4Criteria for deferral of royalty

4 Criteria for deferral of royalty

For the purposes of section 102AA(3) of the Act, the following criteria are specified as the criteria that must be satisfied before an obligation to pay an amount of royalty in respect of a mining operation may be deferred under that section:

(a) that the relevant mining operation is substantially in operation at the time the deferral application has been made in respect of that mining operation;

(b) that the main purpose for deferring payment of the deferred royalty, under a deferred royalty agreement, is not to enable the relevant mining operation, or any other mining operation operated by the person making the deferral application, to be significantly expanded or upgraded;

(c) that, if the Treasurer does not agree to defer the obligation to pay the deferred royalty, payment of the deferred royalty in accordance with the Act would result in –

(i) a significant adverse impact on employment at, or investment in, the relevant mining operation; or

(ii) a significant threat to the long term viability of the relevant mining operation;

(d) that all other amounts of royalties, in respect of the relevant mining operation, owed under the Act by the person making the deferral application –

(i) have been paid; or

(ii) are being paid in accordance with an existing deferred royalty agreement;

(e) that, if the Treasurer agrees to defer the obligation to pay the deferred royalty, there will be no more than one deferred royalty agreement in force in respect of the relevant mining operation;

(f) that, if there is an existing deferred royalty agreement in respect of a relevant mining operation at the time a deferral application in respect of that mining operation is made, the deferred royalty in the deferral application includes any other amount of royalty that is owed under the existing deferred royalty agreement;

(g) that the deferral application has been made at least 4 days before the end of the quarter in respect of which the deferred royalty (other than any amount of royalty that is owed under an existing deferred royalty agreement) is due;