day the copper ore becomes copper\nconcentrate. The royalty rate would be 5.0% for copper concentrate.\n9 Categories of mineral\n(1) Category 1, in relation to a mineral, means the mineral receives\nonly primary treatment that:\n(a) prepares the material for further processing; and\n(b) improves the mineral's consistency for sale; and\n(c) provides a consistent feedstock for further processing of the\nmineral.\nExamples of primary treatment for subsection (1)\nCrushing, screening, blending and product handling.\n(2) Category 2, in relation to a mineral, means the mineral receives\nonly secondary treatment consisting of concentration and ore\ndressing that reduces the particle size and increases the\nconcentration of the mineral primarily through physical processes.\nExamples of concentration and ore dressing for subsection (2)\nGravity separation or flotation.\n(3) Category 3, in relation to a mineral, means the mineral receives\nonly secondary treatment consisting of metallurgical treatment,\nchemical treatment or combinations of biological, chemical and heat\ntreatments prior to final treatment.\nNote for subsection (3)\nMetallurgical treatment can require high temperatures and pressure treatment\nwith a variety of chemical and energy inputs.\n(4) Category 4, in relation to a mineral, means the mineral receives\nfinal treatment consisting of refining or other advanced metallurgical\nprocessing to produce a mineral suitable for its major end use.\n10 Application of Act\n(1) Subject to this section, this Act applies in relation to minerals vested\nin the Crown in right of the Territory that are extracted on or after\n1 July 2024.\n\nPart 1 Preliminary matters\nMineral Royalties Act 2024 6\n(2) This Act does not apply to the following:\n(a) subject to subsection (5), any mineral extracted from a\nproduction unit:\n(i) to which the Mineral Royalty Act 1982 applied\nimmediately before 1 January 2024; and\n(ii) from which a mineral was extracted at any time during\nthe 12 months prior to 1 January 2024;\n(b) any mineral extracted from a mining tenement, whether\ngranted before or after 1 July 2024, that commenced\noperations as part of the integrated operation of a production\nunit mentioned in paragraph (a);\n(c) any mineral extracted under Special Mineral Lease 11 held by\nGove Aluminium Limited and Swiss Aluminium Australia\nLimited and dated 30 May 1969;\n(d) any mineral to which any of the following apply:\n(i) the Merlin Project Agreement Ratification Act 1998;\n(ii) the McArthur River Project Agreement Ratification\nAct 1992;\n(iii) the Uranium Royalty (Northern Territory) Act 2009 (Cth);\n(iv) the Atomic Energy Act 1953 (Cth).\nNote for subsection (2)(a)(ii)\nA production unit that was not actively extracting minerals at any time during the\n12 months prior to 1 January 2024 and that recommences extracting minerals\nafter that date is subject to this Act.\n(3) This Act does not apply to soil, or to sand, gravel, clay or stone\nsuitable for use in construction or building works, that:\n(a) is extracted under an extractive mineral permit; or\n(b) is extracted under an extractive mineral lease; or\n(c) is extracted under a mineral authority that corresponds to a\npermit or lease mentioned in paragraph (a) or (b); or\n\nPart 2 Mineral royalties\nMineral Royalties Act 2024 7\n(d) is extracted as a by-product or secondary purpose for a\nmining operation, or is consumed or used in a mining\noperation, by the holder of a mining tenement and does not\nleave the mining operation.\nExample for subsection (3)(d)\nGravel that is found and extracted from a mine the primary purpose of which is to\nextract gold.\n(4) This Act does not apply to a mineral fossicked in accordance with\nsection 135 of the Mineral Titles Act 2010.\n(5) Despite subsection (2), this Act applies to any mineral extracted\nfrom a production unit or mining tenement referred to in\nsubsection (2)(a) or (b) that is prescribed by regulation.\n(6) In this section:\nproduction unit, see section 4 of the Mineral Royalty Act 1982.\n11 Application of Taxation Administration Act 2007\nThe Taxation Administration Act 2007 applies to a royalty as if:\n(a) a reference in that Act to tax were a reference to royalty; and\n(b) a reference in that Act to a taxpayer were a reference to a\nholder of a mining tenement; and\n(c) a reference in that Act to a taxation law included a reference\nto this Act; and\n(d) a reference in that Act to a corresponding law in Parts 9\nand 10 included a reference to a law of the Commonwealth, a\nState or another Territory corresponding to this Act.\nPart 2 Mineral royalties\n12 Liability for royalty\n(1) The holder of a mining tenement is liable to pay a royalty at the\nroyalty rate on any mineral extracted by the holder from a mining\noperation.\n(2) The liability for the royalty arises on the later of the following:\n(a) the day the mineral leaves the mining operation from which\nthe mineral was extracted;\n\nPart 2 Mineral royalties\nMineral Royalties Act 2024 8\n(b) if ownership in the mineral is transferred in a genuine sale on\narm's length terms – the day the mineral receives its last\ntreatment in the Territory before that sale.\n13 Royalty rate\n(1) The royalty rate for a mineral extracted from a mining operation is\nthe rate specified in Schedule 1 opposite the mineral.\n(2) If a mineral is not specified in Schedule 1, the royalty rate is the rate\nspecified in Schedule 2 opposite the category of the mineral.\n(3) If the royalty rate for a mineral cannot be determined under\nsubsection (1) or (2), the royalty rate is 7.5%.\n(4) If the royalty determination date is the day a mineral receives its\nlast treatment in the Territory under section 8(b)(ii), the royalty rate\nis the rate applicable to the category of the mineral after that\ntreatment.\n14 Calculation of royalty amount\n(1) The royalty amount for a mineral is the value of the mineral, minus\nany deduction allowed under section 16 for shipping costs for the\nmineral, multiplied by the royalty rate for the mineral as it existed on\nthe royalty determination date.\nExample for subsection (1)\nAlumina is extracted but is not transferred while in the Territory in a genuine sale\non arm's length terms and is not given further treatment. After leaving the\nTerritory it is sold in a genuine sale on arm's length terms. The value under\nsection 15 would be the sale price. The royalty rate is the rate applicable to the\nalumina as it existed on the day the mineral left the mining operation. The royalty\nrate would be 3.5%.\n(2) No deduction greater than the value of the mineral is allowed in a\nroyalty year.\nNote for subsection (2)\nA deduction under section 16 cannot be used to reduce the royalty amount to an\namount less than zero.\n15 Calculation of value\n(1) The value of a mineral extracted from a mining operation in a\nroyalty year is:\n(a) if ownership in the mineral is transferred in a genuine sale on\narm's length terms – the price (in Australian dollars or\nAustralian Dollar Equivalent) of the mineral obtained under the\ncontract of sale for the mineral; or\n\nPart 2 Mineral royalties\nMineral Royalties Act 2024 9\n(b) if ownership in the mineral is transferred but not in a genuine\nsale on arm's length terms and ownership of the mineral is\nsubsequently transferred by the purchaser in a genuine sale\non arm's length terms – the price (in Australian dollars or\nAustralian Dollar Equivalent) of the mineral obtained under the\nsubsequent contract of sale for the mineral; or\n(c) if the mineral is lost before ownership in the mineral is\ntransferred – any amount received by way of insurance,\nindemnity or guarantee for, or in respect of, the loss of the\nmineral; or\n(d) if none of the circumstances mentioned in paragraph (a), (b)\nor (c) apply in relation to the mineral:\n(i) any price quoted or obtained on the royalty\ndetermination date in a market recognised by the\nCommissioner of Territory Revenue as being a relevant\nindustry market for the purposes of determining the\nmarket value of minerals of that kind; or\n(ii) if subparagraph (i) does not apply – the market value of\nthe mineral on the royalty determination date; or\n(iii) if subparagraphs (i) and (ii) do not apply – the price for\nthe mineral on the royalty determination date determined\nby the Commissioner of Territory Revenue or by a\nmethod determined by the Commissioner of Territory\nRevenue; or\n(iv) if subparagraphs (i), (ii) and (iii) do not apply – the\nestimate by the holder of the mining tenement of the\nreasonable value of the mineral on the royalty\ndetermination date determined in accordance with\nrequirements determined by the Commissioner of\nTerritory Revenue.\n(2) Subject to subsection (3), any amount that affects the calculation of\nthe value is calculated exclusive of:\n(a) any GST; and\n(b) any shipping costs.\n(3) The amount or value of an acquisition that relates to a supply that is\ninput taxed is calculated inclusive of GST.\n\nPart 2 Mineral royalties\nMineral Royalties Act 2024 10\n(4) In this section:\nacquisition, see section 11-10 of the A New Tax System (Goods\nand Services Tax) Act 1999 (Cth).\nGST, see section 195-1 of the A New Tax System (Goods and\nServices Tax) Act 1999 (Cth).\ninput taxed, see section 9-30 of the A New Tax System (Goods\nand Services Tax) Act 1999 (Cth).\nmarket value, of a mineral, means the estimated amount (in\nAustralian dollars or Australian Dollar Equivalent) for which the\nmineral should exchange, on the royalty determination date, in a\ngenuine sale on arm's length terms, after proper marketing.\nsupply, see section 9-10 of the A New Tax System (Goods and\nServices Tax) Act 1999 (Cth).\n16 Deduction for shipping costs for transport in Territory\n(1) The amount allowed to be deducted in calculating the royalty\namount under section 14(1) is the amount of any shipping costs for\ntransporting the mineral to:\n(a) a purchaser in the Territory; or\n(b) in the case of a purchaser outside the Territory – the border of\nthe Territory.\n(2) For subsection (1), no deduction is allowed for any costs or\ncharges:\n(a) for transporting the mineral from a mining operation to a place\noutside the mining operation for treatment before the sale of\nthe mineral; or\n(b) for transporting the mineral outside the Territory; or\n(c) for which the holder of the mining tenement, or a related party\nof the holder, received reimbursement or compensation; or\n(d) that were charged to or paid by another person; or\n(e) that were incurred in a different royalty year.\n(3) For subsection (1), shipping costs must be incurred by the holder of\nthe mining tenement, or a related party of the holder, on arm's\nlength terms with no mark up.\n\nPart 2 Mineral royalties\nMineral Royalties Act 2024 11\n(4) To avoid doubt, any cost or charge that is taken into account in the\nvaluation of a mineral under section 15 cannot be claimed as a\ndeduction under this section.\n(5) No deduction is allowed more than once in respect of the amount of\nany one cost or charge, whether the amount was expended or\nincurred for the same royalty year or a different royalty year, despite\nthe amount:\n(a) falling under more than one head of cost; or\n(b) being reflected or capable of being reflected in the financial\naccounts relating to the mining operation in more than\none form.\n17 Royalty instalments\nThe holder of a mining tenement must pay the amount of the royalty\nfor which the holder is liable:\n(a) by quarterly instalments within 30 days after the end of each\nquarter; or\n(b) in accordance with any other arrangement the Commissioner\nof Territory Revenue approves.\n18 Amount of quarterly instalments\n(1) Each quarterly instalment of a royalty for a royalty year is calculated\nunder section 14 and based on the value of the minerals extracted\nin the quarter.\n(2) The calculation of the value of the mineral under subsection (1) is\ndetermined in accordance with section 15 as if a reference in that\nsection to the royalty year were a reference to a quarter.\n19 Annual adjustment of royalty paid\n(1) If the amount of the royalty paid by the holder of a mining tenement\nunder section 18 in a royalty year is greater than the correct amount\nof royalty payable by the holder in respect of the royalty year, the\nholder is entitled to a refund equal to the difference.\n(2) If the amount of royalty paid or payable by the holder of a mining\ntenement under section 18 in a royalty year is less than the correct\namount of royalty payable by the holder in respect of the royalty\nyear, the holder must pay as royalty an amount equal to the\ndifference.\n\nPart 3 Miscellaneous matters\nMineral Royalties Act 2024 12\nPart 3 Miscellaneous matters\n20 Registration by holder of mining tenements\n(1) The holder of a mining tenement must register with the\nCommissioner of Territory Revenue within 30 days after the holder\nstarts extracting a mineral from the tenement.\n(2) Registration under this section must be in the form approved by,\nand manner determined by, the Commissioner of Territory\nRevenue.\n(3) The Commissioner of Territory Revenue may cancel the registration\nof the holder of the mining tenement if:\n(a) mineral extraction ceases following a permanent shutdown of\noperations under the mining tenement; or\n(b) the mining tenement is transferred to another person; or\n(c) the registration is not required for any other reason.\n21 Notification of events\n(1) The holder of a mining tenement must notify the Commissioner of\nTerritory Revenue within 30 days after the day:\n(a) the holder ceases extracting a mineral during an extended or\npermanent shutdown of operations in a mining operation; or\n(b) the holder recommences extracting a mineral after an\nextended or permanent shutdown of operations in a mining\noperation; or\n(c) there is a change in ownership of the mining tenement.\n(2) Notification under this section must be in the form approved by, and\nmanner determined by, the Commissioner of Territory Revenue.\n22 Lodgement of returns\n(1) The holder of a mining tenement must lodge a royalty return with\nthe Commissioner of Territory Revenue within 30 days after the end\nof a royalty year for the holder of the mining tenement.\n\nPart 3 Miscellaneous matters\nMineral Royalties Act 2024 13\n(2) The holder of a mining tenement must also lodge a royalty return\nwith the Commissioner of Territory Revenue within 30 days after\nthe day:\n(a) the holder of the mining tenement ceases extracting a mineral\nduring an extended or permanent shutdown of operations in a\nmining operation; or\n(b) there is a change in ownership of the mining tenement.\n(3) On application, the Commissioner of Territory Revenue may waive\nthe requirement to lodge a royalty return under subsection (2) if:\n(a) the requirement is triggered by a change in ownership of the\nmining tenement; and\n(b) the change does not interrupt the operation of the mining\noperation or the accounts relating to mineral extraction.\n(4) A royalty return must be lodged in the form approved by, and\nmanner determined by, the Commissioner of Territory Revenue.\n(5) If a mining operation has more than one holder of a mining\ntenement or more than one mining tenement:\n(a) a single royalty return must be lodged for the mining\noperation; and\n(b) the holders of the mining tenements may authorise a single\nperson to lodge the royalty return; and\n(c) the lodgement of a single royalty return for the mining\noperation does not affect the joint and several liability of each\nholder to pay royalty for the mineral extracted from the mining\noperation.\n23 Powers of Commissioner of Territory Revenue\nThe Commissioner of Territory Revenue may:\n(a) recognise markets and determine prices, methods and the\nrequirements for making an estimate of value under\nsection 15(1)(d)(iii) and (iv); and\n(b) determine the information and manner required for:\n(i) the registration of a holder of a mining tenement under\nsection 20; and\n(ii) the notification of an event under section 21; and\n\nPart 3 Miscellaneous matters\nMineral Royalties Act 2024 14\n(ii) the lodgement of a royalty return under section 22; and\n(c) approve forms and other matters required for this Act.\n24 Regulations\n(1) The Administrator may make regulations under this Act.\nNote for subsection (1)\nSee section 65 of the Interpretation Act 1978.\n(2) A regulation may:\n(a) provide for matters of a transitional nature to allow or facilitate\nthe transition of a mineral referred to in section 10(5) from the\noperation of the Mineral Royalty Act 1982 to this Act; and\n(b) prescribe fees payable under this Act; and\n(c) apply, adopt or incorporate, with or without changes, the\nwhole or part of a document as in force or existing at a\nparticular time or from time to time.\n\nSchedule 1 Royalty rates\nMineral Royalties Act 2024 15\nSchedule 1 Royalty rates\nsection 13(1)\nMineral Royalty rate\nAlumina 3.5%\nAluminium 2.5%\nBauxite 7.5%\nChromite (concentrate) 5.0%\nCoal 7.5%\nCobalt (concentrate) 5.0%\nCobalt (metal) 2.5%\nCopper (crushed or screened material) 7.5%\nCopper (concentrate) 5.0%\nCopper (metal) 2.5%\nDiamond 5.0%\nFeldspar 5.0%\nFerrovanadium 2.5%\nGarnet 5.0%\nGems and precious stones 7.5%\nGold (nuggets) 7.5%\nGold (gravity recovery) 5.0%\nGold (doré) 3.5%\nGraphite (flake concentrate) 5.0%\nGraphite (spherical) 3.5%\nIlmenite 5.0%\nIron ore (crushed or screened material) 7.5%\n\nSchedule 1 Royalty rates\nMineral Royalties Act 2024 16\nMineral Royalty rate\nIron ore (beneficiated) 5.0%\nIron ore (magnetite) 5.0%\nKaolin 5.0%\nLead (concentrate) 5.0%\nLead (metal) 2.5%\nLeucoxene 5.0%\nLimestone 7.5%\nLithium (crushed or screened material) 7.5%\nLithium (concentrate) 5.0%\nLithium (hydroxide and carbonate) 3.5%\nMagnesium (crushed or screened material) 7.5%\nMagnesium (concentrate) 5.0%\nMagnesium (calcined magnesia) 3.5%\nMagnesium (metal) 2.5%\nManganese (crushed or screened material) 7.5%\nManganese (beneficiated) 5.0%\nMolybdenum (concentrate) 5.0%\nMolybdenum (metal) 2.5%\nNickel (crushed or screened material) 7.5%\nNickel (concentrate) 5.0%\nNickel (metal) 2.5%\nOchre 5.0%\nPlatinoids (metal) 2.5%\nPhosphate (crushed or screened material) 7.5%\nPhosphate (concentrate) 5.0%\n\nSchedule 1 Royalty rates\nMineral Royalties Act 2024 17\nMineral Royalty rate\nPhosphoric acid 3.5%\nQuicklime 3.5%\nRare earths (concentrate) 5.0%\nRare earths (oxide) 2.5%\nRare earths (metal) 2.5%\nRutile 5.0%\nSalt 2.5%\nSemi-precious stones (including specimen\nstones)\n7.5%\nSilicon (metal) 2.5%\nSilver (concentrate) 5.0%\nSilver (doré) 3.5%\nSilver (metal) 2.5%\nSpongolite 5.0%\nTantalum (concentrate) 5.0%\nTitanium (slag or dioxide) 3.5%\nTitanium (metal) 2.5%\nTungsten (concentrate) 5.0%\nTungsten (metal) 2.5%\nTin (concentrate) 5.0%\nTin (metal) 2.5%\nVanadium (concentrate) 5.0%\nVanadium (pentoxide) 3.5%\nZinc (concentrate) 5.0%\nZinc (metal) 2.5%\n\nSchedule 1 Royalty rates\nMineral Royalties Act 2024 18\nMineral Royalty rate\nZircon 5.0%\n\nSchedule 2 Royalty rates for categories of minerals\nMineral Royalties Act 2024 19\nSchedule 2 Royalty rates for categories of minerals\nsection 13(2)\nCategory of mineral Royalty rate\nCategory 1 7.5%\nCategory 2 5.0%\nCategory 3 3.5%\nCategory 4 2.5%\n\nENDNOTES\nMineral Royalties Act 2024 20\nENDNOTES\n1 KEY\nKey to abbreviations\namd = amended od = order\napp = appendix om = omitted\nbl = by-law pt = Part\nch = Chapter r = regulation/rule\ncl = clause rem = remainder\ndiv = Division renum = renumbered\nexp = expires/expired rep = repealed\nf = forms s = section\nGaz = Gazette sch = Schedule\nhdg = heading sdiv = Subdivision\nins = inserted SL = Subordinate Legislation\nlt = long title sub = substituted\nnc = not commenced\n2 LIST OF LEGISLATION\nMineral Royalties Act 2024 (Act No. 12, 2024)\nAssent date 11 June 2024\nCommenced 1 July 2024 (s 2)\n3 LIST OF AMENDMENTS\npt 4 hdg rep No. 12, 2024, s 30\npt 4\ndiv 1 hdg rep No. 12, 2024, s 30\nss 25 – 27 rep No. 12, 2024, s 30\npt 4\ndiv 2 hdg rep No. 12, 2024, s 30\nss 28 – 29 rep No. 12, 2024, s 30\npt 4\ndiv 3 hdg rep No. 12, 2024, s 30\ns 30 rep No. 12, 2024, s 30","sortOrder":0}],"analysis":{"kimi_summary":{"content_quality":"ok","complexity_score":5,"scope_assessment":{"changed":false,"description":"The legislation appears consistent with its original intent as stated in the long title: to impose royalties on minerals extracted after 1 July 2024, make consequential amendments to related Acts, and provide for related purposes. The scope remains focused on mineral extraction taxation without significant mission creep, though it includes detailed administrative machinery necessary for implementation."},"complexity_factors":["Multiple valuation methodologies in section 15 with cascading priority rules (paragraphs (a) through (d)(iv))","Extensive cross-referencing to external legislation including the Mineral Titles Act 2010, Taxation Administration Act 2007, Mineral Royalty Act 1982, and Commonwealth GST Act","Complex application rules in section 10 with multiple exclusions and a regulation-making power to bring excluded operations back into the regime","Defined terms requiring reference to other sections (e.g., 'arm's length terms', 'genuine sale', 'Australian Dollar Equivalent')","Conditional logic for royalty determination dates (section 8) and liability timing (section 12) with alternative triggers","Detailed deduction limitations in section 16 with five specific exclusion categories plus anti-double-dipping provisions","Two-tiered rate structure (Schedule 1 for specific minerals, Schedule 2 for categories by processing level) with a default 7.5% fallback rate"],"plain_english_summary":"This is the **Mineral Royalties Act 2024**, a Northern Territory law that introduces a new system for charging mining companies a fee (called a **royalty**) when they extract minerals from Territory land.\n\n**What it does:**\n- **Imposes a royalty** on minerals extracted on or after 1 July 2024, replacing the old Mineral Royalty Act 1982 for most operations.\n- **Sets different tax rates** depending on what mineral is extracted and how much it has been processed. Raw materials (like crushed ore) generally pay higher rates (up to 7.5%), while refined metals pay lower rates (as low as 2.5%).\n- **Calculates value** based on actual sale prices where possible. If minerals aren't sold in a genuine market transaction, the law provides fallback methods including market quotes or Commissioner-determined values.\n- **Allows deductions** for shipping costs within the Territory, but not for transport outside the Territory or processing costs.\n- **Requires quarterly payments** with an annual reconciliation (adjustment) at year-end.\n\n**Who it affects:**\n- **Mining companies** holding mining tenements (licences to extract minerals) in the Northern Territory.\n- **Exclusions apply:** The law doesn't cover certain existing mining operations that were active before 2024 (grandfathered under the old law), specific projects covered by special agreements (like the McArthur River or Merlin projects), uranium (federally regulated), or construction materials like sand and gravel from small-scale permits.\n\n**Why it matters:**\n- It modernises the Territory's mining tax system, creating clearer rules for valuing minerals and ensuring the Territory receives revenue from its natural resources.\n- It incentivises **value-adding** (processing minerals locally) by charging lower rates for more refined products.\n- It aligns administration with the Territory's general tax system by applying the Taxation Administration Act 2007 to royalty collection."},"flash_summary":{"complexity_score":7,"scope_assessment":{"changed":true,"description":"This Act modernises and broadens the royalty regime compared with the older framework it replaces. Concrete scope changes include:\n\n- Treatment‑based categorisation and differential rates (s 9, Schedule 2) and explicit product-level rates in Schedule 1 that were not expressed in the same form under older legislation, shifting focus from raw extraction to the level of processing at which royalties are measured.\n- Explicit valuation ladder and Commissioner powers to recognise markets and set valuation methods (s 15, s 23), expanding administrative discretion beyond simple sale-price rules.\n- Inclusion of minerals recovered from tailings or mine waste in the definition of \"extract\" (s 3) broadens the taxable base to some secondary‑recovery activities.\n- Application of the Taxation Administration Act 2007 (s 11) brings standard tax administration and enforcement tools to royalty collection, increasing administrative reach.\n- Transitional carve‑outs for production units previously governed by the 1982 Act (s 10(2)) are present but regulations can re‑include such units (s 10(5), s 24(2)(a)), permitting future expansion of coverage.\n\nTaken together, these elements move the law beyond a simple extraction-levy model to a more detailed, treatment- and valuation-sensitive royalty regime with greater administrative discretion and a potentially broader taxable base."},"complexity_factors":["~30 defined terms in section 3 and several technical definitions spread through s 4–9","Multiple conditional valuation pathways in s 15 with four fallbacks (sale price, subsequent genuine sale, recognised market price, Commissioner price/method, holder estimate)","Large itemised rate schedules: Schedule 1 lists ~70 minerals/products with differing rates; Schedule 2 sets rates by treatment category","Nested exceptions and transitional carve‑outs in s 10 (multiple categories of exemptions and a power for regulations to re‑include certain production units)","Cross‑references to multiple external Acts (Mineral Titles Act 2010, Taxation Administration Act 2007, A New Tax System (GST) Act 1999) that import definitions and procedures","Several Commissioner discretions (s 5(2)(c) exchange rate, s 15 valuation method, s 23 market recognition and method setting) that increase interpretive complexity","Tight restrictions and exclusions on shipping-cost deductions (s 16) with multiple sub-exceptions","Quarterly instalment and annual reconciliation mechanics (s 17–19) create timing complexity and cashflow rules","Joint and several liability where an operation has multiple tenement holders with single-return options but retained liability (s 22(5))"],"plain_english_summary":"The Act from 1 July 2024 imposes a value‑based royalty on minerals extracted in the Northern Territory, payable by mining‑tenement holders. Rates are set by mineral or treatment category (with a 7.5% default), valuation follows sales or stepwise fallbacks, and quarterly instalments plus an annual reconciliation apply.\n\nIt matters because it raises extraction costs, creates incentives to process minerals further before royalty is assessed, gives the Commissioner valuation and market‑recognition powers, and imposes registration, reporting and compliance obligations on holders."},"issue_detection":{"absurdities":[],"contradictions":[]},"flash_summary_failed":{"failed":true,"reason":"A positive credit balance is required for all requests, including BYOK, so fallback providers remain available. Add credits at https://vercel.com/d?to=%2F%5Bteam%5D%2F%7E%2Fai%3Fmodal%3Dtop-up to continue.","source":"analysis-cron"}},"importantCases":[],"_links":{"self":"/api/acts/mineral-royalties-act-2024","history":"/api/acts/mineral-royalties-act-2024/history","analysis":"/api/acts/mineral-royalties-act-2024/analysis","conflicts":"/api/acts/mineral-royalties-act-2024/conflicts","importantCases":"/api/acts/mineral-royalties-act-2024/important-cases","documents":"/api/acts/mineral-royalties-act-2024/documents"}}